Canadian Royalties Announces Amendments to the Corporation's Stock Option Plan

MONTREAL, QUEBEC, May 20 (MARKET WIRE) --
Canadian Royalties Inc. (TSX: CZZ) (the "Corporation" or "Canadian
Royalties") announces that its Board of Directors has approved an
amendment to the Corporation's Stock Option Plan (the "Stock Option
Plan").

In response to a recommendation by Institutional Shareholder Services
("ISS"), the Stock Option Plan has been amended to reduce the aggregate
number of common shares reserved for issuance under the Stock Option Plan
from 14,995,627 to 13,995,627 common shares. In addition, the Board of
Directors has adopted a resolution pursuant to which:

(i) the term of any option to be issued under the Stock Option Plan shall
not exceed 5 years;

(ii) the participation of any director in the Stock Option Plan be
limited to the lesser of (a) 1% of all outstanding common shares of the
Corporation; and (b) an annual equity award value of $100,000 per grant
of options to one director.

ISS provides proxy research, voting services and corporate governance
advisory services to financial institutions and corporations. The
resolution in respect of the Stock Option Plan to be put before the
shareholders at the annual and special meeting will be revised to
incorporate the above-described amendment. The Corporation understands
that ISS will issue a recommendation to vote in favor of the revised
Stock Option Plan.

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 in
northern Quebec. Canadian Royalties is proceeding with permitting
applications, as well as exploration for additional resources.

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 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 for the year ended
December 31, 2007 and dated March 31, 2008. 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 Project is a technically
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 labour. 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.

Contacts:
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

Copyright 2008, Market Wire, All rights reserved.

-0-