Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

October 29, 2007 14:19 ET

Grizzly Diamonds Announces Private Placement

EDMONTON, ALBERTA--(Marketwire - Oct. 29, 2007) - Grizzly Diamonds Ltd. (the "Corporation") (TSX VENTURE:GZD)(FRANKFURT:G6H) today announced that it will be offering ("Offering") on a private placement basis up to 1,250,000 flow-through units ("FT Units") at a price of $1.20 per FT Unit and up to 1,000,000 non-flow through units ("Non-FT Units") at a price of $1.00 per Non-FT Unit for gross proceeds of $2.5 million if the Offering is fully subscribed. Each FT Unit will consist of one "flow-through" common share of the Corporation ("FT Share") and one-half of a non-transferable share purchase warrant ("Warrant"). Each Non-FT Unit will consist of one common share of the Corporation ("Non-FT Share") and one-half of a Warrant. Each whole Warrant will entitle the holder to acquire one additional Non-FT Share at a price of $1.50 within 12 months of issuance.

Osprey Capital Partners (the "Agent") has agreed to act as non-exclusive agent of the Corporation in connection with the Offering and will receive a fee equal to 7% of the FT Units and Non-FT Units (collectively, the "Units") sold by the Agent. The Units will be offered to qualified purchasers resident in Alberta, British Columbia, Manitoba, Ontario and such other jurisdictions as may be agreed to between the Corporation and the Agent, in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation.

The Offering and payment of the fee to the Agent is subject to approval of the TSX Venture Exchange.

Grizzly Diamonds is an aggressive Canadian exploration company focused on exploring for diamonds in Alberta and precious metals in North America. It currently holds diamond properties in the Buffalo Head Hills, Birch Mountains and Pelican Mountain areas of Alberta totaling over three million acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia, the Corporation has four precious metal properties totaling over 23,000 acres.

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. Actual results may differ materially from those anticipated in these statements.

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

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