Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

July 02, 2009 16:19 ET

Grizzly Diamonds Closes Private Placement

EDMONTON, ALBERTA--(Marketwire - July 2, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) (the "Corporation") is pleased to announce that on June 30, 2009 it effected a final closing of its non-brokered private placement offering ("Offering") with the sale of an additional 1,131,110 flow-through units ("FT Units") at a price of $0.45 per FT Unit for gross proceeds of $508,999.50. Each FT 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 $0.65 until June 30, 2010.

The FT 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 FT Units together with any Common Shares issued pursuant to the exercise of the Warrants will be subject to a restricted period expiring on November 1, 2009.

In total, the Corporation sold 1,984,220 FT Units and 235,000 units ("Units") at a price of $0.40 per Unit for gross proceeds of $986,899.50 pursuant to the non-brokered private placement offering. Each Unit consisted of one Common Share and one non-transferable share purchase warrant entitling the holder to acquire one additional Common Share at a price of $0.60 expiring one year from issuance.

The Corporation intends to use the proceeds from the sale of the FT Units to incur expenditures which qualify as Canadian Exploration Expenses on the Corporation's recently enlarged Greenwood Gold Project in British Columbia.

The Corporation is also pleased to announce that subsequent to the closing of the private placement, it entered into an agreement dated June 30, 2009 (the "IR Agreement") with Greg Worobec of Vancouver, B.C. for the provision of investor relations services. Mr. Worobec is at arm's length to Insiders of the Corporation and does not have any interest, directly or indirectly, in, or to the Corporation's knowledge, any right or intent to acquire, securities of the Corporation. The IR Agreement is for an initial term of 3 months, commencing on July 1, 2009 and may be renewed monthly thereafter. Mr. Worobec will receive the sum of $1,000 per month and will be responsible for his own expenses unless the Corporation agrees to reimbursement for expenses prior to them being incurred. Pursuant to the IR Agreement, Mr. Worobec will develop a computerized investor database, plan and implement awareness campaigns following corporate news releases, maintain shareholder communications, initiate communications with brokers, in-house analysts and investors and review and provide recommendations on the Corporation's websites. The IR Agreement is subject to approval of the TSX Venture Exchange.

Grizzly is an aggressive Canadian exploration company focused on exploring for world class gold 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.

All 2009 field and office exploration programs are being conducted under the supervision of Mr. Michael Dufresne, M.Sc., P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

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

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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