SOURCE: American Energy Production Inc.

January 06, 2010 13:00 ET

American Energy Production Inc. Announces Extension of Operating Agreement on Dorado Gold Operation

MINERAL WELLS, TX--(Marketwire - January 6, 2010) - American Energy Production Inc. (OTCBB: AENP) announced today that it has signed an extension of the 120 day Operating Agreement signed on July 28, 2009. This extension will be for one year and two days ending on December 31, 2010. AENP also executed an LOI to acquire the Dorado Gold Operations. Dorado and Master Petroleum own 100% of certain placer gold mining claims, land and equipment (the "Joint Properties") 25 miles North of Weaverville, California. Additionally, AENP and Dorado executed a 120 day Operating Agreement to jointly participate in the exploration, evaluation, development and mining of Gold and other minerals within the Joint Properties ("Joint Venture"). AENP will bear 100% of all expenses during operations of the Joint Venture and AENP and Dorado will each receive fifty percent (50%) of product or revenues after expenses. AENP will manage the Joint Venture. The acquisition of Dorado by AENP is subject to AENP's sole evaluation of the results after the one year and two day Joint Venture period is completed.

Charles Bitters, President of American Energy Production Inc., stated, "AENP decided to negotiate an extension to allow extra time to install larger capacity and higher technology mining equipment and infrastructure. Also, because of extraordinary rain and snow storms limiting mining operations and some very encouraging gold nugget recovery, management felt more time was needed to fully evaluate the yield potential of the gold claims."

This gold mining operation has two major gold claims. Dorado owns forty acres of gold claims, land and minerals in fee and Master Petroleum owns 160 acres of BLM gold claims. These gold claims are working placer gold mining operations with heavy earth moving equipment and a processing plant on site.

Work at the Dorado Gold mining operation will continue as soon as weather permits.

Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.

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