July 18, 2005: The board of Directors of North American Gem Inc. (NAG, TSX-V Exchange) is pleased to announce the closing of the property purchase agreement dated April 5th, 2005 between North American Gem Inc. (the Company) and Sandswamp Exploration Ltd., pursuant to which the Company may acquire a 100% interest in 2 mineral permits covering an area of 46,000 acres located in north eastern Alberta, known as the Bonny Fault Property. In consideration, the Company will pay $10,000 and issue 100,000 common shares which are subject to a four month hold period. The property is subject to a 2% net smelter return royalty and a 2% gross overriding royalty.

The Company also announces the closing of the property purchase agreement dated April 5th, 2005 between North American Gem Inc. (the Company) and Sandswamp Exploration Ltd., pursuant to which the Company may acquire a 100% interest in 1 mineral permit covering an area of 22,000 acres located in southern Alberta, known as the Del Bonita Property. In consideration, the Company will pay $10,000 and issue 100,000 common shares which are subject to a four month hold period. .The property is subject to a 2% net smelter return royalty and a 2% gross overriding royalty.

About North American Gem Inc. 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 Bonaparte Mine Property both located in British Columbia, Canada and its Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, and the Bonny Fault, all located in Alberta, Canada. 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, 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.