Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

December 30, 2008 13:16 ET

Grizzly Diamonds Closes $100,000 Private Placement

EDMONTON, ALBERTA--(Marketwire - Dec. 30, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) (the "Corporation") today announced that it has closed a non-brokered private placement offering ("Offering") of an aggregate of 200,000 units ("Units") at a price of $0.50 per Unit for gross proceeds of $100,000. Each Unit consisted of one common share of the Corporation ("Common Share") issued as a "flow-through share" pursuant to the Income Tax Act (Canada) and one-half of a non-transferable share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional Common Share at a price of $0.75 until December 30, 2010.

In connection with the Offering, the Corporation paid Pope & Company Limited of Toronto, Ontario a cash fee of $8,000 (representing 8% of the gross proceeds of the Offering) and non-transferable warrants ("Compensation Warrants") to acquire 20,000 Common Shares (representing 10% of the Units sold) at a price of $0.50 per Common Share until December 30, 2010.

The Units were sold to a qualified purchaser in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The securities comprising the Units and the Compensation Warrants together with any Common Shares issued pursuant to the exercise of the Warrants and Compensation Warrants will be subject to a restricted period expiring on May 1, 2009.

The proceeds from the sale of the Units will be used to incur expenditures which qualify as Canadian Exploration Expenses on the Corporation's mineral properties.

About Grizzly Diamonds Ltd.

Grizzly Diamonds is an aggressive Canadian exploration company focused on exploring for diamonds and industrial minerals in Alberta and precious metals in North America. It currently holds more than 2 million acres in diamond properties that host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains. It currently holds metallic minerals permits for potash totaling more than 850,000 acres along the Saskatchewan-Alberta border. In British Columbia, the Company has five precious-base metal properties totaling over 120,000 acres.

Grizzly trades on the TSX Venture Exchange, trading symbol GZD, with 20,738,625 shares issued to date.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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