Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

June 02, 2009 14:35 ET

Grizzly Acquires Interest in a BC Private Corporation, Adds Significant Gold Property Interest to Greenwood Gold Project

EDMONTON, ALBERTA--(Marketwire - June 2, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") is pleased to announce that it has indirectly acquired an interest in the Rock Creek Property (the "Property") through the acquisition of a 50% interest in a B.C. private corporation ("BCCo") from two arm's length individuals (collectively, the "Vendors"). BCCo holds an undivided 56% interest in the Property and is the operator. The Property is located near Rock Creek west of the town of Greenwood, B.C. and covers a contiguous block of mineral claims totaling approximately 8,786 acres. The Property is adjacent to Grizzly's existing Greenwood holdings (see Grizzly news releases dated March 10, 2008, July 23, 2008 and February 19, 2009) and brings Grizzly's total Greenwood Gold Project lands to approximately 162,000 acres (65,500 hectares). The Property is road accessible, hosts a number of historic mineral occurrences including, most notably, the Ket 28 gold showing and is less than 7 km northwest of Kinross Gold Corporation's ("Kinross") recently commissioned Buckhorn Mountain Gold Mine.

To acquire the 50% interest in BCCo and subject to regulatory approval, Grizzly must pay the Vendors the sum of $50,000 as follows:

(a) $25,000 cash; and

(b) the balance in common shares of Grizzly.

"The addition of the Rock Creek Property to Grizzly's Greenwood Gold Project makes Grizzly the dominant land holder in the region and a significant player in a world class gold district that has produced millions of ounces of gold historically and has the potential to produce many more significant discoveries." said Brian Testo, President and CEO of Grizzly. "The Greenwood Gold Project will be one of Grizzly's top priority projects during 2009 and beyond."

Rock Creek Gold Trend Joint Venture

The Rock Creek Property consists of a number of historic workings that are approximately 2 km south of Highway 3. The primary gold prospect on the Property is the Ket 28 gold showing which was discovered by Crown Resources Corp. during the early 1990's using airborne magnetics followed by reverse circulation (RC) drilling. The initial drilling program consisted of 7 RC holes with drill hole KT-1 intersecting 8.91 grams per tonne (g/t) gold (Au) (0.26 ounces per ton (oz/t)) over 6.10 m. Gold mineralization at the Ket 28 showing is spatially associated with polymetallic quartz veins and silicified shear/breccia zones hosted in highly deformed and altered Paleozoic Anarchist Formation volcanic and sedimentary rocks. In some cases, gold mineralization is associated with skarn-like alteration zones similar to those at the Buckhorn Mountain Gold Mine. The skarn-like zones are generally spatially associated with silicified alkalic intrusives in contact with Paleozoic sedimentary rocks. A small number of RC and diamond drill holes were drilled at the Ket 28 prospect and surrounding area during 1993 to 1996. No drilling and little exploration has been conducted on the Rock Creek Property since 1996. Highlight assay results from diamond drill holes completed during 1994 and 1996 include 4.46 g/t (0.13 oz/t) Au over 11.83 m and 52.18 g/t Au (1.522 oz/t) over 3.35 m from two separate intervals in hole 94RM2C and 8.09 g/t (0.236 oz/t) Au over 2.13 m in hole 96GH4C.

The historic mineralization and stratigraphic setting for the Ket 28 Prospect and the Rock Creek Property have similarities with Kinross' Buckhorn Mountain Gold Deposit, which exists only 7 km southeast of the Rock Creek Property. The Buckhorn Mountain Gold Deposit was recently commissioned into production and poured its first gold in October 2008 (see Kinross News Release dated November 5, 2008). The Buckhorn Mountain Gold Deposit contains Proven and Probable Reserves of 1.993 million tonnes at an average grade of 15.46 g/t (0.45 oz/t) for a total of 990,000 ounces of Au ( Gold mineralization at the Buckhorn Mountain Gold Deposit is associated with skarn zones within Paleozoic sedimentary rocks.

2009 Exploration Plan

Grizzly's 2009 exploration plan for its Greenwood Gold Project holdings consist of a comprehensive compilation of all prior exploration in the region along with a two to three month field program which will include mapping, rock and soil sampling, ground geophysics all leading to a fall drilling program. In addition, based upon the positive results of the 2008 helicopter-borne magnetic and electromagnetic survey, further airborne surveys are being considered, in particular, over the Sidley-Dayton and Rock Creek portion of the project area depending upon future financing activities. It is anticipated that fieldwork will commence late June to early July.

Grizzly is an aggressive Canadian exploration company focused on exploring for world class gold deposits in B.C. and diamonds and industrial minerals in Alberta. In B.C., Grizzly currently has five precious-base metal properties totaling over 175,000 acres. It currently holds more than 1 million acres in diamond properties that host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta. Grizzly has recently acquired metallic and industrial mineral permits for Potash totaling more than 1.4 million acres along the Saskatchewan-Alberta border.

All 2009 field and office exploration programs are being conducted under the supervision of Michael Dufresne, M.Sc., P.Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

Grizzly trades on the TSX Venture Exchange under the symbol GZD, with 21,734,735 common shares issued to date.

On behalf of the Board

Grizzly Diamonds Ltd.

Brian Testo, President

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from expectations are in Grizzly's documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at Grizzly disclaims any intention or obligation to revise or update such statements.

This news release also contains technical information that has been publicly sourced. Grizzly has not independently verified such information and accepts no responsibility for its accuracy or completeness.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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