On May 14, 2008 the Company signed an agreement with Adamas Minerals Corp. (Adamas) of Prince Alberta, Saskatchewan to grant North American Gem Inc. exclusive rights to coal, oil shale's and or all hydrocarbon discoveries on a land package on which coal permit applications have been submitted for, West of Hudson Bay, Saskatchewan.

In 2007, Adamas was exploring a magnetic anomaly thought to be a kimberlite target in proximity to the most recent discovery by Goldsource Mines Inc. (TSX-V symbol: GXS) (Goldsource), in western Saskatchewan which has been recently shown to have a major potential for regional coal deposits.

During this exploration program Adamas discovered a coal seam in the Cretaceous rock (Mannville Group Rocks) sequence containing coal similar to Goldsource. This 4 meter intercept was rush-assayed to Loring Laboratory out of Calgary, Alberta. This is same Laboratory that Goldsource had used and was chosen to maintain assay continuity. Upon the arrival of the sample, it was evident that the coal had suffered some oxidization and degradation due to exposure while remaining out in the core boxes uncovered and exposed to the elements. Coal is considered to be extremely sensitive to oxidization while compared to other commodities that require no special handling during drilling or storage while in the core boxes. Despite the likelihood of some grade loss, the samples graded Sub-bituminous A (NI 43-101 compliant) quality over 4 meters. This is encouraging as the coal would have likely deteriorated to some degree and suggests that the sample may be of better quality in an unoxidized state.

Adamas has collected proprietary aeromagnetics data for the area of interest that has been made available to North American Gem Inc. to be used to further evaluate the area for coal deposits and other minerals that may be found therein. Historical data and reports suggest that coal is present to the north edge of the Cretaceous rock sequence along the shores of Wapawekka Lake to the north of the Adamas discovery and the reports further suggests that the Wapawekka out crop is likely associated with a larger deposit to the south. The Adamas intercept is directly south of Wapawekka Lake along the low lying basin adjacent to the south east of the Narrow Hills Uplands.