North American Gem Inc. Intersects Coal and Completes Drilling on the Saffle and Dalton Tracts in West Virginia

  North American Gem Inc. (TSX-V: NAG) (the
"Company") announces that drilling has been completed on its 37 acre
potential surface mining prospect known to the Company as the Saffle Tract,
and its 130 acre potential surface mining prospect, the Dalton Tract, both
in West Virginia.

Triad Engineering Inc. has completed 230 feet in drilling on two holes on the Dalton Tract and an additional 53 feet in drilling on one hole on the Saffle Tract. The drill core has been logged; in addition, soil and coal samples have been sent for analysis to Standard Laboratories Inc. in Belington, West Virginia. The test results from the overburden analysis will determine what precautions are necessary to potentially mine the coal and in the reclamation of the property.

Coal was intersected on Hole 1 of the Dalton Tract at 65 feet 2 inches to a bottom depth of 68 feet 8 inches giving a coal thickness of 3 feet 6 inches. Coal was intersected on Hole 2 of the Dalton Tract at a depth of 10 feet 6 inches to a bottom depth of 13 feet giving a coal thickness of 2 feet 6 inches. Further coal was intersected at a depth of 143 feet 3 inches to a depth of 146 feet 6 inches for a thickness of 3 feet 3 inches. On the Saffle Tract coal was intersected at a depth of 41 feet 5 inches to a bottom depth of 44 feet 5 inches giving a seam thickness of 3 feet.

The Company is very pleased and encouraged to have intersected the coal seams on each hole that was drilled in line with the anticipated historical estimates from previous data and work done in the surrounding areas. These seams have historically been mined in the region utilizing surface mining operations.

Once the Company receives the results from the water and soil sample analysis they will be forwarded to the Department of Environmental Protection (DEP) to satisfy the requirements towards full mining permit status. The process towards a full mining permit on the Saffle Tract will be expedited by the fact there has been historical water and soil testing work done on the property.

Standard Laboratories Inc. currently operates over forty laboratories in the U.S. specializing in coal sampling and analysis, with additional analytical capability in soil, water, environmental and geochemical matrices. Standard Laboratories Inc. is proficient to perform virtually all routine and specialty test procedures required by the United States coal industry and its markets. These methods have been subjected to rigorous validation studies and interlaboratory collaborative testing and can thus be considered reliable.

All current work on the West Virginia properties is being supervised by Mike Green of Green Engineering, Inc., who is a registered professional engineer in Philippi, West Virginia, and will be operating as the Company's qualified person under National Instrument 43-101. Mr. Green has reviewed the technical content of this news release and confirms its accuracy. Mr. Green is independent 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 and West Virginia. 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, particularly those regarding cash flow, capital expenditures, and investment plans. Resource estimates, unless specifically noted, are considered speculative. The Company has filed a National Instrument 43-101 resource estimate on the Louise Lake property. 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 Inc. 430 - 609 Granville Street Vancouver, BC, Canada V7Y 1G5 Phone [phone] Facsimile 604-687-9631 [e-mail] www.northamericangem.com TSX-Venture: NAG