North American Gem Inc. Grants Incentive Stock Options

VANCOUVER, BRITISH COLUMBIA, Jan 4, 2011 (Marketwire via COMTEX News Network) --

North American Gem Inc. (NAG) (TSX VENTURE:NAG) announces that pursuant to its stock option plan, the Company has granted incentive stock options to its directors, officers, consultants, and employees to purchase in the total of 890,000 common shares in the capital stock of the company, subject to regulatory approval, exercisable for a period of five years, at a price of $0.125 per share.

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

NORTH AMERICAN GEM INC.

Charles Desjardins, President and Director