Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

August 14, 2009 14:20 ET

Grizzly Purchases Merit Mining Corp.'s Interest in Rock Creek Joint Venture

EDMONTON, ALBERTA--(Marketwire - Aug. 14, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is pleased to announce that it has signed a binding Letter of Intent (LOI) to purchase all of Merit Mining Corp.'s (MEM:TSXV) ("Merit's") interest (approximately 44%) in the Rock Creek Gold Trend Joint Venture Property (the "Rock Creek Property"), a contiguous block of mineral claims totaling approximately 8,786 acres located west of the town of Greenwood, B.C. This brings Grizzly's total direct and indirect interest in the Rock Creek Property to 72%.

To acquire all of Merit's interest in the Rock Creek Gold Trend Joint Venture, Grizzly must pay the vendors as follows (subject to regulatory approval):

- $25,000 cash;

- a total of 75,000 common shares of Grizzly.

Grizzly had previously purchased a 50% interest in a private company which holds the remaining 56% interest in the Rock Creek Property (See Grizzly News Release dated June 2, 2009). The property is adjacent to Grizzly's existing Greenwood holdings (see Grizzly's news releases dated March 10, 2008, July 23, 2008 and Feb. 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 Corp.'s recently commissioned Buckhorn Mountain gold mine.

"The addition of the Rock Creek property to Grizzly's Greenwood gold project makes Grizzly the dominant landholder 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 chief executive officer of Grizzly. "The Greenwood gold project is 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 seven 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 metres (m). Gold mineralization at the Ket 28 showing is spatially associated with 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 deposit. The skarn zones are generally spatially associated with 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 have 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 (1.522 oz/t) Au over 3.35 m from two separate intervals in hole 94RM1-2C, along with 3.92 g/t (0.114 oz/t) Au over 4.57 m in hole 96GH3C 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's 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's news release dated November 5, 2008). The Buckhorn Mountain gold deposit contains proven and probable reserves of 1,993,000 tonnes at an average grade of 15.46 g/t (0.45 ounce per ton) 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.

Update 2009 Field Exploration

Grizzly is pleased to announce that it has commissioned Aeroquest Limited to commence a 1,600 line-km 2009 AeroTEM III survey over the Rock Creek Property and portions of Grizzly's Sidley-Dayton Property. Personnel from APEX Geoscience Ltd. are currently in the field and conducting geological mapping, rock and soil sampling, and ground geophysics. Assays from ground based fieldwork are expected to start arriving towards the end of August and will be reported upon once received and interpreted. Grizzly expects to commence diamond drilling during mid to late September.

All 2009 field programs are being conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person as defined under National Instrument 43-101.

About Grizzly Diamonds Ltd.

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

Grizzly trades on the TSX Venture Exchange under the symbol GZD, with 22,943,970 common shares issued and outstanding.

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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