EDMONTON, Alberta – Grizzly Diamonds Ltd. (GZD:TSXV) ("Grizzly") today is pleased to announced that assay results have confirmed the presence of significant silver-lead-zinc-copper mineralization within the first four diamond drill holes at the Peak Property, B.C. A total of 11 diamond drill holes totaling 1,445m tested the RIO and the UTE showings. Below the UTE vein, assays indicate the discovery of a new silver-zinc mineralized zone referred to as the MUD1 Zone. Assays are pending for a further 7 holes. Summary highlights are presented below and detailed within the following table: • UTE Vein: Drill hole PK06-02 intersected the UTE vein at a depth of 31.42 m and yielded an intersection of 339.7 g/t silver (9.91 oz/t) across 2.07 m (6.07 feet) core length with associated 1.91% copper, 1.07% lead and 0.37% zinc. • MUD1 Zone: Drill hole PK06-02 intersected 90.8 g/t silver (2.65 oz/t) and 0.25% zinc over 5.38 m (15.79 feet) with a high grade portion of 242.3 g/t silver (7.07 oz/t) over 1.92 m (5.63 feet). • RIO Vein: Drill hole PK06-04 yielded an intersection of 41.6 g/t (1.21 oz/t) silver, 0.28% copper, 0.13% lead and 0.11% zinc over 5.52 m (16.2 feet) core length at a depth of 15.28 m, with a higher grade portion of 295 g/t (8.6 oz/t) silver, 2.4 g/t (0.07 oz/t) gold, 0.92% copper, 0.29% lead and 0.15% zinc over 0.30 m (0.88 feet) core length. http://www.agoracom.com/images/GZDPR291106Table.pdf "We are extremely pleased that our drilling successfully has confirmed the presence of widespread epithermal mineralization as well as potential volcanogenic related sulphide mineralization at the Peak Property" states Grizzly President Brian Testo. "We await assays from the remaining seven drill holes that showed visual evidence of a wider mineralized system. Plans are already in place for an expanded drill program in 2007". A total of seven drill holes tested the UTE vein system of which results have been received from the first three. The UTE mineralization in drill core is accompanied by highly anomalous concentrations of arsenic, bismuth, antimony and manganese and occurs near the contact between felsic crystal-ash tuff and underlying andesite-basalt flows. Surface trenching at the UTE exposed brecciated and veined pyrite-tetrahedrite-chalcopyrite-galena mineralization grading up to 6,770 grams per tonne (g/t) silver (197.5 ounces per ton [oz/t]), up to 5.26 g/t gold (0.15 oz/t), up to 6.77 % copper, up to greater than 30 % lead and up to 2.48% zinc. All of the anomalous surface rock samples also yield anomalous concentrations of arsenic, antimony, manganese and bismuth. The vein system has a minimum strike length of 260 m but remains open along strike and at depth. In addition, the UTE drilling yielded the discovery of a new underlying thick unit (up to 18 m core length) of brecciated black pyritic mudstone and interlayered felsic tuff with associated significant Ag-Zn mineralization referred to as the MID1 Zone. In places, the tuff is brecciated with vein related to disseminated conformable pyrite. Visible tetrahedrite, sphalerite and galena are present within this zone. Drillhole PK06-03 was not drilled deep enough to test this zone. The remaining four diamond drill holes tested the RIO showing, a vein system dipping shallowly to the northwest, 1.5 to 5 m wide, consisting of conformable massive to disseminated pyrite plus chalcopyrite-tetrahedrite mineralization hosted within bedded felsic tuffs. Sulphide bearing rocks were intersected in all four drill holes and to date assays have been received from the first of four drill holes. The RIO intersection also contains highly anomalous concentrations of arsenic, bismuth, manganese, phosphorous and antimony. Geochemical analyses were conducted using a combination of standard fire assay in conjunction with AA or gravimetric finish and multi-element ICP techniques at ALS Chemex in Vancouver. Further results from the remaining drill core and surface samples will be released as they become available. 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. 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. For all future Grizzly Diamonds investor relations needs, investors are asked to visit the Grizzly Diamonds IR Hub at http://www.agoracom.com/IR/Grizzly where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to GZD@Agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time. On behalf of the Board Grizzly Diamonds Ltd. /s/ "Brian Testo" Brian Testo President For further information, please contact Brian Testo at 780-693-2242 or 780-425-BEAR(2327) http://www.grizzlydiamonds.com Investor Relations AGORACOM Investor Relations http://www.agoracom.com/IR/Grizzly GZD@Agoracom.com 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.