May 27, 2005: North American Gem Inc. (the Company) wishes to announce that it intends to raise $70,000 by way of a non-brokered private placement at a price of $0.07, subject to the approval of the TSX Venture Exchange.

Up to 1,000,000 units will be issued as flow-through units consisting of one common share and one half (1/2) warrant. One full warrant will entitle the holder to purchase one additional non flow-through common share of the Company at a price of $0.10 per share for the first year, and $0.12 until expiration the following year.

The proceeds of the private placement will be used for exploration of the company's mineral properties.

For additional information please contact North American Gem Inc.

On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins
President and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, are forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.