EDMONTON, ALBERTA, Oct 31, 2006 - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FWB:G6H) ("Grizzly") today is pleased to announce that Stornoway Diamond Corporation (SWY: TSXV "Stornoway") has commenced exploration at Grizzly's 100% owned Call of the Wild Diamond Property in the Pelican Mountains area, north-central Alberta.

Stornoway has commenced a fixed wing magnetic survey that will cover the entire 820,000 acre Call of the Wild Property. Stornoway has also collected a number of samples for diamond indicator minerals that have been sent to their processing facility in Thunder Bay, Ontario.

The Call of the Wild Property was acquired in order to explore the Pelican Mountain upland area, a possible source of diamond indicator minerals from the Calling Lake area which has historically yielded the best known diamond indicator chemistry in Alberta. In 1998, one macro diamond was also recovered from basal till collected alongside the Calling River. Beach sands along the southwest and south shore of Calling Lake have yielded greater than 500 diamond indicator minerals at four separate sites, including greatest concentration of G10 pyropes observed in Alberta to date. The favourable chemistry (including 66 Gurney G10 pyrope garnets) and morphology of the indicator minerals is strong evidence for the presence of local diamondiferous kimberlites. The overall indicator mineral assemblage and chemistry that characterizes the Calling Lake area is unique and has not been seen anywhere else in Alberta. Grizzly believes that the Pelican Mountain Upland is a prime target for kimberlites and is potentially the source area of the macrodiamond and the unique high quality diamond indicator minerals found during the 1990's in the Calling Lake area.

Grizzly Diamonds is an aggressive Canadian exploration company focused on exploring for diamonds in Alberta and precious metals in North America. It currently holds diamond properties in the Buffalo Head Hills, Birch Mountains and Pelican Mountain areas of Alberta totaling over four million acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia, the Corporation has four precious metal properties totaling over 23,000 acres.

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.
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 President
(780) 693-2365 or
(780) 425-BEAR (2327)
(780) 439-7308 (FAX)
Website: www.grizzlydiamonds.com