NAG North American Gem Inc.

North American Gem Inc. (NAG) (TSX VENTURE: NAG) has successfully negotiated the acquisition of approximately 800 acres (The Brian Jones lease) of contiguous coal leases to the Gilliam Hill lease (previously announced April 14, 2010). The Brian Jones lease is located centrally to the NAG operations in Kentucky and contains the readily marketable Blue Gem coal. In addition to the Blue Gem seam, the Jellico and Moss seams have been confirmed on this newest acquisition as well.

Preparation for submittal of the mining permit application to the Kentucky Department of Natural Resources on the Brian Jones lease has commenced. The Brian Jones lease is one of five leases currently being permitted with the other four being the Swan Pond, Granny Rose, Gilliam Hill North (Jamieson), and Gilliam Hill South. NAG has made plans to begin drilling on the newly acquired lease and will verify the seam thickness and quality of the coal in all 3 known seams. As with NAG's other leases the mining costs are expected to be relatively low on due to favorable strip ratios and mining conditions.

"We are pleased that the Company was able to successfully expand our lease holdings in this particular area given the extensive presence of Blue Gem coal." stated Charles Desjardins, President of North American Gem Inc. "North American Gem plans to continue expanding its lease holdings in Kentucky and continues to make progress with the mining permitting process."

Mr. Dean Schafer is acting as operations manager of all the Company's Kentucky coal leases and is currently implementing an overall mine plan.

Ms. Deborah Moses, PEng, PLS, REM, of Engineering Consulting Services Inc. (ECSI) is the qualified person for the Company's coal operations in Kentucky.

North American Gem Inc. (TSX VENTURE: 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

NORTH AMERICAN GEM INC.

Charles Desjardins, President and Director

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. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable. 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.

"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."

Contacts: North American Gem Inc. Charles Desjardins President and Director 604-683-5445 604-687-9631 (FAX) info@northamericangem.com www.northamericangem.com