Early Analysis of Louise Lake Drilling Confirms a 200-meter Northward Extension of the Main Zone



    VANCOUVER, April 17 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG)
is pleased to announce results from the first eight holes of the winter 2007
program targeting the "Main Zone" at the Louise Lake
copper-gold-molybdenum-silver project. The road-accessible property is located
35 kilometres west of Smithers, British Columbia, Canada, a full-service
community with excellent access to highway, rail and electrical power
infrastructure.
    The Main Zone hosts an unusual mineral assemblage, with copper occurring
as an equal mixture of enargite and chalcopyrite. The 2004 through 2006
programs extended the known dimensions of the east-west striking, moderately
north-dipping tabular Main Zone both to the west and east, as well as down-dip
to the north. By 2006, the Main Zone was known to be at least 970 metres long,
up to 170 metres wide, and known to extend to a depth of 270 metres, where it
is abruptly truncated by the flat-lying "Terminator" fault.
    In 2006 SRK Consulting (Canada) Inc. completed the first NI
43-101-verifiable resource estimate on the Main Zone using highly conservative
market prices, with the following results:

    
    Table 1: - SRK classified mineral resources for the Louise Lake deposit.

    -------------------------------------------------------------------------
    Mineral
    Resources(*)    Tonnes     CuEq(xx)(%)  Cu(%)   Mo(%)  Au(g/t)  Ag(g/t)
    -------------------------------------------------------------------------
    Indicated       6,000,000     0.369     0.214  0.006    0.20     0.98
    Inferred      141,000,000     0.426     0.234  0.009    0.23     0.94
    -------------------------------------------------------------------------
    (*)  All resources quoted at 0.25% CuEq cut-off
    (xx) CuEq calculated using the following metal prices: Cu US$1.20/lb,
         Mo US$8/lb, Au US$450/oz, Ag US$7/oz
    

    Using resource estimates provided by SRK in Table 1, North American Gem
has calculated the following contained metal figures:

    
        Table 2: Contained Metal Amounts Calculated from Resource Estimates
        at 0.25% Copper Equivalent Cut Off Determined Prior to Winter 2007
                               Drill Program:

    -------------------------------------------------------------------------
    Resource Category      Tonnes            Grade           Contained Metal
    -------------------------------------------------------------------------
        Indicated         6,000,000    0.214% Cu           28,300,000 lbs Cu
    -------------------------------------------------------------------------
                          6,000,000    0.006% Mo              780,000 lbs Mo
    -------------------------------------------------------------------------
                          6,000,000    0.20 g/tonne Au         39,000 oz Au
    -------------------------------------------------------------------------
                          6,000,000    0.98 g/tonne Ag        189,000 oz Ag
    -------------------------------------------------------------------------
        Inferred        141,000,000    0.234% Cu          727,600,000 lbs Cu
    -------------------------------------------------------------------------
                        141,000,000    0.009% Mo           27,900,000 lbs Mo
    -------------------------------------------------------------------------
                        141,000,000    0.23 g/tonne Au      1,040,000 oz Au
    -------------------------------------------------------------------------
                        141,000,000    0.94 g/tonne Ag      4,260,000 oz Ag
    -------------------------------------------------------------------------
    

    The resource estimate study also indicated potential for a separate
overlying block north of the western portion of the Main Zone. The 2007
program included drill testing of this interpreted unit, as well as testing
for potential strike extension of the deposit to the west, east and north, and
along the southern "footwall" contact. Several holes also targeted interior
portions of the deposit, to progress towards upgrading of the deposit to the
"Indicated Resource" category.
    Hole LL-07-06, drilled at an azimuth of 180 degrees and a dip of
-60 degrees and targeting the potential overlying block, returned only
intermittent anomalous copper and gold values in the target area. However, the
"Main Zone was intersected from a depth of 207.0m to the "Terminator" fault at
325.8m. A second hole, DDH LL-07-06A, was collared at the same location and
azimuth, but at a dip of -80 degrees; this also intersected the Main Zone from
a depth of 239.5m to the "Terminator" at 309.2m. A third hole was collared
60 metres further north, at the same azimuth and a dip of -80 degrees; this
again intersected the Main Zone at a depth of 281.5m to the Terminator at
336.5m. Hole LL-07-15 was then collared at the same location, and drilled to
the north at a dip of -80 degrees; this failed to intersect Main Zone-style
mineralization but did intersect vein-style molybdenum mineralization below
the Terminator.

    
    Table 3: Significant Intercepts as of Apr 16, 2007.
    -------------------------------------------------------------------------
    Hole   Interval  Length  Copper  Molybdenum   Gold     Silver    Copper
            (m)       (m)      (%)     (ppm)    (g/t)(*)  (g/t)(*)  Equiv (%)
    -------------------------------------------------------------------------
    LL-    No significant
    07-01  intervals
    -------------------------------------------------------------------------
    LL-    12.1 -     39.4    0.191      49       0.166      1.0      0.322
    07-02  51.5m
    -------------------------------------------------------------------------
    LL-    42.9 -    131.6    0.095      57       0.087      0.6      0.185
    07-03 173.0m
    -------------------------------------------------------------------------
          Includes:
           83.9 -     40.8    0.113      72       0.107      0.5      0.262
           124.7m
    -------------------------------------------------------------------------
    LL-    16.2 -    229.3    0.205      48       0.169      0.7      0.336
    07-04  245.5m
    -------------------------------------------------------------------------
          Includes:
           89.5 -    117.3    0.256      43       0.223      0.8      0.415
           206.8m
    -------------------------------------------------------------------------
    LL-    No significant intervals;
    07-05  several results pending
    -------------------------------------------------------------------------
    LL-    207.0 -   118.9    0.245     159       0.271      0.7      0.506
    07-06  325.8m
    -------------------------------------------------------------------------
          Includes:
           240.6 -    85.2    0.291     167       0.314      0.8      0.582
           325.8m
    -------------------------------------------------------------------------
    LL-    239.5 -    69.7    0.292     154       0.334      0.5      0.582
    07-    309.2m
    06A
    -------------------------------------------------------------------------
          Includes:
           287.3 -    21.9    0.423     128       0.488      0.9      0.784
           309.2m
    -------------------------------------------------------------------------
    LL-    281.5 -    55.0    0.309      87       0.236      1.2      0.507
    07-14  336.5m
    -------------------------------------------------------------------------
    (*)  1 g/t equals 1 ppm
    (xx) Commodity values utilized for Cu Eq are identical to those used in
         the SRK resource calculation. 100 ppm Mo equals 0.01%
    

    The Main Zone is now known to extend a minimum of 200 metres northward
beyond previously known limits.
    Hole LL-07-01 and LL-07-05 were collared about 100 metres east and west
respectively of known limits of the Main Zone. These failed to return
significant mineralized intercepts, although anomalous copper, gold and
molybdenum values were returned from both.
    Hole LL-07-02 targeted the southern, "footwall" contact of the deposit
farther to the southeast of previous drilling. This intersected a 39.4m
interval from 12.1 through 51.5m grading 0.191% copper (Cu), 49 ppm molybdenum
(Mo), 0.166 g/t gold (Au) and 1.0 g/t silver (Ag), confirming zone boundaries
in this area. The interval was abruptly truncated by a fault at 51.5m,
although strongly anomalous concentrations of all commodities extend to a
depth of 122.9m.
    Hole LL-07-03 targeted the southern, footwall contact of the western
portion of the Main Zone. This returned a 131.6-metre interval from 42.9m to
173.0m grading 0.095% Cu, 57 ppm Mo, 0.087 g/t Au and 0.6 g/t Ag. A 40.8-metre
subinterval returned a "copper equivalent" grade of 0.262% Cu (see Table 2).
This hole also intersected a 4.4-metre interval from 236.4 to 240.8m grading
0.085% Cu, 18 ppm Mo, 0.069 g/t Au and 0.5 g/t Ag, indicating the presence of
weakly mineralized horizons outside of the Main Zone.
    Hole LL-07-04, an "interior hole" in the central deposit area, returned a
229.3-metre intercept grading 0.205% Cu, 48 ppm Mo, 0.169 g/t Au and
0.7 g/t Ag. This includes a 117.3-metre sub-interval with a copper equivalent
grade of 0.415% Cu.
    Hole LL-07-06, the most southerly of the northwestern step-out holes,
returned a 118.9-metre intercept grading 0.245% Cu, 159 ppm Mo, 0.271 g/t Au
and 0.7 g/t Ag. This includes an 85.2-metre sub-intercept grading 0.291% Cu,
167 ppm Mo, 0.314 g/t Au and 0.8 g/t Ag.
    Hole LL-07-06A returned a 69.7-metre intercept grading 0.292% Cu,
154 ppm Mo, 0.334 g/t Au and 0.5 g/t Ag, including a 21.9-metre higher-grade
sub-intercept grading 0.423% Cu, 128 ppm Mo, 0.488 g/t Au and 0.9 g/t Ag.
    Hole LL-07-14 returned a 55.0-metre interval grading 0.309% Cu,
87 ppm Mo, 0.236 g/t Au and 1.2 g/t Ag. This includes a 0.2-metre massive
sulphide vein returning 18.15% copper, 7.5% lead, 1.64 g/t gold and
75.2 g/t silver. Results from Holes LL-07-06, LL-07-06A and LL-07-14 indicate
that the Main Zone continues to dip northwards, but flattens somewhat compared
with more southerly portions. Molybdenum values are higher here than the
deposit average. The "Terminator" also dips gradually northwards, allowing for
broader widths than previously anticipated.
    Analytical results for the remaining holes are pending. These include
results from Main Zone-style mineralization at an equivalent northing to Holes
LL-07-06 and LL-07-06A but roughly 300 metres to the east.
    The approximate drill hole locations for the Winter 2007 Drill Program
can be viewed at the following link:
    http://www.northamericangem.com/louiselake_drillholes_2007.pdf

    North American Gem would also like to announce that pursuant to its stock
option plan, the Company has granted incentive stock options to its directors,
officers, consultants, and employees to purchase in the total of 1,000,000
common shares in the capital stock of the company, subject to regulatory
approval, exercisable for a period of two years, at a price of $0.18 cents per
share. These options are subject to a four-month hold period.

    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. All sample analysis was done by ALS Chemex of
North Vancouver, British Columbia, Canada. Drilling was conducted by Britton
Brothers Diamond Drilling Ltd of Smithers, British Columbia.

    About North American Gem Inc. North American Gem Inc. (TSX-V symbol: NAG)
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
Louise Lake copper-gold-molybdenum-silver deposit located in British Columbia,
Canada. The Company is also pursuing its uranium projects, consisting of the
Whiskey Gap, Del Bonita, Western Basin, and Bonny Fault projects, all located
in Alberta, Canada. In addition the Company is also pursuing its Mosquito
Gulch uranium property located in the North West Territories.

    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, 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. News release contains certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. 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.




For further information:

For further information: Phone (604) 683-5445, Facsimile (604) 687-9631,
info@northamericangem.com, www.northamericangem.com

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