July 20, 2005: The board of Directors of North American Gem Inc. (NAG: TSX-V Exchange) is pleased to announce that the four Alberta Mineral Permits, collectively referred to as “North American Gem Inc. Western Basin Property” (see April 25, 2005 press release) have been granted by Alberta Energy. The net area of these four permits totals 36,608 ha (366 sq. km). The property encompasses 25 sq. km of mapped “Athabasca Basin Geology” and confirmed outliers of the Athabasca Group Sandstones. The rest of the property covers exposed Precambrian shield rocks mapped as the Wylie Lake and Fishing Creek Granitoids. These Precambrian rock units underlie the Athabasca Sandstone units within the Basin and are important components of uranium mineralization. This geology is similar of the geology which hosts some of the world class, high-grade uranium deposits found in the Athabasca uranium district, such as the Colette, Anne, Key Lake and Maurice Bay Deposits.

Historically, uranium exploration programs in the Athabasca Basin have been hampered by the high costs associated with deep (+300m) drilling programs needed to reach and test the targeted Athabasca unconformity. Alberta Geological Survey Bulletin No. 55 documents several historic drill holes, which map the Athabasca Unconformity on North American Gem Inc.’s Western Basin Property, between 10 m and 95 m from surface.

The eastern edge of the property is the Alberta / Saskatchewan boarder, 5 kms from Cameco Corporation’s Maurice Bay project. The Maurice Bay uranium deposit is located within the northwest margin of the Athabasca Basin. It has 600 tonnes contained uranium at a grade of 0.5% U. The Maurice Bay deposit includes structurally controlled mineralization within altered basement rocks and an Athabasca unconformity-style of uranium mineralization. Due to this deposits close proximity to, and shared fault structure and geology with North American Gem Inc.’s Western Basin Property, the Maurice Bay Deposit Model has become North American Gem Inc.’s geological exploration model for it’s Western Basin Property. A new Alberta Geological Survey compilation map and publication covering this area is due for release this summer. Information from this new publication compiled with property data already researched will aid in focusing future exploration programs.

Glenn Hartley, P.Geo, is the qualified person for the property, in accordance with regulations under National Instrument 43-101.

North American Gem Inc. has granted subject to regulatory approval, directors, officers, consultants and employees incentive stock options of the Company to purchase in the aggregate 175,000 common shares in the capital stock of the Company per the Company’s Stock Option Plan for a period of 2 years at a price of $0.10 per share.

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.