Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

December 14, 2006 10:17 ET

Grizzly Diamonds Intersects 1,035 g/t Silver and 0.93% Copper Over 0.85 m Along With 5.67 g/t Gold, 83.5 g/t Silver and 2.17% Copper Over 1.00 m in Diamond Drilling at the Peak Property, BC

EDMONTON, ALBERTA--(CCNMatthews - Dec. 14, 2006) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FWB:G6H) ("Grizzly") is pleased to announce the remaining assay results from the Peak Property, BC (drill holes PK06-05 to PK06-11). Assay results continue to confirm the presence of significant silver-gold-copper-lead-zinc mineralization on the property. A total of 11 diamond drill holes totaling 1,445m tested the RIO and the UTE showings. Significant assays for silver, gold, copper, lead and zinc have been obtained from all drillholes intersecting both the RIO and UTE showings (see news release dated Nov. 29, 2006). Summary assay highlights are presented for holes PK06-05 to PK06-11 below and within the following table:

- UTE Vein and Breccia Zone: Drill hole PK06-11 intersected the UTE vein at a depth of 25.95 m and yielded an intersection of 180.25 grams per tonne (g/t) or 9.91 ounces per ton (oz/t) silver, 0.24% copper, 0.48% lead and 0.11% zinc across 3.05 m (10 feet) core length. The zone also yielded a high grade sample of 1,170 g/t (34.1 oz/t) silver, 0.33 g/t gold, 1.42% copper, 2.20% lead and 0.35% zinc over 0.39 m (1.28 feet) core length. A further intersection of 1,035 g/t (30.2 oz/t) silver and 0.93% copper over 0.85 m (2.8 feet) core length was obtained at a depth of 78.43 m in the same drill hole.

- UTE North: Drill hole PK06-10 was designed to test a tetrahedrite-chalcopyrite showing north of the main UTE trench. A zone of pyrite-galena-tetrahedrite-carbonate veins was intersected in the drillhole beneath the showing at a depth of 15.05 m and yielded 83.5 g/t (2.44 oz/t) silver, 5.67 g/t (0.17oz/t) gold, 2.17% copper, 0.56% lead and 0.11% zinc across 1.00 m (3.28 feet) core length.

- RIO Sulphide Zone: Drill hole PK06-06 intersected a zone of semi-massive sulphide beneath the RIO showing, which yielded assays of 20.54 g/t (0.60 oz/t) silver, 2.28 g/t (0.07 oz/t) gold, 0.35% copper and 0.09% zinc over 3.05 m (10.0 feet) core length at a depth of 24.20 m. Drill hole PK06-05 also intersected a narrow semi-massive sulphide zone which yielded assays of 90.8 g/t (2.65 oz/t) silver, 1.47 g/t (0.04 oz/t) gold 0.46% copper, 0.61% lead and 0.2% zinc over 0.55 m (1.8 feet) core length at a depth of 15.90 m.

Drillhole Zone From To Length Ag Au Cu Pb Zn
meters meters meters g/tonne g/tonne % % %
PK06-05 RIO 15.00 17.37 2.37 30.34 0.43 0.12 0.27 0.08
PK06-05 includes 15.90 16.45 0.55 90.80 1.47 0.46 0.61 0.20
PK06-06 RIO 24.20 27.25 3.05 20.54 2.28 0.35 0.06 0.09
PK06-06 includes 25.00 25.80 0.80 39.30 3.37 0.68 0.12 0.17
PK06-07 RIO 18.80 23.30 4.50 14.04 0.14 0.05 0.07 0.05
PK06-07 includes 19.80 20.56 0.76 38.70 0.38 0.09 0.15 0.08
PK06-08 UTE 14.65 24.00 9.35 10.48 0.05 0.02 0.19 0.13
PK06-08 UTE Bx 37.48 39.56 2.08 103.76 0.05 0.17 0.23 0.11
PK06-08 includes 37.48 37.90 0.42 374.00 0.05 0.47 0.52 0.17
PK06-09 UTE Bx 9.85 52.00 42.15 14.81 0.02 0.03 0.17 0.12
PK06-09 includes 46.00 52.00 6.00 34.07 0.01 0.08 0.39 0.32
PK06-09 includes 51.50 52.00 0.50 215.00 0.04 0.35 3.08 0.71
PK06-10 North 15.05 16.05 1.00 83.50 5.67 2.17 0.56 0.11
PK06-10 UTE 100.63 101.17 0.54 90.70 3.72 2.14 0.42 0.28
PK06-11 UTE 25.95 29.00 3.05 180.25 0.05 0.24 0.48 0.11
PK06-11 includes 25.95 26.34 0.39 1170.00 0.33 1.42 2.20 0.35
PK06-11 UTE 78.43 79.28 0.85 1035.00 0.04 0.93 0.03 0.24
Bx = Heterolithic Breccia Zone

"We are extremely pleased that our drilling successfully has confirmed the presence of widespread and, in places, high grade, epithermal precious metal mineralization as well as potential volcanogenic related sulphide mineralization at the Peak Property" states Grizzly President Brian Testo. "We are pleased with the 2006 drill results and we are planning for an expanded drill program in 2007".

A total of seven drill holes tested the UTE vein system. The UTE mineralization in drill core is accompanied by highly anomalous concentrations of arsenic, bismuth, antimony and manganese and occurs near the contact between felsic crystal-ash tuff and underlying andesite-basalt flows. Surface trenching at the UTE exposed brecciated and veined pyrite-tetrahedrite-chalcopyrite-galena mineralization. Recently received assay results also include mineralized intersections that yield up to 180.25 g/t (9.91 oz/t) silver, 0.24% copper, 0.48% lead and 0.11% zinc across 3.05 m (10 feet) core length. This zone also included a high grade sample that yielded 1,170 g/t (34.1 oz/t) silver, 0.33 g/t gold, 1.42% copper, 2.20% lead and 0.35% zinc over 0.39 m (1.28 feet) core length. The vein system has a minimum strike length of 260 m but remains open along strike and at depth.

Drilling of a historic Induced Polarization (IP) anomaly west of the UTE trench has resulted in the discovery of pyrite + galena-sphalerite-tetrahedrite mineralized heterolithic breccias in zones up to 48 m in thickness (referred to as the UTE Bx Zone). The drilling to date indicates the breccia zones are accompanied by widespread low to moderate grades of silver, copper, lead and zinc.

In addition, the UTE drilling yielded the discovery of a new underlying thick unit (up to 18 m core length) of brecciated black pyritic mudstone and interlayered felsic tuff with associated significant silver-zinc mineralization referred to as the MUD1 Zone. In places, the tuff is brecciated with vein related to disseminated conformable pyrite. Visible tetrahedrite, sphalerite and galena are present within this zone.

The remaining four diamond drill holes tested the RIO showing, a stratigraphically conformable vein system dipping shallowly to the northwest, 1.5 to 5 m wide, consisting of conformable massive to disseminated pyrite plus chalcopyrite-tetrahedrite mineralization hosted within bedded felsic tuffs. The main sulphide zone is hosted within a sequence of felsic lapilli-ash tuffs and intercalated amygdaloidal andesite flows. The sulphide mineralization is accompanied by quartz-sericite and/or propylitic altered bedrock in all four drill holes. The assay highlights include an intersection of 20.54 g/t (0.6 oz/t) silver, 2.28 g/t (0.07 oz/t) gold along with 0.35% copper over 3.05 m (10 feet) core length. The RIO intersections also yield highly anomalous concentrations of arsenic, bismuth, manganese, phosphorous and antimony.

Geochemical analyses were conducted using a combination of standard fire assay in conjunction with AA or gravimetric finish and multi-element ICP techniques at ALS Chemex in Vancouver.

The Peak Property is located 65 km northeast of the town of Smithers, BC. 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. 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.

Brian Testo Goes "Beyond the Press Release"

Please join Brian Testo as he goes "Beyond the Press Release" to provide shareholders with an audio address that further discusses and explains the strategic importance of the Peak Drill Results from today's release as well as the 4 holes reported on November 29th. The address will be available on the Grizzly Diamonds Investor Relations Hub at on or before Monday, December 18th, 2006.

For all future Grizzly Diamonds investor relations needs, investors are asked to visit the Grizzly Diamonds IR Hub at where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

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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