Dec 29, 2005: North American Gem Inc. has arranged a private placement of up to 2,333,334 units at a price of 15 cents per unit for total proceeds of $350,000, subject to acceptance by the TSX Venture Exchange. Each unit will consist of one flow-through common share and one non-flow-through share purchase warrant, each warrant entitling the holder to purchase an additional common share at a price of 17 cents per share in the first year and 20 cents per share in the second year.

Limited Market Dealer will receive a cash finder's fee equal to 5 per cent of the proceeds raised and a finder's fee warrant (on the same terms as the unit warrants) equal to 10 per cent of the number of units subscribed for. In addition, there will be a separate due diligence fee payable of 5 per cent of the proceeds raised plus GST.

The proceeds of the private placement will be used for exploration work on the company's mineral properties.

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.