Swan Pond Lease

North American Gem Inc. announced that the Company has applied for multiple Coal Exploration Permits to the Kentucky Department of Natural Resources. These permits applications are for the North American Gem #2 Mine, North American Gem #3 Mine, Gilliam Hill South Lease, and the Arkle Hollow Lease, in Kentucky province of United States. A Coal Exploration Permit will allow for surface disturbances and the drilling and extraction of coal for the purpose of sampling and analysis.

North American Gem announced completion of a definitive agreement to acquire a near production coal mining leases located in Knox County, Kentucky, USA. Mining permit application # 861-0502 is in review with the Department of Natural Resources offices in Frankfort, Kentucky and is expected for approval within 75-90 days. It is a surface mining permit application for the mining of 220 acres of the Jellico coal seam.