SOURCE: American Power Corp.

American Power Corp.

March 23, 2011 09:00 ET

American Power Corp. Pace Coal Project Moving Forward

DENVER, CO--(Marketwire - March 23, 2011) - American Power Corp. (OTCBB: AMPW) ("American Power" or "the Company") is pleased to provide an update on its Pace Coal Project located in Judith Basin County, Montana.

As previously announced, the Company retained Mission Engineering, Inc. of Billings, Montana ("Mission") to prepare and submit a coal prospecting permit application to the Montana Department of Environmental Quality. In order to prepare the permit application, Mission is currently working on executing surface access agreements with the landowners within the Pace Coal Project area and will then design the best access routes for the drilling rigs. In addition, Ethnoscience, Inc. of Billings, Montana ("Ethnoscience") has been selected to perform the archaeological review of the drill hole locations once the access agreements are in place.

The envisioned drilling program will consist of 61 drilling locations and a total of 52,740 feet of drilling. The program's aim is to place a significant portion of the coal holdings of the Pace Coal Project in the proven and probable reserve classification, with an ultimate goal of establishing sufficient resources to support a greater than 20 year operational mine life.

"American Power continues to make progress towards its prospecting permit application for its Pace Coal Project. We are finalizing surface access agreements in the proposed prospecting area and expect to complete that important component of the prospecting permit application in due course," commented Al Valencia, CEO of American Power. "Once the prospecting permit is finally issued by the State of Montana, we will immediately start with the planned drilling program, which we expect to coincide with better weather conditions in the area," added Mr. Valencia.

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 coal projects 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. The estimated resources in place, based on exploration work conducted by Mobil Oil Co. (now ExxonMobil Corp.), in several independent studies, range from 172 million up to 410+ million tons of high volatility bituminous B coal.

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

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 www.sec.gov

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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