SOURCE: North American Gem Inc.

North American Gem Inc.

March 04, 2009 16:52 ET

North American Gem Inc. Receives Prospecting Permit for the Saffle Property, West Virginia

VANCOUVER, BC--(Marketwire - March 4, 2009) - North American Gem Inc. (TSX-V: NAG) (the "Company") announces its second prospecting permit application has been approved for its property referred to as the Saffle Tract. The property is a 37 acre mining prospect located 3.5 miles northwest of Newburgh in West Virginia.

The prospecting permit was issued by the West Virginia Department of Environmental Protection (WVDEP). Triad Engineering Inc. will be visiting the site on March 3rd, 2009 and will commence drilling on the property within two weeks. The Company anticipates that it will have coal and soil samples in the lab for analysis by the end of March 2009. The prospect permitting process enables the Company to obtain the sufficient water and soil samples needed to satisfy the requirements of the WVDEP towards full mining permit status. The process towards a full mining permit on the Saffle Tract will be expedited by the fact that there has been historical water and soil testing work done on the property.

North American Gem will be updating shareholders regularly as it moves ahead with the site drilling, water testing and mine plans needed to take the property to the point of proposed production. The Company is working diligently on all aspects of the permitting process.

All current work on the West Virginia properties is being supervised by Mike Green of Green Engineering Inc., who is a registered professional engineer in Philippi, West Virginia, and will be operating as the Company's qualified person under National Instrument 43-101. Mr. Green has reviewed the technical content of this news release and confirms its accuracy. Mr. Green is independent of the Company.

Private Placement

North American Gem Inc. has arranged a non-brokered private placement of up to 10,000,000 units at a price of $0.06 per unit for total proceeds of up to $600,000 subject to the approval of the TSX Venture Exchange.

Up to 5,000,000 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 $0.10 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 units consisting of one common share and one half (1/2) share purchase warrant. One full warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.10 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.

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 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. The Company has advanced the Louise Lake Copper-Gold-Molybdenum-Silver project, located in British Columbia and has produced a NI 43-101 compliant resource estimate (included in its NI 43-101 Technical Report dated July 14, 2006 and updated February 6, 2009, as filed on SEDAR). The Uranium projects include the Whiskey Gap and Western Basin in Alberta, the Mosquito Gulch property in the Northwest Territories and the Ranger Lake Uranium property in Ontario.

On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
"Charles Desjardins"

Charles Desjardins
President and Director

THE TSX VENTURE EXCHANGE DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Cautionary note:

This report contains forward looking statements, particularly those regarding cash flow, capital expenditures, and investment plans. Resource estimates, unless specifically noted, are considered speculative. The Company has filed a National Instrument 43-101 resource estimate on the Louise Lake property. 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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