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Grizzly Diamonds Ltd. is an aggressive Alberta-based exploration company focused on diamonds and potash in Alberta and precious metals in North America. It currently holds 3 diamond properties in northern Alberta totaling approximately 3 million acres which host diamondiferous kimberlites, prospective geophysical targets and associated diamond indicator minerals. Grizzly currently holds approximately 850,000 acres in 3 discreet potash properties located along the Saskatchewan-Alberta border. In British Columbia, Grizzly holds four precious-base metal properties totaling over 120,000 acres.

Investment Highlights

The return for investors in successful diamond and precious metal exploration companies is very high. In Alberta over 49 kimberlites have been discovered to date of which 28 are diamondiferous. The discoveries in the Buffalo Head Hills, where most of the Grizzly properties are located, have yielded the highest diamond counts. Grizzly’s precious metals projects in B.C. are located near current or historic metal producers, including the Peak Property, which has geological similarities to the high-grade Eskay Creek polymetallic silver-gold deposit and the Greenwood Property, adjacent to Merit Mining’s Golden Crown mine, which has recently started up gold-copper production.

· Quality Exploration Projects focused on diamonds, silver and gold

· Properties located in favorable mining regimes and close to infrastructure

· Excellent Share structure and well funded

· Corporate and Technical Expertise

· Aggressive Exploration plans for 2008 including drilling on TWO projects

Grizzly’s Alberta Diamond Projects:

Grizzly is the largest landholder for diamonds in Alberta. A $1.5 Million 2007-2008 exploration program has yielded two new diamondiferous kimberlites along with a number of targets that Grizzly will be drilling for years to come. A budget of $500,000 has been approved for the fall of 2008, which has already yielded a 3rd kimberlite discovery, in order to continue drilling in the area of the BE-02 Kimberlite. The BE-02 Kimberlite yielded 54 microdiamonds from 56.6kg.

Buffalo Head Hills (BHH) Diamond Properties, North Central Alberta

2007-2008 Exploration Highlights: HRAM magnetic surveys, ground geophysics surveys, sampling and drill testing has led to the discovery of three new kimberlites in the Buffalo Head Hills, two of which are diamondiferous with the results for the third pending.

· A 42,000 line-km HRAM magnetic survey has yielded numerous untested magnetic targets fro future ground surveys and drilling.

· 43 ground magnetic surveys completed over 44 prospective magnetic anomalies identified from previous HRAM surveys has yielded a number of drill targets.

· A total of 1,568 m in 9 holes during 2008 has yielded the discovery of 3 new kimberlites, 2 of which are diamondiferous and the results for the 3^rd are pending.

· Anomalous HMC samples collected in the western Buffalo Head Hills by the AGS with abundant high interest diamond indicator minerals (some with kelyphite rims), have been confirmed by follow-up sampling on Grizzly lands by APEX.

· A number of untested magnetic and EM targets identified on the Smokey The Bear, Bearpaw, Kodiak, Grand Cub Aidan and Preston Upon Wolverine properties are ready for drill testing during 2008 and 2009.

· Further strategic lands acquired during 2008.

Legend Diamond Property, Northeast Alberta

Nine kimberlites known, two of which are weakly diamond bearing, some beneath thin cover. The Legend Kimberlite is a 500 to 800m diameter multiphase low-grade diamondiferous kimberlite which may have similarities to the Fort a la Corne kimberlites in Saskatchewan. The Legend Kimberlite is beneath 12.9 m of overburden. Legend Camp Target will be drill tested sometime in the future.

Pelican Mountain Region, North Central Alberta: The Call of the Wild Property is host to pyrope beach sands dominated by G10 pyrope garnets. The property has been optioned to Stornoway Diamonds Corp. Stornoway has recently completed a 25,000 line-km fixed-wing magnetic survey along with ground geophysics and is currently evaluating the data along with diamond indicator samples collected during late 2006.

Grizzly’s BC Precious-Base Metal Projects:

Acquisition of 120,000 acres in the Greenwood Mining District. During 2008, a 2,300 line-km helicopter-borne magnetic-EM survey along with stream heavy mineral and rock sampling at Greenwood. A 1,000 m drilling program in progress at the Peak Property.

Peak Property near Smithers, North-Central BC:

· Ute and Rio polymetallic silver-gold-copper-lead-zinc (Ag-Au-Cu-Pb-Zn) vein systems in felsic volcanics – drill tested during 2006 and 2007.

· Ute Vein yielded up to 9.91 oz/t (339.7 g/t) Ag over 6.07 ft (2.07 m) core length with 1.91% Cu, 1.07% Pb and 0.37% Zn.

· Rio Sulphide Zone yielded up to 0.6 oz/t (20.54 g/t) Ag, 0.07 oz/t (2.28 g/t) Au, 0.35% Cu and 0.09% Zn over 10 ft (3.05 m) core length.

· The drilling intersected new zones named the Ute North (2.44 oz/t [83.5 g/t] Ag, 0.17 oz/t [5.67 g/t] Au, 2.17% Cu, 0.56% Pb and 0.11% Zn over 3.28 ft [1.0 m]) and the Mud1 Zone (2.65 oz/t [90.8 g/t] Ag & 0.25% Zn over 15.79 ft [5.38 m] core length.

Greenwood Property, Greenwood BC, South-Central BC:

Acquired a 120,000 acres for in the historic Greenwood Mining district and proceeded to fly an AeroTEM III helicopter-borne magnetic and time domain EM survey over the entire property. Conducted a reconnaissance heavy mineral stream sediment sampling program over the property. The sampling yielded up to 25.59 g/t in rock samples and up to 27 visible grains of gold in the heavy mineral stream samples. A number of interesting EM conductors were identified in the airborne survey and require follow-up exploration during 2008-2009.

Potash Properties, Eastern Alberta:

During 2008, Grizzly acquired roughly 850,000 acres of Permits prospective for Potash. A large portion of Grizzly’s potash permits exist in close proximity to or directly contain areas reported to be underlain by potash bearing beds within the uppermost portion of the Prairie Evaporite Fm. The presence of potash beds within the upper portion of the Prairie Evaporite in east-central Alberta near and along the Saskatchewan border is indicated by geological maps produced by the Alberta and Saskatchewan governments. In addition, a number of Grizzly’s permits exist in close proximity to a reported occurrence of potash minerals (sylvite) in a deep well (VCO #15) in the Vermilion area of east-central Alberta. A compilation of potash occurrences and possible gamma spike (possible indicative of potash) indicates the region is prospective for Potash. Grizzly is planning seismic work followed by drilling to test for potash during 2008 and 2009.

Management Bios

Brian Testo, President, CEO, Director - Mr. Testo is an Alberta-based businessman who has been involved mineral exploration in the Alberta for over 15 years.

Pamela Strand, M.Sc., P.Geol., Director - Ms. Strand, graduated from the University of Toronto and the University of Western Ontario. Since 1997 she has been the President and CEO of Shear Minerals Ltd. (TSXV: SRM), is the Chairperson and a director of Takara Resources Inc. and a director of Firestone Ventures Inc.

Douglas S. Turnbull, P. Geol., Director - Mr. Turnbull is a consulting geologist and based in Vancouver B.C. and has been actively involved in diamond, precious and base metal exploration since 1983.

Dr. Solomon (Sam) Pillersdorf, Director-Dr. Pillersdorf has been involved in the mining sector for over 10 years, including funding start-up mining companies and sourcing and funding resource claims. Dr. Pillersdorf is Head of Rheumatology Outpatients and Head of Rheumatology training at the McMaster University Medical Center

Sean Mager, Chief Financial Officer - Mr. Mager is a graduate of the University of Alberta School of Business and has spent fifteen years in private and public management and consulting is also currently Vice President, CFO, and Director of Committee Bay Resources Ltd. and the CFO and Director of Brilliant Mining Corp.

Michael Dufresne, M.Sc., P.Geol. , Consultant - Mr. Dufresne is a partner with APEX Geoscience Ltd., an established geological consulting company. His experience includes diamond, gold and base metal exploration in Alberta, B.C., Nunavut, NWT and Australia.

Share Structure as of October 1, 2008

Shares I/O: 20,256,876
Shares FD: 24,395,230
Current Price: $0.92
52-week Hi/Lo: $1.67/$0.54
Cash: $1,500,000 Cdn.
No debt.

Contact Info

www.grizzlydiamonds.com
Tel: 780-425-BEAR (2327)
Fax: 780-433-1336
Contact: Brian Testo, President Direct: (780) 693-2242