Sept 27, 2006: North American Gem Inc. (TSX-V symbol: NAG) (the "Company") is pleased to announce that it has received the results of 2534 line kilometers of high resolution airborne magnetic and radiometric survey conducted in mid August by Terraquest Surveys.

Initial inspection of the data indicates several areas of strong total count and Uranium channel response, additionally one area of intense magnetic response was also identified.

The possible sources of such an intense magnetic response could include a medium to large Kimberlite body or the iron rich core and breccia zone of an IOCG system.

IOCG deposits are a recently defined class of metallic mineral deposit notable for their large size and appealing grades. IOCG deposits are diverse and cover a wide range of characteristics and metal contents. They are typically distinguished by the association of copper-gold sulphide mineralization with large concentrations of iron oxide minerals, mainly magnetite and hematite. IOCG's may also be enriched in silver, cobalt, bismuth, rare earth elements and, less commonly, uranium. Worldwide, there are at least six known IOCG deposits that contain more than 100 million tonnes of resources. The largest and most well known IOCG deposit is the Olympic Dam deposit which is owned by Western Mining and is located in South Australia. The Olympic Dam hosts 2.66 billion tonnes of material grading 1.2% Cu, 0.5 g/t Au, 2.7 g/t Ag and 0.4 kg/t U308.

In order to better understand the magnetic and radiometric survey data, NAG has engaged Mr. Jeremy Brett Msc. P.Geo, senior Geophysical consultant for MPH Consulting of Toronto, to compile a detailed interpretation of new and historical data.

The airborne survey was conducted over a portion of the Bonny Fault property where samples collected by the AGS in 2005 had yielded up to 395 ppm Uranium. Several radiometric anomalies were also located in the area where Godfrey of the AGS (1958) reported up to 3.93% U308 and up to 1.4 percent Mo while doing structural geology of the Andrew Lake area.

The project is under the direction of Glenn .S. Hartley P. Geol. in accordance with the regulations of National Instrument 43-101.

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

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. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. 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.