North American Gem Inc. has Commenced an Airborne Survey over the Western Basin Property, Northern Alberta October 17, 2006: North American Gem Inc. (TSX-V symbol: NAG) (the "Company") is pleased to announce that it has commenced an extensive airborne geophysical survey on its Western Basin property, Northeastern Alberta. Terraquest Surveys of Markham, Ontario has been contracted to fly the geophysical survey. The Western Basin property has four mineral permits totaling 92,000 acres which encompasses 25 sq. km of mapped "Athabasca Basin Geology" and confirmed outliers of the Athabasca Group Sandstones. Similar geology hosts many of the high-grade uranium deposits found in the Athabasca uranium district, such as Rabbit Lake, Key Lake and Maurice Bay. The Maurice Bay uranium deposit is located within the northwest margin of the Athabasca Basin, approximately 5 km from the Western Basin property. It has 600 tonnes contained uranium at a grade of 0.5% U3O8. The Maurice Bay deposit includes structurally controlled mineralization within altered basement rocks and Athabasca unconformity-style uranium mineralization. Alberta Geological Survey Bulletin No. 55, details the presence and alterations of a saprolite rock unit on the North American Gem Inc. property. This saprolite unit is preserved immediately beneath the unconformity by the overlying Athabasca Sandstone Group. Two extensive fault systems cross cut the property in a west-northwest/east-southeast direction. These faults run directly under portions of the property's Athabasca Group Sandstones and appear to continue past the Saskatchewan border to the Maurice Bay Deposit area. Similar fault systems are perceived to play a role in uranium mineralization in other parts of the basin including Maurice Bay. Historically, uranium exploration programs in the Athabasca Basin have been hampered by the high cost associated with deep (+300m) drilling programs needed to reach and test the targeted Athabasca unconformity. Alberta Geological Survey Bulletin No. 55, documents several holes, which map the Athabasca Unconformity on the Western Basin property between 10 m and 95 m from surface. The project is under the direction of Glenn .S. Hartley P. Geol. 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.