SOURCE: North American Gem Inc.

North American Gem Inc.

November 24, 2009 11:57 ET

North American Gem Inc. Submits Permit Application for North American Gem #3 Mine in Knox County, Kentucky

VANCOUVER, BC--(Marketwire - November 24, 2009) - North American Gem Inc. (NAG) (TSX-V: NAG) is pleased to announce completion and submittal to the Kentucky Department of Natural Resources of the permit application for the proposed North American Gem #3 Mine in Knox County, Kentucky. The leases in the permit application are located 6.5 km from the Company's North American Tippling Production Plant. The coal seams being permitted for mining are the Jellico and Blue Gem Seams. The Jellico seam is a high quality steam coal and the Blue Gem is a specialty coal used primarily in the production of Silicon Metal.

The North American Gem #3 Mine application is for the use of augers, highwall miners, and limited application of conventional surface mining methods for extracting the coal. This type of mining will enter the coal seam from the exposed wall with minimal additional excavation and maximum cost effectiveness. This type of mining dramatically reduces the amount of surface disturbance and allows for the recovery of any potential reserves that were previously believed not to be economically viable.

North American Gem Inc. plans to drill on the leases included in the North American Gem #3 Mine application and prove the presence of mineable coal seams that are known to exist below the Blue Gem Seam. Durabo Drilling of Corbin, Kentucky has been contracted to do the drilling during the month of December, 2009.

The drill core data collected will potentially allow NAG to prepare a certified engineering report with an accurate calculation of a mineable coal reserve of the Blue Gem coal and also the coal seams known to exist below the Blue Gem seam. The specific seam being drilled for has been encountered in the process of oil and natural gas drilling in the area and has been measured in thickness from 1.5-2 metres in thickness 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 the coal seams. The analysis of the data will also help NAG develop the most efficient mining plan for North American Gem Mining Permit #3.

The method of mining to be used by in the North American Gem #1 Mine is known as contour mining. All of the mining permits currently being pursued by North American Gem Inc. have been mined prior to the enactment of the Surface Mine Control and Reclamation act of 1977. This law requires that after any surface mining, the land must be restored to the approximate original contour unless otherwise specified in the permit application and approved by the Kentucky Department of Natural Resources (KDNR). During "pre-law" mining, the general practice was to mine along the contour of a slope to the maximum profitable ratio and leave the resulting highwall and a wide, flat bench where the material covering the coal was removed and then graded somewhat flat as opposed to restoring the original slope. North American Gem Inc. will return the mining permit locations to their initial state and in some instances return the mining permit location to a better environmental state due to the Surface Mine Control and Reclamation act of 1977.

All of NAG'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, North American Gem Inc. 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.

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

North American Gem Inc. (TSX-V: 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 Saskatchewan, West Virginia, and Kentucky. 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"

Charles Desjardins
President and Director

"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."

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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