SOURCE: Gold and Gemstone Mining Inc.

Gold and GemStone Mining Inc.

June 04, 2012 09:00 ET

Gold and GemStone Mining Inc. Adds Further Concessions to Its Growing Portfolio of Alluvial Diamond and Gold Concessions in Sierra Leone

DRAPER, UT--(Marketwire - Jun 4, 2012) - Gold and GemStone Mining Inc. (OTCQB: GGSM) (OTCBB: GGSM), an alluvial gold and diamond exploration and development stage mining company focused on Sierra Leone, West Africa, has today announced that it has extended the mining rights on its Project Nimikoro to include up to an additional 100 acres of land, outlined by the Paramount Chief of the area as prime alluvial mining territory for both diamonds and gold.

Tom Tucker, GGSM's Head of African Operations, today commented, "I'm delighted to have secured the rights to new mining territory in the Nimikoro Chiefdom. I have deep routed connections to the local communities in the surrounding areas and am very excited to continue the development of the area, both in terms of mining activities and wider social projects." He continues, "The additional territory secured lies next to the existing claims held by GGSM and provides an outstanding opportunity to rapidly commence profitable mining operations for both diamonds and gold, all known to be located in the area."

The Company has recently announced in a press release issued on the 31st of May, a significant increase in the size of mining concessions on the nearby Project Nimiyama in the Nimiyama Chiefdom and is currently working on increasing the allotted land available in its third claim in the Sandoh Chiefdom, again located within prime alluvial mining areas in the Kono District of Sierra Leone.

As part of the extension to the mining concessions GGSM has to commence mining operations within 12 months of signing the agreement. GGSM is in the process of securing the necessary funds and resources necessary to implement a sustainable long term investment programme in all 3 existing projects in Sierra Leone. Further geological assessments will be conducted by our team of highly experienced geologists, building upon the historical reports and government analysis already produced in the areas under ownership.

Based upon valuation data issued by the Ministry of Mines in Sierra Leone, the additional 100 acre of concessions in the Project Nimikoro will add up to a potential of $60,000,000 to the company's forward looking valuation, bringing all claims held to a potential production value of $153,000,000.

About Gold and GemStone Mining Inc.
Gold and GemStone Mining, Inc. is an exploration stage company that will engage in the acquisition, exploration, and development of Diamond and Gold properties around the world. Integral to our plan is to form strategic alliances and joint ventures with gold and diamond mining companies.

FORWARD-LOOKING STATEMENTS: "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements relating to the company's business activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations about the Company's business. Words such as expects, anticipates, intends, plans, believes, estimates and similar words and expressions are intended to identify such forward-looking statements. These statements involve risks that are difficult to evaluate. Actual results can vary from descriptions herein due to many factors including changes in metal prices and business conditions; changes in laws and regulations; problems encountered in exploration and obtaining permits; changes in the competitive environment; technological advances; shortages of skilled workers, drill rigs and equipment; the need for additional capital and other risks listed in the Company's Securities and Exchange Commission filings under "risk factors" and elsewhere. Forward-looking statements speak only as of the date they were made. The Company does not undertake any obligation to update forward-looking statements.

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