SOURCE: American Power Corp.

American Power Corp.

February 25, 2011 09:00 ET

American Power Corp. Announces Closing of Private Placement to Fund Pace Coal Project Exploration

DENVER, CO--(Marketwire - February 25, 2011) - American Power Corp. (OTCBB: AMPW) ("American Power" or "the Company") is pleased to announce the closing of a non-brokered private placement financing resulting in gross proceeds of $500,000. The net proceeds of the financing will be used for the exploration and development of the Pace Coal Project located in Judith Basin County, Montana, as well as for general corporate purposes.

To date, American Power has procured a total of $2.0 million from the same institutional investor, of which $1.4 million were received under the framework of the financing agreement announced on our press release dated September 14, 2010. The latter financing agreement allows American Power to request advances for up to $10 million through a 2.5-year stock issuance agreement, which also includes a warrant component that could provide additional funding to the Company over the coming years.

"I am delighted to say that we are well financed to explore and develop the Pace Coal project. Over the last 12 months, we have raised $2 million and still can call up a further $8.6 million under the financing agreement signed in September last year," commented Al Valencia, CEO of American Power. "We continue to work hard towards the prospecting permit application to initiate drilling operations during the first half of this year and this funding is will be used towards achieving that goal," added Mr. Valencia.

The securities referred to on this press release have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent a registration or an applicable exemption from the registration requirements. For full details on the agreement, please refer to the Company's latest SEC filings.

About American Power Corp.
American Power Corp. is a publicly traded, dynamic energy company based in Denver, Colorado. The Company was established with the focus of acquiring near-term, large-scale coal projects in close proximity to national transportation links. American Power envisions developing its large coal resources to support electricity generation.

American Power is a member of the Montana Mining Association, and holds approximately 29,000 acres in Judith Basin County, Montana. In 1979 Mobil Oil Co. (now ExxonMobil) drilled 30 holes over half of the project's acreage. Several independent reports were commissioned based on the exploration work undertaken by Mobil Oil, determining there could be in excess of 410 million tons of bituminous coal potential on the Pace acreage.

American Power Corp. trades on the NASD OTC BB under ticker symbol AMPW. Shareholders are invited to contact corporate communications toll free at (800) 537-1110 for further information or visit the Company's website at

American Power Corp.
Al Valencia, CEO

Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that American Power Corp.'s 29,000-acre leases in Judith Basin County, Montana, have high volatile bituminous B coal in the range of 172 and 410+ million tons. Readers should also refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-QSB, annual reports on Form 10-KSB, and the Company's other disclosure documents filed from time-to-time with the Securities and Exchange Commission available at

Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission ("SEC") permits mining companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC's guidelines may prohibit us from including in filings with the SEC.

Contact Information

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    American Power Corp.
    Toll Free: 1-800-537-1110
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