EDMONTON, ALBERTA-(Sept. 29, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") is pleased to announce that it has intersected the BE-02 kimberlite in the first hole in the current drill program on the Smoky The Bear Property in the Buffalo Head Hills of northern Alberta.

On September 27th, the first hole in the current fall 2008 drilling program (SMB08-05) was collared to test a gravity anomaly offset 60m southeast of the center of the main magnetic anomaly that was drilled in February 2008. The BE-02 Kimberlite was intersected at a depth of 109 m and the hole remained in kimberlite until the end of hole at 200m. The February discovery drillhole (SMB08-03) intersected kimberlite at a depth of 122m and only remained in kimberlite until 140m, yielding an intersection of 18m of kimberlite. The kimberlite in drillhole SMB-05 is described as ranging from a fine to coarse grained pyroclastic kimberlite with portions of the kimberlite containing visible coarse grained fragments of kimberlite and country rock along with olivine macrocrysts and occasional pyrope garnets and chrome diopsides. The drill is currently being moved to test a separate coincident magnetic and gravity anomaly 400m to the northwest. Upon completion of the second drillhole the drill will be moved back to BE-02, where it will be moved to the geographic center of the gravity anomaly, approximately 30m east of SMB08-05, for another test of BE-02. An image of the ground geophysical surveys is provided on Grizzly's website at www.grizzlydiamonds.com.

"We are extremely pleased to have hit kimberlite from the top to bottom in our first hole into the BE-02 kimberlite," said Brian Testo, President and CEO of Grizzly. "This could represent the central vent and it is encouraging to see coarse grained textures with visible pyrope garnets."

The Smokey The Bear Property drilling is being planned to target coincident gravity and magnetic anomalies identified in ground surveys this summer, which are in close proximately to the recently discovered BE-02 Kimberlite. A total of 54 microdiamonds were recovered from 56.6 kg of kimberlite collected from the discovery hole drilled into BE-02 in February of this year (see Grizzly News Release dated May 6, 2008). The kimberlite is described as fine-grained, pyroclastic and likely represents a distal facies of the kimberlite. The ground geophysical surveys have confirmed the presence of three distinct magnetic anomalies, of which the northern and central anomalies have spatially associated gravity anomalies. The anomalies are on the order of 200 to 250 m in diameter. The discovery drillhole for Kimberlite BE-02 (SMB08-03) was drilled into the center of the central magnetic anomaly, however, based upon the gravity survey the vertical drillhole appears to have been drilled close to the northwest edge of the spatially associated gravity anomaly.

The current drilling program is budgeted at approximately $500,000 will drill test 8 to 10 targets designed to locate coarser grained facies that would be associated with a central vent of the BE-02 Kimberlite with the hope that it may contain more abundant and coarser grained diamonds.

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 850,000 acres along the Saskatchewan-Alberta border. In British Columbia, the Company has five precious-base metal properties totaling over 120,000 acres.

All 2008 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.
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.

CONTACT INFORMATION:
Grizzly Diamonds Ltd.
Brian Testo
President
(780) 693-2242 or (780) 425-BEAR(2327)
Website: http://www.grizzlydiamonds.com

or

AGORACOM
Investor Relations
Email: GZD@Agoracom.com
Website: http://www.agoracom.com/ir/grizzly