Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

March 05, 2007 09:32 ET

Grizzly Diamonds Ltd.-Update On Peak and Silver Bear Silver Properties, British Columbia

EDMONTON, ALBERTA--(CCNMatthews - March 5, 2007) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is pleased to announced that stream sediment sample results have been received for the Peak and Silver Bear Properties, British Columbia.

Peak Property:

The Peak Property is located 65 km northeast of the town of Smithers, BC. Drilling results from core drilling during 2006 (Grizzly Press Release December 14, 2006) intersected grades of 1,035 g/t silver and 0.93% copper across 0.85 m, along with 5.67 g/t gold, 83.5 g/t silver and 2.17% copper across 1 meter. 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) magnetic anomaly that is likely representative of an intrusion at depth.

During September 2006 a number of discrete linear magnetic anomalies and Electromagnetic (EM) conductors were investigated at the Peak Property. The anomalies were identified from a high-resolution helicopter airborne magnetic and EM survey completed by Aeroquest Limited during summer 2006. The anomalies represent stratigraphic and structural targets prospective for both precious metal volcanogenic massive sulphide (VMS) and structurally controlled precious metal epithermal mineralization. Gold grains recovered from stream/creek samples collected during 2005 appear to be spatially associated with at least one of the linear EM conductors and one linear magnetic anomaly.

In total, 27 stream sediment samples were collected during 2006 in the vicinity of a number of airborne anomalies as follow-up to gold grain anomalies generated during 2005. Sampling has identified anomalous copper, lead and zinc values (up to 35ppm Cu, 25 ppm Pb, and 167 ppm Zn) within an east-west oriented structurally controlled stream drainage coincident with a linear airborne magnetic anomaly. Anomalous stream results occur over a distance of approximately 2 kilometres. The headwaters of the drainage and upstream limit of sampling are approximately 300 metres to the northeast of the main UTE and RIO showings. The anomaly is separated from the UTE and RIO showings by a prominent ridgeline and it is considered unlikely that the known showings produced the anomaly. Stream sampling within parallel drainages to the north of this structural corridor did not return anomalous results. A single sample collected downstream from a large airbnorne EM conductor returned a gold grain anomaly and also warrants further follow-up.

Grizzly plans to follow-up priority geophysical and geochemical targets with an aggressive summer 2007 drill program.

Silver Bear Property:

The Silver Bear Property exists immediately adjacent to the Willa Claim block, which hosts the Willa Gold-Copper-Silver Deposit. The Willa Deposit was the focus of feasibility studies and the collection of a 10,000 tonne bulk sample by Orphan Boy Resources Inc. The Willa Deposit and the Silver Bear Property are underlain by Rossland volcanics, a series of associated high level felsic intrusions and intrusions related to the Nelson Batholith. The Willa Deposit is hosted within a large breccia and alteration zone developed within the Rossland volcanics and a series of felsic intrusives.

The Silver Bear Property is immediately adjacent to a number of high grade polymetallic silver veins that have seen limited historical development and production including the Highland Light, Victor, Daisy, Silver Nugget, Silver Band and Mountain Scenery. The veins are underlain by the same package of rocks that host the Willa Deposit including Rossland volcanics and associated felsic intrusions and intrusions related to the Nelson Batholith. None of these historical producers contain historic resources that are compliant with National Instrument 43-101 guidelines.

A limited program of prospecting, rock and stream sediment sampling was completed during October 2006 at the Silver Bear Property. The field campaign was designed to evaluate historic mineral occurrences within the Property. Rock grab samples of silicified and brecciated vein material within chlorite altered porphyritic granite from the Midas Touch area returned assays of 47.6 ppm Ag, 5.13% Pb, and 0.24% Zn. Mineralized wall rock from the same area returned 0.97% Zn and 0.15% Pb.

The Highland Light showing which reportedly produced about 88,400 grams of silver from about 10 tonnes of ore during the early 1900's yielding an average grade of about 8,840 grams of silver per tonne (258 oz/t). Historic values at the Silver Nugget showing include 7,783 grams of Ag per tonne (227 oz/t) within quartz-pyrite-tetrahedrite and native silver veins in adits. Both showings were not visited due to heavy snowfall at high elevations.

A total of 20 stream sediment samples were collected at the Property. Sampling has identified anomalous Zn values (up to 180 ppm Zn) within a steep alpine drainage 600 metres to the southeast of rock samples collected at the Midas Touch area.

This year's exploration program at the Silver Bear Property will commence in the summer of 2007 and will include further sampling and if warranted, drilling.

Geochemical analyses were conducted using a combination of standard fire assay in conjunction with an atomic absorption (AA) or gravimetric finish and multi-element ICP techniques at TSL Laboratories which is ISO/IEC Standard 17025 accredited. At the SRC Geoanalytical Laboratories in Saskatoon, SK, stream sediment samples were processed and gold grains were extracted and documented.

For all future Grizzly Diamonds investor relations needs, investors are asked to visit the Grizzly Diamonds IR Hub at www.agoracom.com/IR/Grizzly 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 GZD@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

All 2007 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.

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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