Northland Resources Inc.

Northland Resources Inc.

March 16, 2005 12:44 ET

North American Gold Inc.: Resource Estimate Calculated on Norra and Barsele with a 40% Increase in Indicated Resource


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTH AMERICAN GOLD INC.

TSX VENTURE SYMBOL: NAU

MARCH 16, 2005 - 12:44 ET

North American Gold Inc.: Resource Estimate Calculated
on Norra and Barsele with a 40% Increase in Indicated
Resource

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2005) - North
American Gold Inc. (TSX VENTURE:NAU) is pleased to announce that
resource estimates are now complete for the Barsele Norra Project,
Northern Sweden. The resource estimates presented are based on a revised
geologic model, 2003 and 2004 drill data, and historic drill
information. Results of the current resource estimate have demonstrated
a 40% increase in indicated ounces, at a higher cut-off grade, than the
historic resource estimate by Williams Resources Inc., January 28, 1998.
Newly designed 3D geologic modeling indicates potential for
significantly increasing the overall gold resource within, and between,
the known resource areas.

Using a 0.8g/t Au cut off, the Barsele Norra project contains a total of
approximately 639,000 ounces of gold within the indicated and inferred
resource categories. The estimated resources for the 4 mineralized
zones, broken down into indicated and inferred categories, are tabulated
below.

Indicated and inferred resource estimates for Barsele Norra calculated
by Inverse Distance Weighting Method are as follows:



BARSELE NORRA, MARCH 2005 MINERAL RESOURCE ESTIMATE (Capped)

--------------------------------------------------------------------
INDICATED RESOURCES INFERRED RESOURCES
--------------------------------------------------------------------
Inverse Inverse Inverse Inverse Inverse Inverse
Model Distance Distance Distance Distance Distance Distance
--------------------------------------------------------------------
Cut off Grade Total Au Grade Au Total Au
Au g/t Tonnes Au g/t Ounces Tonnes g/t Ounces
--------------------------------------------------------------------
Norra-
0.8 193,038 2.90 17,987 61,487 2.76 5,451

Avan-
0.8 1,306,125 1.49 62,701 2,629,699 1.61 136,458

Central-
0.8 3,143,569 1.82 184,285 2,741,425 1.70 149,976

Skirasen-
0.8 534,147 1.50 25,815 1,190,103 1.47 56,310

--------------------------------------------------------------------
Totals
Barsele/
Norra 5,176,879 1.75 290,788 6,622,713 1.64 348,196
--------------------------------------------------------------------


Mineral resource estimates, geostatistics and resource model
construction were completed using Minesite™ (Mintec Inc. of Tucson,
Arizona) three dimensional modeling software. Resource estimates were
prepared by third party consultants (Bart Stryhas, PhD Structural
Geology and Dwight Crossland BS Mining Engineering); the resource model
and estimates were subsequently reviewed by Chlumsky Armbrust & Meyer
L.L.C. (CAM) an independent, mineral resource, consulting and
engineering group based in Lakewood, Colorado USA.

The resource estimate was calculated within hard geologic boundries
defining three dimensional shaped mineralized zones. Only those blocks
within the shapes were assigned value, using 1 meter drill hole
intervals for assay composites contained within the shapes.
Geostatistical analysis was used to define appropriate search parameters
and the capping of higher-grade gold values. Resource estimates
utilizing Ordinary Kriging, Polygonal and Inverse Distance Squared
interpolation techniques were cross compared and reviewed for
consistency. The Inverse Distance (Squared) Weighting Method was chosen
for reporting.

Historic resource estimates by William Resources Inc., January 28, 1998
were calculated using a 0.75 g/t Au cut off grade. Williams Resources
Inc. reported at that time Indicated resources of 207,000 ounces, and
Inferred resources of 332,000 ounces. The higher cut off grades used by
North American provide a level of conservatism to the estimate while
increasing both Indicated and Inferred ounces over Williams Resources
Inc.'s historic gold resource.

Buck Morrow president of North American Gold Inc. stated "The completion
of the resource estimate and review by CAM is a milestone for North
American. We are now moving on to the next phase of our program at
Barsele Norra, which is to continue drilling and expanding our resources
and moving certain areas within our exploration permits to exploitation
concessions (mining concessions). We will shortly commence an
Environmental Assessment (EA) which is scheduled to be completed by the
end of 2005. The EA will then be submitted to the Mines Inspectorate as
part of application process for exploitation concessions. The resource
estimate will accompany the concession applications, as well as our plan
for future exploration and development within the project area. We
expect direct exploration cost to be reduced during 2005 because of
one-time expenditures incurred during 2004. Direct drilling cost at
Barsele should be lower due to the use of large diameter reverse
circulation drilling to obtain large sample weights at Barsele. We
expect 2005 to be a very productive and exciting year for the company."

NI 43-101 Compliance

In accordance with NI 43-101, Vance Thornsberry, P. Geol., a qualified
person under NI 43-101 has verified the data disclosed in this release
other than certain information provided by MinMet plc.

Background

North American Gold Inc. has an option to acquire a 60% interest in the
Norra and Barsele properties from MinMet plc by incurring a total of US
$3.5 million in exploration expenditures and issuing 400,000 shares to
MinMet by November 3, 2006 (see news release November 3, 2003). For more
information, please refer to North American's website
www.northamgold.com or call Kareen McKinnon toll free at 1 866 312-8630.

ON BEHALF OF THE BOARD

Buck Morrow, President

NORTH AMERICAN GOLD INC.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    North American Gold Inc.
    Kareen McKinnon
    Toll Free: 1-866-312-8630
    www.northamgold.com
    The TSX Venture Exchange has not reviewed and does not take
    responsibility for the accuracy of this release.