North American Gem Inc. Announces Private Placement and Grants Incentive Stock Options

North American Gem Inc. (NAG) (TSX VENTURE:NAG) would like to announce that it
has closed the Non-Brokered Private Placement announced January 11th 2011. NAG
raised $647,500 at a price of $0.10 per share.


A total of 6,475,000 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 12 cents per share for the first year and at a price of 15 cents
per share during the second and final year.


A total of 6,475,000 warrants were issued. One warrant will entitle the holder
to purchase one additional common share of the company at a price of 12 cents
per share for the first year and at a price of 15 cents per share during the
second and final year.


Shares, warrants and any shares issued upon exercise of the warrants are subject
to a hold period of four months expiring May 27, 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 participated in the private placement;

Pro group: Darrell Jamha 100,000 non-flow-through shares; Ivano Veschini 200,000
non-flow-through shares; Kerry Chow 300,000 non-flow-through shares; Roberto Chu
100,000 non-flow-through shares.


Finders' fees: Haywood Securities Ltd. receives $39,000 and 390,000 share
purchase warrants (same terms as above), Northern Securities Inc. receives
$5,500 and 55,000 share purchase warrants (same terms as above).


The proceeds of the private placement will be used for exploration of the
company's mineral properties and general working capital.


Incentive Stock Options

NAG announces that pursuant to its stock option plan, the Company has granted
incentive stock options to its directors, officers, consultants, and employees
to purchase in the total of 2,000,000 common shares in the capital stock of the
company, subject to regulatory approval, exercisable for a period of five years,
at a price of $0.11 per share.


North American Gem Inc. (TSX VENTURE: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 Kentucky, Saskatchewan, and West Virginia. In
addition to Coal exploration, the Company also has interests in Uranium, Copper,
Gold, Molybdenum and other base metals in Canada.


On Behalf of the Board of Directors

NORTH AMERICAN GEM INC.

Charles Desjardins, President and Director

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. The
production rate and mine-life projections have been made without support of a
feasibility study, there is no certainty the proposed operations will be
economically viable. 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.