Grizzly Diamonds Ltd. TSX VENTURE: GZD

EDMONTON, ALBERTA--(CCNMatthews - June 15, 2005) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) ("Grizzly") today announces that fieldwork has been initiated on the Peak Property ("the Property") located 65 km northeast of the town of Smithers, BC. A four-man field crew is being mobilized to the Property to conduct prospecting and sampling, leading to airborne and/or ground geophysical surveys later in the year. The Property is road accessible from Fort Babine and hosts the Ute and Rio polymetallic silver-gold-copper-lead-zinc vein systems. The vein systems consist of a series of crudely laminated sulphide-quartz-carbonate (siderite) veins within a thick bedded sequence of dacitic to felsic volcanics. The vein systems are shear zone hosted but are bedding conformable and consist of tetrahedrite with argentiferous galena, chalcopyrite, sphalerite and disseminated to massive pyrite.

A property visit during the fall of 2004 by Grizzly's geological consultant resulted in the collection of 12 rock grab samples from the Ute Vein system and surrounding outcrops. A selective grab sample of sulphide-rich rock near the contact between felsic volcanics and a thin but laterally continuous mudstone unit has yielded assays of 56.8 grams per tonne (g/t) gold (1.66 ounces per ton (oz/t)), 588 g/t silver (17.2 oz/t) and 7.77% copper with anomalous levels of lead, zinc, arsenic, antimony and bismuth. Recent age dating of similar shallow water argillite units from the Property indicate that the sequence is Bajocian age (Middle Jurassic) and is potentially indicative of a volcanogenic setting similar to the Eskay Creek deposit, or a high grade volcanic hosted precious metal epithermal system. Further work is required to determine the relationship between the high grade sample and the spatially associated black argillite within the felsic volcanics.

The Peak Property was bulk sampled during the mid 1960's and 1970's with reported total sampling of approximately 52 tonnes of ore with an average grade of 7,469.5 g/t (217.7 oz/t) silver, 2.38 g/t (0.07 oz/t) gold, 2.4% copper, 17.2% lead and 1.5% zinc. A historic resource of 2,630 tonnes grading 411 g/t (12.0 oz/t) silver, 2.4 g/t (0.07 oz/t) gold, 5% copper and 14% lead was reported in 1983. Grizzly views the historic resource as an indication of the presence of mineralized rocks only, as the historic resource is not compliant with National Instrument 43-101 guidelines.

The Peak Property is located near the southern edge of the Bowser Basin within Stikine Terrane and along the northern flank of the Skeena Arch. The Ute and Rio vein systems are hosted in what was originally mapped as intermediate to felsic volcanics and sediments of Cretaceous Kasalka Group. However, recent paleontological work on spatially associated argillites and marls indicates that the volcanic package is most likely Lower to Middle Jurassic in age, specifically Bajocian, and part of the Hazelton Group. The age and volcanic stratigraphy underlying the Property bear strong similarities to the age and stratigraphy of rocks that are known to host the Eskay Creek deposit northeast of Stewart and along the northwest margin of the Bowser Basin.

Alberta Diamond Update

A spring ground geophysical program has been completed on Grizzly's Buffalo Head Hills diamond properties in Alberta. A total of eight airborne anomalies were geophysically surveyed on the ground. At least three of the anomalies warrant drill testing in a future drilling campaign. Quotes are being obtained for a sizeable airborne magnetic-electromagnetic survey over Grizzly's western and northern Buffalo Head Hills properties, in particular over areas were recent Alberta Geological Survey stream sediment samples have yielded high interest diamond indicator minerals such as the more than 30 diamond indicator minerals including pyrope garnets reported to have kelyphite rims from the newly acquired western portion of the Property. The 2005 airborne geophysical surveys are being designed in order to mount a drilling program during the winter of 2005-2006. All 2005 field programs are under the supervision of Mike Dufresne, P. Geol., a Qualified Person under NI 43-101.

Grizzly Diamonds Ltd. 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 Calling Lake areas of Alberta totaling approximately 3,945,000 acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia Grizzly has four precious metal properties totaling over 23,000 acres.

On behalf of the Board
Grizzly Diamonds Ltd.
/s/ "Brian Testo"
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.

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