Grizzly Diamonds Ltd.

Grizzly Diamonds Ltd.

February 19, 2009 12:22 ET

Grizzly Signs Option Deal on the Sidley-Dayton Gold Property, Greenwood District, B.C.

EDMONTON, ALBERTA--(Marketwire - Feb. 19, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is pleased to announce that it has signed an option agreement ("the Agreement") with Mineworks Ventures Inc. ("Mineworks"), a private BC based company at 'arms length' to Grizzly, to acquire 100% mineral interest in the Sidley-Dayton Gold Property ("the Property") located near Rock Creek west of the town of Greenwood, B.C. The agreement covers a large contiguous block of land of approximately 56,000 acres, which abuts Grizzly's existing Greenwood land holdings (see Grizzly News Releases dated March 10 and July 23, 2008) and brings the total Greenwood project lands to about 135,000 acres (55,000 hectares). The Property is easily road accessible from Midway, Greenwood and Grand Forks and hosts a number of historic mineral occurrences including most notably the Lawless gold and Dayton gold-silver-copper vein/skarn showings.

"The addition of the Sidley-Dayton Gold Property and other lands to Grizzly's Greenwood Gold Project makes Grizzly the dominant land holder in the region and a significant player in a world class gold district that has produced millions of ounces of gold historically and will continue to do so. The Greenwood Gold Project will be one of Grizzly's top priority projects during 2009 and beyond" said Brian Testo, President and CEO of Grizzly.

Lawless Gold Prospect

The Lawless Prospect consists of a number of old pits within 300 m of Highway 3. The gold prospect was discovered during the late 1980's followed by a reverse circulation (RC) drilling program in 1993 that discovered pyrite, chalcopyrite, sphalerite and molybdenite in association with silicified alkalic intrusives and skarn-like mineralization in contact with Paleozoic sedimentary rocks. A total of 670 m was drilled in 10 RC holes with 35.25 grams per tonne (g/t) gold (Au) (1.03 ounces per ton (oz/t)) over 3.05 m in hole 3, 10.73 g/t (0.31 oz/t) Au over 1.52 m in hole 4 and 8.83 g/t (0.26 oz/t) Au over 3.05 m in hole 6 during the 1993 drilling program. The true thickness of any of the intersected mineralized zones is not known. No exploration has been performed at the prospect since the 1993 drilling program.

The described historic mineralization and stratigraphic setting for the Lawless Prospect and the Sidley-Dayton Gold Property have similarities with Kinross Gold Corporation's (Kinross) Buckhorn Mountain Gold Deposit, which exists only 6 km south of the Sidley-Dayton Gold Property, and only 18 km southeast of the Lawless Prospect. The Buckhorn Mountain Gold Deposit was recently commissioned into production and poured its first gold in October, 2008 (see Kinross News Release dated November 5, 2008). Kinross indicates that the Buckhorn Mountain Gold Deposit contains Proven and Probable Reserves of 1.993 million tonnes at an average grade of 15.46 g/t (0.45 oz/t) for a total of 990,000 ounces of Au ( Gold mineralization at the Buckhorn Mountain Gold Deposit is complex but is primarily hosted in calcic skarn zones within Paleozoic sedimentary rocks.

Dayton Gold-Silver-Copper Property

Exploration in the vicinity of the Dayton Prospect goes back to the early 1900's as the prospect area exists upstream from the historic Rock Creek placer gold workings. Two distinct styles of gold mineralization have been identified at the Dayton Prospect: (1) gold in quartz veins hosted in sheared to brecciated felsic dykes and, (2) gold associated with calcic skarn mineralization developed at the contact between felsic intrusions and Paleozoic volcanic/sedimentary rocks. A total of 231 m in 5 RC holes was drilled during 1990 with one hole, DC-9, yielding 2.20 g/t (0.064 oz/t) Au over 9.14 m with a high grade zone of 17.31 g/t (0.51 oz/t) Au over 1.52 m. A follow up RC drilling program in 1993 yielded two significant gold associated with skarn intersections with 6.38 g/t (0.19 oz/t) Au over 1.52 m in hole 93DC2-6 and 13.44 g/t (0.39 oz/t) Au over 1.52 m in hole 93DC2-8. A further three hole drilling program during 1996 to test coincident IP and soil anomalies at Dayton South yielded 100 m thick calcic skarn mineralization with pyrite, pyrrhotite, arsenopyrite and minor chalcopyrite. The skarn mineralization yielded 0.34 g/t Au over 98.45 m. No further exploration has been performed at the Dayton Prospect since the 1996 drilling program.

2009 Exploration Plan

Grizzly's 2009 exploration plan for its entire Greenwood Gold Project holdings will consist of a comprehensive compilation of all prior exploration in the region along with a two to three month field program which will include mapping, rock and soil sampling, ground geophysics all leading to a possible late fall drilling program. In addition, based upon the positive results of the 2008 helicopter-borne magnetic and electromagnetic (EM) survey, further airborne surveys may be considered, in particular, over the Sidley-Dayton portion of the project area depending future financing activities.

In order to acquire a 100% interest in the Property, Grizzly must complete the following:

(a) payment to Mineworks the sum of $10,000 cash upon execution of the Agreement and the issuance of 25,000 common shares in the share capital of Grizzly;

(b) payment to Mineworks between now and February 17, 2013 a further total of $175,000 cash and the issuance of 175,000 common shares in the share capital of Grizzly; and

(c) complete exploration expenditures on the Property totaling $1.4 million over the next five years.

Mineworks will retain a combined two point five percent (2.5%) industry standard net smelter royalty (NSR) on the Property. Grizzly can purchase up to 1.5% of the 2.5% NSR for a price of $1,500,000. The Agreement is subject to regulatory approval.

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 more than 2 million acres in diamond properties that host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains. It currently holds metallic minerals permits for Potash totaling more 1.5 million acres along the Saskatchewan-Alberta border. In British Columbia, the Company has five precious-base metal properties totaling over 150,000 acres.

All 2009 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.

Grizzly trades on the TSX Venture Exchange, trading symbol GZD, with 20,571,625 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. 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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