Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

October 02, 2007 12:22 ET

Grizzly Diamonds Ltd.: Fall Program Approved for Buffalo Head Hills Diamond Properties, Alberta Priority Geophysical Targets Selected Suggestive of Kimberlite

EDMONTON, ALBERTA--(Marketwire - Oct. 2, 2007) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today announced that a fall ground exploration program has been approved for a number of its 100% owned Alberta Diamond Properties in the Buffalo Head Hills of Northern Alberta.

In April 2007 a high resolution fixed-wing airborne magnetic survey was completed at the Smoky The Bear and the southern portion of the Grand Cub Aidan properties with final data received in July, 2007. A thorough review of the data has resulted in the identification of more than 100 magnetic anomalies, including at least 10 high priority anomalies, which are of interest for follow-up exploration including detailed ground geophysical surveys followed by drill testing.

Based upon a recommended scope of work by APEX Geoscience Ltd., Grizzly has committed to a $120,000 fall ground geophysical program to conduct ground geophysical surveys over priority geophysical anomalies suggestive of kimberlite that were recently identified on the Smoky The Bear, Grand Cub Aidan and the Preston Upon Wolverine Properties. The scope of work will be to complete ground geophysical surveys over a minimum 20 targets in order to add to the existing inventory of 9 moderate to high priority drill-ready targets. A number of the prospective anomalies on the Smoky The Bear Property are within several hundred meters and as far as one to two kilometers from a number of the known Buffalo Head Hills Kimberlites.

Grizzly is working towards a significant drilling campaign during the winter of 2007-2008 and to test 10 to 15 priority targets in the Buffalo Head Hills region for the presence of kimberlite.

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 where a drill program is currently active.

All 2006 field programs are being conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

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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