VANCOUVER, Jan. 12, 2009 (Canada NewsWire via COMTEX News Network) --
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 
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.