January 25, 2006: North American Gem Inc. (NAG:TSX-v) (the “Company”) announces that it has arranged a private placement of up to 1,000,000 units at a price of $0.15 per unit for total proceeds of $150,000, subject to the approval of the TSX Venture Exchange. Each unit will consist of one flow-through common share and one half (1/2) non flow-through share purchase warrant, each full warrant entitling the holder to purchase an additional common share at a price of $0.18 per share in the first year and $0.20 per share in the second year.

The proceeds of the private placement will be used for exploration work on the Company’s mineral properties.

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.