Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

December 22, 2006 19:13 ET

Grizzly Diamonds Closes $990,000 Private Placement

EDMONTON, ALBERTA--(CCNMatthews - Dec. 22, 2006) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FWB:G6H) (the "Corporation") today announced that it has closed a non-brokered private placement of 900,000 units of the Corporation("Units") at a price of $1.10 per Unit for gross proceeds of $990,000. Each Unit consisted of one flow-through common share of the Corporation ("FT Share") and one-half of a transferable common share purchase warrant (a "Warrant"). Each whole Warrant may be exercised for one additional non-flow through common share of the Corporation ("Common Share") at a price of $1.50 per Common Share until December 22, 2007.

The Units were sold to qualified purchasers resident in Alberta, British Columbia and Ontario in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. MineralFields Group purchased an aggregate of 700,000 Units. The FT Shares and Warrants comprising the Units and the Common Shares issuable upon exercise of the Warrants are subject to a 4 month restricted period expiring on April 23, 2007.

In connection with the Offering, the Corporation paid Limited Market Dealer Inc. and Credifinance Securities Limited an aggregate finder's fee of $79,200 cash (equal to 8% of the proceeds from the sale of the Units). The Corporation also issued non-transferable finder's options ("Finder's Options") to acquire up to 90,000 units of the Corporation ("Finder's Units") (equal to 10% of the Units sold) at a price of $1.10 per Finder's Unit until December 22, 2007. The Finder's Units are on the same terms as the Units except that they consist of one Common Share and one-half of a Warrant. The Finder's Options, Common Shares and Warrants comprising the Finder's Units and the Common Shares issuable upon exercise of the Warrants comprising the Finder's Units are subject to a 4 month restricted period expiring on April 23, 2007.

The proceeds from the sale of the FT Shares will be used to incur expenditures which qualify as Canadian Exploration Expenses and will be spent primarily on the Corporation's British Columbia properties.

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 four 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.

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.

About MineralFields Group

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.

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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