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Construction to Commence at Aappaluttoq Ruby and Pink Sapphire Project in SW Greenland

True North Gems Inc. ("True North" or the "Company") is pleased to announce it has issued the commencement notice to its joint venture partners LNS Greenland A/S ("LNSG") to authorize mobilization of equipment and inaugurate construction at the Aappaluttoq Ruby and Pink Sapphire project located in SW Greenland.

"This exciting announcement marks the continuation of a very successful transition year for True North," stated Nicholas Houghton, President and CEO. "It is anticipated that the construction will progress very quickly and will be a testament to the experience of our partners LNSG and all their investment in planning in anticipation of the commencement notice. It is another step in delivering upon our promise of bringing economic benefit to all stakeholders."

Key construction objectives include:

  • Transportation and installation of the pre-fabricated loading dock enabling mobilization of equipment to site.
  • Movement of rolling stock required to commence road construction.
  • Set up and establishment of the living quarters and accommodation for construction crew which facilities will remain for future operations.
  • The completion of all infrastructure, which will enable planned production to commence in 2015.

The issuance of the commencement notice as required under the terms of the joint venture agreements with LNSG is now possible following project financing (see press release dated September 11, 2014). Progress reports will be issued periodically as construction milestones are achieved.

"The news of True North's successful financing and the anticipated commencement of construction was well received in Greenland by all. Jens-Erik Kirkegaard, the government minister responsible for industry and mineral resources, hailed the financial news as 'a strong signal to the world and investors that mining in Greenland is certainly possible,'" stated Bent Olsvig Jensen, Managing Director of True North Gems Greenland A/S ("TNGG"). "We are pleased to say we have received a large number of applications from people who are looking forward to the upcoming employment opportunities."

The Company eagerly awaits the commencement of production in 2015 of mine-to-market sourced Greenland rubies and pink sapphires.

About True North Gems Inc.

True North Gems Inc. is a public junior exploration company dedicated to the exploration and development of coloured gemstone deposits. True North is committed to the realization of shareholder value through development of the first ethically sourced commercial ruby mining operation, in partnership with the people of Greenland. The Company's shares trade on the TSX Venture Exchange under the symbol TGX.

About LNSG

LNSG is predominantly owned by international arctic contractor Leonhard Nilsen & Sonner A/S of Norway. The Leonhard Nilsen Group of 15 companies is a major mining and construction company with over 70 years of experience in logistics and mining in arctic environments. They have worked on a variety of projects over the last 50 years and have focused on operations in Svalbard, Spitsbergen, Iceland, Greenland, Russia, Antarctica and throughout Scandinavia. LNSG is a major supplier of services to the oil, gas and mineral industry in Greenland.


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