EDMONTON, ALBERTA-(Aug. 13, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is pleased to announce that it has signed a letter of intent ("LOI") with Fractal Mining Corporation ("Fractal") whereby Fractal, a private BC company, can earn a 70% interest in Grizzly's French Property, a polymetallic porphyry prospect near Smithers, British Columbia.

- Shares Issued and Outstanding: 19,501,069

The French Property is located near the southern edge of the Bowser Basin within Stikine Terrane and along the northern flank of the Skeena Arch. In the area of the intrusive complex, Early to Middle Jurassic Hazelton Group volcanic rocks are overlapped by marine to non-marine sediments and volcanics of the Bowser Lake and Skeena Groups, which in turn are unconformably overlain by intermediate to felsic volcanics and sediments of Cretaceous Kasalka Group. The French intrusive complex has been dated at 71 Ma and is classified as Late Cretaceous (Bulkley) in age. The French porphyry is fault bounded and exists within a complex area of block faulting. Based upon the presence of near flat lying hornfelsed volcanic and sedimentary units, blocks of volcanics within the porphyry (most likely roof pendants) and an extensive pyritic zone, the present day erosional surface is at or near the top of the French porphyry system, which is only now being unroofed. As a result, Grizzly believes that the French property represents a unique exploration opportunity, prospective for the discovery of an intact high grade hypogene copper-molybdenum-gold-silver porphyry system associated with a Bulkley aged intrusive complex.

Under the terms of the LOI, Fractal, a private arms-length company, has been granted an option (the "Option") to acquire up to a 70% undivided interest in the French property by making a cash payment to Grizzly of $5,000 on signing and issuing to Grizzly 50,000 common shares of Fractal ("Fractal Shares"). To earn-in to an undivided 70% interest in the property, Fractal must issue to Grizzly an additional 150,000 Fractal Shares and incur a minimum of $500,000 in exploration expenditures prior to the third anniversary of a formal agreement.

The Option is subject to finalization of a formal agreement, due diligence, and regulatory approval.

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 850,000 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 are being conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.

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.

For more information, please contact
Grizzly Diamonds Ltd.
Brian Testo
President
(780) 693-2242 or (780) 425-BEAR(2327)
Website: http://www.grizzlydiamonds.com

or

AGORACOM
Investor Relations
Email: GZD@Agoracom.com
Website: http://www.agoracom.com/ir/grizzly