Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

July 21, 2005 13:37 ET

Grizzly Reports High Grade Assays of 197.5 oz/t Silver from the Peak Property, British Columbia

EDMONTON, ALBERTA--(CCNMatthews - July 21, 2005) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) ("Grizzly") is pleased to announce that the Phase 1 field exploration program has been completed on the Peak Property ("the Property") located 65 km northeast of the town of Smithers, BC. During June, a six-man field crew conducted a three week prospecting, sampling and mapping program. The Property is road accessible from Fort Babine and hosts the Ute and Rio polymetallic silver-gold-copper-lead-zinc vein systems. The vein systems consist of a series of laminated sulphide-quartz-carbonate (siderite) veins within a dacitic to felsic volcanic rocks. The vein systems are shear zone hosted and consist of tetrahedrite with argentiferous galena, chalcopyrite, sphalerite and disseminated to massive pyrite.

A total of 165 surface rock grab and rock chip samples were collected from the property during the field program. A total of 37 rock grab samples of drill core form historic drilling campaigns were also collected during the field program. Preliminary assay results have been received for the first batch of 57 surface rock samples. A number of high grade gold, silver and base metal values have been obtained from the Ute vein system.

A total of seven rock grab samples collected from the Ute vein trend that has a minimum strike length of 260 m yielded between 915 grams per tonne (g/t) silver (26.7 ounces per ton (oz/t)) and 6,770 g/t silver (197.5 oz/t), up to 5.26 g/t gold (0.15 oz/t), up to 6.77 % copper, up to greater than 30 % lead and up to 2.48 % zinc. All of the anomalous rock samples also yield anomalous concentrations of arsenic and antimony, up to percent level along with manganese and bismuth. One rock grab sample collected about 135 m northwest of and across strike from the Ute vein system yielded 65.2 g/t gold (1.90 oz/t), 480 g/t silver (14.0 oz/t), 8.25 % copper along with percent level arsenic and manganese and may indicate the potential for other sub-parallel mineralization, particularly at the contacts between the volcanics and sedimentary interbeds. Geochemical analyses were conducted using a combination of fire assay in conjunction with AA or gravimetric finish and multi-element ICP techniques at ALS Chemex in Vancouver. Further results from the remaining samples will be released as they become available.

The Peak Property is located near the southern edge of the Bowser Basin within Stikine Terrane and along the northern flank of the Skeena Arch. The Ute and Rio vein systems are hosted in what was originally mapped as intermediate to felsic volcanics and sediments of Cretaceous Kasalka Group. However, recent paleontological work on spatially associated argillites and marls indicates that the volcanic package is most likely Lower to Middle Jurassic in age, specifically Bajocian, and part of the Hazelton Group. The age and volcanic stratigraphy underlying the Property bear strong similarities to the age and stratigraphy of rocks that are known to host the Eskay Creek deposit northeast of Stewart and along the northwest margin of the Bowser Basin.

Other Exploration

A property visit was made to the Goat Property in the Stewart region during the middle of July. A number of rock grab samples were collected from the Goat Property claims. These samples have been sent for geochemical analyses. Results will be released as they become available.

All 2005 field programs are being conducted under the supervision of Mike Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

Grizzly Diamonds Ltd. 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 approximately 3,945,000 acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia Grizzly has four precious metal properties totaling over 23,000 acres.

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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