North American Gem Inc.

North American Gem Inc.

May 30, 2006 17:52 ET

North American Gem Inc.: Resource Estimate Released by SRK Consulting on 'Main Zone', Louise Lake Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - North American Gem Inc. (TSX VENTURE:NAG) (the "Company") is pleased to announce that an independent resource estimate has been provided by SRK Consulting of Vancouver, British Columbia on the "Main Zone" within North American Gem's Louise Lake property, 35 kilometres west of Smithers, British Columbia, Canada. This is the first resource estimate on the Main Zone compliant with standards within National Instrument 43-101. The road-accessible property is located 35 kilometres west of Smithers, a full-service community with excellent access to highway, rail and electrical power infrastructure.

Table 1 lists indicated and inferred resources calculated 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(i) Tonnes(i) 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
(i) All resources quoted at 0.25% CuEq cut-off
(ii) CuEq calculated using the following metal prices: Cu US$1.20/lb,
Mo US$8/lb, Au US$450/oz, Ag US$7/oz

These resources were estimated by ordinary kriging methods from 37 drill holes located within a mineralized envelope designed by SRK. The resource is based on a global bulk density of 2.75 tonnes/m3. Block classification was applied using a combination of the average distance and number of drill holes contributing composites to the local estimate.

Indicated resource classification was applied to blocks with a minimum of two drill holes and an average distance to composites of less than 50 metres. 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.

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:

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

Additional notes:

1. Tonnes have been rounded off to the nearest million; pounds to
nearest ten-thousand, troy ounces have been rounded off to the
nearest thousand.
2. Resources reported above have been calculated as of May 25, 2006
in accordance with the standards of the Canadian Institute of
Mining, Metallurgy and Petroleum and guidelines of National
Instrument 43-101.
3. 1 Troy ounce equals 31.103 grams gold.
4. 1 Metric tonne equals 2,205 lbs.
5. Not all of the tonnage would be recovered during mining, nor
would 100% of all metals be recovered during processing.

During completion of this National Instrument 43-101 compliant resource estimate, SRK Consulting reviewed all information obtained during the winter, 2006 diamond drilling program consisting of 12 holes totaling 3387.4 metres; the winter, 2005 drilling program of 7 diamond drill holes totaling 2412.3 metres; the summer, 2004 program of 6 holes totaling 1718.4 metres conducted by Firestone Ventures Inc. and historical information from a further 34 diamond drill holes drilled from 1970 through 1992. Data was verified and classical statistics were evaluated. The resource estimate was estimated through ordinary kriging methods from 37 drill holes located within a mineralized envelope designed by SRK. Bulk density values taken in 2006 appear to be consistent with intrusive, metasedimentary and metavolcanic lithologies.

The mineral resources stated in this news release are not mineral reserves and, in the absence of a current feasibility study, do not demonstrate economic viability. The determination of mineral reserves can be affected by various factors including environmental, permitting, legal and title issues. North American Gem is not aware of any substantive issues that would materially affect any resource estimate of the Main Zone. A technical report supporting these resource estimates will be filed on SEDAR within 45 days of this release, as required.

The 2006 exploration program was overseen by Qualified Person Carl Schulze, P.Geo, of independent consulting firm All-Terrane Mineral Exploration Services of Whitehorse, Yukon Territory, Canada, under contract to North American Gem Inc. Mr. Schulze was present during most of this program. Stringent quality assurance and quality control (QA/QC) protocol was in place throughout this program, involving the insertion of abundant "standard" assay samples involving three separate copper-molybdenum-silver grades and three further separate standards of varying gold grades. Blank samples were also abundantly used, including insertion directly following standard samples in the sample stream. No anomalous metal values were noted in any of the blank samples. Duplicate samples were taken to determine uniformity of metal distribution.

All samples were submitted to ALS Chemex Labs in North Vancouver, British Columbia, Canada, recognized as an ISO 9001:2000 accredited laboratory. All samples were analyzed by 50-gram fire assay as well as 34-element ICP analysis. Several sample batches were re-analyzed by ALS Chemex upon request by North American Gem; all were found to be within acceptable quality ranges. ALS Chemex also maintains high levels of internal QA/QC protocol.

Mr. Marek Nowak, MSc, PEng, of SRK Consulting was the Qualified Person for the resource estimate, and Mr. Christopher Lee, MSc, PGeo, was the qualified person for review and assimilation of geological information. This News Release was reviewed by Mr. Christopher Lee and by Carl Schulze, BSc, PGeo, Qualified Person for the Louise Lake project.

About North American Gem Inc.

North American Gem Inc. (TSX VENTURE: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 company's Louise Lake Property and the Mt. Ogden Property located in British Columbia, Canada and its Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, the Bonny Fault, and the Whiskey Gap, all located in Alberta, Canada.

On Behalf of the Board of Directors


Charles Desjardins, President and Director

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. 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.

Information Concerning Estimates of Mineral Resources:

This News Release uses the terms "mineral resources", "indicated resources" and "inferred resources". North American Gem advises investors that, although these terms are recognized and required by Canadian securities regulations (under National Instrument 43-101, "Standards of Disclosure for Mineral Projects"), the US Securities and Exchange Commission does not recognize these terms. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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