EDMONTON, ALBERTA, Oct 12, 2006 - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FWB:G6H) ("Grizzly") is pleased to announce that it has closed on a non-brokered private placement to one arm's length purchaser of 200,000 flow-through common shares of Grizzly ("FT Shares") at a price of $1.00 per Share for aggregate proceeds of $200,000. The proceeds will be used to incur qualified Canadian Exploration Expenditures on Grizzly's properties. The FT Shares were sold in reliance upon exemptions from the registration and prospectus requirements of applicable securities laws and are subject to a restricted period which expires on February 11, 2007. On behalf of the Board Grizzly Diamonds Ltd. /s/ "Brian Testo" Brian Testo, President SOURCE: Grizzly Diamonds Ltd. Grizzly Diamonds Ltd. Brian Testo President (780) 693-2242 or (780) 425-BEAR(2327) Website: www.grizzlydiamonds.com