Canadian Royalties expands Ivakkak (November 27, 2006)

Drilling this past field season by Canadian Royalties (CZZ-T, CRYAF-O) at the Ivakkak deposit on the Ungava peninsula of northern Quebec has indicated a longer and deeper mineralized zone.

Royalties drilled 58 holes this season; the 28 for which assays are now available include tests along the western edge of Ivakkak and step-back holes that tested the deposit at depth. The recent results show Ivakkak’s minimum strike length is 325 metres and its minimum downdip length is 150 metres.

Hole ST06-54, drilled on the western extreme of the Ivakkak grid, intersected 12.9 metres grading 1.47% nickel, 1.99% copper, 3.4 grams palladium and 0.8 gram platinum per tonne, with cobalt and gold credits; a 3.8-metre interval within that intersection graded 3.32% nickel and 4.46% copper, with 7.2 grams palladium and 1.8 grams platinum per tonne. The intersection, which started at 131 metres down-hole, is the deepest and farthest west that mineralization has been encountered at the deposit.

Near the eastern edge of the deposit, hole ST06-39 intersected 18.1 metres grading 1.65% nickel, 2% copper, 3.9 grams palladium and 0.8 gram platinum near surface. That intersection included a 5.6-metre interval with over 3% nickel and over 4% copper.

A hole drilled from a collar about 150 metres northeast of the surface trace of the deposit tested downdip extensions of the mineralization and encountered 4.8 metres grading 2.24% nickel, 2.92% copper, 5.3 grams palladium and 1.2 grams platinum per tonne.

A 2005 resource estimate, before the recent drill campaign, put the size of the indicated resource at Ivakkak at 520,000 tonnes grading 1.6% nickel, 2.1% copper, 0.07% cobalt, 3.4 grams palladium, 0.8 gram platinum and 0.2 gram gold per tonne. A revised estimate is planned once assays are available from the other 30 drill holes; new estimates are also planned for Royalties’ three other deposits, Mequillon, Mesamax and Expo.

Canadian Royalties has also finished drilling programs for the final feasibility study and environmental assessment, for geotechnical information and for resource calculations. There should be a revised resource figure by year-end.

Canadian Royalties trades in a 52-week range of $1.20 to $2.15 and at presstime was trading at $1.92.