NAG North American Gem Inc.

North American Gem Inc. (NAG) (TSX VENTURE:NAG) reports that it has executed an
Asset Purchase Agreement with Keener Ridge Coals Inc. ("KRC") of West Virginia.
Under the Agreement, the Company will transfer to KRC its interests in certain
coal leases and mining permits located in Kentucky. KRC will assume the
immediate obligations and liabilities associated with the permits and leases.
For all coal sold under Permit 861-0519 (Swan Pond), the Company will receive an
override royalty of $1.50 per ton, but only after KRC has recouped the amount of
funds it had to spend to address the immediate obligations and liabilities
associated with the permits and leases being transferred.


Under the Agreement, KRC is also obligated to satisfy any claims made by
Kentucky Mining Partners LLC ("KMP") against North American Gem. The Company had
reported in previous disclosure documents that KMP had filed a lawsuit on March
17th 2011 in the Eastern District of Kentucky, United States District Court
(Federal Court). As a result of this Agreement, the Company no longer has any
direct mining operations in Kentucky.


The Company further reports that it has executed a Mutual Release and
Termination Agreement with certain landholders regarding various coal leases
within West Virginia. Under the Agreement, the Company will no longer have any
obligations or hold any interests in coal leases located within West Virginia.


The Company also reports that Hunter Dickinson Group ("HDG") has elected not to
proceed with earning its initial ownership interest of 50% in the Joint Venture
Agreement on the Louise Lake property previously executed between HDG and NAG.
The Company believes the Louise Lake project still maintains inherent value
especially in more robust commodity markets.


North American Gem Inc. (TSX VENTURE:NAG) is a Junior Exploration Company based
in Western Canada. The Company has interests in Copper, Gold, Silver, 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.

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