North American Gem Inc. Announces LOI to Lease and Operate Coal Preparation and Rail Loading Facility in Knox County, Kentucky

VANCOUVER, BC -- 09/15/09 -- North American Gem Inc. (TSX-V: NAG) (NAG) is pleased to announce the execution of a Letter of Intent (LOI) to enter into an open ended lease with Safeco, Inc. of Corbin, Kentucky, to operate a coal preparation and rail loading facility in Knox County, Kentucky. The 19 acre facility is known in the area as the Cobra Facility (Cobra Tippling Production Plant) and is permitted by Safeco, Inc. under KDNR permit # 861-8012.

The Cobra Facility is located centrally to the area being developed by North American Gem Inc. and will serve as the central operation and distribution point. The facility has equipment in place that is capable of crushing, screening, and washing coal. This will give NAG the ability to service a variety of customers by preparing coal to meet specific requirements and will also give NAG the ability to purchase outside coal and produce custom blended products for increased market potential. Specifically, plans are to service the industrial stoker markets, silicon metals producers, and electricity generators.

The 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 rates from the railroad.

North American Gem Inc. plans to have the coal from the Jellico seam extracted from the North American Gem #1 Mine (formerly referred to as "Bays Hollow" in the September 9th release), of Kentucky State Mining Permit #918-0396, to be the first coal to run through the newly acquired Cobra Facility.

The North American Gem #1 Mine Permit is for the extraction of coal, using auger/highwall mining methods, in the Jellico coal seam which averages a thickness of 91cm (3ft). The permit is complete and ready for transfer pending the posting of a bond. Based on the thickness of the coal seam, auger mining can produce 4,000-6,000 net tons per month with an increase to +20,000 net tons per month if highwall mining techniques are commenced. Production from the North American Gem #1 Mine Permit is expected to last 12-18 months.

Laboratory analysis of samples taken from the proposed mining area on August 26, 2009 and analyzed by SGS North America, Inc. showed a range of 2.27-4.67% ash, 0.79-1.1% sulphur, and 13,656-13,996 btu. Initial offers for the sale of the coal are for USD$58.00/net ton at <> 12,500 btu for up to 30,000 net tons per month beginning immediately. This price is approximately USD$6.00-$8.00/net ton higher than prices quoted earlier in the summer.

The North American Gem #1 Mine operation has the potential to establish 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. The production rate and mine-life projections have been made without support of a feasibility study, there is no certainty the proposed operations will be economically viable.

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: 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 Saskatchewan, West Virginia, and Kentucky. 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
President and Director

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Cautionary note:
This report contains forward-looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

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China's Mine Explosions

The recent rise in mining disasters is taking a toll on social stability.
HONG KONG -- Two deadly mine accidents recently occurring within 24 hours of each other in China's Henan province have taken 56 lives so far and put 13 local officials and mine owners under investigation. The death toll is expected to rise as hope to rescue the 36 workers trapped in the coal mine is turning dim.

The tragedy has brought a direct challenge to the central government in Beijing as recent rising demand for metals and coal in China has raised the number of mine accidents and casualties, which in turn has elevated social discontent with local officials who have backed illegal mine operations under the protection of the government.
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The first mine accident took place early Tuesday morning at Xinhua No. 4 pit in Pingdingshan, a coal city in central Henan province. There were 93 people working in the pit when gas blasted the mine, which was supposed to be in a production halt. Besides the 14 lucky ones who managed to escape, 79 others were trapped in the gas-filled mine. A rescue team organized by the central government has taken 43 dead bodies out of the mine as of Thursday morning, with the remaining 36 miners still trapped underground, according to China Daily. It is unlikely the trapped workers will survive the high levels of carbon monoxide. Further complicating the relief mission, the missing 36 workers were in four different extended zones, a member of the rescue team told China Daily.

About 18 hours after the Pingdingshan explosion, a fire broke out Tuesday night at an underground gold mine in Sanmenxia city, also in Henan Province. Apparently triggered by severed electric wires, the fire killed six of the 12 miners while the other half fled above the ground. Seven out of the eight rescuers sent down to the underground mine were trapped in the fire and lost their lives, Xinhua reported.

The accidents struck a nerve in China's top leaders in Zhonghanhai. Vice-Premier Zhang Dejiang dashed to Pingdingshan immediately on Tuesday with a team of central government officials and investigators dispatched by the Supreme People's Procuratorate.
The Pingdinshan accident was a typical example of how local officials opened the gate for mine owners for illegal explorations. The Xinhua coal pit No. 4 was ordered to stop operations last year amid a government campaign to reform and improve the safety standard of small coal mines. On paper, the state-owned-turned-private coal mine was only allowed to send five workers inside the pit to renovate the ventilation and drainage system, with the supervision of three officials from a local watchdog group. The mining company was not allowed to conduct any production during the renovation period without government permission. However, 93 workers were in the mine during the gas explosion. A large amount of raw coal was also found piled up around the mine after the accident.

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ATP Hits Additional Paydirt at Deepwater Telemark Hub

ATP has discovered additional pay sands at the Mirage Prospect located at Mississippi Canyon Block 941(MC 941) at ATP's deepwater Telemark Hub in the Gulf of Mexico. The MC 941 #3 well, located in approximately 4,000 feet of water, encountered more than 250 feet of logged net oil and gas pay, more than doubling the pre-drill estimates. The 7 5/8 inch casing has been set at 17,089 feet measured depth through the pay intervals


Mirage is one of the three Telemark Hub fields that will be tied back to the ATP Titan to be located at MC 941. ATP has a 100% WI and is the operator of the Telemark Hub.

Commenting on the announcement, ATP Chairman and CEO T. Paul Bulmahn stated, "ATP is exceptionally pleased with these initial results. Not only have we encountered the development sands at greater thicknesses than expected but we have logged other hydrocarbon-bearing sands that were not present in the original wells, beyond even what was discussed and projected at the ATP Titan post-christening breakfast update held on August 27th. These additional pay sands should lead to upgraded production and reserve estimates greater than currently booked in our third party reserve reports, and we were already predicting ATP's Telemark Hub is projected to more than double ATP's production beginning in 2010."
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Aminex Increases Interest in Nyuni Area, Kiliwani North

Aminex has increased its interest in the Nyuni Production Sharing Agreement, Tanzania ("Nyuni") by 10%, including the 40 million cubic feet/day gas discovery at Kiliwani North under an agreement reached with East African Exploration Ltd. ("EAX").



EAX is a joint venture participant in the Nyuni PSA ("Nyuni") in Tanzania and also in the L17 & 17 PSA ("L17 & 18") in Kenya. Aminex holds 25% in L17 & 18 while EAX holds 10% in Nyuni which includes the 2008 40 million cubic feet/day gas discovery at Kiliwani North. The terms of agreement, which has been approved by the governments of both countries, are as follows:

Aminex will transfer its 25% interest in L17 & 18 to EAX.

EAX will transfer its 10% interest in Nyuni to Aminex, increasing Amine's interest in Nyuni from 40% to 50%.

Aminex will make a cash payment to EAX of $1 million.

Aminex values its cumulative investment in Kenya at its historic cost of approximately $700,000 and on the basis that it will recover its costs in Kenya and apply this recovery plus $1 million cash to the purchase of an additional 10% in Nyuni, the consideration for the purchase of this additional interest in Nyuni is $1.7 million.

New seismic has recently been acquired over Songo-Songo Island which will better define the Kiliwani North discovery at Nyuni. There are signs of progress in achieving regulatory consent for the expansion of the gas processing plant on Songo-Songo Island which will open the way for commercial development of Kiliwani North. Reprocessing of existing seismic on other prospects at Nyuni is currently well-advanced.

Commenting on the announcement, Aminex Chairman Brian Hall said, "This agreement not only increases our interest in the discovery we made last year at Kiliwani North by 25% but also consolidates our overall position in Tanzania where we are a well-established operator. In addition to Kiliwani North, other prospects on the Nyuni licence are close to being drill-ready and we believe that this represents sensible portfolio management, exiting Kenya where timing and costs are still uncertain.

"With South Malak-1 in Egypt currently drilling ahead and the Likonde-1 well in the Ruvuma Basin of southern Tanzania now scheduled to be spudded in December 2009, we are looking forward to a period of new activity on our frontier exploration projects in Africa."
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