Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

September 09, 2009 13:03 ET

Grizzly Provides Update on the Greenwood Gold Project With Rock Samples Yielding Up to 55.3 g/t (1.61 oz/t) Gold

EDMONTON, ALBERTA--(Marketwire - Sept. 9, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") is pleased to provide the following property and exploration update for its Greenwood Gold Project, British Columbia.

2009 AeroTEM III Geophysical Survey

During August, 2009, Grizzly commissioned Aeroquest Limited to commence and complete a 1,600 line-km 2009 helicopter-borne AeroTEM III survey over the western portion of Grizzly's land package including the Rock Creek Property and portions of Grizzly's Sidley-Dayton Property. The survey has been completed and more than 100 spatially separate electromagnetic (EM) conductors have been identified within the Grizzly's property. Some of the conductors are spatially associated with magnetic anomalies and some are not. The conductors display a wide range in total measured conductance, orientation, length and calculated depth extent. Follow-up prospecting, sampling and mapping to determine the possible source for each conductor is ongoing. Prospecting, sampling and mapping at a number of the conductors identified from the 2008 survey has yielded a number of sulphide zones, some of which are associated with gold, as well as graphite-bearing argillites.

2009 Fieldwork

The 2009, field program being conducted by APEX Geoscience Ltd. consists of prospecting, rock and soil sampling, stream sediment sampling, geological mapping and ground geophysical survey. To date, a total of 589 rock samples have been collected with assays for 470 samples received to date. The highlights include the following:

- The Copper Mountain area has yielded a total of 6 rock samples with values from 9.41 up to 55.3 grams per tonne (g/t) gold (1.61 ounces per ton (oz/t) Au) and 19.7 g/t (0.57 oz/t) silver (Ag) with associated anomalous copper (Cu), lead (Pb), zinc (Zn), arsenic (As) and antimony (Sb).

- The Motherlode area has yielded numerous and widespread rock samples with values from 1 g/t up to 6.65 g/t (0.19 oz/t) Au, along with up to 55.0 g/t (1.6 oz/t) Ag and up to 4.88% Cu.

- The Mount Attwood to Overlander area has yielded rock samples with up to 7.33 g/t (0.21 oz/t) Au, 26.0 g/t Ag and up to 3.07% Cu and 1.8% Pb.

- The Rock Creek prospect has yielded up to 3.29 g/t (0.10 oz/t) Au, 10.6 g/t (0.31 oz/t) Ag and 1.56% Cu at the Lawless area and up to 53.2 g/t (1.55 oz/t) Au, 15.7 g/t (0.46 oz/t) Ag at the Ket 28 area. A number of widespread samples at Ket 28 also yielded between 1 to 10 g/t Au with anomalous concentrations of barium and Zn.

- Gold and copper mineralization at all of the showings is hosted in either Late Paleozoic Knob Hill Group volcanics and sediments or within Triassic Brooklyn Formation sediments and is associated with extensive wallrock alteration, sulphides, veining and, in some cases, skarn alteration.

- Ground geophysical surveys have been performed at the Lawless and Ket 28 areas in preparation for drilling. Prospecting, geological mapping, rock and soil sampling and stream sediment sampling across various portions of the property are all in progress. Further ground geophysical surveys are being contemplated for the Copper Mountain and Motherlode areas in order to aid in the identification of future drill targets.

Upcoming 2009 Drilling Program

Historic gold showings at the Lawless and Ket 28 areas will be the first targets drill tested during the fall 2009 program. Drilling is expected to commence in late September to early October. As current target identification progresses, prospective regions in the Copper Mountain and Motherlode areas may also be drill tested during 2009, depending upon time and budget constraints.

All 2009 field and office exploration programs are being conducted under the supervision of Mr. Michael Dufresne, M.Sc., P.Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

Grizzly is an aggressive Canadian exploration company exploring for world class gold and base metal deposits in British Columbia and diamonds and industrial minerals in Alberta. In British Columbia, Grizzly currently has five precious-base metal properties totaling over 175,000 acres. It currently holds more than 1 million acres in diamond properties which host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta. Grizzly has also acquired metallic and industrial mineral permits for Potash totaling more than 1.4 Million acres along the Saskatchewan-Alberta border.

Grizzly trades on the TSX Venture Exchange under the symbol GZD, with 22,943,970 common shares issued to date.

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. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from expectations are in Grizzly's documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at Grizzly disclaims any intention or obligation to revise or update such statements.

This news release also contains technical information that has been publicly sourced. Grizzly has not independently verified such information and accepts no responsibility for its accuracy or completeness.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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