Grizzly Diamonds Ltd.
TSX VENTURE : GZD

Grizzly Diamonds Ltd.

September 16, 2005 12:04 ET

Grizzly Diamonds Announces Proposed Private Placement and Listing on the Frankfurt Stock Exchange

EDMONTON, ALBERTA--(CCNMatthews - Sept. 16, 2005) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) ("Grizzly") today announced that it will be offering on a non-brokered private placement basis (the "Offering") up to 3,000,000 units ("Units") and/or up to 500,000 flow-through common shares of the Corporation ("FT Shares") or a combination of Units and FT Shares at a price of $1.00 per Unit or FT Share, such that the Corporation will receive aggregate gross proceeds of $3 million. Each Unit will consist of one common share of the Corporation ("Common Share") and one-half of a non-transferable share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire an additional Common Share at a price of $1.50 at any time within one year of issuance. Insiders of the Corporation may participate in the Offering.

The Corporation also announced that its Common Shares have been listed for trading on the Frankfurt Stock Exchange under the symbol G6H - WKN-A0F464 by the German brokerage firm N.M. Fleishhacker AG (website: www.fleischhacker.de). No fees were paid by the Corporation to N.M. Fleischhacker AG in connection with the listing. The listing is expected to provide liquidity for the Common Shares and enable the Corporation to access the growing European investment demand for resource companies.

The Corporation 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 Calling Lake areas of Alberta totaling approximately 3,945,000 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.



On behalf of the Board
Grizzly Diamonds Ltd.
/s/ "Brian Testo"
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 responsability for the adequacy or accuracy of this release.

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