American Power Corp. (OTCBB: AMPW) ("American Power" or "the Company") is pleased to provide an update on its drilling operations on the Pace Coal Project located in Judith Basin County, Montana.

As of October 14, 2011, the Company had completed 6,655 feet of drilling on 9 out of 10 drill locations corresponding to Phase I of its coal exploration program. Only one location planned for testing of coalbed methane in Phase I had been postponed until the start of Phase III. With regard to Phase II, the Company had completed 2,844 feet of drilling on 5 drill locations.

"We decided to move forward with Phase II of the exploration program after obtaining encouraging preliminary results during Phase I, which showed a coal thickness ranging between 10 and 12 feet in the eastern section of our main area of operations. Our immediate plan of action is to analyze the quality of the coal found and concentrate our drilling efforts in the eastern area of the property with the objective of delineating a mineable resource by the end of the drilling program," commented Mr. Al Valencia, President and CEO of American Power. "Laboratory results for the core samples of Phase I are still pending. These results will be announced upon completion of their analysis and interpretation by our technical team," added Mr. Valencia.

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.

In April 2010, American Power agreed to acquire the coal and mineral rights on roughly 29,000 acres in Judith 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 at www.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.

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.

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