Grizzly Diamonds Ltd.
TSX VENTURE : GZD

Grizzly Diamonds Ltd.

January 31, 2006 12:24 ET

Grizzly Diamonds Commences Drilling at the Legend Property, Northeast Alberta

EDMONTON, ALBERTA--(CCNMatthews - Jan. 31, 2006) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) ("Grizzly") today announced that it has commenced drilling at its Legend Property, Northeast Alberta. Three high priority magnetic targets will be tested during the Legend Property drill campaign (Lammasu North, Lammasu South, and Argonaut).

Further to a November 21st press release, preliminary petrographic results have been received from Mineral Services Canada Inc. which confirm that the boulders discovered within the Smokey the Bear Property are Hypabyssal Kimberlite.

As part of an aggressive winter exploration program, Grizzly's field crew continues to complete ground geophysical surveys within the Grand Cub Aidan Property in the Buffalo Head Hills region to further delineate specific drill targets. As well, priority airborne geophysical targets from the Preston Upon the Wolverine Property have been selected for follow-up ground geophysical surveying and possibly drilling.

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 Calling Lake 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.

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 responsibility for the adequacy or accuracy of this release.

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