North American Gem Inc. (The Company) is pleased to announce the completion of a Formal Agreement with Firestone Ventures to acquire an interest in the Louise Lake Project. The agreement consists of a five year term where North American Gem can earn up to a 75% interest in the Louise Lake Project by committing to work expenditures, issuing common shares and paying cash to the property vendor, and issuing common shares to Firestone Ventures. North American Gem will be the operator for the project.

About Louise Lake Project
The "Main Zone" of the Louise Lake project is located 35 km west of Smithers, British Columbia, Canada, with excellent road access to major rail, highway and electrical infrastructure and services based at Smithers. First discovered in 1968, the Main Zone underwent several phases of diamond drilling and surface exploration culminating in 1992 with a geological resource estimate by Equity Silver Mines Ltd. of 50 million tonnes grading 0.3% copper, 0.3 g/t gold and 0.02% molybdenum (established prior to National Instrument 43-101). The Metallurgy Department of Equity Silver reported copper and gold recoveries of 95% and 90% respectively. Early in 2004, Firestone Ventures Inc. entered into an option agreement to earn a 100% interest in the property over four years. Firestone then conducted a six-hole, 1,675m diamond drilling program focusing on expansion of the Main Zone along strike to the east, west and down-dip to the north, and on infill drilling. All six holes returned long intercepts of high copper-gold molybdenum values, increasing the known extent of the zone, and indicating the system remains open in all directions. The best intercepts include: 0.337% copper, 0.0181% molybdenum and 0.344 g/t gold across 150m from DDH LL-04-02, a northern down-dip step-out hole; and 0.366% copper, 0.0118% molybdenum and 0.354 g/t gold across 204 metres, open at depth, from infill drilling in DDH LL-04-03. Metal values per tonne compare with those of many current advanced projects and some producing mines within British Columbia.

The Main Zone, located along the north limb of the regional-scale east-northeast trending Coal Creek Lineament, hosts a highly unusual mineralogical setting. Copper mineralization occurs almost exclusively as tetrahedrite-tennantite, indicating formation towards the top of a porphyry system. This system displays many characteristics of epithermal as well as porphyry deposits, suggesting known mineralization may represent a comparatively small portion of a much larger porphyry system at depth. Induced polarization surveying conducted in 1969 revealed a high chargeability anomaly coincident with the Main Zone. A second anomaly having a similar signature occurs under Louise Lake along the south limb of the Coal Creek lineament, suggesting a potential fault-offset portion with a 1.0-km displacement of the Main Zone. This provides an additional exploration target for bulk tonnage porphyry and/or epithermal mineralization. The following table summarizes the terms:

Year	Property Vendor	Firestone	Work Expenditures    Interest Earned

1	150,000 shares	125,000 shares	$300,000.00
2	150,000 shares	125,000 shares	$300,000.00
3	$80,000 cash	150,000 shares	$400,000.00		60%
4	250,000 shares	$500,000.00
5	250,000 shares	$500,000.00				75%

The terms of the agreement also call for the Company to pay Firestone Ventures 200,000 common shares upon approval of a formal agreement. A finder's fee of 100,000 common shares of the Company will be payable in accordance with TSX Venture Exchange policies. The agreement is subject to TSX Venture approval.

The Company is presently formulating a work program including diamond drilling which it anticipates will begin in February.

Carl Schulze, P. Geol., will be the Qualified Person on the Project. In addition, the Company announces that it has granted, subject to regulatory approval Director /Officer/ Consultant/ Employee incentive stock options of the company to purchase in the aggregate 400,000 common shares in the capital stock of the Company per the Company's Stock Option Plan. The options are exercisable on or before January 18, 2007 at price of $0.10 per common share.

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 Gold and Platinum Group metals. The Company is actively pursuing several opportunities, including the Bonaparte Mine Property and Louise Lake Project.

For additional information you can contact North American Gem Inc.

On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
"Charles Desjardins"


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.