Mr. Bilal Bhamji reports

TRUE NORTH GEMS REVISES TERMS OF CONSOLIDATION AND FINANCING

Subject to regulatory approval, True North Gems Inc.'s board has resolved to consolidate its shares on a 1:3 basis, such that the current 33,577,353 common shares will be consolidated into 11,192,451 common shares. In conjunction with the consolidation, the company's name will be changed to TGX Energy & Resources Inc.

In addition, the previously reported placement has been modified and the company shall now seek to complete a placement of 15-cent units for a minimum of $1.05-million and a maximum of $1.5-million. Each unit shall comprise one postconsolidated common share and one warrant. Each warrant shall be exercisable for two years, at an exercise price of 50 cents. The warrants will have an acceleration clause that will permit the directors to shorten the warrant term to 30 days, in the event that the shares trade at $1 for 10 consecutive trading days.

Use of proceeds:

• Retirement of debt;
• Reserve to source and evaluate potential resource acquisitions, including oil and gas opportunities;
• Resource exploration expenditures;
• General working capital.

Finders' fees may be payable in accordance with TSX Venture Exchange policies. Insiders may subscribe for up to 2.5 million units of the financing.