NAG North American Gem Inc.

North American Gem Inc. (NAG) (TSX VENTURE: NAG) will begin construction of road access to the determined drill locations on December 10th on the leases that will be mined under the North American Gem #3 Mine. The purpose of the drill program is to gain additional information on the Jellico and Blue Gem seams as well as provide a 43-101 compliant report on all of the coal seams known to exist on the leased property. Additional coal seams have been encountered through historical drilling of natural gas and oil wells. In particular one coal seam, below the Blue Gem seam, has been measured in thickness from 1.5-2 metres and is believed to be a low sulfur, high btu seam.

The drill program will provide the means to obtain a laboratory analysis which will determine the actual quality and characteristics of all coal seams known to exist on the leases that will be mined under North American Gem #3 Mine. The analysis of the data will also help NAG develop the most efficient mining plan for North American Gem Mining Permit #3.

In total, North American Gem Inc. has leased approximately 5,000 acres of coal reserves in Knox and Whitley Counties in Kentucky. NAG is actively developing a total of 7 leases for mining permits, the first of which, North American Gem #1 Mine is currently producing marketable coal.

All of North American Gem Inc.'s potential mining operations will incorporate sediment control methods that will keep ahead of the increased regulations and restrictions. Furthermore, in anticipation of increased regulations, NAG has, in all of its permitting applications, begun the sampling of receiving streams and groundwater wells utilizing the most stringent and extensive sampling parameters. This will allow NAG to comply with the regulatory requirements and will also result in a much shorter and smoother permitting application process.

Mr. Dean Schafer is acting as operations manager of all the Company's Kentucky coal leases and is currently implementing an overall mine plan.

Robert Taylor, PEng, a qualified person under National Instrument 43-101, has approved the technical content of this news release and will oversee the agreement with Durabo Drilling of Corbin, Kentucky for the drilling of the leases known as the North American Gem Mining Permit #3.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: North American Gem Inc. Charles Desjardins President and Director 604-683-5445 604-687-9631 (FAX) info@northamericangem.com www.northamericangem.com