Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.
Blue Diamond Mining Corporation

February 24, 2005 07:30 ET

Grizzly Diamonds Enters into Option Agreement for the Legend and Little Legend Properties in Northern Alberta


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GRIZZLY DIAMONDS LTD.

TSX VENTURE SYMBOL: GZD

AND BLUE DIAMOND MINING CORPORATION

TSX VENTURE SYMBOL: BDM

FEBRUARY 24, 2005 - 07:30 ET

Grizzly Diamonds Enters into Option Agreement for the
Legend and Little Legend Properties in Northern Alberta

EDMONTON, ALBERTA--(CCNMatthews - Feb. 24, 2005) - Grizzly Diamonds Ltd.
(TSX VENTURE:GZD) ("Grizzly") today announced that it has signed an
option agreement (the "Agreement") with Blue Diamond Mining Corporation
(TSX VENTURE:BDM) ("Blue"), an Alberta based company at "arms length" to
Grizzly, to acquire an undivided 60% mineral interest in the Legend
Property and an undivided 51% mineral interest in the Little Legend
Property, both located in the Birch Mountains of Northeast Alberta and
comprised of approximately 360,000 acres (145,000 hectares). Blue owns
an undivided 85% mineral interest in the Little Legend Property and the
remaining undivided 15% carried interest is owned by Grizzly Gold Inc.,
a corporation controlled by Brian Testo, the President and CEO of
Grizzly.

In order to acquire 60% interest in the Property, Grizzly must complete
exploration expenditures of $100,000 on the Property within the next 18
months. The exploration plan for 2005 consists of ground geophysics and
drilling.

Grizzly Diamonds Ltd. is an aggressive Canadian exploration company
focused on exploring for diamonds in Alberta and precious metals in
North America. Grizzly currently holds four diamond properties in
Alberta totaling approximately 1.2 million acres which host prospective
geophysical targets and associated diamond indicator minerals. Grizzly
also holds four precious-base metal properties in British Columbia
totaling over 23,000 acres.



On behalf of the Board
Grizzly Diamonds Ltd.
/s/ "Brian Testo"
Brian Testo
President

On behalf of the Board
Blue Diamond Mining Corporation
/s/ "Larry Kryska"
Larry Kryska
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.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Grizzly Diamonds Ltd.
    Brian Testo
    President
    (780) 693-2365
    (780) 433-1336 (FAX)
    Website: www.grizzlydiamonds.com
    or
    Blue Diamond Mining Corporation
    Larry Kryska
    President
    (780) 417-5117
    (780) 417-5181 (FAX)
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.