Jan 3, 2006: North American Gem Inc. (NAG:TSX-v) (the Company) is pleased to announce that the drilling permits for the diamond drilling project at Louise Lake have been received. The Company plans to begin the diamond drill program near the end of this month. The Louise Lake project is located 35 kilometers west of Smithers, British Columbia and has excellent road access to major highway, rail and electrical power infrastructure based at the town of Smithers.

The proposed drilling program is intended to outline further strike extensions of the Main Zone, particularly to the west, and to also further explore the zone to the south along the “hanging wall”. The “Main Zone” consists of a high-level porphyry-style copper-molybdenum-gold system, hosting an unusual tennantite-based mineral assemblage.

The historic geological resource estimate on the Louise Lake project was provided by Equity Silver Mines Ltd. in 1992. The former operator Equity Silver Mines Ltd. released a geological resource estimate for the Main Zone of 50 Million tonnes grading 0.3% copper and 0.3 g/t gold. This estimate was produced prior to implementation of modern resource standards contained within National Instrument 43-101, does not distinguish between resource categories, and should not be relied on to necessarily represent accurate estimates under modern standards. No subsequent resource estimates have been made. North American Gem is not treating this estimate as an NI 43-101 defined resource verified by a Qualified Person and has not done the work necessary to verify the classification of the resource.

Due diligence re-sampling by immediate previous operator Firestone Ventures Inc. in 2004 of Main Zone core drilled in 1996 by Global Mineral and Chemical Ltd. confirmed tenor and grade of 1996 drill results. Re-sampling was done of a 55.1m interval of DDH GM-4, from 18.3 - 73.4m, from which Global Minerals reported a value of 0.28% copper and 0.47 g/tonne gold. Re-sampling of this exact interval by Firestone returned a weighted average value of 0.29% copper and 0.459 g/tonne gold across the same interval, indicating reliability of past results.

Firestone also analyzed several samples for “Metallic Screen Fire Assay” analysis to test for coarse gold content. Results indicate that almost all gold occurs as grains less than 100 microns across, and that the "coarse gold effect" is unlikely to be significant within the Main Zone. This further improves reliability of past results. Petrographic thin-section analysis done in 2004 also confirmed earlier descriptions of nature of mineralization.

Firestone determined that, as the 1996 results by Global Minerals were very similar to results obtained by Equity Silver and other previous operators, all previous results may be considered representative of true grades of the Main Zone.

The historical resource estimate is relevant to year-2004 drill results by Firestone Ventures Inc. and the 2005 Phase 1 North American Gem diamond drilling program of 2100 meters, as both programs focused on the Main Zone. Year 2004 drill results were very positive, with several intercepts exceeding all previous results. Year-2004 results include a 204m intercept grading 0.366% Cu, 0.0118% Mo, 0.354 g/t Au and 1.2 g/t Ag from DDH LL-04-03 (see Firestone News Release dated Sept 15, 2004). Year-2005 results were also very positive, as all holes proved intercepts of mineralization. Year-2005 results include a 78m intercept grading 0.448% Cu, 0.037% Mo, 0.440 g/t Au and 1.4 g/t Ag from DHH LL-05-02 (see News Release dated May 5, 2005).

At the time of this press release the current market prices of the four commodities found in Louise Lake are as follows: Copper 2.0837 US$/lb; Molybdenum 23.50 US$/lb; Gold 533.20 US$/oz; Silver 9.16 US$/oz.

This News Release was reviewed and approved by Carl Schulze, BSc, PGeo, Qualified Person for the project, in accordance with regulations under National Instrument 43-101.

(Although believed to be accurate, historical estimates should not be relied upon.)

Whiskey Gap Update

All of the core samples collected at the Whiskey Gap property have arrived at the Saskatchewan Research Council (SRC) for analysis. The Company continues to wait for the assay results.

The text of the International Ranger geological report on the Whiskey Gap property by G.S. Hartley may be viewed at http://www.internationalranger.com/Prospect.pdf .

The Whiskey Gap and Del Bonita projects are under the direction of Glenn .S. Hartley P. Geol. in accordance with the regulations of National Instrument 43-101.

About North American Gem Inc North American Gem Inc. (NAG:TSX-v) is a junior exploration Company based in Western Canada. The Company's primary goal is to explore for Uranium, Molybdenum, Gold, Copper and other Base metals. The Company is actively pursuing several opportunities, including the company's Louise Lake Property located in British Columbia, Canada and its Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, the Bonny Fault, and the Whiskey Gap, all located in Alberta, Canada.

On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins
President and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company’s future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.