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North American Gem Inc. Commences Operation of North American Gem Mine #1 in Whitley County, Kentucky

(EMAILWIRE.COM, October 29, 2009 ) Vancouver, BC - North American Gem Inc. (NAG) (TSX-V symbol: NAG) is pleased to announce the commencement of operation at North American Gem Mine #1 in Whitley County, Kentucky. The new mining permit number is #918-0420. At this time, equipment is being moved onto the site with the first task of upgrading the haulage road to the mine face. Since the area had been mined previously, an existing haul road is in place which will require an establishment of proper drainage and stone for the surface. The length of the road is less than ½ kilometer in length. The augering equipment setting up has begun and is expected to have coal prepared for transport to market by Friday, November 6th 2009.

The North American Gem Mine #1 is permitted for the use of augers to 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 recovery of coal without removal of overlying material. Engle Hollow Mining (EHM) has allocated 2 augers to work simultaneously on different work faces to ensure continuous production.

Based on the capabilities of the mining equipment being employed at the NAG Mine #1 coupled with the mining conditions that exist on the site, the production goal is 10,000 net tons per month of production, at this time.

There is currently a sale agreement with Blue Star Energy for up to 15,000 tons per month of production which ensures the sale of total production from the mine (See NAG October 21st, 2009 release). The coal sample taken by Blue Star from the North American Gem Mine #1 resulted in analysis of 8% ash,

North American Gem Inc.
Media Contact
604-683-5445
info@northamericangem.com


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