Mequillon deposit improves with drilling (January 10, 2005)

Canadian Royalties (CZZ-T) continues to hit significant nickel-, copper- and platinum-group-element-bearing sulphide mineralization at its Expo-Ungava property in northern Quebec.

Results from 19 diamond drill holes on the Mequillon deposit include one hole that cut 42.9 metres grading 0.83% nickel, 1.11% copper and 0.04% cobalt, plus 0.17 gram gold, 0.75 gram platinum, and 3.16 grams palladium per tonne. Included in this intercept was a 26.2-metre interval of 1.17 nickel, 1.18% copper, 0.05% cobalt, 0.21 gram gold, 1.06 grams platinum, and 4.54 grams palladium at down-hole depth of 100 metres.

Another hole cut 1 gram gold, 1.32 grams platinum, 3.94 grams palladium, 1.37% nickel, 2.99% copper, and 0.06% cobalt over 4.3 metres.

Two holes hit 10-metre sections that graded 1% and 1.41% nickel, 1.03% and 1.37% copper, 0.04% and 0.06% cobalt, 0.18- and 0.16-gram gold, 1.4- and 0.86-grams platinum, and 5.14- and 3.25-grams palladium per tonne.

Twelve holes intersected 2-139 metres grading 0.26-0.9% nickel, 0.35-2.2% copper, 0.02-0.04% cobalt, 0.07-1.2 grams gold, 0.26-1.17 grams platinum, and 0.9-4.25 grams palladium per tonne. Three holes failed to cut significant mineralization.

Mineralization was cut at 14 metres down-hole in the hole that cut 139 metres of mineralization. True width is interpreted to be at least 70% of the down-hole depth.

The deposit has been traced for 1,000 metres along strike and is open to the east. Sulphide mineralization is found at the lower contact of the ultramafic host. Normally the highest grade is at the bottom of the mineralized interval.

Assay data for an additional 19 holes are pending. A new resource estimate will be calculated using these results.

Canadian Royalties owns 70% of the property; Ungava Minerals (UGVAF-O), 30%. Canadian Royalties can increase its ownership by 10% by completing a bankable feasibility study.