Canadian Royalties Announces Financial Results for the Quarter Ended March 31, 2007

MONTREAL, QUEBEC - May 15, 2008 - Canadian Royalties Inc. (TSX: CZZ) ("Canadian Royalties" or the "Corporation") announces that it filed on May 15, 2008 its financial results for the Quarter ended March 31, 2008.

Financial Results Quarter Ended March 31

During the quarter the company continued its progress towards the development of the Nunavik Nickel Project planning the start of construction work early in the summer of 2008 once the appropriate permits have been approved. As part of this process, on April 9, 2008, the Corporation, three Inuit communities located in the vicinity of the Project and the Makivik Corporation signed an Impact and Benefits Agreement (the "IBA"). The IBA is a formal commitment by the company to ensure fair distribution of the economic benefits arising from the project. The company is expecting the regulatory authorities to issue the Global Certificate of Authorization by the end of May 2008.

As of March 31, 2008, the company had spent and committed approximately $ 124.9 million in investments for engineering and equipment for the $ 465.6 million project. The investments have been funded through $ 100 million of equity issued in 2007, $ 9.8 million of supplier equipment loans and the convertible debenture financing of $ 137.5 million completed in March 2008. The remainder of the project investment funding will be in the form of a project term loan currently being negotiated with a consortium of banks.

Income Statement Highlights

(in thousands of Cdn dollars, except per share amounts)

             
            Three Months             Three Months

                                                                  2008                             2007

Net loss                                                      1,902                             406

Net loss per share                                       0.019                            0.006

The Net loss for the quarter reflects the cost of additional support staff due to the increased activity level and increased professional fees.

Balance Sheet Highlights
(in thousands of Cdn dollars)