Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

September 17, 2007 09:17 ET

Grizzly Diamonds Mobilizes Crew and Drill to the Peak Property, British Columbia

EDMONTON, ALBERTA--(Marketwire - Sept. 17, 2007) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (Frankfurt:G6H) ("Grizzly") today announced that it has signed a contract with Titan Drilling to commence diamond drilling on the Peak Property, North-Central British Columbia. Drill sites have been prepared and a diamond drill has been mobilized to site to commence drilling immediately.

Grizzly also has commissioned a geological crew from APEX Geoscience Ltd. (APEX) to mobilize to the Peak Property in order to prepare the main Rio and Ute showings for follow-up drill testing and to drill test a number of discreet linear magnetic anomalies and electromagnetic (EM) conductors that represent stratigraphic and structural targets for both precious metal-VMS and structurally controlled precious metal epithermal mineralization. The magnetic and EM anomalies were identified by the 2006 high-resolution helicopter airborne magnetic and EM surveys completed by Aeroquest Limited.

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) from the Ute and Rio sulphide showings. The Ute and Rio showings were drill tested during late 2006 with 1,445 m in 11 drillholes. Ute Vein yielded up to 9.91 oz/t (339.7 g/t) Silver over 6.07 feet (2.07 m) core length with 1.91% Cu, 1.07% lead (Pb) and 0.37% zinc (Zn). The Rio Sulphide Zone yielded up to 0.6 oz/t (20.54 g/t) silver, 0.07 oz/t (2.28 g/t) gold, 0.35% Cu and 0.09% Zn over 10 feet (3.05 m) core length. The 2006 drilling intersected new zones named the Ute North (2.44 oz/t (83.5 g/t) silver, 0.17 oz/t (5.67 g/t) gold, 2.17% Cu, 0.56% Pb and 0.11% Zn over 3.28 feet (1.0 m)) and the Mud1 Zone (2.65 oz/t (90.8 g/t) silver and 0.25% zinc over 15.79 feet (5.38 m) core length with a higher grade silver zone of 8.6 oz/t (295 g/t) over 0.88 feet (0.3 m).

Precious and base metal mineralization at the Peak Property has characteristics in common with both Jurassic precious metal enriched volcanogenic massive sulphide (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 and 2006, 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. One or more of the geophysical anomalies along with a number of other magnetic and EM anomalies will be drill tested during the upcoming September exploration program.

Land use permits are in place for the upcoming 2007 drill program and rehabilitation of the existing access road.

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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