North American Gem Inc.

North American Gem Inc.

March 27, 2006 15:09 ET

Update on North American Gem's Drill Programs on the Whiskey Gap Uranium Project and the Louise Lake Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2006) - North American Gem Inc. (TSX VENTURE:NAG) (the "Company") is pleased to provide an update for the ongoing Phase 2 drilling program which began March 1, 2006. The Phase 2 program which consist of drilling and radiometric logging is currently on hole 12 of a minimum 40 drill holes.

A total of 10 holes were drilled on a ten meter grid spacing to define thickness and geological controls of a radioactive zone encountered during the Phase 1 drilling program. Anomalous radioactivity to a maximum thickness of 5 meters was encountered in ten of ten drill holes on the grid.

Commercial petrographic work on drill core from this radioactive zone describes the sample as a fine grained greywacke that contains angular grains of quartz, and plagioclase containing scattered patches of carbonaceous grains. Organic carbon commonly acts to control the deposition of sandstone Uranium ore deposits.

Unseasonably warm weather conditions prompted an early move of drilling operations to a second large radon anomaly, located approximately 4 miles to the west of Zone 1, so that preliminary testing of the zone could be completed, prior to breakup. A total of 8 holes are planned for Zone 2, weather permitting. Due to the weather conditions, it is necessary to move the drill from a particular zone and to allow time for the ground conditions to improve. During this time the drill will be active in another zone of interest.

Further drilling is planned to define the source of the high radon on Zone 1 following completion of drilling on Zone 2.

The Whiskey Gap property is underlain by a series of fluvial sandstones of Cretaceous age, thought to be analogous to sandstones in parts of Wyoming that host significant Roll front Uranium deposits.

The project is under the direction of Glenn S. Hartley P. Geol. in accordance with the regulations of National Instrument 43-101.

Louise Lake Update

The 12 hole diamond drill program for the Louise Lake property is now completed. The core for the last few remaining holes continues to be split and sent off to ALS Chemex of North Vancouver, B.C., Canada for analysis.

The firm of SRK Consulting (Canada) Inc. concluded its site visit as of last week. The resource estimate is ongoing and proceeding without complication.

The resource evaluation will provide a resource estimate for the Main Zone compatible with regulations under National Instrument 43-101. Project deliverables by SRK Consulting will include: a geological model, a preliminary resource statement for the Main Zone compliant with CIM 2004 standards; a report on geological modeling, data analysis, and resource estimates according to Form 43-101F1 for technical reports, and recommendations for advancing the project towards pre-feasibility.

The project is under the direction of Carl Schulze, BSc, PGeo, Qualified Person for the project, in accordance with regulations under National Instrument 43-101.

The Company announces 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 550,000 common shares in the capital stock of the company, subject to regulatory approval, exercisable for a period of two years, at a price of $0.25 cents per share. These options are subject to a four-month hold period.

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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