EDMONTON, ALBERTA- (Jan. 22, 2009) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD)(FRANKFURT:G6H) ("Grizzly") is pleased to announce the final assay results from the 2008 drilling at the Peak Property, British Columbia.

In 2008, a total of 5 diamond drill holes (08PK-01 to 08PK-05) totaling 1092.69 m, tested the extent of the Breccia Zone showing, a broad, low grade zone of Silver (Ag) - Gold (Au) plus Lead (Pb) and Zinc (Zn) mineralization that was discovered during the 2006 and 2007 drill campaigns. The 2008 drill results have extended the low grade mineralization associated with the Breccia Zone. The holes were planned in response to an excellent chargeability anomaly that resulted from a ground IP (Induced Polarization) survey that was completed in June of 2008.

Breccia Zone

-Drill Hole 08PK-01 intersected a zone of disseminated and clotty pyrite accompanied by grey to black dendritic veinlets in intermediate to felsic ash tuff at 14.33 m. The zone assayed 4.5 g/t Ag, 0.09% Pb, and 0.13% Zn over 10.47 m thickness and included 28.5 g/t Ag, 0.16 % Cu, 0.13 % Pb, and 0.13 % Zn over 0.8 m. A zone of disseminated pyrite in a heterolithic breccia was intersected at 99.92 m and assayed 4.7 g/t Ag, 0.13 % Pb and 0.12 % Zn over 10.05 m thickness.

-Drill Hole 08PK-02 intersected the Breccia Zone at 36.04 m and graded 4.5 g/t Ag, 0.08 % Pb, and 0.10 % Zn. Mineralization was described as disseminated pyrite with small pyrite clots and stringers accompanied by fine black dendritic sulphide veinlets. Drill Hole 08PK-02 also intersected a zone of disseminated and clotty pyrite occurring in felsic tuff. This zone was intersected at 131.22 m and assayed 0.2 g/t Au, 69.1 g/t Ag, 0.05 % Cu, and 0.12 % Pb over 0.78 m. The hole also intersected a zone of moderate sulphide veining along with disseminated pyrite in felsic tuff at 137.16 m that graded 0.4 g/t Au, 11.9 g/t Ag, 0.11 % Cu over 4.54 m.

-Drill Hole 08PK-03 intersected a weak quartz and pyrite veining zone at 130.36 m with fine black dendritic sulphide veinlets. This zone assayed 0.08 % Pb and 0.21 % Zn over 2.07 m and occurs in felsic tuff. Drill hole 08PK-03 also intersected a zone of intense quartz + pyrite + chalcophyrite + galena veining at 156.95 m, which assayed 1.0 g/t Au, 446.0 g/t Ag, 0.76 % Cu, and 0.42 % Zn over 0.27 m.

-Drill Hole 08PK-04 intersected a zone of disseminated pyrite accompanied by fine black dendritic sulphide veinlets at 89.28 m in an ash tuff. This zone assayed 1.6 g/t Ag, 0.07 % Pb, and 0.14 % Zn over 4.53 m. A zone of weakly to moderately intense sulphide veining as well as pervasive disseminated sulphides was intersected in ash tuff at 105.62 m. This zone graded 11.5 g/t Ag, 0.19 % Pb, and 0.4 % Zn and also included a 1.04 m thick zone assaying 38.4 g/t Ag, 0.08 % Cu, 0.60 % Pb, and 1.0 % Zn. Additionally, a zone of semi-massive galena surrounded by pervasive disseminated sulphide mineralization in ash tuff was intersected at 149.19 m. This zone graded 30.8 g/t Ag, 1.0 % Pb, and 0.59 % Zn over 0.53 m.

-Drill Hole 08PK-05 intersected a zone of weakly to moderately intense clotty and disseminated pyrite along with fine black dendritic sulphide veinlets in ash tuff at 52.32 m. The zone assayed 4.6 g/t Ag, 0.06 % Pb, and 0.16 % Zn over 1.81 m. Another similar zone was intersected at 72.13 in ash tuff and yielded 10.8 g/t Ag and 0.08 % Pb over 1.45 m. A zone of moderate disseminated pyrite with fine black dendritic sulphide veinlets in felsic tuff was intersected at 122.14 m and graded 24.9 g/t Ag and 0.25 % Pb over 3.65 m This zone included two high grade zones which assayed 43.9 g/t Ag, 0.14 % Cu and 0.24 % Pb over 0.62 m and 58.5 g/t Ag, 0.8 % Pb, and 0.11 % Zn over 0.91 m.

Geochemical analyses were conducted using a combination of standard fire assay in conjunction with AA or gravimetric finish and multi-element ICP techniques at TSL Laboratories in Saskatoon, Acme Analytical Laboratories and ALS Chemex in Vancouver.

The Peak Property is located 65 km northeast of the town of Smithers, BC. 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 2008 drilling program has continued to prove that the mineralization system at the Peak Property is quite large and is expressed in a variety of styles of mineralization. Holes from the 2008 drill program have intersected extensive mineralized heterolithic breccia at thicknesses ranging from 18 m to 123 m in drill core and with a demonstrated lateral extent of approximately 700 m from southwest to northeast and is open along strike. The heterolithic breccia zone that was first observed during the 2006 drilling program has been shown to be of significant size with a strong and pervasive argillic to potassic alteration halo that envelops the system at the Peak Property. The drilling results to date, albeit not ore grade, have indicated a very large system of mineralization and alteration. This includes strong to pervasive zones of potassic alteration along with zones of intense argillic alteration associated with sulphide mineralization. The alteration zones are often accompanied by highly anomalous to elevated concentrations of manganese (Mn), antimony (Sb), bismuth (Bi), and arsenic (As) along with anomalous concentrations of precious and base metals at the Property. Intense Mn staining is ubiquitous at the Property and shows that the alteration zone is much greater than has thus far been drill tested. The high grade, low sulphidation epithermal mineralization observed at the UTE showing as well as the VMS (volcanogenic massive sulphide) mineralization observed at the RIO showing are believed to be both genetically and spatially related to the wide spread mineralized Breccia Zone system. The Breccia Zone and the high grade UTE and RIO showings remain open along strike and at depth for further drill testing. Future drilling will be assessed in the upcoming months.

About Grizzly Diamonds Ltd.

Grizzly Diamonds is an aggressive Canadian exploration company focused on exploring for diamonds and industrial minerals in Alberta and precious metals in North America. It currently holds more than 2 million acres in diamond properties that host diamondiferous kimberlites in the Buffalo Head Hills and Birch Mountains. It currently holds metallic minerals permits for Potash totaling more 1.5 million acres along the Saskatchewan-Alberta border. In British Columbia, the Company has five precious-base metal properties totaling over 120,000 acres.

All 2008 field programs were conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

Grizzly trades on the TSX Venture Exchange, trading symbol GZD, with 20,738,625 shares issued to date.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION:

Grizzly Diamonds Ltd.
Brian Testo
(780) 693-2242 or 780-425-BEAR (2327)
Website: www.grizzlydiamonds.com

or

AGORACOM Investor Relations
Email: GZD@Agoracom.com
Website: www.agoracom.com/IR/Grizzly