TSX-Venture: NAG

VANCOUVER, Jan. 26 /PRNewswire-FirstCall/ - North American Gem Inc. (TSX-V symbol: NAG) (the Company) announces, as a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure.

Louise Lake Property:

In its October 9, 2007 news release, North American Gem Inc. disclosed a significant increase in its indicated mineral resource estimates for the Main Zone at Louise Lake. Although the estimate incorporated results from the Company's diamond drilling program conducted in early 2007, and the Company reported that the estimates were provided by SRK Consulting (Canada) Inc. (SRK Consulting), SRK did not deliver a final estimate to the Company that was National Instrument 43-101 compliant and the Company should not have disclosed an increase in its indicated resource estimate. Therefore, the Company retracts its mineral resource disclosure of October 9, 2007 and restates its Louise Lake resource estimates as follows.

The resource estimate released by the Company on May 30, 2006 meets the requirements of National Instrument 43-101 and is the Company's current disclosed Louise Lake resource estimate. The estimates are included in the Company's July 14, 2006 technical report prepared by SRK Consulting entitled 'Independent Technical Report and Resource Estimate for the Louise Lake Property, Omenica Mining Division'.

Table 1 lists indicated and inferred resources calculated in 2006 by SRK Consulting for the Main Zone, calculated at a copper equivalent cut off of 0.25% Cu:

    Table 1 - SRK classified mineral resources for the Louise Lake deposit,
    B.C., Canada
    -------------------------------------------------------------------------
    Mineral Resources*  Tonnes*    Cu (%)    Mo (%)   Au (g/t)  Ag (g/t)
    -------------------------------------------------------------------------
       Indicated          6,000,000     0.214     0.006       0.20      0.98
    -------------------------------------------------------------------------
       Inferred         141,000,000     0.234     0.009       0.23      0.94
    -------------------------------------------------------------------------
    *    All resources quoted at 0.25% CuEq cut-off
    **   CuEq calculated using the following metal prices: Cu US$1.20/lb,
           Mo US$8/lb, Au US$450/oz, Ag US$7/oz

This resource base was estimated by ordinary kriging methods from 37 drill holes located within a mineralized envelope designed by SRK Consulting. The resource is based on a global bulk density of 2.75 tonnes/m(3).