GZD Grizzly Discoveries Inc

Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) ("Grizzly") today is
pleased to announce that it has signed a binding Letter of Intent (LOI) to
purchase all of Merit Mining Corp.'s (MEM:TSXV) ("Merit's") interest
(approximately 44%) in the Rock Creek Gold Trend Joint Venture Property (the
"Rock Creek Property"), a contiguous block of mineral claims totaling
approximately 8,786 acres located west of the town of Greenwood, B.C. This
brings Grizzly's total direct and indirect interest in the Rock Creek Property
to 72%.


To acquire all of Merit's interest in the Rock Creek Gold Trend Joint Venture,
Grizzly must pay the vendors as follows (subject to regulatory approval):


- $25,000 cash; 

- a total of 75,000 common shares of Grizzly.   

Grizzly had previously purchased a 50% interest in a private company which holds
the remaining 56% interest in the Rock Creek Property (See Grizzly News Release
dated June 2, 2009). The property is adjacent to Grizzly's existing Greenwood
holdings (see Grizzly's news releases dated March 10, 2008, July 23, 2008 and
Feb. 19, 2009) and brings Grizzly's total Greenwood gold project lands to
approximately 162,000 acres (65,500 hectares). The property is road accessible,
hosts a number of historic mineral occurrences, including, most notably, the Ket
28 gold showing, and is less than 7 km northwest of Kinross Gold Corp.'s
recently commissioned Buckhorn Mountain gold mine.


"The addition of the Rock Creek property to Grizzly's Greenwood gold project
makes Grizzly the dominant landholder in the region, and a significant player in
a world-class gold district that has produced millions of ounces of gold
historically and has the potential to produce many more significant
discoveries," said Brian Testo, president and chief executive officer of
Grizzly. "The Greenwood gold project is one of Grizzly's top-priority projects
during 2009 and beyond."


Rock Creek Gold Trend Joint Venture

The Rock Creek property consists of a number of historic workings that are
approximately 2 km south of Highway 3. The primary gold prospect on the property
is the Ket 28 gold showing, which was discovered by Crown Resources Corp. during
the early 1990's using airborne magnetics followed by reverse circulation (RC)
drilling. The initial drilling program consisted of seven RC holes, with drill
hole KT-1 intersecting 8.91 grams per tonne (g/t) gold (Au) (0.26 ounces per ton
(oz/t)) over 6.10 metres (m). Gold mineralization at the Ket 28 showing is
spatially associated with quartz veins and silicified shear/breccia zones hosted
in highly deformed and altered Paleozoic Anarchist Formation volcanic and
sedimentary rocks. In some cases, gold mineralization is associated with
skarn-like alteration zones similar to those at the Buckhorn Mountain gold
deposit. The skarn zones are generally spatially associated with alkalic
intrusives in contact with Paleozoic sedimentary rocks. A small number of RC and
diamond drill holes were drilled at the Ket 28 prospect and surrounding area
during 1993 to 1996. No drilling and little exploration have been conducted on
the Rock Creek property since 1996. Highlight assay results from diamond drill
holes completed during 1994 and 1996 include 4.46 g/t (0.13 oz/t) Au over 11.83
m and 52.18 g/t (1.522 oz/t) Au over 3.35 m from two separate intervals in hole
94RM1-2C, along with 3.92 g/t (0.114 oz/t) Au over 4.57 m in hole 96GH3C and
8.09 g/t (0.236 oz/t) Au over 2.13 m in hole 96GH4C.


The historic mineralization and stratigraphic setting for the Ket 28 prospect
and the Rock Creek property have similarities with Kinross's Buckhorn Mountain
gold deposit, which exists only 7 km southeast of the Rock Creek property. The
Buckhorn Mountain gold deposit was recently commissioned into production and
poured its first gold in October, 2008 (see Kinross's news release dated
November 5, 2008). The Buckhorn Mountain gold deposit contains proven and
probable reserves of 1,993,000 tonnes at an average grade of 15.46 g/t (0.45
ounce per ton) for a total of 990,000 ounces of Au. Gold mineralization at the
Buckhorn Mountain gold deposit is associated with skarn zones within Paleozoic
sedimentary rocks.


Update 2009 Field Exploration

Grizzly is pleased to announce that it has commissioned Aeroquest Limited to
commence a 1,600 line-km 2009 AeroTEM III survey over the Rock Creek Property
and portions of Grizzly's Sidley-Dayton Property. Personnel from APEX Geoscience
Ltd. are currently in the field and conducting geological mapping, rock and soil
sampling, and ground geophysics. Assays from ground based fieldwork are expected
to start arriving towards the end of August and will be reported upon once
received and interpreted. Grizzly expects to commence diamond drilling during
mid to late September. 


All 2009 field programs are being conducted under the supervision of Michael
Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person
as defined under National Instrument 43-101.


About Grizzly Diamonds Ltd.

Grizzly is an aggressive Canadian exploration company focused on exploring for
world class gold and base metal deposits in British Columbia and diamonds and
industrial minerals in Alberta. In British Columbia, Grizzly currently has five
precious-base metal properties totaling over 175,000 acres. It currently holds
more than 1 million acres in diamond properties which host diamondiferous
kimberlites in the Buffalo Head Hills and Birch Mountains of Alberta. Grizzly
has also acquired metallic and industrial mineral permits for Potash totaling
more than 1.4 Million acres along the Saskatchewan-Alberta border.


Grizzly trades on the TSX Venture Exchange under the symbol GZD, with 22,943,970
common shares issued and outstanding.


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.

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