North American Gem Inc.

North American Gem Inc.

September 13, 2010 09:00 ET

North American Gem Inc. Applies for Multiple Coal Exploration Permits in Knox County, Kentucky

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2010) - North American Gem Inc. (NAG) (TSX VENTURE:NAG) has applied for multiple Coal Exploration Permits to the Kentucky Department of Natural Resources. These permits applications are for the North American Gem #2 Mine, North American Gem #3 Mine (Swan Pond Lease), Gilliam Hill South Lease, and the Arkle Hollow Lease. A Coal Exploration Permit will allow for surface disturbances and the drilling and extraction of coal for the purpose of sampling and analysis. 

The exploration permit on the North American Gem #2 Mine will allow for enhanced efficiency of operations currently under way at the site as well as the evaluation of the surrounding area for possible expansion. The exploration permit for North American Gem #3 Mine is for the purpose of evaluating adjacent properties being considered for expanded or additional mining permits.

Gilliam Hill South Lease is comprised of approximately 500 acres and located just south of the North American Gem #2 Mine. Coal Seams that are known to exist on the lease are the Blue Gem, Jellico, Dean, and the Moss. Both the Dean and Moss seams have historically proven to be low sulfur, high quality coal seams that are ideal for the utility (electricity generation) market.

The Arkle Hollow Lease is comprised of approximately 562 acres and is located less than 1 km south of the Gilliam Hill South Lease and is known to contain the same coal seams. The longer term goal is to secure leases on parcels of land that will physically tie together the Gilliam Hill South and Arkle Hollow Leases. Both Leases are located within 3 km of The North American Gem Processing Facility.

The decision of North American Gem to acquire and develop all of these coal leases were made with consideration of the situation regarding the "mountaintop removal" and "valley fill" issues under scrutiny by the US Environmental Protection Agency. None of the leases currently held or being considered by NAG will be affected by this issue.

Mr. Dean Schafer is acting as general manager of the Company's Kentucky coal leases and is currently implementing an overall mine plan.

Ms. Deborah Moses, PEng, PLS, REM, of Engineering Consulting Services Inc. (ECSI) is the qualified person for the Company's coal operations in Kentucky.

North American Gem Inc. (TSX VENTURE:NAG) is a junior resource company in Western Canada. The company's major focus is expanding its coal mining operations at its flagship properties in Kentucky. In addition, the company has interests in coal, copper, molybdenum, and other base metals in Canada.

On Behalf of the Board of Directors


Charles Desjardins, President and Director

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.

"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."

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