North American Gem Inc. (NAG) (TSX VENTURE:NAG) will begin construction of road
access to the determined drill locations on December 10th on the leases that
will be mined under the North American Gem #3 Mine. The purpose of the drill
program is to gain additional information on the Jellico and Blue Gem seams as
well as provide a 43-101 compliant report on all of the coal seams known to
exist on the leased property. Additional coal seams have been encountered
through historical drilling of natural gas and oil wells. In particular one coal
seam, below the Blue Gem seam, has been measured in thickness from 1.5-2 metres
and is believed to be a low sulfur, high btu seam.


The drill program will provide the means to obtain a laboratory analysis which
will determine the actual quality and characteristics of all coal seams known to
exist on the leases that will be mined under North American Gem #3 Mine. The
analysis of the data will also help NAG develop the most efficient mining plan
for North American Gem Mining Permit #3.


In total, North American Gem Inc. has leased approximately 5,000 acres of coal
reserves in Knox and Whitley Counties in Kentucky. NAG is actively developing a
total of 7 leases for mining permits, the first of which, North American Gem #1
Mine is currently producing marketable coal.


All of North American Gem Inc.'s potential mining operations will incorporate
sediment control methods that will keep ahead of the increased regulations and
restrictions. Furthermore, in anticipation of increased regulations, NAG has, in
all of its permitting applications, begun the sampling of receiving streams and
groundwater wells utilizing the most stringent and extensive sampling
parameters. This will allow NAG to comply with the regulatory requirements and
will also result in a much shorter and smoother permitting application 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.


Robert Taylor, PEng, a qualified person under National Instrument 43-101, has
approved the technical content of this news release and will oversee the
agreement with Durabo Drilling of Corbin, Kentucky for the drilling of the
leases known as the North American Gem Mining Permit #3.


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.


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