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

VANCOUVER, British Columbia -- 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)

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                 INDICATED RESOURCES          INFERRED RESOURCES
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           Inverse   Inverse   Inverse   Inverse   Inverse   Inverse
Model     Distance  Distance  Distance  Distance  Distance  Distance
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Cut off               Grade  Total Au             Grade Au  Total Au
Au g/t      Tonnes   Au g/t    Ounces     Tonnes       g/t    Ounces
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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

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Totals
Barsele/
 Norra   5,176,879     1.75   290,788  6,622,713      1.64   348,196
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Mineral resource estimates, geostatistics and resource model construction were completed using Minesite(TM) (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.

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

North American Gold Inc. (TSX VENTURE:NAU)