October 08, 2009 16:50 ET

North American Gem Inc. Closes Private Placement and Grants Incentive Stock Options

VANCOUVER, BC--(Marketwire - October 8, 2009) - North American Gem Inc. (TSX-V: NAG) (the "Company") would like to announce that the non-brokered private placement announced on September 4, 2009 has closed. The Company raised $300,000 at a price of $0.06 per share.

A total of 5,000,000 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 9 cents per share for the first year, 12 cents per share for the second year and 15 cents per shares until expiration on the third year.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a hold period of four months expiring February 8, 2010. The proceeds of the private placement will be used for exploration of the company's mineral properties and general working capital.

The following pro participated in the private placement: Pro group: Roberto Chu 125,000 non-flow-through shares

Finders' fees: $13,650 cash and 227,500 warrants (same terms as private placement above) payable to PI Financial Corp. $5,010 cash and 83,500 warrants (same terms as private placement above) payable to Bolder Investment Partners. $5,100 cash and 85,000 warrants (same terms as private placement above) payable to Research Capital Corp.

North American Gem Inc. would also like to announce that pursuant to its stock option plan, the Company has granted incentive stock options to its directors, officers, consultants, and employees to purchase in the total of 600,000 common shares in the capital stock of the company, subject to regulatory approval, exercisable for a period of five years, at a price of $0.10 cents per share.

North American Gem Inc. (TSX-V: NAG) is a Junior Exploration Company based in Western Canada. The Company's primary goal is to explore for Coal in North America, currently the focus is in Kentucky, Saskatchewan, and West Virginia. In addition to Coal exploration, the Company also has interests in Uranium, Copper, Gold, Molybdenum and other base metals in Canada.

On Behalf of the Board of Directors
"Charles Desjardins"

Charles Desjardins
President and Director

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Cautionary note:

This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

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