May 8, 2007: North American Gem Inc. (TSX-V symbol: NAG) has closed the non-brokered private placement announced on March 23, 2007. The Company raised $1,118,700 by way of a non-brokered private placement at a price of $0.18.

A total of 4,825,000 million units were issued as flow-through units consisting of one common share and one-half of one non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional common share of the company at a price of 20 cents per share for the first year and 25 cents until expiration the following year.

A total of 1,390,000 million units were issued as non-flow-through units consisting of one common share and one non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional common share of the company at a price of 20 cents per share for the first year and 25 cents until expiration the following year.

A total of 3,802,500 warrants were issued. One warrant will entitle the holder to purchase one additional common share of the company at a price of 20 cents per share for the first year, and 25 cents until expiration the following year.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period of four months expiring September 8, 2007.

The following pro and insider participated in the private placement;
Pro group: Kerry Chow and Darrell Jamha.
Insider: Bruce Lock.

Finders' fees: Research Capital Corp. will receive $27,000 and 150,000 warrants, each exercisable for one share at a price of 20 cents per share in the first year and at a price of 25 cents per share in the second year. Bolder Investment Partners Ltd. will receive $6,030 and 33,500 warrants, each exercisable for one share at a price of 20 cents per share in the first year and at a price of 25 cents per share in the second year. Canaccord Capital Corp. will receive $28,170 and 156,500 warrants, each exercisable for one share at a price of 20 cents per share in the first year and at a price of 25 cents per share in the second year. Northern Securities Inc. will receive $18,900 and 105,000 warrants, each exercisable for one share at a price of 20 cents per share in the first year and at a price of 25 cents per share in the second year.

The proceeds of the private placement will be used for exploration of the company's mineral properties and general working capital.

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 Louise Lake copper-gold-molybdenum-silver project located in British Columbia, Canada. The Company is also pursuing its uranium projects, consisting of the Whiskey Gap, Del Bonita, Western Basin, and Bonny Fault projects, all located in Alberta, Canada. In addition the Company is also pursuing its Mosquito Gulch uranium property located in the Northwest Territories.

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.