Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

December 15, 2009 16:12 ET

Grizzly Diamonds Closes Private Placement

EDMONTON, ALBERTA--(Marketwire - Dec. 15, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) (the "Corporation") today announced that it has closed a non-brokered private placement offering ("Offering") of an aggregate of 837,500 units ("Units") at a price of $0.40 per Unit for gross proceeds of $335,000. Each Unit consisted of one common share of the Corporation ("Common Share") and one non-transferable share purchase warrant ("Warrant") entitling the holder to acquire one additional Common Share at a price of $0.50 until December 15, 2010 and $0.60 thereafter until the earlier of: (a) 30 days following the issuance of a press release by the Issuer that the trading price of the Common Shares on the TSX Venture Exchange is at or greater than $0.80 per Common Share for 10 consecutive trading days; and (b) 24 months from the date of issuance.

In connection with the sale of 87,500 Units, the Corporation paid an aggregate cash fee to arm's length third parties of $2,800 (representing 8% of the gross proceeds from the sale of 87,500 Units) and issued non-transferable share purchase warrants ("Finder's Warrants") to ScotiaMcLeod to acquire an aggregate of 6,250 Common Shares (representing 10% of 62,500 Units) on the same terms as the Warrants.

The Units were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The Common Shares and Warrants comprising the Units, the Finder's Warrants together with any Common Shares issued pursuant to the exercise of the Warrants and Finder's Warrants will be subject to a restricted period expiring on April 16, 2010.

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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