---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

Form 10-Q

(Mark One)

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2010

or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to
__________________

Commission File Number 000-50861

AMERICAS WIND ENERGY CORPORATION(Exact name of registrant as specified in its charter)

|Nevada                                                               | 20-0177856                       
|-------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (IRS Employer Identification No.)
|                                                                     |                                  
|24 Palace Arch Drive, Toronto, Ontario, Canada                       | M9A 2S1                          
|(Address of principal executive offices)                             | (Zip Code)                       

416.233.5670(Registrants telephone number,
including area code)

N/A(Former name, former address and former
fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. [X] YES [ ] NO

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).[ ] YES [ ] NO

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a small
reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act.

|Large accelerated filer [ ] |                                               | Accelerated filer [ ]         
|--------------------------- | --------------------------------------------- | ------------------------------
|Non-accelerated filer [ ]   | (Do not check if a smaller reporting company) | Smaller reporting company  [X]
|                            |                                               |                               

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act [ ] YES [ ] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court.[ ] YES [X] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date. 39,396,202
common shares issued and outstanding as of December 17, 2010

---

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our unaudited interim financial statements for the three month
period ended October 31, 2010 form part of this quarterly report. They are
stated in United States Dollars (US$) and are prepared in accordance with United
States generally accepted accounting principles.

- 2 

---

AMERICAS WIND ENERGY CORPORATION

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED OCTOBER 31, 2010 AND 2009

UNAUDITED

(EXPRESSED IN U.S. DOLLARS)

|CONTENTS                                                                             |           
|------------------------------------------------------------------------------------ | ----------
|Condensed Consolidated Interim
      Balance Sheets                                  | F-1       
|Condensed Consolidated Interim Statements
      of Operations and Comprehensive Loss | F-2       
|Condensed Consolidated Interim
      Statements of Cash Flows                        | F-3       
|Notes to Condensed Consolidated Interim Financial
      Statements                   | F-4  F-11

---

|AMERICAS WIND ENERGY CORPORATION             
|---------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                
|Condensed Consolidated Interim Balance Sheets
|October 31, 2010 and July 31, 2010           
|(Expressed in U.S. Dollars)                  

|                                                                                                                                                                                                                                                       |   | October 31, |   |   | July 31,   |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | - | ----------- | - | - | ---------- | -
|                                                                                                                                                                                                                                                       |   | 2010        |   |   | 2010       |  
|                                                                                                                                                                                                                                                       |   | (Unaudited) |   |   | (Audited)  |  
|                                                                                                                                                                                                                                                       |   |             |   |   |            |  
|ASSETS                                                                                                                                                                                                                                                 |  
|Current Assets                                                                                                                                                                                                                                         |   |             |   |   |            |  
|Other
      receivables                                                                                                                                                                                                                                | $ | 5,277       |   | $ | 2,902      |  
|Prepaid expenses                                                                                                                                                                                                                                       |   | 3,621       |   |   | 5,072      |  
|Total Current Assets                                                                                                                                                                                                                                   |   | 8,898       |   |   | 7,974      |  
|Equipment, Net(note 3)                                                                                                                                                                                                                                 |   | 911         |   |   | 977        |  
|Total Assets                                                                                                                                                                                                                                           | $ | 9,809       |   | $ | 8,951      |  
|                                                                                                                                                                                                                                                       |   |             |   |   |            |  
|LIABILITIES                                                                                                                                                                                                                                            |  
|Current Liabilities                                                                                                                                                                                                                                    |   |             |   |   |            |  
|Bank
      indebtedness                                                                                                                                                                                                                                | $ | 26,392      |   | $ | 26,215     |  
|Accounts payable                                                                                                                                                                                                                                       |   | 122,392     |   |   | 118,313    |  
|Accrued
      liabilities                                                                                                                                                                                                                              |   | 117,223     |   |   | 115,305    |  
|Due to stockholders (note 4)                                                                                                                                                                                                                           |   | 1,130,365   |   |   | 989,896    |  
|Convertible loan
      payable (note 5)                                                                                                                                                                                                                |   | 400,868     |   |   | 396,581    |  
|Total Liabilities                                                                                                                                                                                                                                      |   | 1,797,240   |   |   | 1,646,310  |  
|                                                                                                                                                                                                                                                       |   |             |   |   |            |  
|                                                                                                                                                                                                                                                       |   |             |   |   |            |  
|Commitments and Contingencies(note
      9)                                                                                                                                                                                                            |   |             |   |   |            |  
|                                                                                                                                                                                                                                                       |   |             |   |   |            |  
|                                                                                                                                                                                                                                                       |   |             |   |   |            |  
|STOCKHOLDERS' DEFICIT                                                                                                                                                                                                                                  |  
|Capital Stock(note 6)                                                                                                                                                                                                                                  |   |             |   |   |            |  
|Class "A" special
      voting shares, no par value;
                  
      30,000,000 shares authorized, 18,107,692 shares
                  
      issued and outstanding, however deemed to be
                  
      cancelled                 |   | -           |   |   | -          |  
|Common
      stock, $0.0001 par value per share;
                  
      100,000,000 shares authorized; 39,396,202 shares
                   
      issued and outstanding; 18,107,692 shares deemed
                   
      issued and outstanding |   | 205,250     |   |   | 205,250    |  
|Additional Paid-In Capital                                                                                                                                                                                                                             |   | 2,461,602   |   |   | 2,461,602  |  
|Accumulated Other Comprehensive Loss                                                                                                                                                                                                                   |   | (283,423    | ) |   | (272,033   | )
|Accumulated Deficit During the Development Stage                                                                                                                                                                                                       |   | (4,170,860  | ) |   | (4,032,178 | )
|Total Stockholders' Deficit                                                                                                                                                                                                                            |   | (1,781,431  | ) |   | (1,637,359 | )
|Total Liabilities and Stockholders' Deficit                                                                                                                                                                                                            | $ | 9,809       |   | $ | 8,951      |  

(The accompanying notes are an integral part of these
condensed consolidated interim financial statements.)

- F-1 

---

|AMERICAS WIND ENERGY CORPORATION                                                    
|------------------------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                                       
|Condensed Consolidated Interim Statements of Operations and
      Comprehensive Loss
|For the Three-Month Periods Ended October 31, 2010 and 2009
      and               
|Cumulative from Inception (July 29, 2002) through October
      31, 2010            
|(Expressed in U.S. Dollars)                                                         
|Unaudited                                                                           

|                                                                                           |   |              |   |   |              |   |   | Cumulative     |  
|------------------------------------------------------------------------------------------ | - | ------------ | - | - | ------------ | - | - | -------------- | -
|                                                                                           |   |              |   |   |              |   |   | from Inception |  
|                                                                                           |   |              |   |   |              |   |   | (July 29,      |  
|                                                                                           |   | Three Months |   |   | Three Months |   |   | 2002           | )
|                                                                                           |   | Ended        |   |   | Ended        |   |   | through        |  
|                                                                                           |   | October 31,  |   |   | October 31,  |   |   | October 31,    |  
|                                                                                           |   | 2010         |   |   | 2009         |   |   | 2010           |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Sales                                                                                      | $ | -            |   | $ | -            |   | $ | -              |  
|Cost of Sales                                                                              |   | -            |   |   | -            |   |   | -              |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Gross Loss                                                                                 |   | -            |   |   | -            |   |   | -              |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Expenses                                                                                   |   |              |   |   |              |   |   |                |  
|General and
      administrative                                                           |   | 107,741      |   |   | 111,035      |   |   | 2,901,937      |  
|Foreign exchange loss (gain)                                                               |   | (1           | ) |   | 26,844       |   |   | (36,944        | )
|Depreciation and
      amortization                                                        |   | 73           |   |   | 165          |   |   | 55,833         |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Total Expenses                                                                             |   | 107,813      |   |   | 138,044      |   |   | 2,920,826      |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Loss from Operations                                                                       |   | (107,813     | ) |   | (138,044     | ) |   | (2,920,826     | )
|                                                                                           |   |              |   |   |              |   |   |                |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Other (Expenses) Income                                                                    |   |              |   |   |              |   |   |                |  
|Gain on sale of
      investment in Emergya Wind Technologies B.V. Inc.                    |   | -            |   |   | -            |   |   | 1,129,247      |  
|Other income                                                                               |   | -            |   |   | -            |   |   | 83,622         |  
|Interest expense and
      financing costs                                                 |   | (30,869      | ) |   | (19,836      | ) |   | (897,295       | )
|                                                                                           |   |              |   |   |              |   |   |                |  
|Total Other (Expenses) Income                                                              |   | (30,869      | ) |   | (19,736      | ) |   | 315,574        |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Loss Before Income Taxes and                                                               |   |              |   |   |              |   |   |                |  
|Discontinued Operations                                                                    |   | (138,682     | ) |   | (157,780     | ) |   | (2,605,252     | )
|Benefit from income taxes (note 8)                                                         |   | -            |   |   | -            |   |   | 56,703         |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Loss before Discontinued Operations                                                        |   | (138,682     | ) |   | (157,780     | ) |   | (2,548,549     | )
|Income (Loss) from Discontinued
      Operations, net of tax                               |   | -            |   |   | -            |   |   | (1,622,311     | )
|                                                                                           |   |              |   |   |              |   |   |                |  
|Net Loss                                                                                   |   | (138,682     | ) |   | (157,780     | ) |   | (4,170,860     | )
|Foreign currency translation
      adjustments                                             |   | (11,390      | ) |   | 19,452       |   |   | (283,423       | )
|                                                                                           |   |              |   |   |              |   |   |                |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Comprehensive Loss                                                                         | $ | (150,072     | ) | $ | (138,428     | ) | $ | (4,454,283     | )
|                                                                                           |   |              |   |   |              |   |   |                |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Loss per Share - Basic and Diluted                                                         | $ | 0.003        |   | $ | 0.003        |   |   |                |  
|                                                                                           |   |              |   |   |              |   |   |                |  
|Weighted Average Number of Shares Outstanding
      During the Periods - Basic and Diluted |   | 57,803,594   |   |   | 52,503,894   |   |   |                |  

(The accompanying notes are an integral part of these
condensed consolidated interim financial statements.)

- F-2 

---

|AMERICAS WIND ENERGY CORPORATION                                        
|------------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                           
|Condensed Consolidated Interim Statements of Cash Flows                 
|For the Three-Month Periods Ended October 31, 2010 and 2009
      and   
|Cumulative from Inception (July 29, 2002) through October
      31, 2010
|(Expressed in U.S. Dollars)                                             
|Unaudited                                                               

|                                                                              |   |          |   |   |          |   |   | Cumulative from     |  
|----------------------------------------------------------------------------- | - | -------- | - | - | -------- | - | - | ------------------- | -
|                                                                              |   |          |   |   |          |   |   | Inception           |  
|                                                                              |   |          |   |   |          |   |   | July 29, 2002       |  
|                                                                              |   |          |   |   |          |   |   | (Date of Inception) |  
|                                                                              |   |          |   |   |          |   |   | through             |  
|                                                                              |   | 2010     |   |   | 2009     |   |   | October 31, 2010    |  
|Cash Flows from Operating Activities                                          |   |          |   |   |          |   |   |                     |  
|Net loss                                                                      | $ | (138,682 | ) | $ | (692,548 | ) | $ | (4,170,860          | )
|Adjustments for:                                                              |   |          |   |   |          |   |   |                     |  
|Accretion on
      convertible loan payable                                   |   | -        |   |   | -        |   |   | 75,442              |  
|Interest on convertible loan payable                                          |   | -        |   |   | -        |   |   | 30,250              |  
|Depreciation and
      amortization                                           |   | 73       |   |   | 165      |   |   | 55,833              |  
|Gain on sale of investment in EWT B.V. Inc.                                   |   | -        |   |   | -        |   |   | (1,129,247          | )
|Changes in non-cash working
      capital, net of effects from acquisition:   |   |          |   |   |          |   |   |                     |  
|Accounts receivable                                                           |   | -        |   |   | -        |   |   | (46,405             | )
|Other receivables                                                             |   | (2,375   | ) |   | (1,867   | ) |   | (5,277              | )
|Prepaid expenses                                                              |   | 1,451    |   |   | -        |   |   | (3,621              | )
|Accounts payable                                                              |   | 4,079    |   |   | 1,842    |   |   | 122,392             |  
|Accrued liabilities                                                           |   | 1,918    |   |   | 16,594   |   |   | 117,223             |  
|                                                                              |   |          |   |   |          |   |   |                     |  
|Net Cash Used by Operating
      Activities                                   |   | (133,536 | ) |   | (141,146 | ) |   | (4,954,270          | )
|Net Cash Used by Operating Activities from
      Discontinued                 |   |          |   |   |          |   |   |                     |  
|Operations                                                                    |   | -        |   |   | -        |   |   | (1,904,921          | )
|                                                                              |   |          |   |   |          |   |   |                     |  
|                                                                              |   | (133,536 | ) |   | (141,146 | ) |   | (6,859,191          | )
|                                                                              |   |          |   |   |          |   |   |                     |  
|Cash Flows from Financing Activities                                          |   |          |   |   |          |   |   |                     |  
|Bank indebtedness                                                             |   | 177      |   |   | 18,185   |   |   | 26,392              |  
|Increase in
      long-term loan payable                                      |   | -        |   |   | -        |   |   | 1,212,192           |  
|Proceeds from issuance of common
      stock                                  |   | -        |   |   | -        |   |   | 2,550,090           |  
|Proceeds from
      convertible loan payable                                  |   | 4,287    |   |   | -        |   |   | 295,798             |  
|Proceeds from issuance of
      warrants                                      |   | -        |   |   | -        |   |   | 75,000              |  
|Cash of
      subsidiary acquired                                             |   | -        |   |   | -        |   |   | 231                 |  
|Increase in advances from
      investors                                     |   | -        |   |   | -        |   |   | 1,321,677           |  
|Decrease in
      advances from investors                                     |   | -        |   |   | -        |   |   | (1,321,677          | )
|Advances from Digital Predictive
      Systems Inc.                           |   | -        |   |   | -        |   |   | 1,713,046           |  
|Repayment to
      Digital Predictive Systems Inc.                            |   | -        |   |   | -        |   |   | (1,713,046          | )
|Advances from stockholders                                                    |   | 140,469  |   |   | 79,021   |   |   | 1,130,365           |  
|Stock issuance
      costs                                                    |   | -        |   |   | -        |   |   | (162,500            | )
|                                                                              |   |          |   |   |          |   |   |                     |  
|Net Cash (Used in)/Provided by Financing
      Activities                     |   | 144,933  |   |   | 97,206   |   |   | 5,127,568           |  
|                                                                              |   |          |   |   |          |   |   |                     |  
|Cash Flows from Investing Activities                                          |   |          |   |   |          |   |   |                     |  
|Proceeds from
      sale of investment in Emergya Wind Technologies B.V. Inc. |   | -        |   |   | -        |   |   | 1,931,479           |  
|Acquisition of
      equipment                                                |   | -        |   |   | (1,093   | ) |   | (166,485            | )
|                                                                              |   |          |   |   |          |   |   |                     |  
|Net Cash Used in Investing
      Activities                                   |   | -        |   |   | (1,093   | ) |   | 1,764,994           |  
|                                                                              |   |          |   |   |          |   |   |                     |  
|Effect of Exchange Rate Change on
      Cash                                  |   | (11,397  | ) |   | 27,396   |   |   | (33,371             | )
|                                                                              |   |          |   |   |          |   |   |                     |  
|Change in Cash                                                                |   | -        |   |   | (17,637  | ) |   | -                   |  
|Cash - Beginning of Period                                                    |   | -        |   |   | 17,637   |   |   | -                   |  
|                                                                              |   |          |   |   |          |   |   |                     |  
|Cash - End of Period                                                          | $ | -        |   | $ | -        |   | $ | -                   |  

(The accompanying notes are an integral part of these
condensed consolidated interim financial statements.)

- F-3 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|1. | Organization, Reverse Merger Transaction,
      and Going Concern
|-- | -----------------------------------------------------------------

Americas Wind Energy Corporation (the
"Company") was incorporated under the laws of the State of Nevada on August 22,
2003. The Company was acquired in a reverse merger transaction on August 11,
2006. The Company changed its ordinary course of business from that of
establishing a marine adventure tourism business to that of manufacturing and
distributing wind power turbines to wind farm developers throughout the Americas
through its operating subsidiary incorporated in Canada, Americas Wind Energy
Inc. ("AWE Inc."), which has been involved in the wind turbines business since
July 29, 2002 up until June 11, 2010.

Following the finalized settlement
agreement on June 11, 2010 the Company discontinued its operations in the wind
turbines business and has focused its activities on managing the settlement
agreement and seeking out and investigating potential business opportunities in
a business combination.

Going Concern Assumption

The Company's consolidated financial
statements are presented on a going concern basis, which contemplates the
realization of assets and discharge of liabilities in the normal course of
business. The Company's negative working capital and accumulated deficit raise
substantial doubt as to its ability to continue as a going concern. As of
October 31, 2010, the Company had negative working capital of $1,788,342 and
accumulated deficit of $4,170,860.

The Company's continuance as a going
concern is dependent on its directors and principal stockholders in providing
financial support in the short term and receiving sufficient payments under the
Settlement Agreement to discharge the Companys liabilities. In the event that
these are not achieved, the assets may not be realized or liabilities discharged
at their carrying amounts, and differences from the carrying amounts reported in
these condensed consolidated interim financial statements could be material.

The accompanying condensed consolidated
interim financial statements do not include any adjustments to reflect the
possible future effects on the recoverability and classification of assets or
the amounts and classification of liabilities that may result from the inability
of the Company to continue as a going concern.

- F-4 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|2. | Summary of Significant Accounting
  Policies
|-- | --------------------------------------------
|   |                                             
|   | a)                                          
|   |                                             
|   |                                             
|   |                                             
|3. | Equipment, Net                              
|   |                                             
|   | Equipment comprises the
following:          

| |                     |   |       |  |   | 2010         |  
| | ------------------- | - | ----- |  | - | ------------ | -
| |                     |   |       |  |   | Accumulated  |  
| |                     |   | Cost  |  |   | Depreciation |  
| | Computer equipment  | $ | 1,158 |  | $ | (247         | )
| | Total               | $ | 1,158 |  | $ | (247         | )
| | Net carrying amount |   |       |  | $ | 911          |  

Depreciation expense charged to
operations amounted to $73 for the three months ended October 31, 2010.

- F-5 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|4. | Due to Stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The amounts due to stockholders bear interest of 10% per
      annum, are unsecured and are due on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|5. | Convertible Loan Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | On March 6, 2008, the Company received $350,000 pursuant
      to a convertible loan agreement. The convertible loan bears interest at 2%
      above the Bank of Canada's prime rate per annum (as of October 31, 2010,
      the Bank of Canada's rate was 3.0%), payable quarterly, is unsecured, and
      matured on March 6, 2009. As the convertible loan payable was not repaid
      on March 6, 2009, its maturity date, Smart Goal Investment Limited may, by
      written notice, exercise its right of conversion in respect of either a
      portion of or the total outstanding amount of the loan plus accrued
      interest into shares of the Company at $0.32 per share. As of October 31,
      2010, Smart Goal Investment Limited has not exercised the right of
      conversion.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | At the date of issuance, the conversion feature of the
      convertible loan was in-the-money. The intrinsic value of this
      beneficial conversion feature was $278,560. In accordance with ASC 470-20,
      Debt with Conversion and Other Options,this amount was measured
      but was not recognized as of October 31, 2010 and will be recorded as
      additional paid-in capital when converted.                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|6. | Capital Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

- F-6 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|6. | Capital Stock(contd)
|-- | ---------------------

The Preferred Shares and the Special
Voting Shares, when taken together, are the economic equivalent of the
corresponding common shares of the Company and entitle the holder to one vote on
the same basis and in the same circumstances as one corresponding share of the
common shares of the Company and are intended to be the same in all respects as
the regular common shares and are not subordinate. The exchangeable shares are
exchangeable at any time, at the option of the holder, on a one-for-one basis
with the corresponding common shares of the Company.

For financial statement presentation
purposes only, 18,107,692 (2009  18,107,692) Preferred Shares of the Purchaser
were presented as having been converted into 18,107,692 (2009  18,107,692)
common shares of the Company and the 18,107,692 (2009  18,107,692) Special
Voting Shares of the Company were presented as having been converted and
cancelled to more accurately reflect the substance of the reverse merger
transaction.

For the year ended July 31, 2010, the
Company converted a total of 1,076,923 (2009  2,000,000) Special Voting Shares
into common shares.

The Special Voting Shares are
presented in the consolidated balance sheets as follows:

| |                                                                                |  | October 31, |  |  | July 31,   | 
| | ------------------------------------------------------------------------------ |  | ----------- |  |  | ---------- | 
| |                                                                                |  | 2010        |  |  | 2010       | 
| |                                                                                |  |             |  |  |            | 
| | Outstanding shares presented as having been
      converted into common shares |  | 18,107,692  |  |  | 18,107,692 | 
| | Converted into common shares                                                   |  | 11,892,308  |  |  | 11,892,308 | 
| |                                                                                |  |             |  |  |            | 
| |                                                                                |  | 30,000,000  |  |  | 30,000,000 | 

- F-7 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|7. | Related Party Transactions                                            
|-- | ----------------------------------------------------------------------
|   |                                                                       
|   | The Company incurred the following amounts with related
      parties:

| |                                     |   | 2010   | 
| | ----------------------------------- | - | ------ | 
| | a)          
      Consulting fees  |   |        | 
| | Stockholders                        | $ | 65,455 | 
| |                                     |   |        | 
| | b)         
       Interest expense |   |        | 
| | Stockholders                        | $ | 26,713 | 

These transactions were in the normal
course of business and recorded at an exchange value established and agreed upon
by the related parties.

Included in accounts payable and
accrued liabilities are $16,670 (July 31, 2010 - $15,343) and $49,496 (July 31,
2010 - $59,107), respectively relating to amounts owed to stockholders.

|8. | Income Taxes                                        
|-- | ----------------------------------------------------
|   |                                                     
|   | The Company's current income taxes are as
  follows:

| |                                                                   |   | 2010    |  
| | ----------------------------------------------------------------- | - | ------- | -
| |                                                                   |   |         |  
| | Expected income tax recovery at the
      statutory rate of 31.9% | $ | 44,200  |  
| | Translation adjustment                                            |   | (33     | )
| | Change in valuation allowance                                     |   | (44,167 | )
| |                                                                   |   |         |  
| | Benefit from income taxes                                         | $ | -       |  

- F-8 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|8. | Income Taxes(cont'd)                                                   
|-- | -----------------------------------------------------------------------
|   |                                                                        
|   | The components of deferred tax assets (liability) are as
      follows:

| |                                  |   | 2010       |  
| | -------------------------------- | - | ---------- | -
| |                                  |   |            |  
| | Net operating loss carryforwards | $ | 1,950,373  |  
| | Other deferred tax assets        |   | 4,514      |  
| | Valuation allowance              |   | (1,954,887 | )
| |                                  |   |            |  
| | Net                              | $ | -          |  

The Company has net operating loss
carryforwards available to be applied against future years' income. Due to the
losses from operations and expected future operating results, it is more likely
than not that the deferred tax asset resulting from the tax losses available for
carry forward will not be realized through the reduction of future income tax
payments, accordingly, a 100% valuation allowance has been recorded for deferred
tax assets and current income taxes.

As of October 31, 2010, the Company had
$5,853,720 of Federal, provincial and state net operating loss carryforwards
(including losses of $323,995 in the U.S.) available to offset future taxable
income. Such carryforwards expire in:

|2014 | $ | 493,019   | 
|---- | - | --------- | 
|2016 |   | 22,336    | 
|2024 |   | 14,848    | 
|2025 |   | 83,878    | 
|2026 |   | 7,464     | 
|2027 |   | 451,086   | 
|2028 |   | 678,208   | 
|2029 |   | 3,501,090 | 
|2030 |   | 464,404   | 
|2031 |   | 137,387   | 
|     |   |           | 
|     | $ | 5,853,720 | 

- F-9 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|9. | Commitments and Contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Entry into the agreements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | On March 5, 2009, the Company sublicensed its license to
      EWT allowing the use of its exclusive intellectual property and know-how
      rights in relation to the manufacturing and sales of medium capacity wind
      turbines in the size range of 600 kilowatt to 1 megawatt to the Canadian,
      United States, Mexican and related territory markets (Exclusive Rights
      Territory) to EWT. The agreement specified that the Company receive
      sublicense payments in an amount equal to the sum of (i) 2.5% of sales
      revenues and (ii) 12.5% of gross profit, not exceeding $28,000,000 in
      aggregate.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company had the right to terminate the Agreement
      earlier if the aggregate sublicense payments under the Agreement were less
      than $14,000,000 and one of the following events occured before March 5,
      2012:                                                                                                                                                                                                                                                                                                                                                                                                          

a) If EWT ceased to conduct any
business in the Exclusive Rights Territory for a period of greater than 12
consecutive months;

b) If EWT sought relief under Title 7
of the U.S. Bankruptcy Code or a similar provision and an order was entered to
liquidate EWT as opposed to a bankruptcy filing under Title 11 seeking
reorganization; or

c) If EWT failed to make any
undisputed payments to the Company when due and such payment was not made within
45 days of the notice given by the Company.

As part of the Agreement, the Company
transferred to EWT all of its risks and benefits to its Waverly and Rural
contracts. As such, the Company was committed to transfer the deposits made by
Waverly and Rural of $940,730 to EWT.

EWT assumed the costs incurred on the
Confederation and Windvision contracts. The total aggregate costs along with the
deposits on the Waverly and Rural contracts owing to EWT was $2,818,875 (herein
debt).

Also, as part of the Agreement, the
Company assigned all of its rights, interest and obligations under the license
agreement with GE Power Technology LLC ("GEPT").

On April 28, 2010, the Company entered
into the Settlement Agreement. This agreement replaced the March 5, 2009
agreement. Under this agreement, the Company will receive future payments based
on 3% of sales of wind turbines made by EWT (herein the Settlement Payments),
with the total Settlement Payments not exceeding $10,000,000.

- F-10 

---

|AMERICAS WIND ENERGY CORPORATION AND SUBSIDIARIES                 
|------------------------------------------------------------------
|(A DEVELOPMENT STAGE COMPANY)                                     
|Notes to Condensed Consolidated Interim Financial
      Statements
|October 31, 2010 and 2009                                         
|(Expressed in U.S. Dollars)                                       
|Unaudited                                                         

|9. | Commitments and Contingencies(contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | Prior to entering into the Settlement
Agreement, the debt due to EWT was approx. $2.8 million and represented actual
costs incurred on contracts plus anticipated costs to complete the
Confederation Power, Wind Vision and Wray contracts. EWT determined
      that the costs to complete the contracts would be considerably more than
      the $2.8 million and accordingly made efforts to enter into the Settlement
      Agreement. It was agreed the full and final payment of $4 million was fair
      and reasonable to both parties and to satisfy EWT for any unforeseen
      obligations incurred by completing the contracts. In exchange, EWT agreed
      to release the Company from any future or further liabilities incurred
  from those contracts.                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   | As repayment of the debt payable by the Company to EWT,
      EWT will apply the first $2,000,000 of Settlement Payments against the
      debt amount. Once $2,000,000 has been repaid to EWT, the Settlement
      Payments will be made to the Company at 50% of the Settlement Payment
      amount until EWT have retained an aggregate of $4,000,000 in total
      Settlement Payments (including the initial $2,000,000). Subsequent to
      that, the Settlement Payments will be paid in full to the Company until
      the earlier of the $10,000,000 being reached or until the fourth
      anniversary date of this agreement. If no Settlement Payments are received
      under the Agreement, the Company will not be committed to repaying the
      debt. As such, the debt has been removed and offset against the write down
      of the intangible asset of $2,008,955 in other income in these
      consolidated financial statements.

- F-11 

---

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements.
These statements relate to future events or our future financial performance. In
some cases, you can identify forward-looking statements by terminology such as
"may", "should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential" or "continue" or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, that may cause our or our
industry's actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.

Our unaudited financial statements are stated in United States
Dollars (US$) and are prepared in accordance with United States Generally
Accepted Accounting Principles. The following discussion should be read in
conjunction with our financial statements and the related notes that appear
elsewhere in this quarterly report. The following discussion contains
forward-looking statements that reflect our plans, estimates and beliefs. Our
actual results could differ materially from those discussed in the forward
looking statements. Factors that could cause or contribute to such differences
include, but are not limited to, those discussed below and elsewhere in this
quarterly report.

In this quarterly report, unless otherwise specified, all
dollar amounts are expressed in United States dollars. All references to "US$"
refer to United States dollars and all references to "common shares" refer to
the common shares in our capital stock.

As used in this quarterly report, the terms we, us, our,
our company and Americas Wind refer to Americas Wind Energy Corporation,
and, unless otherwise indicated, our subsidiary, 6544797 Canada Ltd., a Canadian
corporation, and our wholly-owned subsidiary Americas Wind Energy Inc., an
Ontario corporation.

General Overview

We were incorporated pursuant to the laws of the State of
Nevada on August 22, 2003.

On June 4, 2005, we effected a six for one forward stock split
of the issued shares of common stock in the capital of our company.

On October 14, 2005, we effected a 3.195 for one forward stock
split of the issued shares of common stock in the capital of our company.

On April 4, 2006, our board of directors approved an amendment
to our articles of incorporation to create 30,000,000 class A special voting
shares in the capital of our company. Subsequent to our board of directors
approval of the amendment to our articles of incorporation, on April 5, 2006,
the holders of a majority of the outstanding common shares of our company
consented in writing to the amendment to our articles of incorporation. The
amendment to our articles of incorporation was effected with the Nevada
Secretary of State on June 19, 2006. As a result, our authorized capital
consists of 100,000,000 shares of common stock with a par value of $0.0001 and
30,000,000 class A special voting stock without par value.

- 4 

---

On August 28, 2006, our board of directors approved an
amendment to our articles of incorporation to change our name from Northwest
Passage Ventures, Ltd. to Americas Wind Energy Corporation. Also on August 28,
2006, the holders of a majority of the outstanding common shares of our company
consented in writing to the amendment to our articles of incorporation. The
amendment to our articles of incorporation was effected with the Nevada
Secretary of State on October 16, 2006.

Effective March 5, 2009, we entered into a sublicense agreement
with Americas Wind Energy Inc., our Ontario subsidiary company, Emergya Wind
Technologies B.V., a Netherlands company and EWT-Americas Inc., a Delaware
corporation, wherein we have agreed to grant to EWT-Americas an exclusive
sublicense of all of our rights under a master license agreement dated April 23,
2004.

We had an exclusive license for the North American territory
from EWT B.V., of the Netherlands, for the mid-sized direct drive wind turbines
manufactured by EWT B.V.

We have provided a sub-license of these rights to EWT-Americas
Inc. a wholly owned subsidiary of Emergya Wind Technologies Holdings N.V. and an
affiliate of EWT B.V.

The major terms of the transaction which closed effective March
5, 2009 are:

- We sub-licensed to EWT-Americas our existing rights to market in North
  America
- EWT- Americas will be the exclusive manufacturer and supplier of EWT wind
  turbines in North America.

On March 5, 2009, we completed a sublicense agreement with EWT
Americas. The complete agreement is available on-line as filed with the SEC.

Summary terms of the agreement were:

- The sublicense agreement gave AWE a royalty of 2.5 % of sales revenue and
  12.5% of contribution margin on all sales to companies listed on exhibit A of
  the agreement over the next 5 years.
- The royalty payments were capped at $28 million.
- EWT Americas took over all AWE projects except two and was completing
  these two projects for our company.
- The costs to complete these two projects plus additional monies owed to
  EWT for materials was being taken out of our royalty payments at the rate of
  25% of each royalty payment until completed.
- We cannot compete with EWT Americas in the windturbine business.

Effective March 5, 2009, Mr. Frank Pickersgill, our secretary
and director, entered into a consulting agreement with EWT-Americas Inc.
Pursuant to the terms of the consulting agreement, Mr. Pickersgill was to
provide business consulting services to EWT-Americas Inc. for a monthly
compensation of US$6,250. The agreement was to be terminated on the earlier of:
(i) two years from the date of the agreement, or (ii) the termination of the
sublicense agreement.

Effective March 5, 2009, Mr. Hal Dickout, our president, chief
executive officer, chairman and director (also our principal executive officer,
principal financial officer and principal accounting officer), entered into a
consulting agreement with EWT-Americas Inc. Pursuant to the terms of the
consulting agreement, Mr. Dickout was to provide business consulting services to
EWT-Americas Inc. for a monthly compensation of US$6,250. The agreement was to
be terminated on the earlier of: (i) two years from the date of the agreement,
or (ii) the termination of the sublicense agreement.

On February 1, 2010, we received a letter from EWT B.V.
claiming that they are (1) terminating the sublicense agreement citing alleged
violations of representations and warranties in the agreement; (2) alleging that
large orders and opportunities were cancelled due to AWE failures; and (3)
alleging amounts owing to EWT of US$2.519 million, are due and payable within 30
days.

- 5 

---

Our responses to the allegations are as follows:

- There was no breach of warranty or untrue representation in the sublicense
  agreement on our part or on the part of Americas Wind Energy Inc.
- The money allegedly owed to EWT was to be paid from future payments and is
  not due.

Our company rejected the claims in the letter and we entered
into settlement discussions with EWT and EWT-Americas (together EWT). These
discussions have resulted in a settlement agreement dated as of April 28, 2010,
which became effective on June 11, 2010.

A summary of the key terms of the settlement agreement is as
follows:

- We will be paid a fee with respect to sales by EWT. of 600kw to 1mw wind
  turbines in the territory covered by the original license agreement over the
  next four years subject to a maximum cap of $10,000,000.
- As repayment of the debt payable by our company to EWT, EWT will apply the
  first $2,000,000 of settlement payments against the debt amount. Once
  $2,000,000 has been repaid to EWT, the settlement payments will be made to our
  company at 50% of the settlement payment amount until EWT have retained an
  aggregate of $4,000,000 in total settlement payments (including the initial
  $2,000,000). Subsequent to that, the settlement payments will be paid in full
  to our company until the earlier of the $10,000,000 being reached or until the
  fourth anniversary date of the agreement. If no settlement payments are
  received under the agreement, our company will not be committed to repaying
  the debt.
- The consulting contracts with H. C. Dickout and F. D. Pickersgill are
  reinstated.
- The settlement agreement is conditioned upon and was not effective unless
  EWT reaches agreement with former customers of our company or EWT waives the
  claim, which condition was satisfied by EWT waiving the condition effective
  June 11, 2010

We are now out of the business of manufacturing and supplying
wind turbines and look forward to the fees that may be generated as a result of
the settlement reached.

It is managements intent to search for a merger or acquisition
partner who is interested in our public structure, who can use our tax loss
carry-forwards and who values the royalty stream, in order to get best total
return for shareholders.

Our Current Business

Our company expects to receive royalty payments under the
settlement agreement signed on April 28, 2010. Per the agreement, our company
will receive payments equal to 3% of the sales revenue generated by EWT in North
America. Under this agreement, EWT has assumed all of the liabilities of AWE.
The royalty payments and debt repayment will work as follows:

a) The first $2,000,000 of royalty payments due to us will be
retained by EWT to offset the debt owing to them by us,

b) Subsequent to that, we will receive 50% of the royalty
payments owing to us, and the other 50% will go towards paying down the debt we
owe to EWT, until a total of $4,000,000 of royalty payments are retained by EWT,

c) Subsequent payments will be paid in full to AWE until a
maximum of $10,000,000 in royalty payments has been received by AWE.

There is no liability to EWT beyond paying a percentage of
royalties received. However, if no royalties are received by us, the debt will
not be repayable to EWT.

- 6 

---

To maximize shareholder value we are exploring merger,
acquisition or joint venture opportunities. We plan to raise the necessary
capital to do this through a convertible debenture or sale of shares. We have
retained a competent and experienced financial firm to assist in this process.

In the short term, operations will continue to be funded by
shareholder loans and in the longer term the royalty payments from EWT are
expected to contribute strongly to our companys balance sheet.

Cash Requirements

Over the next 12 months we intend to operate as a business
development company. We anticipate that we will incur the following operating
expenses during this period:

|Estimated Funding Required During the Next
      12 Months
|----------------------------------------------------------
|Expense                                                   
|Professional fees                                         
|Other general administrative expenses                     
|Total                                                     

We believe that we will require additional funds to implement
our growth strategy. These funds may be raised through equity financing, debt
financing, or other sources, which may result in further dilution in the equity
ownership of our shares. There is no assurance that we will be able to maintain
operations at a level sufficient for an investor to obtain a return on their
investment in our common stock. Further, we may continue to be unprofitable.

Purchase of Significant Equipment

We do not anticipate the purchase or sale of any plant or
significant equipment during the next 12 months.

Trends and Uncertainties

Our revenues are dependent on the success of EWT in selling
windturbines to our customer list. Prospects look good in the current political
environment of support for renewables but results cannot be assured.

Our ability to develop new business in the current market
environment may take some time.

Employees

As of October 31, 2010, we had two employees consisting of
Harold Dickout, our chief executive officer, president and chairman (also our
principal executive officer, principal financial officer and principal
accounting officer), Frank Pickersgill, our secretary. We plan to hire
additional employees when circumstances warrant.

Going Concern

We anticipate that additional funding will be required in the
form of equity financing from the sale of our common stock. At this time, we
cannot provide investors with any assurance that we will be able to raise
sufficient funding from the sale of our common stock or through a loan from our
directors to meet our obligations over the next twelve months. We do not have
any arrangements in place for any future debt or equity financing.

- 7 

---

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

Results of Operations

Three month summary ending October 31, 2010 and 2009

|Operations                  | Three Months
    Ended Oct 31, 2010 | Three Months
    Ended Oct 31, 2009 | Cumulative 
      from Inception (July 29, 2002 through
    Oct 31, 2010
|--------------------------- | ----------------------------------- | ----------------------------------- | ------------------------------------------------------------------------
|Sales                       | $Nil                                | $Nil                                | $Nil                                                                    
|Cost of Sales               | $Nil                                | $Nil                                | $Nil                                                                    
|Operating (Income) Expenses | $107,813                            | $138,044                            | $2,920,826                                                              
|Other (Expenses) Income     | ($30,869)                           | ($19,836)                           | $315,574                                                                
|Net Income (Loss)           | $(138,682)                          | ($157,880)                          | ($2,605,252)                                                            

Expenses

Our operating expenses for the three month period ended October
31, 2010 and 2009 are outlined in the table below:

|Expenses                         | Three Months
    Ended Oct 31, 2010 | Three Months
    Ended Oct 31, 2009 | Cumulative 
      from Inception (July 29, 2002 through
    Oct 31, 2010
|-------------------------------- | ----------------------------------- | ----------------------------------- | ------------------------------------------------------------------------
|General and
      Administrative | $107,741                            | $111,035                            | $2,901,937                                                              
|License Fee                      | $Nil                                | $Nil                                | $Nil                                                                    
|Royalty                          | $Nil                                | $Nil                                | $Nil                                                                    
|Foreign Exchange (Gain) Loss     | ($1)                                | $26,844                             | ($36,944)                                                               
|Bad Expense Debt                 | $Nil                                | $Nil                                | $Nil                                                                    
|Gain on sale of equipment        | $Nil                                | $Nil                                | ($Nil)                                                                  
|Other income                     | ($30,869)                           | ($19,836)                           | ($897,295)                                                              
|Loss on disposal of contracts    | $Nil                                | $Nil                                | $Nil                                                                    
|Depreciation and Amortization    | $73                                 | $165                                | $55,833                                                                 

Operating expenses for the three months ended October 31, 2010,
decreased by 21.9 % as compared to the comparative period in 2009 primarily as a
result of reduced business activity.

Other income for the three months ended October 31, 2010,
decreased by 55.6 % as compared to the comparative period in 2009.

Equity Compensation

We currently do not have any stock option or equity
compensation plans or arrangements.

- 8 

---

Liquidity and Financial Condition

|Working Capital     |   |             |   |   |               |   |  |                   |  
|------------------- | - | ----------- | - | - | ------------- | - |  | ----------------- | -
|                    |   | At          |   |   | At            |   |  | Percentage        |  
|                    |   | October 31, |   |   | July 31, 2010 |   |  | Increase/Decrease |  
|                    |   | 2010        |   |   |               |   |  |                   |  
|Current Assets      | $ | 8,898       |   | $ | 7,974         |   |  | 11.6%             |  
|Current Liabilities | $ | 1,797,240   |   | $ | 1,646,310     |   |  | 9.2%              |  
|Working Capital     | $ | (1,788,342  | ) | $ | (1,638,336    | ) |  | (9.2%             | )

|Cash Flows                                |   |              |   |   |              |  
|----------------------------------------- | - | ------------ | - | - | ------------ | -
|                                          |   | Three Months |   |   | Three Months |  
|                                          |   | Ended        |   |   | Ended        |  
|                                          |   | October 31,  |   |   | October 31,  |  
|                                          |   | 2010         |   |   | 2009         |  
|Net Cash Used in Operating Activities     | $ | (133,536     | ) | $ | (141,146     | )
|Net Cash Provided by Financing Activities | $ | 144,933      |   | $ | 97,206       |  
|Net Cash Used in Investing Activities     | $ | Nil          |   | $ | (1,903       | )
|Effect of Exchange Rate Changes           | $ | (11,397      | ) | $ | 27,396       |  
|Decrease In Cash during the Period        | $ | Nil          |   | $ | (17,637      | )

As of October 31, 2010, our company had working capital deficit
of $1,788,342.

Contractual Obligations

As a smaller reporting company, we are not required to
provide tabular disclosure obligations.

Critical Accounting Policies

Our financial statements and accompanying notes have been
prepared in conformity with accounting principles generally accepted in the
United States of America for financial statements. Preparing financial
statements requires management to make estimates and assumptions that affect the
reported amounts of assets, liabilities, revenue, and expenses. These estimates
and assumptions are affected by managements application of accounting policies.
We believe that understanding the basis and nature of the estimates and
assumptions involved with the following aspects of our financial statements is
critical to an understanding of our financials.

Basis of Presentation

The condensed consolidated interim financial statements of the
Company have been prepared in accordance with accounting principles generally
accepted in the United States of America ("US GAAP") for interim financial
information and the instructions to Form 10-Q. Accordingly, they do not include
all of the information and footnotes required by US GAAP for complete financial
statements. In the opinion of our company's management, all adjustments
(consisting only of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three-month period
ended October 31, 2010 are not necessarily indicative of the results that may be
expected for the full fiscal year ending July 31, 2011. The condensed
consolidated interim financial statements should be read in conjunction with the
audited consolidated financial statements of our company for the fiscal year
ended July 31, 2010.

Item 3. Quantitative Disclosures About Market Risks

As a smaller reporting company, we are not required to
provide the information required by this Item.

- 9 

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Item 4T. Controls and Procedures.

Managements Report on Disclosure Controls and
Procedures

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and that such information
is accumulated and communicated to our management, including our president (who
is acting as our principal executive officer, principal financial officer and
principle accounting officer) to allow for timely decisions regarding required
disclosure.

As of the end of the quarter covered by this report, we carried
out an evaluation, under the supervision and with the participation of our
president (who is acting as our principal executive officer, principal financial
officer and principle accounting officer), of the effectiveness of the design
and operation of our disclosure controls and procedures. Based on the foregoing,
our president (who is acting as our principal executive officer, principal
financial officer and principle accounting officer) concluded that our
disclosure controls and procedures were effective as of the end of the period
covered by this quarterly report.

Changes in Internal Control over Financial
Reporting

There have been no changes in our internal controls over
financial reporting that occurred during our quarter ended October 31, 2010 that
have materially or are reasonably likely to materially affect, our internal
controls over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, existing or pending legal proceedings
against our company, nor are we involved as a plaintiff in any material
proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder,
is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors

Much of the information included in this quarterly report
includes or is based upon estimates, projections or other "forward looking
statements". Such forward looking statements include any projections or
estimates made by us and our management in connection with our business
operations. While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always vary,
sometimes materially, from any estimates, predictions, projections, assumptions
or other future performance suggested herein.

Such estimates, projections or other "forward looking
statements" involve various risks and uncertainties as outlined below. We
caution the reader that important factors in some cases have affected and, in
the future, could materially affect actual results and cause actual results to
differ materially from the results expressed in any such estimates, projections
or other "forward looking statements".

Our common shares are considered speculative during the
development of our new business operations. Prospective investors should
consider carefully the risk factors set out below.

- 10 

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Risks Related to Our Business

Our audited financial statements for the year end July 31,
2010, states that there is a substantial doubt that we will be able to continue
as a going concern.

Our income from the Settlement Agreement is a percentage of
sales achieved by EWT in North America.

This income is dependent on EWT achieving these sales. To the
extent that sales are not achieved or are less than anticipated, our income will
be impacted and our company may have difficulty in meeting our payment
obligations.

There may be some doubt about ability to continue as a going
concern.

Our companys continuance as a going concern is dependent on
out directors and principal stockholders in providing financial support in the
short term and receiving sufficient royalty payments to discharge our companys
liabilities. In the event that these are not achieved, the assets may not be
realized or liabilities discharged at their carrying amounts, and differences
from the carrying amounts reported in these consolidated financial statements
could be material.

Most of our assets and all of our directors and officers are
outside the United States, with the result that it may be difficult for
investors to enforce within the United States any judgments obtained against us
or any of our directors or officers.

Although we are organized under the laws of the State of
Nevada, United States, our principal business office is located in Toronto,
Ontario, Canada. Outside the United States, it may be difficult for investors to
enforce judgments against us that are obtained in the United States in any
action, including actions predicated upon civil liability provisions of federal
securities laws. In addition, all of our directors and officers reside outside
the United States, and nearly all of the assets of these persons and our assets
are located outside of the United States. As a result, it may not be possible
for investors to effect service of process within the United States upon such
persons or to enforce against us or such persons judgments predicated upon the
liability provisions of United States securities laws. There is substantial
doubt as to the enforceability against us or any of our directors and officers
located outside the United States in original actions or in actions of
enforcement of judgments of United States courts or liabilities predicated on
the civil liability provisions of United States federal securities laws. In
addition, as the majority of our assets are located outside of the United
States, it may be difficult to enforce United States bankruptcy proceedings
against us. Under bankruptcy laws in the United States, courts typically have
jurisdiction over a debtor's property, wherever it is located, including
property situated in other countries. Courts outside of the United States may
not recognize the United States bankruptcy court's jurisdiction. Accordingly,
you may have trouble administering a United States bankruptcy case involving a
Nevada company as debtor with most of its property located outside the United
States. Any orders or judgments of a bankruptcy court obtained by you in the
United States may not be enforceable.

Risks Related To Our Company Stock

If we issue additional shares in the future, it will result
in the dilution of our existing shareholders.

Our Articles authorize the issuance of up to 100,000,000 shares
of common stock and 30,000,000 class A special voting shares. Our board of
directors may choose to issue some or all of such shares to acquire one or more
businesses or to provide additional financing in the future. The issuance of any
such shares will result in a reduction of the book value and market price of the
outstanding shares of our common stock. If we issue any such additional shares,
such issuance will cause a reduction in the proportionate ownership and voting
power of all current shareholders. Further, such issuance may result in a change
of control of our corporation.

- 11 

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Trading of our stock may be restricted by the Securities
Exchange Commission's penny stock regulations, which may limit a stockholder's
ability to buy and sell our stock.

The Securities and Exchange Commission has adopted regulations
which generally define "penny stock" to be any equity security that has a market
price (as defined) less than $5.00 per share or an exercise price of less than
$5.00 per share, subject to certain exceptions. Our securities are covered by
the penny stock rules, which impose additional sales practice requirements on
broker-dealers who sell to persons other than established customers and
"accredited investors". The term "accredited investor" refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse. The penny stock rules require a broker-dealer, prior to a
transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form prepared by the Securities and
Exchange Commission, which provides information about penny stocks and the
nature and level of risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction and
monthly account statements showing the market value of each penny stock held in
the customer's account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer orally or in
writing prior to effecting the transaction and must be given to the customer in
writing before or with the customer's confirmation. In addition, the penny stock
rules require that prior to a transaction in a penny stock not otherwise exempt
from these rules, the broker-dealer must make a special written determination
that the penny stock is a suitable investment for the purchaser and receive the
purchaser's written agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary
market for the stock that is subject to these penny stock rules. Consequently,
these penny stock rules may affect the ability of broker-dealers to trade our
securities. We believe that the penny stock rules discourage investor interest
in and limit the marketability of our common stock.

FINRA sales practice requirements may also limit a
stockholder's ability to buy and sell our stock.

In addition to the "penny stock" rules described above, the
Financial Industry Regulatory Authority (FINRA), formerly the National
Association of Securities Dealers or NASD, has adopted rules that require that
in recommending an investment to a customer, a broker-dealer must have
reasonable grounds for believing that the investment is suitable for that
customer. Prior to recommending speculative low priced securities to their
non-institutional customers, broker-dealers must make reasonable efforts to
obtain information about the customer's financial status, tax status, investment
objectives and other information. Under interpretations of these rules, the
FINRA believes that there is a high probability that speculative low priced
securities will not be suitable for at least some customers. FINRA requirements
make it more difficult for broker-dealers to recommend that their customers buy
our common stock, which may limit your ability to buy and sell our stock and
have an adverse effect on the market for our shares.

Our common stock is illiquid and the price of our common
stock may be negatively impacted by factors which are unrelated to our
operations.

Our common stock currently trades on a limited basis on the OTC
Bulletin Board. Trading of our stock through the OTC Bulletin Board is
frequently thin and highly volatile. There is no assurance that a sufficient
market will develop in the stock, in which case it could be difficult for
shareholders to sell their stock. The market price of our common stock could
fluctuate substantially due to a variety of factors, including market perception
of our ability to achieve our planned growth, quarterly operating results of our
competitors, trading volume in our common stock, changes in general conditions
in the economy and the financial markets or other developments affecting our
competitors or us. In addition, the stock market is subject to extreme price and
volume fluctuations. This volatility has had a significant effect on the market
price of securities issued by many companies for reasons unrelated to their
operating performance and could have the same effect on our common stock.

- 12 

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Trends, Risks and Uncertainties

We have sought to identify what we believe to be the most
significant risks to our business, but we cannot predict whether, or to what
extent, any of such risks may be realized nor can we guarantee that we have
identified all possible risks that might arise. Investors should carefully
consider all of such risk factors before making an investment decision with
respect to our common shares.

Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. [Removed and Reserved]

Item 5. Other
  Information

None.

Item 6. Exhibits.

Exhibits required by Item 601 of Regulation S-K

|Exhibit |                                                                                                                                                                                                                                                                                                             
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                                                                                                                                                                                                 
|        |                                                                                                                                                                                                                                                                                                             
|(2)     | Plan of Purchase, Sale, Reorganization, Arrangement,
      Liquidation or Succession                                                                                                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                                             
|2.1     | Share Exchange Agreement dated August 11, 2006, among
      Northwest Passage Ventures, Ltd., 6544797 Canada Ltd., Americas Wind
      Energy Inc. and the shareholders of Americas Wind Energy Inc.
      (incorporated by reference from our Current Report on Form 8-K filed on
      September 11, 2006)
|        |                                                                                                                                                                                                                                                                                                             
|(3)     | Articles of Incorporation and By-laws                                                                                                                                                                                                                                                                       
|        |                                                                                                                                                                                                                                                                                                             
|3.1     | Articles of Incorporation (incorporated by reference from
      our Registration Statement on Form SB-2 filed on October 29, 2003)                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                             
|3.2     | Bylaws (incorporated by reference from our Registration
      Statement on Form SB-2 Filed on October 29, 2003)                                                                                                                                                                                             
|        |                                                                                                                                                                                                                                                                                                             
|3.3     | Certificate of Amendment filed with the Nevada Secretary
      of State on June 19, 2006 (incorporated by reference from our Current
      Report on Form 8-K filed on September 11, 2006)                                                                                                                  
|        |                                                                                                                                                                                                                                                                                                             
|3.4     | Certificate of Amendment filed with the Nevada Secretary
      of State on October 16, 2006 (incorporated by reference from our Current
      Report on Form 8-K filed on October 16, 2006)                                                                                                                 
|        |                                                                                                                                                                                                                                                                                                             
|(10)    | Material Contracts                                                                                                                                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                             
|10.1    | License Agreement dated April 23, 2004, among Americas
      Wind Energy Inc. and Emergya Wind Technologies B.V. (incorporated by
      reference from our Current Report on Form 8-K filed on September 11, 2006)                                                                                          

- 13 

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|10.2  | Convertible Loan
        Agreement between our company and Smart Goal Investment Limited (incorporated
        by reference from our Current Report on Form 8-K filed on April 11, 2008)                           
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                    
|10.3  | Sublicense Agreement
        dated March 5, 2009 (incorporated by reference from our Current Report
        on Form 8-K filed on March 11, 2009)                                                                   
|      |                                                                                                                                                                                                                    
|10.4  | GE Assignment
        Agreement dated March 5, 2009 (incorporated by reference from our Current
        Report on Form 8-K filed on March 11, 2009)                                                                
|      |                                                                                                                                                                                                                    
|10.5  | Rural Assignment
        Agreement dated March 5, 2009 (incorporated by reference from our Current
        Report on Form 8-K filed on March 11, 2009)                                                             
|      |                                                                                                                                                                                                                    
|10.6  | Waverly Assignment
        Agreement dated March 5, 2009 (incorporated by reference from our Current
        Report on Form 8-K filed on March 11, 2009)                                                           
|      |                                                                                                                                                                                                                    
|10.7  | Consulting Agreement
        between Mr. Hal Dickout and EWT-Americas Inc. (incorporated by reference
        from our Quarterly Report on Form 10-Q filed on June 15, 2009)                                       
|      |                                                                                                                                                                                                                    
|10.8  | Consulting Agreement
        between Mr. Frank Pickersgill and EWT-Americas Inc. (incorporated by reference
        from our Quarterly Report on Form 10-Q filed on June 15, 2009)                                 
|      |                                                                                                                                                                                                                    
|10.9  | Settlement Agreement
        dated April 28, 2010 with Emergya Wind Technologies B. V. and EWT- Americas
        Inc. (incorporated by reference from our Current Report on Form 8-K filed
        on May 12, 2010)
|      |                                                                                                                                                                                                                    
|(21)  | Subsidiaries
        of the Small Business Issuer 
        6544797 Canada Ltd. 
        Americas Wind Energy Inc.                                                                                                  
|      |                                                                                                                                                                                                                    
|(31)  | Section 302
        Certifications                                                                                                                                                                                 
|      |                                                                                                                                                                                                                    
|31.1* | Section
        302 Certification                                                                                                                                                                                  
|      |                                                                                                                                                                                                                    
|(32)  | Section 906
        Certification                                                                                                                                                                                  
|      |                                                                                                                                                                                                                    
|32.1* | Section
        906 Certification                                                                                                                                                                                  

* Filed herewith

- 14 

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

|                         | AMERICAS WIND ENERGY CORPORATION                               
|------------------------ | ---------------------------------------------------------------
|                         | (Registrant)                                                   
|                         |                                                                
|                         |                                                                
|Dated: December 20, 2010 | /s/
      Harold C.F. Dickout                                
|                         | Harold C.F. Dickout                                            
|                         | President, Chief Executive Officer, Chairman
      and         
|                         | Director                                                       
|                         | (Principal Executive Officer, Principal
      Financial Officer
|                         | and Principal Accounting Officer )                             

- 15 

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