October 08, 2009 09:30 ET

North American Gem Inc. Hires Engineering Consultant to Manage Additional Mine Permitting in Kentucky

VANCOUVER, BC--(Marketwire - October 8, 2009) - North American Gem Inc. (TSX-V: NAG) (NAG) is pleased to announce the engagement of Mr. Robert Taylor, a Professional Engineer, to provide engineering services for the Company's coal operations in Kentucky.

Under the agreement, Mr. Taylor will provide the following consulting services:

1. Engineering services as needed.
2. Evaluation of coal leases for the purpose of determining development
   potential.
3. Preparation of mine permit applications and mine plans.

"Having a dedicated engineer will greatly enhance the capabilities of NAG to efficiently get through the mine permitting process," stated Charles Desjardins, President of NAG. "In addition, NAG will now have the capacity to prepare multiple mining permit applications which will reduce the overall cost of the mine permitting process."

Mr. Taylor is currently evaluating the expansion potential of the North American Gem Mine #1 Permit and the North American Gem Mine #2 Permit, as well as overseeing the expected submission of mining permit applications for the planned North American Gem Mine #3 Permit and the North American Gem Mine #4 Permit within approximately the next 7-10 days.

Production Expected in October 2009 on North American Gem #1 Mine

Production is expected to begin October 2009 (See NAG October 7th 2009 release) on the leases known as the North American Gem #1 Mine Permit located in Whitley County, Kentucky.

NAG plans to have the coal from the Jellico seam extracted from the North American Gem #1 Mine, under Kentucky State Mining Permit #918-0396, to be the first coal to run through the Cobra Tippling Production Plant (See NAG September 15th 2009 release). 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.

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 Kentucky, Saskatchewan, and West Virginia. 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. 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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