Jan 25, 2006: The Board of Directors of North American Gem Inc. (NAG, TSX-V) are pleased to announce the immediate commencement of its 2006 diamond drilling program targeting the “Main Zone” of the Louise Lake property, 35 km west of Smithers, British Columbia, Canada. The property is road-accessible from Smithers, a full service community with an available work force and excellent highway, rail, and power infrastructure.

In January 2005 North American Gem finalized its agreement with vendor Firestone Ventures Inc. to earn a 75% interest in the property by incurring CDN$2 million in work commitments and issuing 1 million common shares to Firestone over five years. This followed positive results of Firestone’s 2004 diamond drilling property, focusing on expanding known dimensions of the Main Zone, an east-west trending, gently north-dipping, thick tabular zone of copper-gold-molybdenum-silver porphyry-style mineralization. Copper occurs almost exclusively as “tennantite”, an unusual mineral found in upper levels of porphyry systems. All six holes drilled by Firestone in 2004 returned long mineralized intercepts, including a 204-metre interval in DDH LL-04-03 grading 0.360% copper, 0.012% molybdenum, 0.354 g/t gold and 1.2 g/t silver.

In April 2005 North American Gem completed a 2512.3-metre diamond drilling program in seven holes, successfully identifying extension of the Main Zone both to the west and east, to a minimum strike length of 750 meters, still open in both directions. Compilation of results also indicated this zone consistently extends to a depth of 250 to 270 meters, where it is truncated by a flat-lying fault. Six of seven holes returned long mineralized intercepts, including: a 101.9-metre intercept grading 0.382% copper, 0.030% molybdenum, 0.372 g/t gold and 1.2 g/t silver in DDH LL-05-02; and a 192.1-metre intercept grading 0.271% copper, 0.011% molybdenum, 0.255 g/t gold and 1.0 g/t silver in DDH LL-05-04 (see NAG News Releases dated April 20 and May 2, 2005).

Detailed analysis of cross sections of all past drilling on the Main Zone suggests the zone may be a relatively small upper segment of a larger mineralized system, offset by the flat-lying fault.

This 2006 program will consist of 3,750 meters in 12 holes, with mobilization to begin on February 1st. This program will again target potential western and eastern extensions of the zone, and will also focus on the southern, “footwall” contact, as well as some infill drilling. Select holes will target potential mineralization underlying the flat-lying fault. Results will be incorporated into a scoping study, to upgrade resource estimates to standards compatible with National Instrument 43-101.

In 1992, previous operator Equity Silver provided a resource estimate of 50 million tonnes grading 0.3% copper and 0.3 g/t gold with “some payable molybdenum”; this was released prior to establishment of current resource estimate standards under National Instrument 43-101, has not been substantiated by North American Gem Inc, and should not be relied upon.

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. All sample analysis will be done by ALS Chemex of North Vancouver, British Columbia, Canada.

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.