VANCOUVER, May 7 /PRNewswire-FirstCall/ - North American Gem Inc.
(TSX-V symbol: NAG) is pleased to announce that the Company has submitted
coal permit applications encompassing approximately 134,168 acres in
proximity to the recent Goldsource Mines Inc. (TSX-V symbol:
GXS)(Goldsource) discovery, in east-central Saskatchewan. A further 5,683
acres has been acquired through a third party arms-length option agreement
purchased for $7,500 plus 100,000 common shares of the Company in the first
year, and another $7,500 in the second year plus 100,000 common shares of
the Company. This brings the current total land staking to approximately
139,851 acres, as additional coal permitting is ongoing.

    The Company will keep the shareholders aware of any progress regarding
these coal permits that have been forwarded to the government of
Saskatchewan's permitting office. The time frame will be determined by the
permitting office. North American Gem Inc. has submitted money in trust to
the Saskatchewan permitting office.

    The Company has made a commitment to be active in Saskatchewan for the
exploration of coal, whether it be through successful staking by the
Company or through joint venture opportunities. The recent coal discovery
by Goldsource Mines Inc. of bituminous coal in two drill holes 1600 meters
apart, suggests the potential for a much larger coal system. Goldsource
believes the coal it encountered is from the Mannville/Swan River Group of
Creataceous age (Goldsource Mines Inc., Release May 5, 2008). Coal
structures of the Creataceous age are generally very large and can
encompass several thousand square kilometers.

    "The recent coal discovery by Goldsource Mines Inc. is potentially the
tip of the iceberg. We believe that this could be the beginning of a new
major coal region in the mining friendly province of Saskatchewan," said
Charles Desjardins, President of North American Gem Inc., "The Company
plans to aggressively explore successful permits."

    About North American Gem Inc. North American Gem Inc. (TSX-V symbol:
NAG) is a junior exploration Company based in Western Canada. The Company's
primary goal is to explore for Uranium, Molybdenum, Gold, Copper and other
base metals in Canada. The Company is actively pursuing several
opportunities, including the Louise Lake copper-gold-molybdenum-silver
project located in British Columbia. The Company is also pursuing its
uranium projects, consisting of the Whiskey Gap, Del Bonita, Western Basin,
and Bonny Fault projects, all located in Alberta. In addition the Company
is also pursuing its Mosquito Gulch uranium property located in the North
West Territories and the Ranger Lake Uranium property located in Ontario.



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

    Charles Desjardins
    President and Director

    THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS
    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.

    CONTACT: 430 - 609 Granville Street, Vancouver, BC, Canada, V7Y 1G5,
Phone (604) 683-5445, Facsimile (604) 687-9631, info@northamericangem.com,
http://www.northamericangem.com

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