Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

March 30, 2006 17:51 ET

Grizzly Diamonds Update on the Birch Mountain Kimberlite Field, Alberta

EDMONTON, ALBERTA--(CCNMatthews - March 30, 2006) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today announced the completion of ground geophysical surveys and access clearing in preparation for future drilling of the Legend Kimberlite and the nearby Legend Camp Target located in northeast Alberta.

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 12.9m of overburden, has been tested by a single drillhole that yielded 4 microdiamonds from a 406.5kg sample. The Legend Camp Target exists in the vicinity of the Legend Camp and is a topographic high underlain by a 250m diameter 4,000 nT magnetic low that is partly obscured by the Legend Camp.

During late spring to summer 2006, 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 this drilling program the Legend Camp Target will also be drilled. In preparation, Grizzly has commenced a review of all historic data which includes geophysics, drill core and mineral chemistry.

Nine kimberlites, two of which are diamond bearing, are currently known at the Legend Property ("Property"). All were discovered by Kennecott Canada Exploration Inc. and New Blue Ribbon Resources Inc. between 1998 and 2002. These kimberlites have either positive and/or negative magnetic responses which range from weak to strongly magnetic and are Cretaceous in age. Overburden depths range from 12.19m to 147.4m below the surface indicating that at least some of the kimberlites exist beneath thin cover. In general the pipes are in excess of 500m wide based on magnetic responses and have been classified as multi-phased pyroclastic kimberlite.

Grizzly recently acquired an undivided 100% interest in the Legend Property located in the Birch Mountains of Northeast Alberta. Blue Diamond Mining Ltd. retains a 2% Gross Overriding Royalty on all diamonds produced from the Property.

2006 Exploration Planned for Silver Projects in British Columbia

Planning is currently underway to commence a magnetic and electro-magnetic airborne geophysical survey at Grizzly's Silver-Gold-Copper-Lead- Zinc Peak Property, near Smithers, B.C. Recent grab samples yielded up to 7,250 g/t silver (211.5 oz/t), 65.2 g/t gold (1.90 oz/t), 9.58% copper, greater than 30 % lead and 7.16% zinc. Grizzly plans to follow-up priority geophysical and geochemical targets with a summer 2006 drill program. As well, specific drill targets have been selected at the French Property for summer drilling.

Ongoing Alberta Diamond Exploration

As part of an aggressive winter exploration program, Grizzly's field crew has just wrapped up ground magnetic surveys within the Grand Cub Aidan Property in the Buffalo Head Hills region to further delineate specific drill targets. As well, ground electromagnetic (UTEM) surveys have been completed at the Preston Upon the Wolverine Property to better delineate high priority EM drill targets based upon the recent Fugro GEOTEM Survey. The data is being reviewed and interpreted in order to determine the extent and number of potential drill targets, and whether the targets can be drilled during the 2006 summer or will need to be drilled during winter 2006-2007.

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 Calling Lake areas of Alberta totaling over four 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.

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.

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