Canadian Royalties Responds to Announcement by Goldbrook and Jilin Jien

MONTREAL, QUEBEC--(Marketwire - Aug. 10, 2009) - Canadian Royalties Inc. (the "Company")CZZ notes the announcement by Goldbrook Ventures Inc. ("Goldbrook") and Jilin Jien Nickel Industry Co., Ltd. ("Jilin Jien") that they intend to make an offer to acquire 100% of the Company's outstanding shares (the "Shares") for cash consideration of Cdn$0.60 per Share and 100% of the Company's outstanding convertible senior unsecured debentures (the "Debentures") for cash consideration of Cdn$600 per Cdn$1,000 principal amount, plus accrued and unpaid interest up to, but excluding, the date the Debentures are taken up under the proposed offer. No formal offer has been made and no action is required by the Company's shareholders or debentureholders at this time. The Company recommends that its shareholders and debentureholders defer making any decision with respect to the offer until the Board of Directors receives and considers an offer and formally communicates to shareholders and debentureholders its position on any such offer. The Board of Directors will advise shareholders and debentureholders of its position on any such offer by news release and directors' circular, as required by applicable securities law. Until an offer is received and reviewed, the Board of Directors may determine not to comment further or speculate on any course of action that it may advise or take. The Company has formed a special committee (the "Special Committee") of independent directors to review and consider any offer that may ultimately be received by the Company. Canadian Royalties is committed to ensuring that its shareholders are advised promptly of all developments in connection with this unsolicited proposal and to take all of the steps open to it to maximize shareholder value if, as and when a take over bid is actually made by Goldbrook and Jilin Jien. About Canadian Royalties and the Nunavik Nickel Project Canadian Royalties is a mineral exploration company whose principal active area is along the South Trend located in the Raglan mining district of Northern Quebec's Nunavik Region. Since 2001, the Company has discovered and delineated several potentially mineable nickel-copper-cobalt-platinum-palladium-gold deposits which collectively form the Nunavik Nickel Project (the "Project"). The Company has completed a Bankable Feasibility Study ("BFS") and has received its Environmental Certificate of Authorization ("CA"); it has also received mine leases for four sites, namely the Ivakkak, Mequillon, Expo, and Mesamax. An Impact and Benefits Agreement ("IBA") has been entered into between the Company, three (3) Inuit communities, and Makivik Corporation, the non profit legal representative of the Inuit; the IBA constitutes the Company's formal commitment to ensure a fair and sustainable distribution of the economic benefits stemming from the Project. Development of the Project was initiated in 2007, to be subsequently put on care and maintenance as a result of the 2008 financial crisis. The Company's objective is to develop and exploit the mineral resources comprising the Nunavik Nickel Project either independently or in partnership. 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 and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Some of these risks and uncertainties are identified and disclosed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2008. Accordingly, all of the forward-looking information contained in this press release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business operations, including the vesting of a 100% interest in the Expo-Ungava property as anticipated. All forward-looking statements speak only as of the date of this news release and the Company 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 applicable securities law. Accordingly, readers should not place undue reliance on forward-looking statements.