January 25, 2005: North American Gem Inc. (NAG, TSX-V) is pleased to announce the recent expansion of the Louise Lake property, located 35 km west of Smithers, northwestern British Columbia, Canada. The property is centered on the “Main Zone” high-level porphyry-style copper-molybdenum-gold system, with an unusual tetradymite-based mineral assemblage. The property has excellent road access to major highway, rail and electrical power infrastructure based at the Town of Smithers.

The property, formerly consisting of 30 claim units covering 750 hectares, now consists of 150 “cells” covering roughly 3,300 hectares. This expansion was conducted to ensure a land package of sufficient size to include potential outlying “bonanza vein” or epithermal zones commonly occurring peripheral to core bulk tonnage deposits within porphyry systems. The “Lake Zone”, consisting of lead-zinc-silver veining roughly 1.2 km east-northeast of the Main Zone, is typical of intermediate base-metal zones occurring between central porphyry-style deposits and bonanza vein zones occurring further outbound.

In early January North American Gem finalized its option agreement to earn a 75% interest from with Firestone Ventures Inc. (see news release dated January 18, 2005). In 2004, Firestone conducted a six-hole, 1,675m diamond drilling program focusing on expansion of the Main Zone. All holes returned wide mineralized intercepts, including 0.366% Cu, 0.0118% Mo and 0.354 g/t Au/ 204m (see News Release, Firestone Ventures Inc. dated Sept. 15, 2004).

In 1992 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; the 1992 resource calculations may not necessarily be in compliance with them.

North American Gem is preparing for a Phase 1 diamond drilling program of about 2,200m scheduled to commence expeditiously on permit approval, and focusing on further expansion of the Main Zone. A Phase 2 drilling program, combined with surface exploration of separate copper-gold-molybdenum soil geochemical anomalies delineated from compilation of past exploration results, is planned for the summer of 2005. Mr. Carl Schulze, PGeo, will continue as Qualified Person for the project.

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.

About North American Gem Inc. North American Gem is a junior exploration company based in Western Canada. The Company’s primary goal is to explore for Copper, Gold and Molybdenum Group metals. The Company is actively pursuing several opportunities, including the Louise Lake Project and Bonaparte Mine Property.

For additional information you can contact North American Gem Inc.

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, 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.