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True North Completes $961,270 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2008) - 

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

True North Gems (TSX VENTURE:TGX) (the "Company") is pleased to announce it has completed it's previously announced non-brokered private placement. The Company received gross proceeds of $961,270 through the sale of 9,621,700 units at a price of $0.10 per unit.

Each unit is comprised of one common share and one common share purchase warrant, each whole such warrant entitling the holder to purchase one additional common share at a price of $0.20 per share for two years. If the trading price of the common shares of the Company closes above $0.30 per share for a period of 10 consecutive trading days at any time after four months after closing of the private placement, the Company will have the right to accelerate the expiry date of all unexercised warrants.

Finders' fees in the aggregate amount of $53,725 in cash and 537,250 finder's warrants were paid to two finders in connection with the private placement. Each finders warrant entitles the holder to purchase one additional common share at a price of $0.10 per share for two years, with the same acceleration provisions described above.

All of the shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period and may not be traded until March 6, 2009, except as permitted by Canadian securities legislation and the TSX Venture Exchange.

6 directors and/or officers of the company subscribed for an aggregate of 865,000 units in the private placement and the holdings by insiders of securities of the Company have increased as a result.

The Company intends to use the proceeds of the private placement for exploration activities on its properties and for general working capital purposes.

True North Gems Inc. is listed on the TSX Venture Exchange and is engaged in the exploration and development of North American coloured gemstone prospects. The Company is a pioneer in coloured gemstone exploration and owns 100% interest in the Yukon-based Tsa da Glisza emerald property and the rights to earn 100% interest in the Baffin sapphire property located on Baffin Island and the Fiskaenesset ruby and pink sapphire property in Greenland.

Some statements in this release contain forward-looking information. These statements include, but are not limited to, statements with respect to the use of proceeds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the completion of expenditures.



True North Gems Inc.
Andrew Lee Smith
CEO
(604) 687-8055 or Toll Free: 1-800-399-8055
or
True North Gems Inc.
Ken Shortt
Investor Relations
(604) 687-8055 or Toll Free: 1-800-399-8055
(604) 899-1240  (FAX)
Email: ken@truenorthgems.com
Website: www.truenorthgems.com