May 29, 2006: North American Gem Inc. is amending its previously announced private placement (see news release May 4, 2006). The company will now raise up to $1.1 million by way of a non-brokered private placement at a price of 20 cents per unit, subject to the approval of the TSX Venture Exchange. This is an increase of $500,000 from the previously announced $600,000 private placement of which the company has received most of the proceeds.

The proceeds of the private placement will be used for exploration work on the company's mineral properties and general working capital. A finder's fee will be payable for part of the proceeds.

North American Gem Inc. (NAG:TSX-v) 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. The Company is actively pursuing several opportunities, including the company's Louise Lake Property and the Mt. Ogden Property located in British Columbia, Canada and its Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, the Bonny Fault, and the Whiskey Gap, all located in Alberta, Canada.

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, historical estimates should not be relied upon, 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.