TSX-Venture: NAG

VANCOUVER, May 20 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG)

is pleased to have received the coal results for drill core samples recently sent
to be analyzed for coal quality and integrity. Upon the arrival of the sample,
it was evident that the coal had suffered some oxidization and degradation due
to exposure while remaining out in the core boxes uncovered and exposed to the
elements. Coal is considered to be extremely sensitive to oxidization while
compared to other commodities that require no special handling during drilling
or storage while in the core boxes.

Despite the likelihood of some grade loss, the samples graded
Sub-bituminous A quality. This is highly encouraging as the coal would have
likely deteriorated to some degree and suggests that the sample may be of
better quality in an unoxidized state.

Further to the initial four meter coal intercept, it was determined that
a significant layer of intact Mannville rock types were encountered suggesting
that the immediate area was not subject to a high degree of erosion which has
preserved the Mannville sequence containing the coal beds. It was also noted
that coal partings and staining was evident in an additional four meter
section directly overlying the four meter coal intercept.

Even more encouraging was the identification of an additional (one meter) coal seam that
was encountered twelve meters above the coal seam originally reported. This
seam is also associated with apparent coal partings and staining of the
Mannville rocks in a four meter section surrounding this seam. The nature of
the second coal seam appears to be similar to the first (four meter) seam.
Samples from this additional coal seam will be sent to Loring Laboratories in
Calgary, Alberta and the results will be reported when received.

It is believed that the coal found in the Narrow Hills region remains
intact and has avoided erosion through a significant stratagraphic section of
the Manville. The region surrounding this discovery will be tested for thicker
coal seams. The discovery of coal in the Adamas drill hole has allowed North
American Gem Inc. to design an air-borne electromagnetic survey to focus on
areas immediately surrounding the coal discovery, which will determine the
extent of this deposit. The widespread nature of the coal drill intercepts and
historical data illustrate the widespread potential for coal deposits.
North American Gem Inc. has submitted applications for coal permits to
cover the entire region of the discovery and will actively begin exploration
work to further evaluate the nature of the regional potential to define
further coal deposits throughout.

The Company Continues Selective Land Acquisition

The Company has submitted coal permit applications for a total of
950,377 acres to date. Within this total acreage, is the ground associated
Adamas Minerals Corp. (Adamas) of Prince Albert, where North American Gem Inc.
has the exclusive rights to exploit coal, oil shale's and or all hydrocarbons
on the land package west of Hudson Bay, Saskatchewan. The potential land
holdings have access to highway, CN and CP Rail, and has electrical
infrastructure all running through the property.

Overview

In 2007, Adamas was exploring a magnetic anomaly thought to be a
kimberlite target in proximity to the most recent discovery by Goldsource
Mines Inc. (TSX-V symbol: GXS) (Goldsource), in western Saskatchewan. During
this 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 of
interest that has been made available to North American Gem Inc. to be used to
further evaluate the area for coal deposits and other minerals that may be
found therein. Historical data and reports suggest that coal is present to the
north edge of the Cretaceous rock sequence along the shores of Wapawekka Lake
to the north of the Adamas discovery. These reports further suggest that the
Wapawekka out crop is likely associated with a larger deposit to the south.
The Adamas intercept is directly south of Wapawekka Lake along the low lying
basin adjacent to the south east of the Narrow Hills Uplands.

Goldsource also made a significant coal discovery while drilling for
kimberlites in a low lying basin south east of the adjacent uplands at Pasquia
Hills to the south east of the Narrow Hills intercept. The occurrence at
Pasquia is roughly 80-100 km south east of the Narrow Hills and both have
similar topographical features and are in the same Cretaceous rock sequence.

The Bow River coal outcrop occurs roughly 80-100 km northwest of the
project area following the same topographic uplands leading edge which is
patterned to the Canadian Shield boundaries lying northwest to the southeast.
This suggests that the coal occurrences at the Bow River to the northwest of
Wapawekka Lake and Narrow Hills central and the Pasquia Hills southeast are
associated with the same geological structures that would allow coal to have
developed and remain intact through the glacial erosion. The continuity of
coal from the Bow River out crop in the northwest and the major coal discovery
at Pasquia Hills Places the Wapawekka and Narrow Hills occurrence in the
central portion of the regional known coal occurrences outline a broad area
for future exploration.

Airborne Electromagnetic surveys are well suited for regional exploration
of this nature, and given the known location of the Adamas Coal intercept, it
is likely to provide a fast track to defining regional drill targets.
The Company will confirm permit grants as documentation is received
regarding these coal permits that have been forwarded to the government of
Saskatchewan's permitting office. The time frame will be determined by the permitting office.

North American Gem Inc. has submitted money in trust to the
Saskatchewan permitting office.

North American Gem has made a commitment to be active in Saskatchewan for
the exploration of coal, whether it be through successful permitting by the
Company or through joint venture opportunities. The recent coal discovery by
Goldsource Mines Inc. of bituminous coal in two drill holes 1600 meters apart,
suggests the potential for a much larger coal system. Goldsource believes the
coal it encountered is from the Mannville/Swan River Group of Creataceous age
(Goldsource Mines Inc., Release May 5, 2008). Coal structures of the
Creataceous age are generally stratigraphic and can encompass several thousand
square kilometers.

Mike Magrum, PEng, a qualified person under National Instrument 43-101,
has approved the technical content of this news release.

About North American Gem Inc.

North American Gem Inc. (TSX-V symbol: NAG) is a junior exploration
Company based in Western Canada. The Company's primary goal is to explore for
Uranium, Molybdenum, Gold, Copper, and other base metals in Canada. The
Company is actively pursuing several opportunities, including the Louise Lake
copper-gold-molybdenum-silver project located in British Columbia. The Company
is also pursuing its uranium projects, consisting of the Whiskey Gap,
Del Bonita, Western Basin, and Bonny Fault projects, all located in Alberta.
In addition the Company is also pursuing its Mosquito Gulch uranium property
located in the North West Territories and the Ranger Lake Uranium property
located in Ontario.

On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.

"Charles Desjardins"

Charles Desjardins
President and Director

http://www.agoracom.com/ir/NAGem/mes...

Tomorrow should be a very nice day...

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