BAFFIN ISLAND (KIMMIRUT - BELUGA)

True North Gems in conjunction with Alpine Gems announced the initiation of sales of a limited inventory of Canadian sapphire from the company’s Beluga sapphire property, Nunavut, Canada. The sapphire material was generated from the recovery, cutting and polishing of a bulk sample material acquired during previous exploration programs on the property. The purpose of the sale program is to test market demand and to gather actual wholesale and retail sales value of the gem sapphire recovered to date.

Planned activities in 2008 will be comprised mainly of regional and detailed geological mapping, ultraviolet light ‘night’ prospecting, geochemical sampling and blast-assisted mini-bulk sampling. The program will be split evenly between the reconnaissance exploration and the detailed NAIPI property exploration. Processing of samples recovered in 2005, 2006 and 2007 remains ongoing at commercial facilities with further processing planned for 2008 samples in the fourth quarter of 2008.

The property was expanded by staking six additional claims comprising 18.95 km2 contiguous to the existing claims. The new claims were staked to cover additional occurrences of sapphire and scapolite, a diagnostic indicator mineral, extending to the southwest and southeast from the known sapphire mineralization, and highly prospective geology continuing to the north and northeast.