October 28, 2009: North American Gem Inc. (NAG) (TSX-V symbol: NAG) is pleased to announce the commencement of operations at the coal preparation and rail loading facility in Knox County, Kentucky effective immediately. The 19 acre facility was formerly known as the Cobra Facility (Cobra Tippling Production Plant) and is permitted by Safeco, Inc. under KDNR permit #861-8012. Recently, the 19 acre facility has been officially designated the North American Tipple Facility which is located centrally to the area being developed by North American Gem Inc.
The North American Tipple Facility will serve as the central operation and distribution point for coal produced by NAG's mining operations. The facility has equipment in place that is capable of crushing, screening, and washing coal. This gives North American Gem Inc. the added dimension to service a variety of customers by preparing coal to meet their specific requirements. North American Gem Inc. will also have the ability to purchase outside coal to produce custom blended products which will increase market potential. Specifically, plans are to service the industrial stoker markets, silicon metal producers, and electricity generators.
The North American Tipple Facility is serviced by the CSX railroad and currently has enough rail capacity to accommodate the loading of unit trains (110 railcars) which will allow for more favourable rail transportation rates.
Production from the North American Gem #1 Mine operation establishes North American Gem Inc. as a coal producer with the ability to enter into supply contracts. The supply contracts established by production from the North American Gem #1 Mine Permit are expected to be expanded upon as the Company increases operations in the area. The performance and capabilities of production from the North American Gem #1 Mine Permit will determine the point at which further production from additional leases is commenced.
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 symbol: 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
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