Cosan Limited (CZZ)

[Ed Monton]

The market didnt like the last news.



Canadian Royalties Inc.: Raglan South Trend Exploration Update

Friday August 8, 5:13 pm ET

VAL D'OR, QUEBEC--Canadian Royalties Inc. (TSX-Venture symbol: CZZ) reports that its 2003 field program on its extensive holdings (over 1000 square kilometers) in the Raglan South Trend area of Nunavik (Ungava), Quebec is well underway and that diamond drilling is ongoing with two diamond drills. Over 9500 meters of drilling had been completed this season as of July 31. Other exploration activities currently underway include prospecting, geological mapping, airborne geophysics, ground and downhole geophysical surveying, and metallurgical test work.

The 'state of the art' AEROTEM airborne geophysical survey being carried out for Canadian Royalties by Aeroquest Surveys Limited is nearing completion and initial interpretation of the data set is underway.

Initial diamond drilling in the early part of the 2003 field season focused on the area of the Mesamax Deposit where, in 2002, Canadian Royalties discovered near surface high-grade nickel-copper-cobalt and platinum group metals, in sulphide related mineralization. The details relating to Strathcona Mineral Services Ltd. evaluation of the Mesamax Deposit were highlighted in a press release dated April 15, 2003. Considerable infill drilling and exploratory drilling has been completed in the area around the Mesamax Deposit. No large scale extensions of the massive sulphide mineralization have been delineated, although some massive sulphide mineralization has been intersected beyond the drill holes completed in the 2001-2002 programs. Other areas of disseminated sulphide mineralization have been intersected farther removed from the Mesamax Deposit as well.

Canadian Royalties has also completed an initial, preliminary drill program consisting of 25 holes at the Expo Ungava site, a partially defined large tonnage low grade nickel copper cobalt platinum group metals (PGM) bearing sulphide related deposit. The Expo Ungava site was first drill tested in 1967, and was subsequently the subject of significant exploration programs in the period 1967-71, and a six diamond drill hole program in 1997. These programs were completed prior to Canadian Royalties optioning the property from Ungava Minerals Corp. (Press release January 19, 2001). The most recent resource calculation relating to the Expo Ungava Deposit site (R. Wares, 1997) predates NI 43-101 and was not to the standards of then current Policy NP-2A. An earlier resource calculation completed by AMAX Exploration Ltd. (MRNQ GM-26103) reported an overall resource of approximately 19 million tons averaging 0.47% nickel and 0.51 percent copper, including a higher grade resource of 4.244 million tons grading 0.75% nickel and 0.85% copper. This resource calculation predates, and does not conform to, NI 43-101. Other work by AMAX between 1967 and 1971 included open pit design, metallurgical testing of both the disseminated and massive sulphide mineralization, and platinum, palladium determinations on both types of mineralization. AMAX also completed exploration, including diamond drilling, at several other locations in the area including Kehoe, Cominga and Mesamax.

Diamond drilling at the Expo Ungava site in 2003 by Canadian Royalties includes infill drilling within the confines of the originally drilled area and diamond drilling along the northern limit of the deposit in an area not previously drill tested.

Of particular interest from this work is a hole, EX-03-01, drilled within the confines of the previously drilled area and which intersected 17.3 meters of massive to nearly massive pyrrhotite-pentlandite-chalcopyrite mineralization. No intersection of sulphide mineralization of this magnitude was ever reported from the historical diamond drilling completed at the Expo-Ungava site. The remaining holes drilled to date by Canadian Royalties intersected lesser amounts of massive sulphide along with intervals of disseminated sulphides or in some cases disseminated sulphides only.

A large number of samples from the early portion of the drill program have been delivered to the assay laboratory and are at various states of completion within the ALS Chemex analytical system. The Company expects to be in a position to start releasing assay results in about 10 days time.

Diamond drilling is being conducted out in the Mequillon and Tootoo areas now that fuel caches and camps have been moved to the western part of the property. It is currently anticipated that considerable diamond drilling will be carried out in this area over the next three weeks and that additional diamond drilling will be carried out in the Expo and Mesamax areas during 2003. Diamond drilling will be carried out at other targets as determined by exploration results.

As announced earlier today, three holes were drilled on the Colts Prospect with no significant results. The Canadian Royalties Colts Prospect is under option to Boulder Mining and is located on the North Trend east of the Falconbridge Donaldson Deposit, well to the north of the main properties of Canadian Royalties.

Bruce Durham, P.Geo. and President of Canadian Royalties Inc. is the designated Qualified Person responsible for the exploration program on the property and the person responsible for the preparation of this release.

Canadian Royalties Inc. also reports that the proposed amendments to the Stock Option Plan were approved by the shareholders at the last meeting of shareholders (June, 2003), and accordingly, the number of shares reserved for issuance under the Plan increased to 7,238,913 (which amounts to approximately 18% of the issued and outstanding shares), and the provision pertaining to the expiry of options after 90 days will be applicable provided only that the Corporation is classified as a Tier 2 issuer.

Canadian Royalties Inc. has discovered significant nickel-copper-platinum-palladium mineralization in the Raglan South Trend of Nunavik, Quebec. Canadian Royalties maintains a strong cash position and a portfolio of more than 200 property interests.


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Contact:

Canadian Royalties Inc.
Glenn J. Mullan
Chairman
Phone: [phone]
Email: [e-mail]
or
Canadian Royalties Inc.
Bruce Durham
President
Phone: [phone]
Email: [e-mail]

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