Vancouver, January 10, 2012

Gem International Resources Inc. (the "Company") (TSXV: GI) announces that through its subsidiary Sierra Exploration and Mining Ltd. ('Sierra"), the Company expands its current Tanzania exploration projects. Sierra entered into a Sales Agreement with Samwel Mchele Chitalilo and Leo John to acquire a 100-per-cent interest in two gold projects located in the Handeni District of Tanzania. The project encompasses Prospecting Licenses PL7403/2011 and PL7456/2011, containing a total area of 84.52 square kilometers and adjoins the western and southern boundary of Canaco Resources Inc.'s Handeni property and is located at Mbwego area and Swagiro/Magamba area in the Handeni District respectively.

The consideration for the purchase is cash payments totaling USD$190,000.

Cash payment schedule:
i) US$60,000 upon execution of the Sales Agreement;
ii) US$130,000 within 7 days upon completion of the transfer of the Prospecting Licenses from the Vendors to Sierra.

Canaco has made a major gold discovery, including 23 metres of 19.14 grams per tonne gold in drilling (see Canaco news release in Stockwatch of July 12, 2010). Canaco's regional exploration has extended the gold trend to 15 kilometres, discovering new gold mineralization 5 kilometers west-northwest of the Magambazi Gold Discovery (see Canaco news release in Stockwatch of September 13, 2010), 35.0 metres at 6.45 grams per tonne gold in the Western Lodes and 55.3 metres at 3.19 grams per tonne gold on the Magambazi Main Lode (see Canaco news release in Stockwatch of October 14, 2011), Canaco reports additional drill results at Magambazi, Including 11.0 Metres at 14.75 grams per tonne gold ( see Canaco news release in Stockwatch of November 3, 2011), and Canaco Reports Additional Drill Results at Magambazi, Including 8.3 Metres at 8.84 grams per tonne gold on the Western Lodes and 23.8 metres at 2.8 grams per tonne at Magambazi North (see Canaco news release in Stockwatch of December 5, 2011) on their Handeni property in Tanzania. This discovery has created significant market attention.

Simon Tam, the president of Gem International Resources Inc. stated: "The purchase of the two projects will significantly supplement the Company's current Tanzania exploration projects. The additional landholdings in the Handeni Districts achieve a critical mass for future development. The Company's immediate plan is to aggressively explore the project."

Further to its previous news releases on Aug 11, 2011 and Aug 31, 2011, the Company has announced that it had entered into option agreements in regard to Tanzania Prospecting Licenses PL7119/2011, PL7138/2011 and PL7147/2011. The Company shall not proceed with these Option Agreements.

Afzaal Pirzada, P.Geo., a qualified person under National Instrument 43-101, has approved the technical content of this news release.

On behalf of the Board of Directors,
Gem International Resources Inc.

"Simon Tam"
Simon Tam, CEO and Director


Disclaimer and Cautionary Statement Regarding Forward-Looking Information

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction.

All statements, trend analysis and other information contained in this press release relative to markets about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.

Gem International Resources Inc. seeks safe harbor.