Grizzly Diamonds Ltd.
TSX VENTURE : GZD
FRANKFURT : G6H

Grizzly Diamonds Ltd.

July 08, 2008 12:07 ET

Grizzly Options Potash Property Teddybear-3 on Saskatchewan-Alberta Border

EDMONTON, ALBERTA--(Marketwire - July 8, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today announced that it has signed a option with Takara Resources Ltd. (TSX VENTURE:TKK) ("Takara") to acquire a land position in southeast Alberta for potash. The Teddybear-3 Property (the "Property") totals 50,000 acres located 40 km east of Medicine Hat, Alberta along the Saskatchewan border and is road accessible year round.

Previous exploration for potash in this region of Alberta was completed in the 1940-1950's. A large portion of the Property is located in close proximity to areas reported to be underlain by potash bearing beds within the uppermost portion of the Prairie Evaporite Formation. The presence of potash beds within the upper portion of the Prairie Evaporite in east-central Alberta near and along the Saskatchewan border is indicated by geological maps produced by the Alberta and Saskatchewan governments. This under explored area of Alberta is currently becoming very active for potash exploration.

In addition, the Property is located south of a reported occurrence of potash minerals in a deep well (VCO #15) in the Vermilion area of east-central Alberta. The author reporting the occurrence suggests that the potash mineral "sylvite exists in substantial quantities" "throughout the first 50 feet of the Prairie Evaporite" (Golden, B.Sc., 1965) and that the potash minerals "are of the same composition and depositional sequence and depth as the potash at Unity and Saskatoon, Saskatchewan", currently the location of a number of potash mines. The reported occurrence of potash minerals is at a depth of approximately 1,061 m below surface.

Under the terms of the agreement with Grizzly, Takara can earn into an initial undivided 51% on the following terms:

- $25,000 cash on signing

- 200,000 common shares of Takara upon regulatory approval

- incurring a total of $2,000,000 of exploration expenditures before September 1, 2009 including one drill hole to test the Prairie Evaporite Horizon.

Takara can elect to increase its interest in the Property to an undivided 70% interest by carrying Grizzly to a bankable feasibility study on or before September 1, 2011.

Takara has initiated a detailed compilation with Grizzly of all historic exploration, including oil and gas drilling, and seismic data for the permits leading to a National Instrument 43-101 ("NI 43-101") technical report. All field programs are being conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. ("APEX") and a Qualified Person under NI 43-101.

Grizzly Diamonds is an aggressive Canadian exploration company focused on exploring for diamonds and industrial minerals 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 3 million acres which host kimberlites. Grizzly also holds over 500,000 acres of potash properties in Alberta. In British Columbia, the Company has five precious-base metal properties totaling over 95,000 acres.

This news release and the information contained herein has been reviewed by 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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