North American Gem Inc. Becomes Coal Producer as Mining Commences on the North American Gem #1 Mine in Whitley County, Kentucky

(EMAILWIRE.COM, November 23, 2009 ) Vancouver, Canada - North American Gem Inc. (NAG) (TSX-V symbol: NAG) is pleased to announce the start of coal production for the North American Gem #1 Mine in Whitley County, Kentucky.

As of Friday, November 20, the roads and required sedimentation control ponds have been constructed and are approved. The first "mine face" has been completed on North American Gem #1 Mine and the first auger has been moved into position and is currently mining. Preparation of the second "mine face" site has also commenced where the second auger will mine. By contract, the second second auger must be in production within 10 working days of the beginning of production by the first auger.

Blue Star Energy LTD. (Blue Star) located in Hazard, Kentucky has agreed to purchase up to 15,000 clean tons of coal per month produced at the North American Gem Mine #1, Whitley County, Kentucky (as announced previously on October 21nd, 2009). Blue Star is a coal production and brokerage company that caters mostly to specialty industrial coal users but also supplies coal to various electricity generators in the Appalachian region since 1996.

Blue Star has completed its analysis of the Jellico coal seam at the North American Gem Mine #1 and now expects delivery of coal immediately upon the commencement of production. The coal sample taken by Blue Star from the North American Gem Mine #1 resulted in analysis of 8% ash,

North American Gem Inc.
Charles Desjardins
604-683-5445
info@northamericangem.com