March 16, 2005: North American Gem Inc. (The Company) is pleased to announce the signing of a letter of agreement for the acquisition of four major formations comprising more than 200,000 acres of prospective uranium land in southern Alberta. The four target formations are known as Willow Creek, Milk River, St. Mary River and Ravenscrag.

Upon signing of a formal agreement and subject to due diligence, North American Gem Inc. is to pay the vendor $10,000 and 100,000 shares for 100-per-cent interest in the property, subject to a 2-per-cent net smelter royalty (NSR). North American Gem Inc. will have the option to purchase 1 per cent of the NSR from the vendor under the following conditions: 1) the payment of $25,000 if purchased within two years of signing the final agreement; 2) the payment of $200,000 if purchased within two to five years after signing the final agreement; and 3) $1-million if purchased after the fifth year.

The claims were acquired on the basis of favorable geology and structure within Tertiary fluvial sandstones of the Willow Creek formation known to contain uranium values greater than 2,000 parts per million from rock samples with associated vanadium and molybdenum. (Alberta Geological Survey, open file report 1994-8).

There is easy access across the southern Alberta rangeland which consists of upper-Cretaceous to lower-Tertiary sandstones and silty limestones that occurs near-surface. Roll-front uranium has been observed in the Willow Creek formation along drainages that contain naturally high concentrations of uranium. Reconnaissance sampling programs carried out in 1981 and 1982, including samples taken from a roll-front exposed in a river bank, returned up to 2,000 parts per million uranium (0.2% U3O8). The technique used to analyze the reconnaissance samples had an upper detection limit of 2,000 parts per million uranium. Normally, samples running at upper detection limits are re-analyzed with different laboratory techniques, but in this case there is no record of such over-limit analyses having been performed. The area is easily accessible for re-sampling.

This "roll-front" uranium found in the Willow Creek, Milk River, St. Mary River and Ravenscrag formations is similar to the deposits in Wyoming, South Dakota, Colorado, Utah and New Mexico. The major uranium deposits of Wyoming have produced over 200 million pounds of uranium.

In the event that an economic deposit is developed, the southern Alberta roll-front uranium appears to occur in a form that can be processed by in-situ leaching (ISL). That is, the uranium can be solution-mined using injection and production wells rather than being excavated with open pits or underground mining. The ISL process is simple, it uses local groundwater that is naturally enriched in uranium and returns purified, less-radioactive water to the environment. There is virtually no land disturbance and the process does not require waste or tailings facilities.

"We are excited about this first uranium project," said Charles Dejardins, President of North American Gem Inc. "The Company is also in talks with several other uranium vendors and potential partners, with the goal being, to secure a portfolio of uranium prospects."

Glenn Hartley, P.Geo, is the qualified person for the property, in accordance with regulations under National Instrument 43-101. It should be noted that North American Gem Inc. is commencing due diligence work and has not verified any of the results reported in this news release.

Louise Lake Update

The diamond drilling program on Louise Lake is progressing well, we have now begun our second of six drill holes in Phase 1.

Carl Schulze, BSc, P.Geo, is the Qualified Person for the Louise Lake project, in accordance with regulations under National Instrument 43-101.

About North American Gem Inc. North American Gem is a junior exploration company based in Western Canada. The Company’s primary goal is to explore for Gold, Platinum Group metals and Uranium. The Company is actively pursuing several opportunities, including the Louise Lake Project, Bonaparte Mine Property, and its new Uranium Property.

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.