July 7, 2005: The Board of Directors of North American Gem Inc. (NAG, TSX-V Exchange) is pleased to announce that anomalous geochemical values were returned from rock sampling of the recently discovered “West Extension Zone” on the Louise Lake property, located about 35 kilometers west of Smithers, northwestern British Columbia, Canada. This road-accessible property enjoys excellent access to highway, rail and electric power based at Smithers, a full-service community.

Anomalous values from the Northwest Zone were returned across an area covering roughly 110 meters by 80 meters consisting of strongly altered and locally strongly pyritic feldspar porphyritic monzonite, including an east-west trending pyritic shear zone. This zone, open to the west, is located roughly 400 - 500 meters west of the known surface expression of the Main Zone, and is likely an extension of it. The eastern limit identified on surface is approximately 200 meters west of the westernmost diamond drilling intercepts returned from the 2005 Phase 1 program (see NAG News Releases dated April 20, 2005).

Specifically, anomalous metal values were returned from four of nine chip and composite grab samples. Results include a value of 200 ppm copper with 0.046 g/t gold and 1.9 g/t silver from a 0.8-metre chip sample of weakly copper-stained pyritic monzonite. Other results include a value of 53 ppm molybdenum with 1880 ppm arsenic from a composite grab sample of pyritic monzonite obtained roughly 100 meters to the northeast. A separate composite grab sample from the sheared portion returned 0.05 g/t gold. A 1.8-metre chip sample of a shear zone located about 1.0 km further west returned 166 ppm copper with 0.066 g/t gold, 2.6 g/t silver and 1425 ppm zinc. This is located roughly along strike of the West Extension.

Higher-grade zones intersected in the western portion of the Main Zone during the 2004 drilling program by Firestone Ventures (FV – TSX-V) and the Phase 1 2005 drilling program by NAG have been encountered only at depth. These recent surface results, although sub-economic, may represent the up-dip extension of a further western strike extension of the Main Zone.

Rock sampling of the Right Hand Zone returned background metal values, although further surface exploration is required to define zone dimensions. Anomalous values of 28 and 12 ppm molybdenum respectively were returned from composite rock grab sampling of pyritic brecciated rhyolite about 1.3 km to the west.

Rock and soil sampling across the Northeast Zone returned background values, although one grab sample of rubblecrop returned 181 ppm copper and 796 ppm zinc. Outcrop and abundant proximal float encountered in this area is consistently strongly altered and pyritic. The eastern portion of the Main Zone dips moderately northward, and may underlie the southern part of the Northeast Zone.

Main Zone
The Main Zone represents an unusual tennantite-based copper-gold-molybdenum mineral assemblage. In 1992, former operator Equity Silver Mines Ltd. released a geological resource estimate for the Main Zone of 50 Million tonnes grading 0.3% copper and 0.3 g/t gold. This estimate was produced prior to implementation of modern resource standards contained within National Instrument 43-101, does not distinguish between resource categories, and should not be relied on to necessarily represent accurate estimates under modern standards. No subsequent resource estimates have been made. North American Gem is not treating this estimate as an NI 43-101 defined resource verified by a Qualified Person and has not done the work necessary to verify the classification of the resource. Historical estimate should not be relied upon.

This News Release was reviewed and approved by Carl Schulze, BSc, PGeo, Qualified Person for the project, in accordance with regulations under National Instrument 43-101. All sample analysis was done by ALS Chemex of North Vancouver, British Columbia, Canada.

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, 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.