North American Gem Inc.

North American Gem Inc.

April 06, 2006 15:28 ET

North American Gem Increases Main Zone at the Louise Lake Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) - North American Gem Inc. (TSX VENTURE:NAG) (the "Company") is pleased to announce encouraging results from the next two holes targeting the "Main Zone" on the Louise Lake Project, 35 kilometers west of Smithers, British Columbia, Canada. Smithers is a full-service community with excellent access to highway, rail and electrical power infrastructure.

Hole LL-06-03, targeting the southern "footwall" contact of the Main Zone roughly 100 meters southwest of Hole LL-06-01 (see News Release dated March 7, 2006) returned a 151.6-meter intersection from 15.8m (casing) to 167.4m, grading 0.177% copper (Cu), 42 ppm molybdenum (Mo), 0.126 ppm gold (Au) and 1.6 ppm silver (Ag). This includes a 58.3-meter intersection from 15.7 - 74.1 meters grading 0.243% Cu, 51 ppm Mo, 0.164 ppm Au and 2.9 ppm Ag. These results indicate that the southern margin extends somewhat further south than expected, increasing the known width of the Main Zone.

Hole LL-06-04, collared about 15 meters north of Hole LL-05-05 and drilled at a dip of -80 degrees, targeted the northern, down-dip extension of the Main Zone intersected in Hole LL-05-05 (see News Release dated April 20, 2005). Hole LL-06-04 returned a 60.0-meter intercept from 244.2 - 304.2m grading 0.286% Cu, 80 ppm Mo, 0.326 ppm Au and 1.3 ppm Ag. This includes a 46.0-meter intercept from 258.2 - 304.2m grading 0.331% Cu, 78 ppm Mo, 0.372 ppm Au and 1.5 ppm Ag. Importantly, this represents a northward extension of the Main Zone of slightly more than 100 meters from the intercept in Hole LL-05-05. Most of the overlying portion of this hole also intersected lower grade though still strongly anomalous metal values, specifically returning a 196.3-meter intercept grading 0.095% Cu, 39 ppm Mo, 0.127 ppm Au and 0.3 ppm Ag.

In April 2005 North American Gem completed a 2512.3-meter diamond drilling program in seven holes, successfully identifying extension of the Main Zone both to the west and east, to a minimum strike length of 750 meters, still open in both directions. Compilation of results also indicated this zone consistently extends to a depth of 250 to 270 meters, where it is truncated by a flat-lying fault. Six of seven holes returned long mineralized intercepts, including: a 101.9-meter intercept grading 0.382% copper, 0.030% molybdenum, 0.372 g/t gold and 1.2 g/t silver in DDH LL-05-02; and a 192.1-meter intercept grading 0.271% copper, 0.011% molybdenum, 0.255 g/t gold and 1.0 g/t silver in DDH LL-05-04 (see NAG News Releases dated April 20 and May 2, 2005).

The Main Zone hosts an unusual mineral assemblage, with copper occurring almost exclusively as "tennantite", suggesting top levels of a porphyry system. The 2004 and 2005 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. The Main Zone has a minimum strike length of 750 meters, is up to 170 meters thick, and extends to a depth of 250 - 270 meters, where it is abruptly truncated by the flat-lying "Terminator" fault.

The following table lists significant intercepts from Holes LL-06-03 and LL-06-04:

Molyb- Gold Silver Copper
Interval Length Copper denum (g/t) (g/t) Equiv
Hole (meters) (m) (%) ppm (i) (i) (%)
LL-06-03 15.8 - 151.6m 0.177 42 0.126 1.6 0.31
Includes 15.8 - 58.3m 0.243 51 0.164 2.9 0.42
and 138.2 - 29.2m 0.229 79 0.172 1.2 0.44
LL-06-04 47.9 - 196.3m 0.095 39 0.127 0.3 0.21
244.2 - 60.0m 0.286 80 0.326 1.3 0.57
Includes 258.2 - 46.0m 0.331 78 0.372 1.5 0.63
(i) 1 ppm equals 1 g/t
(i) Assumes prices of $1.30/lb Cu, $20.00/lb Mo, $400/0z Au and
$7.00/oz Ag (US dollars)

The just completed 2006 program targeted potential eastward and westward extensions of the Main Zone, as well as the southern "footwall" contact and northward "down-dip" extensions in western and east-central areas. The program also included one in-fill hole in an under-explored area. The program was designed to test peripheral areas to determine preliminary zone dimensions, to be incorporated into the resource evaluation study currently being informed by SRK Consulting of Vancouver, British Columbia. Project deliverables by SRK Consulting include: a geological model, a preliminary resource statement for the Main Zone compliant with modern CIM standards, data analysis, a resource estimates according to Form 43-101 F1 for technical reports, and recommendations for advancement of the project towards pre-feasibility. A site visit has been completed, and the resource estimate is proceeding without complications.

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. The 1992 estimate by Equity Silver Mines Ltd. was produced prior to implementation of modern resource standards contained within National Instrument 43-101, does not distinguish between resource categories, and should not be relied on to necessarily represent accurate estimates under modern standards. No subsequent resource estimates have been made. North American Gem is not treating this estimate as an NI 43-101 defined resource verified by a Qualified Person and has not done the work necessary to verify the classification of the resource.

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 is being done by ALS Chemex of North Vancouver, British Columbia, Canada.

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 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.

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

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