Grizzly Discoveries Closes 1st Tranche of $1,448,000 Private Placement

July 7, 2010 - PRLog -- Grizzly Discoveries Inc. (GZD:TSXV) (“Grizzly”, or the “Corporation”) announces that it has closed the first tranche of a non-brokered private placement of an aggregate of 3,196,595 units (“Non-FT Units”) at a price of $0.30 per Non-FT Unit and 1,400,000 flow-through units (“FT Units”) at a price of $0.35 per FT Unit, for gross proceeds of $1,448,978.50.

Each Non-FT Unit consisted of one common share of the Corporation (“Common Share”) and one non-transferable Common Share purchase warrant (“Non-FT Unit Warrant”) entitling the holder to acquire one additional Common Share at a price of $0.50.  Each FT Unit consisted of one Common Share issued as a “flow-through share” pursuant to the Income Tax Act (Canada) and one non-transferable Common Share purchase warrant (“FT Unit Warrant”) entitling the holder to acquire one additional non-flow through Common Share at a price of $0.60.  The FT Unit Warrants and the Non-FT Unit Warrants (collectively, the “Warrants”) expire on the earlier of:  (a) 30 days following the issuance of a news release by the Corporation that the trading price of the Common Shares on the TSX Venture Exchange is at or greater than $0.80 per Common Share for 10 consecutive trading days; and (b) July 5, 2011.

The Non-FT Units and the FT-Units (collectively, the “Units”) were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation.  Insiders of the Corporation purchased an aggregate of 500,000 Non-FT Units and all of the FT Units.  The Common Shares forming part of the Units, the Warrants and the Common Shares issuable upon exercise of the Warrants are subject to a restricted period ending on November 6, 2010.

The proceeds from the sale of the FT Units will be used to incur expenditures which qualify as Canadian Exploration Expenses on the Corporation’s Canadian exploration properties.  The proceeds from the sale of the Non-FT Units will be used for exploration on the Company’s mineral properties, working capital and general corporate purposes.

Subject to approval of the TSX Venture Exchange, Grizzly will close on an additional 766,738 Non-FT Units for gross proceeds of $230,021.40.

About Grizzly Discoveries Inc.

Grizzly is an aggressive Canadian exploration company focused on exploring for world class gold and base metal deposits in British Columbia, and for diamonds and industrial minerals in Alberta.  In British Columbia, Grizzly currently has four precious-base metal properties totaling over 235,000 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 1.43 million acres along the Saskatchewan-Alberta border.

Grizzly trades on the TSX Venture Exchange under the symbol GZD, with 30,643,564 Common Shares issued and outstanding.

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