North American Gem Inc. to Option a Portion of Its Interest in the Whiskey Gap Project



    VANCOUVER, Dec. 29 /CNW/ - North American Gem Inc. (TSX-V symbol:
NAG)(the Company) is pleased to announce that it has entered into an Option
agreement on North American Gem's interest in the Whiskey Gap Project with Geo
Minerals Ltd. (TSX-V symbol: GM). Geo Minerals Ltd. can earn up to a 50%
interest in the Company's potential interest (North American Gem Inc. can earn
up to an 80% interest in the Whiskey Gap Project) should the project reach
feasibility. This arrangement would therefore have North American Gem Inc. and
Geo Minerals Ltd. with an equal 40% earn in on the Whiskey Gap Project with
International Ranger Corp. (OTC pink sheets: IRNG) holding the remaining 20%
of the project's interest.

    
    Terms of the agreement for Geo Minerals Ltd. to earn a 40% interest in
    the Whiskey Gap Project are as follows:

    -  Geo Minerals Ltd. must pay to North American Gem $25,000 on the date
       that this Option Agreement is accepted for filing by the TSX Venture
       Exchange ("TSX") (the "Approval Date").

    -  Geo Minerals Ltd. must transfer a total of 300,000 shares to North
       American Gem; the first 150,000 shares to be paid on the Approval date
       and the second 150,000 shares to be paid on or before the third
       anniversary of the agreement date.

    -  Geo Minerals Ltd. must incur eight hundred thousand ($800,000.00)
       dollars of exploration expenditures on the property as follows:

       i)   Fully finance a work program, budgeted and agreed to by the
            Optionors' geologist in the amount not to exceed two hundred
            thousand ($200,000.00) dollars to commence prior to December 31,
            2007;

       ii)  An additional three hundred and fifty thousand ($350,000.00)
            dollars on the second anniversary of the agreement prior to
            December 31, 2008;

       iii) An additional two hundred and fifty thousand ($250,000.00)
            dollars on the third anniversary of the agreement in cash or kind
            prior to December 31, 2009 (40%) percent interest in the
            Company's interest in the Property;

       iv)  To proceed in a fifty-fifty (50-50) partnership on exploration
            expenditures with the Optionor to a feasibility study to earn the
            right to acquire a fifty (50%) percent interest in the Company's
            interest in Property.
    

    Currently a 2000 meter NQ diamond drill program is underway and will
continue on the 44,400 acres Whiskey Gap Uranium project located in Southern
Alberta along the Canada/U.S.A border. North American Gem Inc. entered into a
Joint Venture Agreement with International Ranger Corp. on November 1, 2005
and has completed two drill programs in which anomalous radioactivity was
intersected in 31 of 37 drill holes totaling 4005 meters.
    Most recently a Water Sampling Program had been conducted on the Whiskey
Gap Project lands by the Alberta Geological Survey. The survey data is
released as Earth Sciences Report 2007-08 by R. Olsen and S. Anderson of the
AGS. The AGS study confirmed the Anomalous Radon and Uranium in water values
first located during the original International Ranger and North American Gem
exploration programs.
    AGS sample number 06USA017 collected from a location not previously
sampled, returned values of 160 ppb Uranium, 420 ppb Molybdenum and 140 ppb
Arsenic. These sample values are approximately 4 times higher than any
previous water samples taken on the property and are located up "flow
direction" of a strongly reducing zone of anomalous mineralization and
radioactivity defined late in the 2006 drill program.
    With the discovery of strongly reducing, radioactive sandstones,
containing anomalous heavy metals and associated radon in water, Management
remains confident that the Whiskey Gap lands could contain significant
Sandstone Hosted Uranium mineralization. Sandstone hosted Uranium
mineralization typically is localized at the boundary between oxidation and
reducing conditions, these zones typically contain high levels of heavy metals
in addition to Uranium. The Whiskey Gap property is underlain by a series of
fluvial sandstones of Cretaceous age, thought to be analogous to sandstones in
parts of Wyoming that host significant Roll front Uranium deposits.
    The Whiskey Gap Project is a Joint Venture between North American Gem
Inc. and International Ranger Corp., whereby the Company can earn a 70%
interest by spending $1,250,000 over 3 years. An additional 10% can be earned
by taking the project to feasibility. Currently the Company has spent over
$650,000 to have earned a 60% interest in the project on this date.
    The project is under the direction of Glenn S. Hartley P. Geol. in
accordance with the regulations of National Instrument 43-101.

    Private Placement Closed

    North American Gem Inc. has closed the non-brokered private placement
announced on December 10, 2007. The Company raised $1,007,000 by way of a
non-brokered private placement at a price of $0.10.
    A total of 8,310,000 units were issued as flow-through units consisting
of one common share and one-half of one non-transferable share purchase
warrant. One warrant will entitle the holder to purchase one additional common
share of the company at a price of 12 cents per share for the first year and
15 cents until expiration the following year.
    A total of 1,760,000 units were issued as non-flow-through units
consisting of one common share and one non-transferable share purchase
warrant. One warrant will entitle the holder to purchase one additional common
share of the company at a price of 12 cents per share for the first year and
15 cents until expiration the following year.
    A total of 5,915,000 warrants were issued. One warrant will entitle the
holder to purchase one additional common share of the company at a price of
12 cents per share for the first year, and 15 cents until expiration the
following year.
    Shares, warrants and any shares issued upon exercise of the warrants are
subject to a hold period of four months expiring April 28, 2008.
    The following pro and insider participated in the private placement;
    Pro group participation: Vikki Belack, 200,000 flow-through shares; Dean
Duke, 175,000 flow-through shares; Roy Ruppert, 250,000 flow-through shares;
Ivano Veschini, 100,000 flow-through shares; Neil Adshead, 120,000
flow-through shares; Kerry Chow, 500,000 flow-through shares; Judy Chu, 50,000
non-flow-through shares.
    Finders' fees: $30,000 cash and 300,000 warrants exercisable at 10 cents
for two years payable to Pacific International Financial Corp.; $7,700 cash
and 77,000 warrants (same terms as above) payable to Bolder Investment
Partners; $34,000 cash and 340,000 warrants (same terms as above) payable to
West Oak Capital Partners; $6,250 cash and 62,500 warrants (same terms as
above) payable to Kris Begic; $6,250 cash and 62,500 warrants (same terms as
above) payable to Northern Precious Metals Management Inc.
    The proceeds of the private placement will be used for exploration of the
company's mineral properties and general working capital.

    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

    The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. Statements in this press release other than
purely historical information, historical estimates should not be relied upon,
including statements relating to the Company's future plans and objectives or
expected results, are forward-looking statements. News release contains
certain "Forward-Looking Statements" within the meaning of Section 21E of the
United States Securities Exchange Act of 1934, as amended. Forward-looking
statements are based on numerous assumptions and are subject to all of the
risks and uncertainties inherent in the Company's business, including risks
inherent in resource exploration and development. As a result, actual results
may vary materially from those described in the forward-looking statements.





For further information:

For further information: 430 - 609 Granville Street, Vancouver, BC,
Canada, V7Y 1G5, Phone (604) 683-5445, Facsimile (604) 687-9631,
info@northamericangem.com, www.northamericangem.com

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NORTH AMERICAN GEM INC.

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