North American Gem Inc. Clarifies Louise Lake Estimate



    TSX-Venture: NAG

    VANCOUVER, Jan. 26 /CNW/ - 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
    (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
    

    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). Block
classification was applied using a combination of the average distance and
number of drill holes contributing composites to the local estimate.
    The Indicated Resource classification was applied to blocks with a
minimum of two drill holes and an average distance to composites of less than
50 meters. Additionally, blocks assigned to the indicated resource
classification were limited to areas where bulk density samples were taken.
The indicated blocks form a contiguous cluster with overall dimensions of 100
by 300 by 170m, extending from surface to a depth of 175m. The formula used
for Cu equivalent calculations is provided at the base of Table 1; no
provisions were made for metallurgical recoveries.
    The Louise Lake technical disclosure contained in this News Release was
reviewed and approved by Carl Schulze, BSc, PGeo, Qualified Person for the
Louise Lake project.

    Company Website:

    The Company's website previously contained a report by Fundamental
Research Corp. (FRC) and a Fact Sheet that included disclosure of the
non-compliant resource estimates made by the Company in October 2007, along
with share price guidance. The Company has removed the FRC report from its
website. The FRC report is being retracted and should not be relied upon
because the costs, production rate, mine life and net present value based on a
per share basis was unsupported by information prepared by a Qualified Person
and the estimate on which it was based was not compliant with National
Instrument 43-101.

    Revised NI43-101 report to be filed:

    As a result of the BCSC review, the Company intends to file a revised
technical report during February 2009 that will include exploration programs
completed since the July 14, 2006 SRK technical report. A draft January 2008
preliminary assessment provided by SRK based on the following metal prices: Cu
US$1.35/lb, Mo US$15/lb, Au US$500/oz, Ag US$8/oz, did not indicate favorable
economics for Louise Lake.

    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
Coal in North America, currently the focus is in Saskatchewan and West
Virginia. In addition to Coal exploration, the Company also has interest in
Uranium, Copper, Gold, Molybdenum and other base metals in Canada. The Company
has advanced the Louise Lake copper-gold-molybdenum-silver project, located in
British Columbia and has produced a NI 43-101 compliant Resource estimate
(included in its NI 43-101 Technical Report dated July 14, 2006 and filed on
SEDAR). In Alberta, the Whiskey Gap and Western Basin Uranium potential
projects. The Mosquito Gulch Uranium property located in the Northwest
Territories and the Ranger Lake Uranium property located in Ontario.

    
    On Behalf of the Board of Directors
    NORTH AMERICAN GEM INC.

    "Charles Desjardins"

    Charles Desjardins
    President and Director

    THE TSX VENTURE EXCHANGE DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR
    ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
    

    Cautionary note:

    This report contains forward-looking statements, particularly those
regarding cash flow, capital expenditures, and investment plans. Resource
estimates, unless specifically noted, are considered speculative. The Company
has filed a National Instrument 43-101 resource estimate on the Louise Lake
property. Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. By their nature, forward-looking
statements involve risk and uncertainties because they relate to events and
depend on factors that will or may occur in the future. Actual results may
vary depending upon exploration activities, industry production, commodity
demand and pricing, currency exchange rates, and, but not limited to, general
economic factors.
    Cautionary Note to US investors: The U.S. Securities and Exchange
Commission specifically prohibits the use of certain terms, such as "reserves"
unless such figures are based upon actual production or formation tests and
can be shown to be economically and legally producible under existing economic
and operating conditions.

    %SEDAR: 00005772E




For further information:

For further information: 430-609 Granville Street, Vancouver, BC,
Canada, V7Y 1G5, Phone (604) 683-5445, Facsimile (604) 687-9631,
info@northamericangem.com, www.northamericangem.com

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NORTH AMERICAN GEM INC.

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