Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

December 11, 2006 07:30 ET

Grizzly Diamonds Provides Update on Alberta Diamond Projects

EDMONTON, ALBERTA--(CCNMatthews - Dec. 11, 2006) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD)(FRANKFURT:G6H)("Grizzly") today is pleased to provide an update on progress and future plans for a number of its Alberta Diamond properties. Grizzly currently has just over 3 million acres (1.2 million hectares) in prospective lands in northern Alberta in the Buffalo Head Hills, the Birch Mountains and the Pelican Mountains.

Grizzly was recently successful in acquiring by bid process a further 64,960 acres (25,984 hectares) of highly prospective lands in the Buffalo Heads Hills surrounding a number of kimberlite pipes currently held by the Buffalo Head Hills joint venture comprised of Ashton Mining of Canada Inc, Encana Corp. and Pure Gold Minerals Ltd. The lands were formerly held by Ashton as part of the joint venture and were relinquished a month ago. The lands contain abundant diamond indicator mineral anomalies and a number of untested geophysical targets. The lands add to a large contiguous package of permits in the Buffalo Head Hills area already held by Grizzly. Airborne and ground geophysical surveys are being planned for 2007 over these and a number of other Buffalo Head Hills permits potentially leading to drilling during winter 2006-2007 or winter 2007-2008.

Grizzly is pleased to announce that it has recently signed a drilling contract with Titan Diamond Drilling Ltd. (Titan) out of Smithers, BC. Titan has been contracted to provide drilling services starting early to mid January on Grizzly's Legend Property in the Birch Mountains. Grizzly is planning a 1,500 m drilling program on the Legend Kimberlite. The Legend Kimberlite is a 500 to 800 m diameter multiphase kimberlite that is composed of a 5,200 nT magnetic high core that is about 300 m in diameter with a surrounding 200 to 500 m weakly magnetic outer area that is likely representative of a volcanic apron, perhaps similar in nature to the Fort a la Corne kimberlites. Based upon petrographic work conducted by the Alberta Geological Survey, the Legend Kimberlite represents a multiphase kimberlite with large tonnage potential. The Legend Kimberlite, under only 12.9 m of overburden, has been tested by a single drillhole that yielded 4 microdiamonds from a 406.5kg sample. Grizzly plans to complete a cross hair drilling pattern across the kimberlite in order to acquire a mini-bulk sample for diamonds and to adequately test the different phases of the kimberlite. During the winter 2006-2007 drilling program the Legend Camp Target as well as other targets on the Legend Property may be drill tested for kimberlite.

Grizzly is pleased to announce that Stornoway Diamond Corporation (SWY: TSXV "Stornoway") has completed a 25,000 line-km airborne magnetic survey at Grizzly's 100% owned Call of the Wild Diamond Property in the Pelican Mountains area, north-central Alberta. Stornoway is currently evaluating the results of the airborne survey and heavy mineral sampling conducted earlier in the fall and will be providing Grizzly with a project update early in the new year. The Call of the Wild Property was acquired in order to explore the Pelican Mountain upland area, a possible source of diamond indicator minerals from the Calling Lake area, which has historically yielded the best known diamond indicator chemistry in Alberta. In 1998, one macro diamond was also recovered from basal till collected alongside the Calling River. Beach sands along the southwest and south shore of Calling Lake have yielded greater than 500 diamond indicator minerals at four separate sites, including the greatest concentration of G10 pyropes observed in Alberta to date. The overall indicator mineral assemblage and chemistry that characterizes the Calling Lake area is unique and has not been seen elsewhere in Alberta. Grizzly believes that the Pelican Mountain Upland is a prime target for kimberlites and is potentially the source area of the macrodiamond and the unique high quality diamond indicator minerals found during the 1990's in the Calling Lake area.

Grizzly Diamonds 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 Mountains and Pelican Mountain areas of Alberta totaling over three million acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia, the Corporation has four precious metal properties totaling over 23,000 acres.

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.

For all future Grizzly Diamonds investor relations needs, investors are asked to visit the Grizzly Diamonds IR Hub at http://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.

On behalf of the Board

Grizzly Diamonds Ltd.

/s/ "Brian Testo"

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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