na dann happy drilling..

    American Power Corp. Begins Drilling at Pace Coal Project, Montana

    Drilling operations for Phase I of the Company's coal exploration program began at 12:30 MDT on August 16, 2011 on drill hole PH1-3. A second drilling rig started operations at 15:00 MDT on August 17, 2011 on drill hole PH1-2.

    "This is a very exciting time for the Company. We are delighted to inform our shareholders that drilling operations have started this week, amid excellent weather conditions in Central Montana," commented Mr. Al Valencia, President and CEO of American Power. "We are working with an experienced technical team onsite capable of successfully conducting the planned exploration program over the following weeks. All steps to maximize our chances of success have been taken and given the scope of this ambitious program, we have decided to work with two drilling rigs onsite at all times," added Mr. Valencia.

    Photographs of the drilling operations at the Pace Coal Project will be uploaded shortly to American Power's website:

    Exploration Drilling Program

    American Power's planned exploration drilling program consists of 61 drilling sites and will involve a total of 53,875 feet of drilling in three different phases. The first phase of the program consists of a total of 13 drilling locations, while the second and third phases consist of a total of 9 and 39 drilling locations, respectively. American Power's exploration program will provide information relative to coal seam thickness, depth of cover, expected top and bottom conditions and coal quality.

    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 Corp. Receives Approval for Phase II of Exploration Drilling Program at Pace Coal Project


    As of September 9, 2011, the Company had completed 5,750 feet of drilling on nine drill locations corresponding to Phase I of its coal exploration program. American Power expects Phase I to be completed imminently. The board of directors of the Company is very pleased with the results to date and has approved the initiation of Phase II of the drilling program as soon as Phase I is completed.