Dear Grizzly Diamonds Shareholders,

In our ongoing efforts to provide broader communications and market information, we are pleased to provide you with Industry Sector Bulletins discussing current market opinions and/or conditions that affect the price, supply, and demand of Diamonds.

The following article below describes the performance of diamond-jewelry retail sales in 2006. In summary, the United Sates, (where half of all the diamond-jewelry sales occur,) experienced a 6.1% rise in 2006. With the majority of forecasts calling for diamonds prices to rise in the future, exploration companies focused on diamonds such as Grizzly Diamonds Ltd. are poised to benefit from this occurrence. Recently, Grizzly has commenced a fixed wing airborne magnetic survey on its Buffalo Head Hill properties.

Click here to read more about this recent announcement. For Further Information about Grizzly Diamonds Ltd. please feel free to click the following link to visit the Company’s Investor Relations Hub.

GRIZZLY IR HUB

Regards,
AGORACOM Investor Relations

An Increase of 6.1% in Diamond-Jewelry Retail Sales in 2006 By: Tali Ayalon-Metser, Rachel Lieberman

Sales of diamond-jewelry in the United States rose by 6.1%, and reached $33.2 billion in 2006. These figures were presented by The Diamond Information Center. This is the fifth consecutive year that diamond-jewelry retail sales have risen. The Diamond Information Center noted that US sales constitute 50% of diamond-jewelry sales worldwide. At the end of 2006 a 2.7% drop in transactions was recorded in comparison to 2005, but a 9.1% increase in the average price tag of each transaction ensured a significant increase in sales.
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