North American Gem Inc. Receives Approval for M3 Energy Resources, LLC to be the Operator of North American Gem #3 Mine

VANCOUVER, BRITISH COLUMBIA, Jan 11, 2011 (Marketwire via COMTEX News Network) --

North American Gem Inc. (NAG) (TSX VENTURE:NAG) reports that M3 Energy Resources, LLC (M3) has been accepted as the operator of North American Gem #3 Mine (Mine #3) by the Kentucky Department of Natural Resources (KDNR). This will allow M3 to complete the hauling road for production to begin at Mine #3. During the construction of the hauling road M3 will prepare Mine #3 for Highwall mining.

Mr. Dean Schafer is acting as operations manager, for NAG, on all of NAG's Kentucky coal leases and is currently implementing an overall mine plan.

M3 Energy Resources, LLC has a management team with a proven track record in coal mining, engineering, finance and business management. M3's current operations are in Central Appalachia where they control vast low sulfur, high BTU coal reserves with decades of mining life remaining. M3 is a large operation capable of managing several projects simultaneously; currently M3 is operating Highwall Miners, Surface Mines, Underground Mines, and a Preparation Plant with fine coal circuit and loadout facilities. Utilizing state-of-the-art equipment and advanced mining techniques maximizes the efficiency of their mining operations at the same time that it helps increase the level of safety.

North American Gem Inc. (TSX VENTURE: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, President and Director