Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

May 01, 2007 09:40 ET

Exploration Update for Alberta Diamond Properties and the Peak Property, BC

EDMONTON, ALBERTA--(CCNMatthews - May 1, 2007) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD)(FRANKFURT:G6H) ("Grizzly") today is pleased to provide the following exploration update for a number of its 100% owned Alberta Diamond Properties in the Buffalo Head Hills and the Birch Mountains of Northern Alberta, its joint ventured Call of the Wild Diamond Property in the Pelican Mountains area, north-central Alberta and the Peak precious-base metal property in north-central British Columbia.

Grizzly today is pleased to announce that it has signed a contract with DeBeers Canada to process the Legend Kimberlite mini-bulk sample at its Grande Prairie Dense Media Separation (DMS) processing facility from May 10 to 12th, 2007. Once the Legend Kimberlite sample is processed, the concentrate will be shipped to the Saskatchewan Research Council, Saskatoon, where the concentrate will be fused using standard caustic fusion procedures and then picked for diamonds. Grizzly expects to have final diamond results in hand by the end of May or early June.

Grizzly is pleased to provide an update on its high resolution fixed-wing airborne magnetic (HRAM) survey in progress in the Buffalo Head Hills area. The 25,000 line-km HRAM survey was commissioned in February with physical flying commencing in early March. The survey was expected to be completed by the end of March, however extreme winds and poor weather have delayed completion of the survey and moved the expected completion date to mid May with the delivery of final data sometime in June.

Grizzly and partner Stornoway Diamond Corporation (TSX:SWY) ("Stornoway") have completed a 25,000 line-km airborne magnetic survey at Grizzly's 100% owned Call of the Wild Diamond Property in the Pelican Mountains area, north-central Alberta. Under the terms of the agreement, Stornoway has earned it's initial 51% interest in the property by flying the entire property with an airborne fixed wing magnetic survey and collecting a number of diamond indicator samples. In total, 47 priority anomalies exist within the property for follow-up exploration. Stornoway plans to check all the priority anomalies this spring and will plan follow-up exploration based on the results of the anomaly checks.

Grizzly is currently planning its summer exploration program for the Peak precious-base metal property in north-central British Columbia. Ground geophysical surveys, including time domain electromagnetics are being planned along with geological mapping and sampling to be commenced in June. A drilling contractor has been secured for August in order to follow-up the 2006 drilling program with further drilling as well as the testing of a number of the airborne electromagnetic targets identified during May, 2006.

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 kimberlites, prospective geophysical targets and associated diamond indicator minerals. In British Columbia, the Corporation has four precious metal properties totaling over 23,000 acres.

All 2007 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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