February 24, 2005: North American Gem Inc. (NAG, TSX-V Exchange) is pleased to announce that the permit has been authorized for the Phase 1 diamond drilling project at the Louise Lake project, located 35 kilometres west of Smithers, northern British Columbia. Phase 1 will consist of about 2,100m of NQ-core diamond drilling in six holes focusing on extension of the “Main Zone” along strike to the west as well as down-dip extension to the north. The drilling program itself will commence very shortly.

The Louise Lake property has excellent road access to major highway, rail and electrical power infrastructure based at the Town of Smithers.

The “Main Zone” consists of a high-level porphyry-style copper-molybdenum-gold system, hosting an unusual tennantite-based mineral assemblage. 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.

In early January North American Gem finalized its option agreement to earn a 75% interest from 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 across 204m from DDH LL-04-03 (see News Release, Firestone Ventures Inc. dated Sept. 15, 2004).

A Phase 2 diamond 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 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
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.