North American Gem Inc. Announces Closing of the Private Placement

  North American Gem Inc. (TSX-V: NAG) (the
"Company") would like to announce that the non-brokered private placement
announced on August 11, 2009 has closed. The Company raised $500,000 at a
price of $0.05 per share.

A total of 5,430,000 units were issued as flow-through units consisting of one common share and one-half of one non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional common share of the company at a price of 8 cents per share for the first year, 10 cents per share on the second year and 12 cents per shares until expiration on the third year.

A total of 4,570,000 units were issued as non-flow-through units consisting of one common share and one non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional common share of the company at a price of 8 cents per share for the first year, 10 cents per share on the second year and 12 cents per shares until expiration on the third year.

A total of 7,284,000 warrants were issued. One warrant will entitle the holder to purchase one additional common share of the company at a price of 8 cents per share for the first year, 10 cents per share for the second year and 12 cents per share until expiration on the third year.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period of four months expiring January 1, 2010. The proceeds of the private placement will be used for exploration of the company's mineral properties and general working capital.

The following pros and insiders participated in the private placement:

Pro group:     Kerry Chow 500,000 flow-through shares
               Roberto Chu 100,000 non-flow-through shares
Insider Group: Charles Desjardins 200,000 flow-through shares

Finders' fees: $24,200 cash and 484,000 warrants (same terms as private placement above) payable to PI Financial Corp. $5,000 cash and 100,000 warrants (same terms as above) payable to West Oak Capital Partners Inc. $3,450 cash and 69,000 warrants (same terms as above) payable to Bolder Investment Partners.

North American Gem would also like to announce the appointment of Mr. Peter Dickie to the Board of Directors. Mr. Dickie is a businessman with over 20 years of experience with both public and private companies holding numerous senior management positions. Mr. Wayne Shay recently announced his resignation as director of the company.

North American Gem Inc. (TSX-V: NAG) is a Junior Exploration Company based in Western Canada. The Company's primary goal is to explore for Coal in North America, currently the focus is in Saskatchewan, West Virginia and Kentucky. In addition to Coal exploration, the Company also has interests in Uranium, Copper, Gold, Molybdenum and other base metals in Canada. The Company has advanced the Louise Lake Copper-Gold-Molybdenum-Silver project, located in British Columbia and has produced a NI 43-101 compliant resource estimate (included in its NI 43-101 Technical Report dated July 14, 2006 and updated February 6, 2009, as filed on SEDAR). The Uranium projects include the Whiskey Gap and Western Basin in Alberta, the Mosquito Gulch property in the Northwest Territories and the Ranger Lake Uranium property in Ontario.

On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
"Charles Desjardins"

Charles Desjardins
President and Director

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Cautionary note:

This report contains forward-looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

North American Gem 430 - 609 Granville Street Vancouver, BC, Canada V7Y 1G5 Phone [phone] Facsimile 604-687-9631 [e-mail] www.northamericangem.com