EDMONTON, ALBERTA, Sep 11, 2006 (CCNMatthews via COMTEX News Network) -- Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FWB:G6H) ("Grizzly") today announced that it has signed a contract with Titan Drilling to commence diamond drilling on the Peak Property, North-Central British Columbia. Mobilization of the drill began on September 8th and drilling will commence September 11 to 12th, 2006. On site is a geological crew from APEX Geoscience Ltd. (APEX) in order to prepare the main showings for drill testing and to investigate a number of discreet linear magnetic anomalies and electromagnetic (EM) conductors that represent stratigraphic and structural targets for both precious metal-volcanogenic massive sulphide (VMS) and structurally controlled precious metal epithermal mineralization. The magnetic and EM anomalies were identified by the recently flown high-resolution helicopter airborne magnetic and EM surveys completed by Aeroquest Limited. The Peak Property is located 65 km northeast of the town of Smithers, BC. Results from surface samples collected during 2005 at the Peak property include high grade gold, silver and base metal values with assays of up to 211.5 ounces per ton (oz/t) silver (7,250 grams per tonne (g/t)), 1.90 oz/t gold (65.2 g/t), and 13% copper (Cu). Precious and base metal mineralization at the Peak Property has characteristics in common with both Jurassic precious metal enriched VMS deposits, such as Eskay Creek, as well as Jurassic volcanic hosted epithermal precious metal deposits such as the Snip and Premier-Silbak. The known precious and base metal mineralization at the Peak Property is associated with a weak EM conductor and a small isolated linear magnetic high that is spatially associated with a large several km sized magnetic anomaly that is likely representative of an intrusion at depth. Elsewhere on the property, regional geochemical gold in creek anomalies identified during 2005, appear to be spatially associated with at least one of the linear EM conductors and a linear magnetic anomaly that are likely parallel or subparallel to the local strike of the Jurassic volcanic rocks. These geophysical anomalies along with a number of other magnetic and EM anomalies will be followed up with prospecting and sampling during the upcoming September exploration program. The main Peak Property precious and base metal mineralization, known as the Rio and Ute showings, will be drill tested during the upcoming September drill program. The magnetic and EM anomalies identified by recent survey may or may not be drill tested during the upcoming program, depending upon the results from the field investigations. Land use permits are in place for the upcoming 2006 drill program and rehabilitation of the existing access road. All 2006 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. /s/ "Brian Testo" 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. SOURCE: Grizzly Diamonds Ltd. Grizzly Diamonds Ltd. Brian Testo (780) 693-2242 or (780) 425-BEAR(2327) Website: www.grizzlydiamonds.com