North American Gold (fka NAU)

[Ed Monton]

Excellent news though by the trading the last couple of days it looks as though it may have been leaked.

North American Gold Issues Most Recent Assay Results on
Barsele, Extending Central Zone

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2004) -
North American Gold (TSX-V: NAU) is pleased to announce results
received to date from the ongoing drill program at the Barsele
gold project in northern Sweden. Results of the first four holes
and partial results from hole five have been received and are
reported. These holes were completed at the Central Zone, one of
eight known bedrock gold occurrences on the 6,000 hectare
property.

All holes returned significant gold intercepts confirming that
mineralization remains open to extension in all directions, and
that the deposit has an excellent configuration for open pit
mining. A map showing the locations of all holes completed in the
current program is available on the North American Gold web site
( www.northamgold.com ).

 
  
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 Hole No      From (m)        To (m)         Interval (m)       Au g/t 
 --------------------------------------------------------------------- 
                                                                  
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 DDH 04-01         44            56                   12           1.0 
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                   78            88                   10           1.7 
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                   97           119                   22           2.0 
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                  132           157                   25           1.3 
 --------------------------------------------------------------------- 
                                                                       
 --------------------------------------------------------------------- 
 DDH 04-02         65            81                   16           1.3 
 --------------------------------------------------------------------- 
                  154           166                   12           2.2 
 --------------------------------------------------------------------- 
                  187           209                   22           1.2 
 --------------------------------------------------------------------- 
                                                                       
 --------------------------------------------------------------------- 
 DDH 04-03         27            38                   11           1.6 
 --------------------------------------------------------------------- 
                   51            93                   42           1.7 
 --------------------------------------------------------------------- 
  
 --------------------------------------------------------------------- 
 DDH 04-04         41            53                   12           1.0 
 --------------------------------------------------------------------- 
                   77            83                    6           1.3 
 --------------------------------------------------------------------- 
                                                                       
 --------------------------------------------------------------------- 
 DDH 04-05 (i)     25           120                   95           1.0 
 --------------------------------------------------------------------- 
                  129           200                   71       pending 
 --------------------------------------------------------------------- 
 (i) Hole 04-05 assays pending for the interval 129m to 200m. 
  
 

.............


Commenting on the assays from holes DDH 04-01 to 04-04, Buck
Morrow, President, said,

"Getting these broad mineralized intercepts in holes turned 90
degrees from the previous drilling programs gives us a high level
of confidence that a substantial volume of gold mineralization is
present at the Central Zone. The deposit remains open in all
directions."

"We've also had intriguing results where we've assayed larger
sample sizes. For example, preliminary cyanide bottle roll tests
for metallurgical purposes have shown gold recoveries up to 60%
higher than indicated by fire assay, and a one tonne bulk sample
collected in 1995 averaged 5.1 g/t gold from an area which
drilling had suggested averaged less than 1 g/t. We suspect that
the gold values we're seeing from our drill core may be
underestimated due to a combination of factors, specifically the
small sample size used in standard fire assays, and an irregular
distribution of coarse gold."

"A second bulk sampling program is being initiated to address
these discrepancies. We have a lot more work to do before we can
provide a NI 43-101 compliant resource calculation, but it is
clear that the Central Zone is a large gold deposit."

The first five holes totaled 1,040 meters and were drilled over a
widely spaced area but within the previously drill tested Central
Zone. All five were inclined to the northwest, perpendicular to
previous drill sections. A total of ten holes have now been
completed at the Central Zone in 2004, with the last five holes
(06 to 10) testing potentially higher grade mineralization
including 7 meters averaging 18.7 g/t gold reported from prior
drilling outside and northwest of the Central Zone.

In addition to the results tabulated above, numerous zones of
mineralization ranging from 1 to 3 g/t over widths of 1 to 3
meters were intersected in the drill holes, and are not included
in the above table. Also, holes 04-01 and 04-02 ended in gold
mineralization which assayed over 1.4 g/t gold, while holes 04-03
and 04-04 bottomed in an intrusive unit believed to be younger
than mineralization. The remaining assays in hole 04-05 are
pending, and will be reported when available and confirmed.

Detailed structural and microscopic analysis of the new holes has
shown that gold mineralization is hosted by multiple mineralizing
events and structural orientations in and about an elongate
intermediate to felsic intrusive. Based on the geological and
geochemical setting, company geologists are comparing the Central
Zone mineralization with a classic porphyry style deposit model.
Preliminary metallurgical tests suggest that the gold will be
easily recoverable by direct and low-cost cyanidation.

Assays are pending on the last five of the ten holes completed to
date at the Central Zone, as well as the bottom of hole 04-05.
Drilling has now commenced on the gold-rich VMS targets at Norra
and Cee Lake. Target evaluations are continuing at the
Skirtraskbacken, Risberget, Tattartjarnliden and Skirasen zones,
as well as other properties in Sweden and Finland.

NI43-101

The 2004 drilling program is being supervised by Harmen Keyser,
P.Geol., a qualified person under NI 43-101, who has verified the
data disclosed in this release. It is not possible to make a
conclusive statement relating sample width to true width, as the
structural controls on mineralization remain poorly understood.
Assays have been performed by ALS Chemex (ISO 9001:2000 and ISO
17025:1999) and Acme Analytical Labs (ISO 9001:2000), both of
Vancouver, Canada using standard fire assay procedures.

Visible gold has been noted in 7 of the 10 holes completed to
date at the Central Zone, suggesting an irregular distribution of
coarse gold. Therefore, a rigorous Quality Assurance/Quality
Control program - including the blind submission of known
geochemical blanks, duplicates, and standards - has been
implemented. Additional work, including independent check assays,
analyses on larger sub-samples, bulk sampling, and metallurgical
investigations, is underway.

Background

North American 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 1 888 627 9378.

ON BEHALF OF THE BOARD

Buck Morrow, President

NORTH AMERICAN GOLD INC.

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:
North American Gold Inc.
Kareen McKinnon
Toll Free: 1-888-627-9378
Website: www.northamgold.com
The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.