North American Gem Inc. Receives Additional “Comfort Letters” for Saskatchewan Coal Prospecting Permits Bringing the Total to 1,387,863 acres (561,888 hectares) of First Priority Applications

    North American Gem and its Advisory Board meets with Saskatchewan's



    Energy and Resources Minister



    TSX-Venture: NAG



    VANCOUVER, July 14 /EMWNews-FirstCall/ - North American Gem Inc.

(TSX-V symbol: NAG) has now received First Priority "Comfort letters" for

1,387,863 acres (71 Townships) from Saskatchewan Energy and Resources. The

Company is waiting on the status for another 8 Townships of Coal

Prospecting Permit to be approved.



    On July 9th Charles Desjardins, President of North American Gem Inc.

and two of his advisors; Mr. Alan Johnson and Mr. Harvey Dickson met with

Saskatchewan's Energy and Resources Minister, Bill Boyd and a number of

senior officials in his ministry. These meetings were constructive and Mr.

Desjardins was very encouraged by Minister Boyd's interest and support for

the potential contribution that new coal developments may have on the

economy in central Saskatchewan. The Ministry is aware of the need to

develop policy change which will adapt to this new type of coal system

recently discovered in Saskatchewan.



    The Company is currently awaiting its Coal Prospecting Permit approval

for the Adamas Property which would allow exploration to commence. North

American Gem Inc. has First Priority status on the township that holds the

Adamas Discovery. Despite the likelihood of some grade loss, the samples

graded Sub-bituminous A (43-101 compliant) quality over 5 meters. This is

highly encouraging as the coal would have likely deteriorated to some

degree and suggests that the sample may be of better quality in an

unoxidized state.



    The Company has filed and fully paid for 786 Coal Disposition

applications to date. All of the ground that has been applied for has been

done so in accordance will all the rules and regulations set forth by the

government of Saskatchewan's permitting office. As with all other companies

applying for Coal Dispositions in Saskatchewan, North American Gem Ltd.,

has its applications and Coal Prospecting Permits subject to the

Saskatchewan government's approval process. The standard issue Comfort

letter states "the extent to which the land described in these applications

can be issued has not been investigated, and therefore this letter should

not be construed as an indication that any land will be issued, as a full

review is still to be completed."



    Overview



    In 2007, Adamas was exploring a magnetic anomaly thought to be a

kimberlite target in proximity to the most recent discovery by Goldsource

Mines Inc. (TSX-V symbol: GXS) (Goldsource), in western Saskatchewan.

During this exploration program Adamas discovered a coal seam in the

Cretaceous rock (Mannville Group Rocks) sequence containing coal similar to

Goldsource, confirming the regional potential for coal deposits.



    Adamas has collected proprietary aeromagnetics data for the area of

interest that has been made available to North American Gem Inc. to be used

to further evaluate the area for coal deposits and other minerals that may

be found therein. Historical data and reports suggest that coal is present

to the north edge of the Cretaceous rock sequence along the shores of

Wapawekka Lake to the north of the Adamas discovery. These reports further

suggest that the Wapawekka out crop is likely associated with a larger

deposit to the south. The Adamas intercept is directly south of Wapawekka

Lake along the low lying basin adjacent to the south east of the Narrow

Hills Uplands.



    Goldsource also made a significant coal discovery while drilling for

kimberlites in a low lying basin south east of the adjacent uplands at

Pasquia Hills to the south east of the Narrow Hills intercept. The

occurrence at Pasquia is roughly 80-100 km south east of the Narrow Hills

and both have similar topographical features and are in the same Cretaceous

rock sequence. 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 stratigraphic and can encompass several

thousand square kilometers.



    North American Gem Inc. has also received First Priority "Comfort

letters" on its Coal Permits Applications bordering the east and west of

the Weststar Resources Corp. (TSX-V symbol: WER) potential position. North

American Gem Inc. has been advised that it has Second Priority on Weststar

Resources potential position.



    North American Gem Inc. anticipates being a major land holder in this

new coal region of Saskatchewan. The Company will commit to aggressive

exploration and is currently assembling an outstanding Board of Advisors

with expertise in the area of coal exploration. The Company plans to first

twin the Adamas discovery hole to get a true grade of the quality of the

coal at that location, and further exploration holes in the area of the

discovery.



    Mike Magrum, PEng, a qualified person under National Instrument 43-101,

has approve the technical content of this news release.

    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. The Company has also filed Coal Permit

Applications for up to 1.4 million acres north of Hudson Bay and east of

Prince Albert, Saskatchewan.



    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.