Agoracom

EDMONTON, ALBERTA - (Dec. 12, 2007) - Grizzly Diamonds Ltd. (the "Corporation") (TSX VENTURE: GZD) (FRANKFURT: G6H) today announced that it has amended the terms of the non-brokered private placement offering ("Offering") previously announced on October 29, 2007. The Corporation will be offering any combination of flow-through units ("FT Units") at a price of $1.10 per FT Unit and non-flow through units ("Non-FT Units") at a price of $1.00 per Non-FT Unit, for gross proceeds of $3 million if the Offering is fully subscribed. Each FT Unit will consist of one "flow-through" common share of the Corporation ("FT Share) and one-half of a non-transferable share purchase warrant ("Warrant"). Each Non-FT Unit will consist of one common share of the Corporation ("Non-FT Share") and one-half of a Warrant. Each whole Warrant will entitle the holder to acquire one additional Non-FT Share at a price of $1.50 within 24 months of issuance.

In connection with the Offering, if permitted under applicable securities legislation, the Corporation will pay brokers and arm's length finders (a "Finder") a fee equal to 8% of the FT Units and Non-FT Units (collectively, the "Units") sold to purchasers referred by the Finder together with a non-transferable option ("Finder's Option") to acquire that number of Non-FT Units equal to 10% of the number of Units sold to purchasers referred by the Finder, at a price of $1.10 per Unit for a period of 24 months from issuance.

The Units will be offered to qualified purchasers resident in Alberta, British Columbia, and Ontario and such other jurisdictions as the Corporation may determine, in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The Offering and Finder's compensation is subject to approval of the TSX Venture Exchange. 

Stock Options Granted

The Corporation has, subject to regulatory approval, also granted incentive stock options to Dr. Sam Pillersdorf, a director of the Corporation, to acquire up to 100,000 common shares of the corporation at an exercise price of $1.05 pursuant to the Corporation's Stock Option Plan. 

Grizzly Diamonds 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 Pelican Mountain areas of Alberta totaling over three million acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia, the Corporation has four precious metal properties totaling over 23,000 acres. 

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.