Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

October 11, 2006 11:36 ET

Grizzly Diamonds Completes Drilling at the Peak Property, British Columbia

EDMONTON, ALBERTA--(CCNMatthews - Oct. 11, 2006) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FWB:G6H) ("Grizzly") today announced that it has completed its drill program at the Peak Property, B.C. In total 11 diamond drill holes were completed, totaling 1445.36 meters.

Drilling at the Peak Property tested precious and base metal mineralization at both the Rio and Ute showings. In total 7 drill holes tested the Ute showing and its western extension coincident with an historic linear IP geophysical anomaly. The remaining 4 drill holes tested the Rio showing. Sulphide bearing rocks were intersected in all drill holes within crosscutting veins, bedding conformable veins, faults or disseminated within volcanic rocks. Drilling at the Ute showing intersected a zone of sulphide veining and breccia of up to 3.5 meters in the core (Hole PK06-02) associated with a prominent fault structure. At the Rio showing, where surface exposures volcanic rocks host conformable sulphide veining, drilling intersected sulphide bearing veins up to 4.9 meters in width (Hole PK06-06) and disseminated sulphides within clastic volcanic units in significant intervals of more than 22 meters in the core (Hole PK06-06).

"We are extremely pleased that our drilling successfully confirmed the presence of widespread epithermal mineralization at the Peak Property" states Grizzly President Brian Testo. "We await assays from our drill campaign".

Drilling was completed on October 4th, 2006 and all samples have been shipped to ALS Chemex laboratory in Vancouver for analysis. Grizzly is expecting 8-10 weeks for receipt of final analytical results from the 2006 drill program.

The Peak Property is located 65 km northeast of the town of Smithers, BC. Results from surface samples collected during 2005 at the Peak property include high grade gold, silver and base metal values with assays of up to 211.5 ounces per ton (oz/t) silver (7,250 grams per tonne (g/t)), 1.90 oz/t gold (65.2 g/t), and 13% copper (Cu). Precious and base metal mineralization at the Peak Property has characteristics in common with both Jurassic precious metal enriched VMS deposits, such as Eskay Creek, as well as Jurassic volcanic hosted epithermal precious metal deposits such as the Snip and Premier-Silbak. The known precious and base metal mineralization at the Peak Property is associated with a weak EM conductor and a small isolated linear magnetic high that is spatially associated with a large several km sized magnetic anomaly that is likely representative of an intrusion at depth. Elsewhere on the property, regional geochemical gold in creek anomalies identified during 2005, appear to be spatially associated with at least one of the linear EM conductors and a linear magnetic anomaly that are likely parallel or subparallel to the local strike of the Jurassic volcanic rocks. These geophysical anomalies along with a number of other magnetic and EM anomalies were followed up with prospecting and sampling during the September exploration program. In total, 5 rock, 27 heavy mineral and 2 silt samples were collected.

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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