Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

October 24, 2005 19:12 ET

Grizzly Diamonds Ltd. Announces Closing of $2,088,155 Private Placement

EDMONTON, ALBERTA--(CCNMatthews - Oct. 24, 2005) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) ("Grizzly") is pleased to announce that it has closed a non-brokered private placement of an aggregate of 1,588,155 Units and 500,000 flow-through common shares of Grizzly ("FT Shares") at a price of $1.00 per Unit or FT Share, for aggregate proceeds of $2,088,155. Each Unit consisted of one common share of Grizzly ("Common Share") 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 $1.50 per Common Share within one year of issuance. Insiders of the Corporation purchased an aggregate of 395,000 FT Shares and 105,000 Units.

The Units and FT Shares were issued to qualified purchasers in reliance upon exemptions from the registration and prospectus requirements of applicable securities legislation and are subject to a restricted period that expires on February 25, 2006.

In connection with the private placement, Grizzly paid an aggregate of $47,415.50 in finder's fees as follows: $3,300 to Jennings Capital Inc.; $15,900 to Lenora Collins and $28,215.50 to Gregory Molyneux.

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 diamond properties in the Buffalo Head Hills, Birch Mountain, and Pelican Mountain areas of Alberta totaling approximately 3,945,000 acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia Grizzly has four precious metal properties totaling over 23,000 acres.

On behalf of the Board
Grizzly Diamonds Ltd.
/s/ "Brian Testo"
Brian Testo

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.

Contact Information

  • Grizzly Diamonds Ltd.
    Brian Testo
    (780) 693-2365
    Grizzly Diamonds Ltd.
    Suite 220, 9797 45th Avenue
    Edmonton, Alberta, Canada, T6E 5V8
    (780) 435-0045
    (780) 989-0322 (FAX)