North American Gem Inc. and M3 Energy Resources, LLC Begin Production at North American Gem #2 Mine

North American Gem Inc. (NAG) (TSX VENTURE:NAG) reports that M3 Energy
Resources, LLC (M3) has commenced production on North American Gem #2 Mine. M3
will be working one shift six days per week and are a planning to go to two
shifts per day during the same six day work week. All of the coal produced at
North American Gem #2 Mine will be sold to fill contracts under M3.


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

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. 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. 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.