Grizzly Diamonds Ltd. Closes Private Placement for Gross Proceeds of $810,600

EDMONTON, ALBERTA--(Marketwire - Aug. 27, 2008) - Shares issued and outstanding : 20,400,403

Grizzly Diamonds Ltd. (TSX VENTURE: GZD.V)(FRANKFURT:G6H) (the "Corporation") today announced that it has closed a non-brokered private placement offering ("Offering") of an aggregate of 271,000 flow-through units ("FT Units") at a price of $1.00 per FT Unit, and 599,556 non-flow-through units ("Units") at a price of $0.90 per Unit, for gross proceeds of approximately $810,600. Each FT Unit consisted of one flow-through common share of the Corporation ("FT Share") and one-half of a non-transferable share purchase warrant ("FT Unit Warrant") where each whole FT Unit Warrant entitles the holder to acquire one additional common share of the Corporation ("Common Share") at a price of $1.35 until August 27, 2010. Each Unit consisted of one Common Share and one-half of a non-transferable share purchase warrant ("Warrant") where each whole Warrant entitles the holder to acquire one additional Common Share at a price of $1.25 until August 28, 2010.

The Units were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The securities comprising the FT Units and the Units together with any Common Shares issued pursuant to the exercise of the FT Unit Warrants and Warrants will be subject to a restricted period expiring on December 27, 2008.

No commissions or finder's fees are payable in relation to the Offering. Proceeds raised from the FT Units will be used to fund the Corporation's drilling programs in Alberta and British Columbia, and proceeds from the Units will be used to fund exploration and general working capital. No insiders of the Corporation participated in the Offering.

About Grizzly Diamonds Ltd.

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 than 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.

Contacts

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