Press release

Montréal, Québec – March 18, 2008 - Canadian Royalties Inc. (TSX: CZZ) (the “Company” or “Canadian Royalties”) announces the closing of its previously announced offering of $125 million aggregate principal amount of convertible senior unsecured debentures due March 31, 2015 (the “Debentures”). BMO Capital Markets acted as lead underwriter in connection with the offering on behalf of a syndicate of underwriters which included Raymond James Ltd. and Desjardins Securities Inc. (the “Underwriters”).

In connection with the offering, Canadian Royalties granted the Underwriters an option to purchase up to an additional $12,500,000 in principal amount of Debentures on the same terms and conditions, exercisable up to 30 days following closing of the offering to cover over-allotments and for market stabilization purposes. The Underwriters have exercised their option and a total of $137,500,000 principal amount of Debentures were issued on closing. Solidarity Fund QFL (the “Fund”) and Caisse de dépôt et placement du Québec subscribed respectively to $20,000,000 and $40,000,000 principal amount of Debentures.

The funds raised will allow Canadian Royalties to continue the development of the Nunavik Nickel Project and will be used for general corporate and administrative purposes.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

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 kilometres south of Xstrata Nickel's Raglan Mine in northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources.

About the Solidarity Fund QFL

With net assets of over $7.4 billion as at November 30, 2007, the Fund is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec’s economic growth. The Fund is a partner, either members, in 1,696 companies. It currently has more than 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect over 122,000 jobs. For more information, visit www.fondsftq.com.

About Caisse de dépôt et placement du Québec

The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2007, it held $155.4 billion of net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.lacaisse.com .

Forward-looking Statements

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 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 Amended and Restated Annual Information Form for the year ended December 31, 2006 and dated July 10, 2007. 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 Company, that the Company will receive the required permits and access to surface rights, and that the Company can access financing, appropriate equipment, and sufficient labor. 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. Accordingly, readers should not place undue reliance on forward-looking statements.

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