Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

March 10, 2008 15:10 ET

Grizzly Diamonds Enters Into Option Agreement for the Greenwood Silver-Gold-Copper Property in South-Central British Columbia

EDMONTON, ALBERTA--(Marketwire - March 10, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is pleased to announce that it has signed an option agreement ("the Agreement") with Mineworks Ventures Inc. ("Mineworks"), a private BC based company at 'arms length' to Grizzly, to acquire 100% interest in the Greenwood Property ("the Property") located in the vicinity of the town of Greenwood, BC. The agreement covers three distinct blocks of land totaling 15,320 acres (6,200 hectares) including the Deadwood, Mount Attwood and Grand Forks blocks. The Property is road accessible from both Greenwood and Grand Forks and hosts a number of historic mineral occurrences including most notably the Overlander gold-silver-copper vein/skarn showing and the Sappho copper-silver-platinum alkalic intrusion hosted showing.

The Sappho Prospect consists of a number of old pits and shafts approximately 9 km south of the town of Greenwood. The copper-silver prospect was mined during the early 1900's. Work during the 1980's led to the discovery of pyrite, chalcopyrite and magnetite associated with highly altered greenstone and alkalic intrusions. Sampling by Kettle River Resources during the early 1980's yielded up to percent (%) level concentrations of copper (Cu) and multi ounce per ton (oz/t) silver (Ag) assays with a best chip sample of 1.74% Cu and 0.35 oz/t (12.0 grams per tonne (g/t)) Ag over 3.0 m. Some of the high grade grab samples yield anomalous concentrations of platinum (Pt) with a highest value of 0.051 oz/t (1.75 g/t) Pt.

The Overlander Prospect consists of a pyrite and chalcopyrite bearing quartz vein within a chert and argillite metasedimentary package in nearby contact with a granodioritic stock. During the late 1980's the steeply dipping vein was mapped over a distance of 120 m and ranges from 0.2 to 0.5 m widths, with chip samples across the vein yielding up to 0.59 oz/t (20.2 g/t) gold (Au) across 0.4 m. More importantly, the Overlander and other prospects located on the Mount Attwood block of Grizzly's Greenwood Property exist with 2.7 km of the Golden Crown property currently being developed by Merit Mining Corp. (Merit). The northern boundary of the Mount Attwood block abuts the southern boundary of Merit's Golden Crown property and is less than 1,000 m from the location of Merits drill hole GCD07-03, which recently yielded a drill intercept of 50.62 g/t (1.48 oz/t) Au over 6.1 m from the King Vein (See Merit Mining Corp. News Release dated February 28, 2008).

Exploration by Grizzly during 2008 will consist of an expenditure of about $250,000 that will include a comprehensive compilation of all prior exploration in the area along with a helicopter-borne magnetic and electromagnetic (EM) survey, surface prospecting and a detailed creek and soil sampling program. This Phase 1 exploration will eventually lead to drilling during either fall 2008 or summer/fall 2009.

In order to acquire a 100% interest in the Property, Grizzly must complete the following:

(a) payment to Mineworks the sum of $12,500 cash upon execution of the
Agreement and the issuance of 25,000 common shares in the share capital
of Grizzly;

(b) payment to Mineworks between now and March 1, 2012 a further total of
$212,500 cash and the issuance of 175,000 common shares in the share
capital of Grizzly; and

(c) complete exploration expenditures on the Property totaling $2 million
over the next five years.

Mineworks will retain a combined two point five percent (2.5%) industry standard net smelter royalty (NSR) on the Property. Grizzly can purchase up to 1.5% of the 2.5% NSR for a price of $1,500,000. The Agreement is subject to a number of conditions, including TSX Venture Exchange and regulatory approvals and satisfactory due diligence by Grizzly, which must be satisfied or waived by May 1, 2008 or such other date as may be agreed to by Grizzly and Mineworks.

Stock Options Issued

Grizzly's Board of Directors has granted stock options to acquire up to an aggregate 500,000 Grizzly common shares ("Shares") under the Company's stock option plan, of which 375,000 were granted to officers and directors. The stock options are exercisable at a price of $1.20 per Share.

About Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd. is an aggressive Canadian exploration company focused on exploring for diamonds in Alberta and precious metals in North America. It currently holds more than 3 million acres in three diamond properties in Northern Alberta and more than 25,000 acres in five precious metal properties in British Columbia.

All 2008 field programs are being conducted under the supervision of Mr. M. 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.

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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