Canadian Royalties Announces Management Changes

Montr�al, Qu�bec � August 29, 2008 � Canadian Royalties Inc. (TSX:CZZ) (�Canadian Royalties� or the �Corporation�) today announced that Richard Faucher has resigned as President, Chief Executive Officer and Director of the Corporation, effective immediately.
 
The Board of Directors of Canadian Royalties has appointed Glenn J. Mullan as President and Chief Executive Officer on an interim basis. Mr. Mullan holds the office of Chairman of the Board, a position he has held since the incorporation of Canadian Royalties in July of 1998. Mr. Mullan is also a founder and former CEO of the Corporation.

"We sincerely wish to thank Mr. Faucher for his time, efforts and hard work and wish him well in his future endeavours. Canadian Royalties will immediately commence a search internally and externally for a permanent CEO" said Glenn J. Mullan. The Corporation also plans to call on Mr. Faucher�s expertise through a consulting relationship.

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 20 kilometers south of Xstrata Nickel�s Raglan Mine in Nunavik, Qu�bec. Canadian Royalties has received its Environmental Certificate of Authorization on May 21, 2008 and Mine Leases for the Expo, Mesamax, Ivakkak and Mequillon sites of its Nunavik Nickel Project, on July 29, 2008.

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 Corporation'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 Corporation'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 Nunavik Nickel Project is a technical viable and economic operation, that it can be successfully completed by the Corporation, that the Corporation will receive the requ ired permits and access to surface rights, and that the Corporation 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 and the Corporation does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.

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

Glenn J. Mullan, Chairman of the Board, Interim President and Chief Executive Officer
Canadian Royalties Inc.
Tel.: (514) 879-1688, ext. 1222
E-mail: mullan@canadianroyalties.com 

Marc Chaput, VP, Investor Relations and Communications
Canadian Royalties Inc.
Tel.: (514) 879-1688, ext. 1223
E-mail: marc.chaput@canadianroyalties.com
www.canadianroyalties.com

Renmark Financial Communications Inc.
Jason Roy: jroy@renmarkfinancial.com
Dan Symons : dsymons@renmarkfinancial.com
Media � Eva Jura: ejura@renmarkfinancial.com
Tel: (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com