Canadian Royalties Announces Amendments to the Corporation's Stock Option Plan

Montr�al, Qu�bec - May 20, 2008 - Canadian Royalties Inc. (TSX: CZZ) (the "Corporation" or "Canadian Royalties") announces that its Board of Directors has approved an amendment to the Corporation's Stock Option Plan (the "Stock Option Plan").

In response to a recommendation by Institutional Shareholder Services ("ISS"), the Stock Option Plan has been amended to reduce the aggregate number of common shares reserved for issuance under the Stock Option Plan from 14,995,627 to 13,995,627 common shares. In addition, the Board of Directors has adopted a resolution pursuant to which:

(i) the term of any option to be issued under the Stock Option Plan shall not exceed 5 years;
(ii) the participation of any director in the Stock Option Plan be limited to the lesser of (a) 1% of all outstanding common shares of the Corporation; and (b) an annual equity award value of $100,000 per grant of options to one director.

ISS provides proxy research, voting services and corporate governance advisory services to financial institutions and corporations. The resolution in respect of the Stock Option Plan to be put before the shareholders at the annual and special meeting will be revised to incorporate the above-described amendment. The Corporation understands that ISS will issue a recommendation to vote in favor of the revised Stock Option Plan.

About Canadian Royalties and the Nunavik Nickel Project
Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located in northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources.

Forward-looking Statement
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2007 and dated March 31, 2008. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Project is a technically viable and economic operation, that it can be successfully completed by the Company, that the Company will receive the required permits and access to su rface rights, and that the Company can access financing, appropriate equipment, and sufficient labour. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.

For additional information please visit our website at www.canadianroyalties.com or contact:

Richard R. Faucher, President & CEO
800 Ren�-L�vesque Blvd. West, Suite 410
Montreal, Quebec H3B 1X9
Toll free: (877) 879-1688
Email: faucher@canadianroyalties.com 

C. Jens Zinke, VP Business Development
800 Ren�-L�vesque Blvd. West, Suite 410
Montreal, Quebec H3B 1X9
Toll free: (877) 879-1688
Email: zinke@canadianroyalties.com

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