Completion of Airborne Survey and Ground Surveys

EDMONTON, ALBERTA–(EMWNews – July 23, 2008) – Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) (“Grizzly”) today is pleased to provide the following property and exploration update for a number of its 100% owned British Columbia precious and base metal properties.

Key Point Summary

– Shares Issued and Outstanding: 19,501,069

– Increased land position at the Greenwood Property to 105,600 acres

– AeroTEM III magnetic survey identified new anomalies at the Greenwood Property

– IP survey at the Peak Property indicates presence of high quality chargeability anomaly

– Drilling at the Peak Property to begin during September 2008

Greenwood Property Update

The 2,300 line-km helicopter-borne AeroTEM III magnetic and time domain electromagnetic (EM) survey that was commissioned in early May to fly Grizzly’s entire Greenwood Property has been completed. In addition, ground crews provided by APEX Geoscience Ltd. have completed an initial prospecting, stream sediment and rock sampling program. A preliminary review of the airborne magnetic and EM survey data indicates the presence of a number of unexplained linear EM anomalies spatially associated with known fault and shear zones, often appearing as linear magnetic lows. In addition, a number of isolated more limited in strike length EM anomalies some of which are associated with magnetic highs and others that are not have also been identified in the preliminary data. The results from samples collected during the reconnaissance sampling program are pending.

Grizzly is also pleased to announce that it has added further lands to the signed amending option agreement (“the Agreement”) dated March 1, 2008 with Mineworks Ventures Inc. (see Grizzly News Release dated June 2, 2008). A further 28,385 acres (11,485 hectares) has been added to the existing Greenwood Property, which brings the total land holding for the project to 105,600 acres (42,700 hectares). The entire project area is easily road accessible from both Greenwood and Grand Forks. The project area is host to or surrounds a number of historic mines and mineral occurrences including most notably the historic Motherlode, Sunset and Greyhound underground and open pit gold-silver-copper mines and the Copper Mountain copper-silver-gold showings. The historic Motherlode mines produced in excess of 178,000 ounces (oz) of gold (Au), 723,000 oz of silver (Ag) and 80 million pounds of copper (Cu) between 1900 and 1962. In addition, the project area surrounds and is immediately adjacent to Merit Mining Corp.’s recently commissioned Lexington-Grenoble copper-gold mine and its Greenwood Mill.

Once the final results have been received for the AeroTEM III survey and the preliminary sampling program, Grizzly plans a fall prospecting and sampling program leading to ground geophysical surveys during late 2008 or summer 2009.

Peak Property Update

Field crews have recently completed the planned Induced Polarization (IP) EM survey along with a ground magnetic and soil sampling program at the Peak Property. The preliminary results of the IP survey indicate the presence of a high quality chargeability anomaly that has a core zone that is at least 200m in strike length with a broader chargeability anomaly that is up to 450m in strike length. The anomaly has received little drilling to date and will be thoroughly tested during the upcoming 2008 drilling campaign. The results of the soil sampling survey overtop of the IP survey area are pending and will be announced once received.

Further exploration at the Peak Property during 2008 will consist of drilling to properly test the IP chargeability anomaly as well as follow-up widespread brecciation and alteration intersected during the 2007 drill program (see Grizzly News Release dated February 25, 2008). The proposed budget for the 2008 program is estimated between $250,000 and $500,000 depending upon the final results of the IP survey and soil sampling.

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.