True North Gems Signs Partnership Agreement to Construct and Operate the Aappaluttoq Ruby Project

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. 


Conference Call

In connection with this release the Company will hold a conference call on
Tuesday, November 20, 2012 at 8:00am PST. To access the call please dial
416-695-7806 (local Toronto and international) or 1-888-789-9572 (North American
toll free), and enter passcode 9743014. 


This document contains "forward-looking information" and "forward-looking
statements" (together, "forward-looking statements") within the meaning of
applicable securities legislation, which are made as of the date of this
document or the document(s) referred to herein. Statements that express
predictions, expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words or phrases
such as "expects", "anticipates", "plans", "projects", "estimates", "intends",
"strategy", "goals", "objectives" or variations thereof or stating that certain
actions, events or results "may", "could", "would", "might" or "will" be taken,
occur or be achieved, or the negative of any of these terms and similar
expressions) are not statements of historical fact and may be forward-looking
statements. Forward-looking statements include, without limitation, statements
with respect to: the amount of mineral reserves and mineral resources; the
amount of future production over any period; net present value and internal
rates of return of the proposed mining operation; capital costs; operating
costs; strip ratios and mining rates; and mine life. The forward-looking
statements are made based upon certain assumptions which, if untrue, could cause
the actual results, performances or achievements of the Company to be materially
different from future results, performances or achievements expressed or implied
by the forward-looking statements. These assumptions include, without
limitation: the price of gemstone products produced; anticipated costs; the
presence of and continuity of gemstones at modeled grades and values; the
capacities of various machinery and equipment; the availability of personnel,
machinery and equipment at estimated prices; exchange rates; appropriate
discount rates; tax rates applicable to the proposed mining operation; financing
structure and costs; anticipated mining losses and dilution; gemstone recovery
rates; reasonable contingency requirements; and receipt of regulatory approvals
on acceptable terms. By their very nature, forward-looking statements involve
inherent risks and uncertainties that could cause actual results, performances
or achievements to differ materially from those in the forward-looking
statements. 

These include, without limitation: price volatility, discrepancies between
actual and estimated production, mineral reserves and resources and
metallurgical recoveries, mining operational and development risks, regulatory
restrictions (including environmental regulatory restrictions and liability),
activities by governmental authorities (including changes in taxation), currency
fluctuations, the speculative nature of gemstone exploration, the global
economic climate, dilution, share price volatility, competition, loss of key
employees; additional funding requirements and defective title to mineral claims
or property). This list is not exhaustive. See also, for example, the risks
disclosed in the Company's other disclosure documents filed at www.sedar.com,
including, without limitation, those disclosed in the Company's management's
discussion & analysis. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements, except as
otherwise required by applicable securities legislation.



FOR FURTHER INFORMATION PLEASE CONTACT: 
True North Gems Inc.
Nicholas Houghton
President and CEO
604-687-8055 or 1-800-399-8055


True North Gems Inc.
Meghan Brown
Director Investor Relations
604-687-8055 or 1-800-399-8055
info@truenorthgems.com
www.truenorthgems.com
True North Gems (TSXV:TGX)
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