Canadian Royalties Inc.: Exploration Update/MegaTEM� Survey Underway

MONTREAL, QUEBEC -- June 21, 2007 - Canadian Royalties Inc. (TSX: CZZ) announces that a property-wide airborne electromagnetic survey using the advanced MegaTEM� system is currently underway. The survey is provided by Fugro Airborne Surveys, and is anticipated to be completed prior to the start of the 2007 exploration program.

Exploration crews will mobilize to the site on June 30th, where two new drills have been delivered recently. The two new drills have significant depth capacity and will be used to test targets unattainable previously. A minimum of 15,000 metres of drilling will be executed, with a significant portion of the drilling allocated to testing newly generated MegaTEM� anomalies.

The exploration program is designed to explore for new resources having the greatest potential to impact the project while at the same time supporting mine development activities. The principle objectives of the program are as follows:

- Prospect, map and drill test anomalies generated by MegaTEM� and other geophysical surveys.

- Drill test conceptual geological targets.

- Infill drilling to confirm and add to reserves within specific mining envelopes.

- Drill test for deeper deposit extensions.

- Test peripheral geophysical targets that could affect current mine planning.

- Condemnation drilling at proposed infrastructure sites.

Qualified Persons

Grant Arnold (P.Geo.), V.P. Exploration for Canadian Royalties Inc., is the qualified person responsible for this release.

About Canadian Royalties and the Nunavik Nickel Project
Canadian Royalties is currently in the process of initiating the development of the Nunavik Nickel Project which is anticipated to be an independent, stand-alone Ni-Cu-PGE mining and milling operation in the general vicinity of Xstrata Nickel's Raglan Mine in Nunavik, Quebec.

Forward-looking Statement

This news release contains certain forward-looking statements. 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 dated March 31, 2007. Accordingly, readers should not place undue reliance on forward-looking statements.

(1) A bankable (full) feasibility study is a comprehensive analysis of a projects economics (+/- 15% precision) and is used by the banking industry for financing purposes. 

CONTACT INFORMATION:

Canadian Royalties Inc.
Richard R. Faucher, President & CEO
Toll free: 877-879-1688
faucher@canadianroyalties.com

Canadian Royalties Inc.
C. Jens Zinke, VP Business Development
Toll free: 877-879-1688
zinke@canadianroyalties.com
www.canadianroyalties.com

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TEL. : (514) 939-3989
FAX : (514) 939-3717
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