Cosan Limited (CZZ)

[Ed Monton]

CANADIAN ROYALTIES INC.

TSX VENTURE SYMBOL: CZZ

JULY 16, 2003 - 17:56 ET

Canadian Royalties Inc. Announces $3,000,000 Private
Placement of Flow Through Shares with Dundee Securities
Corporation

VAL D'OR, QUEBEC--Canadian Royalties Inc. (TSX-V symbol: CZZ)
announces that Dundee Securities Corporation has agreed to act as
Agent to complete a flow-through private placement, on a best
efforts basis, of up to 1,090,909 flow-through common shares at a
price of $2.75 per share, resulting in gross proceeds of up to
$3,000,000.

The securities will be offered in British Columbia, Alberta,
Quebec and Ontario. There will be a minimum subscription of
$25,000 for Canadian "accredited investors", with the exception
of Quebec, where the minimum subscription will be $150,000. The
offering is subject to regulatory approval, and to the
Corporation being a "Qualifying Issuer" at closing.

Dundee Securities Corporation will be paid a commission of 61/2%
of the gross proceeds raised in the offering. In addition, Dundee
Securities Corporation will receive an agent's option which will
allow it to purchase common shares equal in number to 61/2% of
the common shares, exerciseable at a price of $2.35 per common
share at any time within 24 months following closing of the
offering. All reasonable costs and expenses pursuant to the
offering will be borne by Canadian Royalties. Closing is
anticipated to occur on or before July 30, 2003, or such other
date as agreed upon by the Agent and the Corporation. The
proceeds from the flow-through common shares will be used for
expenses that qualify as Canadian Exploration Expenses, primarily
on Canadian Royalties' Nunavik, Quebec (Raglan area)
nickel-copper-platinum-palladium properties, and certain other
projects as determined by the Corporation.

After an initial delay due to dense snow coverage, exploration
activities on the Corporation's Nunavik, Quebec (Raglan South
Trend area) properties are operating at maximum capacity, and
have recently been focused on the the Mesamax area, the TK area
and the original Expo-Ungava area. Diamond drilling is
progressing with two diamond drills and a 5000 line kilometer
'state of the art' airborne magnetic and electromagnetic survey
is nearly complete. Preliminary results from the airborne surveys
are expected shortly. Assay results will be announced
periodically as they are received over the summer and fall, and
updates will be announced as the exploration program progresses.

Canadian Royalties Inc. has discovered significant
nickel-copper-platinum-palladium mineralization in the Raglan
South Trend of Nunavik, Québec.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE
SERVICE OR DISSEMINATION IN THE UNITED STATES.

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Royalties Inc.
R. Bruce Durham
President
[phone]
[e-mail]
or
Canadian Royalties Inc.
Jennifer L. Boyle
Vice President, Corporate and Legal Affairs
[phone]
[e-mail]