Oct 4, 2006: North American Gem (NAG- TSX.V) (the "Company") announces that it has mobilized a field crew to perform reconnaissance sampling of the intensely Magnetic feature outlined by the Terraquest Aeromagnetic Survey. Initial inspection on the ground confirms the presence of massive magnetite float. This supports the conclusion that the anomaly could be produced by an IOCG type system, as opposed to a Kimberlite body. The reconnaissance team is expected to remain on site for 2 to 3 more days, weather permitting.

A comprehensive geological model for the formation of IOCG deposits has only begun to evolve over the past 10 years, after sufficient examples were documented and described and common features identified. IOCG deposits are now recognized as a diverse family of deposits that can form in rocks of virtually any age, from late Archean to early Tertiary.

IOCG deposits are typically localized along subsidiary structures related to major, crustal-scale fault systems and are associated with zones of brecciation of host rocks.

Geophysics is an important exploration tool since the large volumes of iron oxide mineralization usually impart a distinct magnetic and/or gravity signature to the mineralized zone.

A follow up field program is planned for the property in early 2007.

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

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. 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"

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.