Still Waiting on Approximately 950,000 Acres in Coal Permit Applications

TSX-Venture: NAG

VANCOUVER, June 11 /PRNewswire-FirstCall/ - North American Gem Inc. (TSX-Vsymbol: NAG) has received a 'Comfort letter' from Saskatchewan Energy andResources stating that the specific coal permit application processed for theTownships which holds the Adamas Discovery Intercept, on behalf of NorthAmerican Gem Inc., will be given priority sequence. Despite the likelihood ofsome grade loss, the samples graded Sub-bituminous A quality over 5 meters.This is highly encouraging as the coal would have likely deteriorated to somedegree and suggests that the sample may be of better quality in an unoxidizedstate.

The Company has filed and fully paid for 786 Coal Disposition applicationsto date. All of the ground that has been applied for has been done so inaccordance will all the rules and regulations set forth by the government ofSaskatchewan's permitting office. As with all other companies applying forCoal Dispositions in Saskatchewan, North American Gem Ltd., has itsapplications and Coal Prospecting Permits subject to the Saskatchewangovernment's approval process. The standard issue Comfort letter states 'theextent to which the land described in these applications can be issued has notbeen investigated, and therefore this letter should not be construed as anindication that any land will be issued, as a full review is still to becompleted.'

Charles Desjardins, President of North American Gem Inc. said, 'Aside fromthe very large land position that North American Gem Inc. will hold West ofHudson Bay, receiving the Comfort Letter for the Adamas Discovery Hole definesour company as a significant player in this newly discovered coal basin.'

North American Gem Inc. anticipates being a major land holder in this newcoal region of Saskatchewan. The Company will commit to aggressive explorationand is currently assembling an outstanding Board of Advisors with expertise inthe area of coal exploration. The Company plans to first twin the Adamasdiscovery hole to get a true grade of the quality of the coal at thatlocation, and further exploration holes in the area of the discovery.

Overview

In 2007, Adamas was exploring a magnetic anomaly thought to be akimberlite target in proximity to the most recent discovery by GoldsourceMines Inc. (TSX-V symbol: GXS) (Goldsource), in western Saskatchewan. Duringthis exploration program Adamas discovered a coal seam in the Cretaceous rock(Mannville Group Rocks) sequence containing coal similar to Goldsource,confirming the regional potential for coal deposits.

Adamas has collected proprietary aeromagnetics data for the area ofinterest that has been made available to North American Gem Inc.