SOURCE: American Power Corp.

American Power Corp.

September 07, 2010 09:00 ET

American Power Corp. Update on Development of Pace Coal Property, Montana

DENVER, CO--(Marketwire - September 7, 2010) - American Power Corp. (OTCBB: TGMP) ("American Power" or "the Company") is pleased to provide additional information on its Pace Coal Project in Judith Basin County, Montana.

Up until 1921, a subsidiary of the Great Northern Railway Co. mined in excess of 1.3 million tons of coal from the Lehigh mine located at the heart of American Power's Pace Coal Project. At that time, the mined coal was transported by railway to other parts of America. American Power now plans to carry out confirmatory exploration work with the goal of re-establishing production on the property, and deliver coal to power plants and/or coal gasification projects over the established railway network.

"The Pace Coal Project already has substantial infrastructure in place," said Al Valencia, CEO of American Power, "including a Federal highway, electrical transmission lines, and the BNSF railway running through our property. Having access to an established railway transport solution like this is vital to economic coal production and delivery, and we intend to take all steps necessary to develop the Pace Coal Project as needed on our end so we can commence operations as soon as practicable."

In November 2009, Warren Buffett's Berkshire Hathaway made a $34 billion investment in acquiring the Burlington Northern Santa Fe Railway (BNSF), their biggest investment to date. Many analysts have said this acquisition is a huge bet on the future of coal in America. Coal hauled by the BNSF powers one in ten homes in the United States. According to BNSF figures, over 90% of that coal is from the Powder River Basin in Wyoming and Montana.

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. The estimated resources in place, based on exploration work conducted by Mobil Oil Co. (now ExxonMobil Corp.), and in several independent studies, range from 172 million up to 410+ million tons of high volatile bituminous B coal. All related information about the Pace Coal Project, including railway connection maps, is available at the Company's website at www.americanpowerco.com

American Power Corp. trades on the NASD OTC BB under ticker symbol TGMP. Shareholders are invited to contact corporate communications toll free at (800) 537-1110 for further information or visit the Company's website at www.americanpowerco.com to download our Fact Sheet and Corporate Profile.

ON BEHALF OF THE BOARD OF DIRECTORS,

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 million and up to 410+ million tons, and that the Company will proceed to kick start the development of its advanced Pace Coal Project in Judith Basin County, Montana. 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 oil and gas 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

  • Investor Relations Information:
    American Power Corp.
    Toll Free: 1-800-537-1110
    E-mail: Email Contact