TGX - True North Gems - Page 2

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2011) - True North Gems Inc. (the "Company") (TSX VENTURE:TGX) is pleased to announce the receipt of a draft pre-feasibility study for the Aappaluttoq Ruby and Pink Sapphire Project in Southwest Greenland.

This study was completed on the Aappaluttoq deposit, one of several ruby discoveries on the property, and was prepared by EBA, a Tetra Tech Company, of Vancouver BC ("EBA") and MT Hojgaard of Denmark and Greenland following the resource estimate released on May 17, 2011. Key operating parameters:

• Open pit mine with a 9 year mine life
• Camp and mine facility easily accessible to cost-efficient water transportation
• Total probable reserve of 161,600 tonnes of ore grading 350 grams per tonne of clean corundum
• Processing of 1,100 tonnes of ore in the year of construction, increasing to an average of 22,000 tonnes per year by year 3
• Initial capital investment of $37.4 million including contingency of $4.4 million
• IRR pre-tax (100% equity) of 19.1%
• IRR after-tax (100% equity) 16.5%
• NPV pre-tax (100% equity) $25.7 Million (8% discount rate)
• NPV after-tax (100% equity) $17.5 million (8% discount rate)

"Today's release demonstrates that the Aappaluttoq ruby project is economic with modest capital requirements in a secure and welcoming jurisdiction. We believe that rough ruby and pink sapphire valuations completed on 2006 surface bulk samples and outlined in news releases of January 16 and 17, 2008, will ultimately prove to be lower than prices attained in the current market once sales are initiated," commented President and CEO Nicholas Houghton. "We look forward to completing the necessary next steps towards developing this mine and showcasing Greenland rubies and pink sapphires. We have the opportunity to open a new chapter in the coloured gemstone and jewelry world."

Other opportunities include:

• Inclusion of inferred resources: The resource estimate identifies 77,200 tonnes of inferred resource with a grade of 283 grams per tonne of total clean corundum. In accordance with NI 43-101 standards 62,000 tonnes of the inferred resource falls within the designed pit shell but is not counted as ore in the study. We are optimistic that we will ultimately increase the confidence level of some or all of the inferred resource to enable inclusion in future production estimates.
• Increasing mine life and/or throughput: The deposit remains open along strike in both directions and to depth indicating potential for increased throughput and/or a longer life operation.
• Improved processing: The process flowsheet is based on simple crushing, screening and jigging the ore as demonstrated successfully in the processing of the bulk samples. The process may be adapted to other methods of ore splitting and sorting (such as electric pulse disintegration and optical sorting) which may make recovery of the best quality corundum more efficient and hence reduce operating costs. These methods will be tested further.

Only corundum over 1.7 mm is considered in the study, which is nominally larger than the minimum size of gemstone rough that can be commercially polished. The study contemplates the development of an open pit mine at a 300 meter elevation to extract the probable reserve using conventional mining equipment. The mined ore will be transported to an adjacent process facility where it will be crushed, screened and sorted using a combination of hand-sorting and mineral jigs to extract a rough corundum concentrate. Personnel will be accommodated at a nearby, fully serviced camp. Supplies and personnel will be transported largely by commuter boat from the capital Nuuk (150 km), with other personnel arriving by boat from the local community of Qeqartarsuatsiat (25 km). The rough concentrate will be transported from the mine to a secure sorthouse operated by the Company in Nuuk, where the concentrate will be graded by trained sorters to separate the gem and near-gem rubies and pink sapphires. Non-gem corundum is presently assumed to be waste.

The study demonstrates that positive economic returns from the project are possible and the study justifies securing the required permits for construction and operation. The Company is in the process of filing its application for an exploitation (mining) permit with the Government of Greenland.

Based on bulk sampling done to date, the study assumes that rough gem and near-gem ruby and pink sapphire comprises 39% of the total clean rough corundum in the deposit and that of the gem-and near-gem, 15.9% is rough ruby and 84.1% is rough pink sapphire. An overall total clean rough corundum recovery of 95% is assumed for the processing plant.

Total initial capital investment in the project is estimated to be $33.4 million, exclusive of contingency, which represents the total direct and indirect cost for the complete development of the project, including associated infrastructure such as a full camp, roads and two small ports, as well as sorting facilities in Nuuk.

Next Steps

The Company will issue a final NI 43-101 compliant prefeasibility study Technical Report for the Aappaluttoq ruby project within 45 days as required. This study will accompany an application for an exploitation (mining) license which is expected to be filed within the second quarter of 2011.

Qualified Persons for the NI 43-101 Report

John Chow, M.AusIMM, MIEAust of EBA is the independent Qualified Person responsible for the technical information in this news release in accordance with NI 43-101. Mr. Chow reviewed and approved the contents of this release.

The following companies also contributed to the study and the exploitation permit application:

• MT Hojgaard: infrastructure, transportation, costing
• Wardrop Engineering: Processing and security
• Rambøll: environmental baseline studies, monitoring and Environmental Impact Assessment
• Grontmij: Socioeconomic impact assessment

True North Gems Inc. is listed on the TSX Venture Exchange and is engaged in the exploration and development of Greenlandic and North American coloured gemstone prospects. The Company is a pioneer in coloured gemstone exploration and, currently in Greenland, has the rights to earn 100% interest in the Aappaluttoq ruby and pink sapphire project, holds a 100% interest in the Tsa da Glisza emerald property, Yukon, and the Beluga sapphire property located on Baffin Island, Nunavut. True North's prime focus remains the commercial advancement of the Aappaluttoq Ruby Project in Greenland.  

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 25, 2012) -True North Gems Inc. (TSX VENTURE:TGX) (the "Company") announces that its Board of Directors has initiated a strategic review process to consider strategic alternatives that have presented themselves to the Company, with a view to enhancing shareholder value. Strategic alternatives may include, but are not limited to, the sale of all or a portion of the Company's assets, the outright sale of the Company, a merger or other business combination transaction involving a third party, a joint venture, a financing, as well as continued execution of the Company's existing business plan, or any combination thereof.

A special committee ("Special Committee"), consisting of directors, independent of management, have been appointed to oversee the strategic review process. The Special Committee plan to engage a financial markets advisor to assist in this regard.

It is the Company's current intention not to disclose developments with respect to the strategic review process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, as to the terms or timing of such transaction.

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 20, 2012) -True North Gems Inc. (TSX VENTURE:TGX) ("True North" or the "Company") is pleased to announce the signing of a Letter of Intent ("LOI") with Greenland Mining Services A/S ("GMS"). Under this agreement GMS will provide the majority of capital costs to become a 20% shareholder in True North Gems Greenland ("TNGG"), a wholly owned subsidiary of the Company and titleholder of the Aappaluttoq ruby project. GMS is predominantly owned by international arctic contractor Leonhard Nilsen & Sonner A/S (LNS) of Norway. The combined GMS-LNS partnership has 70 years of experience in logistics and mining in arctic environments.

To earn the entire 20% shareholding in TNGG, GMS will be committed to fully engineer, build and fund the complete mine support infrastructure, an estimated investment of US $23 million (approximately 60% of projected capital expenditures). This will include all civil engineering costs, the capital cost of open pit pre-strip, and the construction cost of all mine-related buildings including ore storage, port facilities, mine operations camp, workshop, site roads, power plant, and fuel and explosive storage. The Company will retain responsibility for designing and funding capital costs for the ore processing circuit and building, rough gem sorting and grading facility, and gem marketing and sales.

"This agreement marks a very important milestone in the development of the Aappaluttoq ruby project," stated Nicholas Houghton, President and CEO of True North. "Not only does it provide substantial capital contributions for the construction of the mine, but it also brings in an experienced Greenlandic and Arctic mining operator. This will considerably de-risk the project and act as a growth catalyst for the future Greenlandic mining industry."

Under this agreement and during mine operations, GMS will retain the right to operate the mine site on a cost plus basis, and will be responsible for providing all the necessary mining equipment required throughout the mine life. During mine operations, certain surface infrastructure components will be leased by GMS to TNGG, subject to a buy-out at any time.

"We are delighted to forge a partnership with True North," said Finn Mortensen, Chairman of GMS. "The GMS mining and arctic operating expertise will allow True North to focus on their primary strengths: processing, marketing, branding and the sale of Greenland ruby and pink sapphire."

True North and GMS will develop a mutually agreeable construction plan, timeline and budget that will provide sufficient detail at the full feasibility level to facilitate final schedules, layouts, equipment procurement, and definitive capital cost allocations based on this agreement. This LOI is binding but conditional upon the finalization of the option and shareholders agreement by March 1, 2013, receipt of requisite regulatory approval and the granting of the Exploitation Permit.

GMS is a major supplier of services to the oil, gas and mineral industry in Greenland. The overall LNS Group of 15 companies is a major mining and construction company based in Northern Norway. The LNS group has worked on a variety of projects over the last 50 years and has focused on operations in Svalbard, Spitsbergen, Iceland, Greenland, Russia, Antarctica and throughout Scandinavia.

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