SOURCE: American Power Corp.

American Power Corp.

December 13, 2010 09:00 ET

American Power Corp. Well Financed to Advance Pace Coal Project

DENVER, CO--(Marketwire - December 13, 2010) - American Power Corp. (OTCBB: AMPW) ("American Power" or "the Company") is pleased to provide an update on its funding activities during 2010.

In September 2010, American Power closed a financing agreement for total gross proceeds of $10 million through a 2.5-year stock issuance agreement with a European institutional investor (refer to press release dated September 14, 2010). The agreement includes a warrant component that could provide an additional $10 million to American Power over the coming years. During 2010, we received a total of $1.1 million from this institutional investor, of which $500,000 were received in virtue of this financing agreement. The Company still has $9.5 million available under this agreement, which it intends to use to fund its operations in the upcoming years.

"The funding received to date has been primarily used to kick-start the exploration and development of the Pace Coal project. This financing agreement will be key for us going forward as it provides the necessary funding to advance our flagship project, as well as to seek and acquire additional properties of merit to our portfolio," stated Al Valencia, CEO of American Power. "We continue to advance towards our ultimate goal of taking the Pace Coal project back into production, for the benefit of Montana, America and our shareholders," 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 the Pace Coal Property
In April 2010, American Power Corp. acquired roughly 29,000 acres, which make up the Pace Coal Project. In 1979 Mobil Oil Co. (now ExxonMobil) drilled 30 holes over 14,000 of the project's acreage, and delivered 45 samples which were later sent to an independent laboratory for analysis. It was subsequently determined that both the quality and the quantity of coal on the Pace acreage was high and significant, respectively. Several independent reports were commissioned based on the development work undertaken by Mobil Oil, determining there could be in excess of 410 million tons of bituminous coal potential on the Pace acreage.

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.), in several independent studies, range from 172 million up to 410+ million tons of high volatile bituminous B coal.

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 www.americanpowerco.com.

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 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

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