Iron nanocrystals were prepared by means of a gas-condensation method in helium atmosphere. The size distribution of the crystals was found to be log-normal. The saturation magnetization and the heat capacity of the compacted nanocrystals were measured at various temperatures. The variation of the saturation magnetization as a function of temperature is found to be in accordance with that of the heat capacity, which reveals the structure change of the nanocrystalline metal as a result of annealing.