American Power Corp. receives approval for Phase II of exploration drilling program at Pace Coal Project

DENVER, CO–(Marketwire – Sep 19, 2011) – American Power Corp. (OTCBB: AMPW) (“American Power” or “the Company”) is pleased to announce the amendment of its prospecting permit to cover additional drill locations for Phase II of its exploration drilling program at the Pace Coal Project in Judith Basin County, Montana.

On July 29, 2011, the Coal and Uranium Program of the Montana Department of Environmental Quality (“Montana DEQ”) approved the Prospecting Permit No. X2011335, authorizing American Power to start Phase I of its exploration drilling program at the Pace Coal Project. The initial permit covered a total of 24 drill holes on 13 different locations and the amended permit covers an additional 16 drill holes on 9 different locations.

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.

“We are delighted to have received the approval from the Montana DEQ that covers Phase II of our drilling program. We are also pleased to inform our shareholders that preliminary findings to date are in line with our technical team’s expectations, with seven out of nine drill targets encountering coal intervals,” commented Mr. Al Valencia, President and CEO of American Power. “Drill cores will be shipped to Standard Laboratories, Inc. inCasper,Wyomingfor analysis according to ASTM standards. Initial sampling results are expected within two to three weeks,” added Mr.Valencia.

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. 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’s exploration program will provide information relative to coal seam thickness, depth of cover, expected top and bottom conditions and coal quality.

About American Power Corp.

American Power Corp. is a publicly traded, dynamic energy company based inDenver,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.

In April 2010, American Power agreed to acquire the coal and mineral rights on roughly 29,000 acres inJudith Basin County,Montana, which make up the Pace Coal Project. 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 is a member of the Montana Mining Association. American Power 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 atwww.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