EDMONTON, ALBERTA-(July 28, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is pleased to provide the following exploration update for a number of its 100% owned Alberta Diamond Properties in the Buffalo Head Hills of Northern Alberta.

- Shares Issued and Outstanding: 19,501,069

- Completion of full airborne coverage over all Grizzly Alberta Diamond land.

- Interpretation of BE-02 kimberlite describes it as being a pyroclastics phase of kimberlite and the Diamond clear to white in colour and with octahedral crystal habits.

- Detailed ground gravity and ground magnetics surveys over the BE-02 kimberlite have defined three distinct areas for drilling that could represent the central vent(s).

- Aggressive ground geophysics and drilling planned for winter 2008-2009.

Grizzly has achieved full airborne survey coverage over all of Grizzly's Alberta land holdings ( greater than 2 million acres) prospective for diamonds with the completion of a final 42,000 line-km high resolution fixed-wing airborne magnetic (HRAM) survey at the Grand Cub Parker, Bearpaw, Kodiak and the Preston Upon Wolverine properties in May, 2008. Final data was received in July, 2008. Preliminary interpretation has identified a large number of magnetic anomalies that are suggestive of kimberlites. An aggressive ground geophysical program is being planned for the fall followed by drilling during winter 2008-2009.

Smokey the Bear Update

Grizzly has also completed a large detailed ground magnetics and ground gravity survey over the BE-02 kimberlite and its surrounds to target future drilling. As a result Grizzly has confirmed 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 into 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.

A total of 54 microdiamonds were recovered from 56.6 kg of kimberlite (see news release dated May 6, 2008). In follow up, the bulk of the diamonds are described as being clear to white in colour and with octahedral crystal habits. The kimberlite is described as fine-grained, pyroclastic and likely represents a distal facies of the kimberlite.

Drilling is being planned for winter 2008-2009 in order to target and locate areas 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. The northern coincident magnetic and gravity anomaly as well as the gravity anomaly associated with the central magnetic anomaly will be drilled. An application for drilling has been submitted to the Alberta Government.

Grizzly's discovery of the BE-01 and BE-02 kimberlites in the Buffalo Head Hills represents the first new kimberlites discovered in Alberta in five years and brings the total number of kimberlites discovered in the Buffalo Head Hills to 40 and the total number of diamondiferous kimberlites to 28. Grizzly is planning an aggressive fall and winter ground geophysics and drilling campaign during 2008-2009 in order to further evaluate BE-02 and discover new kimberlites.

Alberta Potash Update

Grizzly currently holds approximately 850,000 acres of lands along the Saskatechwan-Alberta border in east-central Alberta hosting potential for potash discoveries. The company has initiated a detailed compilation of historic exploration, including oil and gas drilling, including purchase and re-interpretation of existing traditional and modern 3-D seismic data, with the intent to produce a 43-101 technical Report and to target priority drill areas.

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