North American Gem Inc. Announces Property Acquisition and Application for Coal Prospecting Permits in West Virginia

    VANCOUVER, Jan. 12 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG)
(the "Company") announces the acquisition of a further coal parcel in West
Virginia known as the Dalton Tract. The property is approximately 130 acres
and hosts three coal seams including the Little Clarksburg, the Elk Lick and
the Harlem. The outcroppings on each of the seams are visible and have been
viewed by Company representatives in West Virginia. The overburden is ten to
thirty feet thick and consists of shale and sandstone. The site is readily
accessible with the proper infrastructure in place providing easy access for
equipment, machinery and trucks in and out of the site.
    The Company has applied for a prospecting permit on the property which
will allow for drilling and further samples to be collected towards a full
mining permit application. The drill program will include a drill hole for
soil and coal samples as well as approximately four or five additional holes
to determine a National Instrument 43-101 resource estimate for the property.
Once the prospecting permit is acquired the Company will pursue the full
permitting application process to enable the most expedient route to potential
coal production, subject to the results of the drill program.
    Appalachia Coal Corporation, a wholly owned subsidiary of North American
Gem Inc. will grant an overriding royalty of 6.5% to the collective vendors of
the property on all coal extracted as well as a reimbursement of certain
property expenses to date, (these expenses totaled $6,500 US). The Company
anticipates it will be able to announce reserve estimates on the property and
provide potential revenue numbers as well as more details on the timing of the
potential coal extraction once the prospect permitting and application
processes are completed.
    All current work on the West Virginia properties is being supervised by
Mike Green of Green Engineering, Inc., who is a registered professional
engineer in Philippi, West Virginia, and will be operating as the Company's
qualified person under National Instrument 43-101. Mr. Green has reviewed the
technical content of this news release and confirms its accuracy. Mr. Green is
independent of the Company.

    North American Gem Inc. (TSX-V symbol: 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 and West
Virginia. In addition to Coal exploration, the Company also has interest in
Uranium, Copper, Gold, Molybdenum and other base metals in Canada. The Company
has advanced the Louise Lake copper-gold-molybdenum-silver project, located in
British Columbia and has produced a NI 43-101 compliant Resource estimate
(included in its NI 43-101 Technical Report dated July 14, 2006 and filed on
SEDAR). In Alberta, the Whiskey Gap and Western Basin Uranium potential
projects. The Mosquito Gulch Uranium property located in the Northwest
Territories and the Ranger Lake Uranium property located in Ontario.

    On Behalf of the Board of Directors

    "Charles Desjardins"

    Charles Desjardins
    President and Director


    Cautionary note:
    This report contains forward looking statements, particularly those
regarding cash flow, capital expenditures, and investment plans. Resource
estimates, unless specifically noted, are considered speculative. The Company
has filed a National Instrument 43-101 resource estimate on the Louise Lake
property. 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.

    %SEDAR: 00005772E

For further information:

For further information: 430-609 Granville Street, Vancouver, BC,
Canada, V7Y 1G5, Phone (604) 683-5445, Facsimile (604) 687-9631,,

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