North American Gem Inc. Enters Loan Agreement

North American Gem Inc. (TSX VENTURE:NAG) (NAG) reports that it has arranged a
loan from arm's length parties in the principal amount of $250,000 (the "Loan")
pursuant to promissory notes (the "Notes") to be issued to the Lender as
security for the Loan.


The Loan will bear interest at 1% per month on the principal amount and will be
used for working capital of the Company until the closing of a financing can be
completed to repay the Loan.


In consideration of the Loan, the Company has agreed to issue to the lenders
250,000 common shares of the Company as bonus shares (the "Bonus Shares") to be
received on or before the 10th day following the acceptance of the TSX Venture
Exchange.


The Loan, Notes and issuance of the Bonus Shares are subject to the acceptance
of the TSX Venture Exchange.


North American Gem Inc. (TSX VENTURE:NAG) is a Junior Exploration Company based
in Western Canada. The Company currently holds certain coal assets in North
America. 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.