Acquires 100% Control Over Louise Lake and Provides Drilling Update

February 21, 2006: North American Gem Inc. (TSX-v:NAG) (The Company) is pleased to announce the completion of a Formal Agreement with Firestone Ventures Inc. (TSX-v:FV) to acquire 100% interest the Louise Lake Project. Thus removing Firestone`s complete interest in the Louise Lake project, however the underlying net smelter royalty (NSR) agreed to by Firestone to the property vendor will stand as previously stated.

For completion of this agreement the Company agrees to:

  • a) issue 100,000 North American Gem shares to Firestone Ventures Inc. upon completion of $1,000,000 in expenditures on the property.
    And
  • b) also issue an additional 250,000 North American Gem shares to Firestone Ventures Inc. upon completion of a bankable feasibility study for Louise Lake by North American Gem or by any associated third party.

    The Company is currently drilling the sixth hole of the twelve hole diamond drill program.

    Carl Schulze, BSc, PGeo, Qualified Person for the project, in accordance with regulations under National Instrument 43-101.

    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.