October 31, 2006: North American Gem (NAG- TSX.V) (the "Company") announces that it has successfully expanded its 100% owned Bonny Fault property by approximately 22,750 acres bringing the total acreage to approximately 140,000 acres. A combination of historical government data and recently completed airborne survey data combined with the findings of the October 2006 ground crew has motivated North American Gem to expand the existing Bonny Fault property to the East along strike of the main Bonny Fault. This addition to the property covers lands with Precambrian Shield geology similar to the existing land package (see news release dated April 5, 2005). In addition to the well-documented Precambrian assemblage of granites and mylonite shear zones, a large glacially derived sand flat covers a significant area of this new permit. This sand flat masks the underlying geology and shares many similarities to other areas north of the Athabasca Basin that contain drill proven outliers of Athabasca sandstones.

"The main deep seated Bonny fault and several significant spay faults run directly under this large sand flat area, if there is any surviving sandstone units within the geological sequence they will immediately be elevated to very high priority unconformity style uranium drill targets", stated Charles Desjardins, President of the Company.

The Northwest portion of this new exploration permit has a significant area of anomalously high uranium channel radiometric signature. This signature was detected during the recently completed airborne survey of the existing property at the ends of several flight lines.

One of the historical government showings on this new property is the "Carrot Lake Uranium Showing" (as documented in Alberta Geological Survey (AGS) Bulletin # 64). Near Carrot Lake, anomalous radioactivity is present along a 1.6 km long zone and is controlled by fractures and shear zones, which cut across lithological contacts. The uraniferous zone consists of small veins and pods of possible pitchblende and thucholite along fractures. In 1992, the AGS took several samples from the radioactive and sulfide rich horizons. Sample 09-05-01 stands out with 1.8% U3O8, 103 ppm Copper and 5.7 ppm silver.

The Company acquired this new land by applying for an exploration permit within the first six hours of it being open for staking and then by successfully submitting the highest sealed bids during the land-sale portion of the process.

Status of Bonny Fault Airborne Interpretation Report
Mr. Jeremy Brett Msc. P.Geo, senior Geophysical consultant for MPH Consulting of Toronto, is currently compiling a detailed interpretation of the new and historical magnetic and radiometric survey data. The report will be completed in the near future.

The project is under the direction of Glenn .S. Hartley P. Geol., who is the qualified person for the project in accordance with the regulations of National Instrument 43-101.

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 company's Louise Lake Property and the Mt. Ogden Property located in British Columbia, Canada and its Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, the Bonny Fault, and the Whiskey Gap, all located in Alberta, Canada.

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.