SOURCE: American Power Corp.

American Power Corp.

May 12, 2011 09:00 ET

Montana Department of Environmental Quality Approves American Power Corp.'s Notice of Intent to Prospect

DENVER, CO--(Marketwire - May 12, 2011) - American Power Corp. (OTCBB: AMPW) ("American Power" or "the Company") is pleased to announce that the Coal and Uranium Program of the Montana Department of Environmental Quality ("Montana DEQ") has approved a Notice of Intent to Prospect ("NOI") the proposed exploration area for our Pace Coal Project located in Judith Basin County, Montana.

As part of the prospecting permit application currently underway, the Montana DEQ completed its review of American Power's Notice of Intent to Prospect. On May 9, 2011, the Montana DEQ approved the NOI, allowing American Power to enter the properties to locate and stake the proposed drill hole locations and associated access routes, either from the existing transportation system or new locations.

The Notice of Intent to Prospect filed and approved by the Montana DEQ documents that the surface landowners in the area where operations will be carried out have been notified and understand that the Montana DEQ shall make investigations and inspections necessary to ensure compliance with the Strip and Underground Mine Reclamation Act, applicable rules, and permit conditions.

"After months of negotiations, American Power successfully executed exploration access agreements with all of the landowners in the proposed prospecting area of the Pace Coal project. The agreements provide us and our contractors, access to all of the 61 drill sites established in our exploration drilling program, representing a 100% success rate," commented Mr. Al Valencia, CEO of American Power. "This important step has allowed us to formally file the NOI with the Montana DEQ and ultimately obtain its approval this week. Our team will travel to the project area in due course to inspect each proposed exploration site and define suitable access routes to be used by our selected drilling contractor," added Mr. Valencia.

American Power's planned exploration drilling program consists of 61 drilling locations and would involve 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.

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 volatility bituminous B coal.

American Power Corp. trades on the NASD 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

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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