August 31, 2007: North American Gem Inc. (TSX-V symbol: NAG) (the Company) has arranged a non-brokered private placement of up to 7,500,000 units at a price of $0.10 per unit for total proceeds of up to $750,000 subject to the approval of the TSX Venture Exchange.

Up to 2,500,000 units will be issued as non flow-through units consisting of one common share and one full warrant. One full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.12 per share for the first year, and $0.15 per share in the second year.

Up to 5,000,000 units will be issued as flow-through unit consisting of one common share and one half (1/2) non flow-through share purchase warrant, each full warrant entitling the holder to purchase an additional common share of the Company at a price of $0.12 per share in the first year and $0.15 per share in the second year.

The proceeds of the private placement will be used for exploration work on 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 in Canada. The Company is actively pursuing several opportunities, including the Louise Lake copper-gold-molybdenum-silver project located in British Columbia. 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. In addition the Company is also pursuing its Mosquito Gulch uranium property located in the North West Territories and the Ranger Lake Uranium property located in Ontario.

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.