Grizzly Diamonds Discovers 3rd New Buffalo Head Hills Kimberlite BE-03

EDMONTON, ALBERTA--(Marketwire - Oct. 3, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE: GZD.V) (FRANKFURT:G6H) ("Grizzly") is pleased to announce that it has intersected a third new kimberlite for 2008, BE-03, in the second hole in the current drill program on the Smoky The Bear Property in the Buffalo Head Hills region of northern Alberta.

On September 30th, the second hole in the current fall 2008 drilling program (SMB08-06) was collared to test a coincident magnetic and gravity anomaly about 400m to the northwest of the BE-02 Kimberlite. The BE-03 Kimberlite was intersected at a depth of 66m and the hole remained in kimberlite until the end of hole at 191m. 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 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 what is being modeled as the center of the gravity anomaly and perhaps the central vent area for the BE-02 Kimberlite. Upon completion of the third drillhole, the drill will be moved to a separate coincident magnetic and weak gravity anomaly approximately 250 m southeast of the BE-02 Kimberlite. An image of the ground geophysical surveys is provided on Grizzly's website at www.grizzlydiamonds.com.

"We are extremely pleased to have hit a third new kimberlite for 2008 with our second hole of the fall program and to have intersected the top of the kimberlite at a depth of only 66m with kimberlite to the bottom of the hole" said Brian Testo, President and CEO of Grizzly. "This could represent a related body to the diamondiferous BE-02 and therefore provide more volume of diamondiferous kimberlite."

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 and are now confirmed kimberlites. The anomalies are on the order of 200 to 250m in diameter.

The current drilling program is budgeted at approximately $500,000 and will be comprised of 6 to 10 drillholes designed to locate coarser grained facies within the BE-02 Kimberlite complex that could be associated with a central vent with the hope that it may contain more abundant and coarser grained diamonds. In addition, the program has been designed to test whether the other two coincident magnetic and gravity anomalies represent diamondiferous kimberlites, of which the northwest anomaly is now confirmed as a kimberlite.

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.

Grizzly Diamonds trades on the TSX Venture Exchange, trading symbol GZD, with 20,371,625 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.

Contacts

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

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