UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-KSB
                                  Amendment #1

                   Annual Report Under Section 13 or 15 (d) of
                       the Securities Exchange Act of 1934


                  For the fiscal year ended September 30, 2007

                         Commission file number: 0-12809


                      AMERICAN RESOURCE TECHNOLOGIES, INC.
                      -------------------------------------
                     (Formerly Golden Chief Resources, Inc.)
                 (Name of small business issuer in its charter)


       State of Kansas                                           48-0846635
       ---------------                                           ----------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

             896 N. Mill Street, Suite 203, Lewisville, Texas 75057
             ------------------------------------------------------
               (Address of principal executive offices)(Zip code)

                    Issuer's telephone number: (972) 219-8585


Securities registered under Section 12 (g) of the Exchange Act: Common stock, no
par value.

The issuer (1) has filed all reports required to be filed by Section 13 or 15
(d) of the Exchange Act during the past 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.
Yes [X] No [ ]

Check if disclosure of delinquent filers in response to Item 405 of Regulation
S-B is not contained in this form, and no disclosure will be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB. [X]

Indicate by check mark whether the registrant is a shell company Yes [ ] No [X]
(as defined in Rule 12b-2 of the Exchange Act).


State issuer's revenues for its most recent fiscal year $18,550.

The aggregate market value of the voting stock held by non-affiliates of the
registrant on September 30, 2007, was $1,366,334. The number of shares
outstanding of the registrant's common stock on April 23, 2008, was 12,996,021
shares.


<PAGE>


PART I

Item 1. Description of Business

(a) Business Development

American Resource Technologies, Inc. ("American Resources or the Company") was
originally incorporated as Arts Antique Autos, Ltd., and changed its name to
Golden Chief Resources, Inc. on August 5, 1981. On April 4, 2007 the Company
changed its name from Golden Chief Resources, Inc. to American Resource
Technologies, Inc. During the early 1980s, the Company engaged in oil and gas
operating, mining, real estate operations. During the mid-1980s, the Company
lost its asset and revenue base due to economic conditions, and liquidated
assets and ceased operations in 1986, and the Company operated briefly again in
1999 - 2002 after a change in control. Accordingly, the Company remained dormant
with no activity from 1987 - 1999 and again from 2002 until December 2004. Since
that date the Company has through the use of farm-outs received carried working
interests in several wells and has been able to move non-producing properties
into the producing category.

During its fiscal year ended September 30, 2007, the Company was not involved in
any bankruptcy, receivership, or similar proceeding and underwent no material
reclassification, merger, or consolidation. We do not anticipate involvement or
participation in any of the above proceedings.

(b) Business of Issuer

On a very small scale the Company has re-entered the oil and gas industry as a
producer but the prospect of growth is limited by the availability of sufficient
funds to pursue this on a more active basis. The Company currently has three
employees.

(c) Reports to Security Holders

The Company does not intend to deliver an annual report to our security holders.
The public may read and copy any materials filed with the SEC, such as this Form
10-KSB and Form 10-QSB reports. We are an electronic filer under the SEC's EDGAR
filing program. Accordingly, our filings are maintained by the SEC in a database
at www.sec.gov and are available to all security holders.

Item 2. Description of Property

As of September 30, 2007, the assets consisted of only the Montgomery County
Pipeline, the Lindley lease, the Ownbey and Troyer leases which produce oil, and
the Noll lease which to date is not productive.

Oil and gas operations are and will be subject to federal, state and local laws
and regulations and political developments. The domestic production and sale of
oil and gas are subject to federal regulation by the Department of Energy and
the Federal Energy Regulation Commission. Rates of production of oil and gas
have for many years been subject to federal and state conservation laws and
regulations. In addition, oil and gas operations are subject to extensive
federal and state regulations concerning exploration, development, production,
transportation and pricing, and to interruption or termination by governmental
authorities.

The term "working interest" as used herein means all or a fractional part of the
ownership rights granted by a concession or lease. The working interest or a
part thereof, pays all costs of operation and is entitled to the gross
production less royalties retained by the grantor or lessor and less other
royalties or non-operating interests created and assigned from the working
interest.

There are currently 4 oil wells on the Lindley lease in which the Company owns a
100% working interest, and 4 oil wells on the Ownbey/Troyer Lease in which the

                                       2
<PAGE>


Company owns a 25% working interest and 5 oil wells on the Ownbey/Troyer Lease
in which the Company owns a 12.5% working interest, and one oil well on the Noll
Lease in which the Company owns a 25% working interest.

Market for Oil and Gas Production

The market for oil and gas production is regulated by both the state and Federal
governments. The overall market is mature, and, with the exception of gas, all
producers in a producing region will receive the same price. Purchasers or
gatherers will typically purchase all crude oil offered for sale at posted field
prices which are adjusted for quality difference from the "Benchmark". Benchmark
is the price of Saudi Arabian light crude oil employed as the standard on which
OPEC price changes have been based. Oil pumped from wells is stored in tanks on
site where the purchaser normally picks up the oil at the well site, but in some
instances there may be deductions for transportation from the well-head to the
sales point. Either the Company, the operator, or the purchaser handles payment
disbursements to both the working interest owners and the royalty interest
owners.

During the year ended September 30, 2007, the following customers accounted for
greater than 10% of our oil and gas sales:

                  Plains Marketing LP            100%

American Resources has no other relationship with this customer. This
concentration is a matter of convenience for us rather than necessity since
these customers are active buyers in the areas where our wells are located, and
prices between potential customers vary little or not at all as prices are tied
to the going market rate for the commodity. If the Company lost its largest
customer, management believes the Company could quickly replace the lost
customer with other buyers paying comparable prices. Consequently, management
does not believe the loss of one or more of American Resources's major customers
would have a material adverse effect on its business.

Oil and Gas Reserves

The following table summarizes certain information regarding the estimated
proved oil reserves and estimated future net revenues of the Company and
attributable to the Company's net revenue interests in the Lindley lease in
Montgomery County, Kansas. Such estimated reserves are based upon an evaluation
report prepared by William W. Jackson, Petroleum Engineer of Richardson, Texas.
More information is located in Note 10 to the Financial Statements attached
hereto.

PROVED OIL RESERVES
September 30, 2007

                                                                  (Barrels)
                                                                  ---------
Proved developed reserves:
         Beginning of year                                         6,420
         Purchases of reserves in place                              -0-
         Adjustments                                                (917)
         Production                                                 (183)
                  End of year                                      5,320


All of the Company's reserves are located within the United States and consist
of crude oil. No estimates of reserves have been reported to or filed with any
other Federal authority or agency during the year presented.

The reserve data herein represent only estimates that are based on subjective
determinations. Accordingly, the estimates are expected to change, as additional
information becomes available. Further, estimates of gas reserves, of necessity,
are projections based on engineering and economic data. There are uncertainties
inherent in the interpretation of such data, and there can be no assurance that
the proved reserves set forth herein will ultimately be produced.


                                       3
<PAGE>


Proved developed producing reserves are those expected to be recovered from
currently producing zones under continuation of present operating methods.
Proved developed non-producing reserves consist of (i) reserves from wells which
have been completed and tested but are not yet producing due to lack of market
or minor completion problems which are expected to be corrected, and (ii)
reserves currently behind the pipe in existing wells and which are expected to
be productive due to both the well log characteristics and analogous production
in the immediate vicinity of the well. Proved undeveloped reserves are those
reserves which may be expected either from existing wells that will require
major expenditure to develop or from undrilled acreage adjacent to productive
units, which are reasonably certain of production when, drilled.

Impairment

American Resources has adopted SFAS No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" and periodically evaluates, using both
independent appraisals and management projections and projected undiscounted
cash flows, the carrying value of its long-lived assets and proved oil and gas
properties whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. In addition, long-lived
assets to be disposed of are reported at the lower of carrying value or fair
value less cost to sell. Fair values used for impairment identification are
based on undiscounted cash flow amounts determined by the reserve reports.
During the fiscal year ended September 30, 2007, the Company did not identify
any properties requiring impairment. Unproved oil and gas properties are
periodically assessed for impairment following the guidance provided in SFAS No.
19, "Financial Accounting and Reporting by Oil and Gas Producing Companies". The
Company also reviewed the Montgomery County Pipeline regarding a possible
impairment since it has not yet been put into operation. Based on management's
estimates of the start-up costs to bring the pipeline into operation and the
fact that drilling activity in the area surrounding the pipeline has increased
the Company deemed that no impairment was required.

Oil and Gas Property and Equipment

The Company uses the successful efforts method of accounting for its oil and gas
producing activities, which are located in Kansas. Costs to acquire mineral
interests in oil and gas properties, to drill and equip exploratory wells that
find proved reserves, and costs to drill and equip development wells are
capitalized. Costs to drill exploratory wells that do not find proved reserves
and geological and geophysical costs and costs of carrying and retaining
undeveloped properties are expensed.

Unproved oil and gas properties that are individually significant are
periodically assessed for impairment of value, and a loss is recognized at the
time of impairment by providing an impairment allowance. Other unproved
properties are amortized based on American Resource's experience of successful
drilling and average holding period. Capitalized costs of producing oil and gas
properties, after considering estimated residual salvage values, are depreciated
and depleted by the unit of production method. Support equipment and other
property and equipment are depreciated over their estimated useful lives.

On the sale or retirement of a complete or partial unit of a proved property,
the cost and related accumulated depreciation, depletion, and amortization are
eliminated from the property accounts, and the resultant gain or loss is
recognized.

On the sale of an entire interest in an unproved property for cash or cash
equivalent, gain or loss on the sale is recognized, taking into consideration
the amount of any recorded impairment if the property had been assessed
individually. If a partial interest in an unproved property is sold, the amount
received is treated as a reduction of the cost of the interest retained.

Accounting for Asset Retirement Obligations

American Resources accounts for the asset retirement obligations under the
provisions of FASB No. 143, which requires the fair value of the liability for
an asset retirement obligation be recognized in the period in which it is
incurred. When the liability is initially recorded, the offset is capitalized by


                                       4

<PAGE>


increasing the carrying amount of the long-lived asset. Over time, the liability
is accreted to its present value each period, and the capitalized cost is
depreciated over the useful life of the related asset. To settle the liability,
the obligation is paid, and to the extent there is a difference between the
liability and the amount of cash paid, a gain or loss upon settlement is
recognized. No accretion expense is included in "Depreciation, depletion, and
amortization" in the accompanying statement of operations for the year ended
September 30, 2007 since the Company's estimates reflect that the remaining
salvage value of recoverable property exceeds the liability of the potential
retirement obligations. The Company estimates that due to the shallow depths of
the wells involved the average "plugging" or abandonment cost per well will
average just under $1,500 per well while the salvage value per well should
average just over $2,300 per well.

Item 3. Legal Proceedings

As of May 26, 2008 there were no legal proceedings to which we were a party, and
no litigation is known to be pending.

Item 4. Submission of Matters to a Vote of Securities Holders

On December 21, 2006 the Company held a special shareholders meeting at which
the shareholders approved a resolution authorizing the Board of Directors to
evaluate the necessity of a reverse stock split and also to implement a reverse
stock split if they determine it to be necessary. The shareholders also ratified
the actions of the officers and directors since the last special shareholders
meeting on December 17, 2001.


                                     PART II

Item 5. Market for Common Equity and Related Stockholder Matters

(a) Market Information

The shares have been traded on the over the counter bulletin board since late
November of 2006. Based on information available directly from the Over the
Counter Bulletin Board data center, share prices have ranged from an annual low
of $0.054545 per share to a high of $0.327273 per share. Our shares have been
trading sporadically, in the Pink Sheet market since late August of 2003. Our
shares are traded on both markets under the symbol ARUR.

As of September 30, 2007, certain options have been granted to investors as
follows: 100,000 shares at an exercise price of $0.10 per share expiring In
January of 2012; 100,000 shares at an exercise price of $0.15 per share expiring
in January of 2012; and 240,000 shares with an exercise price of $0.125 per
share expiring in August of 2008.

(b) Holders

As of September 30, 2007, there were approximately 1,300 stockholders of record
of our common stock. Additional stockholders hold stock in street names; the
number of street name holders is not available to us.

(c) Dividends

The Company has not declared or paid dividends in the past, and does not
anticipate doing so in the immediate future. (See subsequent events)

Item 6. Management's Discussion and Analysis or Plan of Operations

In fiscal year 2007 the Company participated in the drilling of several wells
receiving a "carried working interest" in these wells on the Ownbey/Troyer lease
in Chautauqua County, Kansas. These wells began producing late in the fiscal
year and the operator was continuing to adjust the production methods to
maximize daily production at year-end. The Company plans to participate in the
additional drilling and re-working of several wells on our leases in southeast
Kansas during the upcoming fiscal year.


                                       5
<PAGE>


During the fiscal year ended September 30, 2006 the Company began operating the
Lindley lease located in Montgomery County, Kansas. While production has been
minimal, the Company believes that additional development work on the lease can
be advantageous. The Company also entered into farmout agreements on leases
located in Jefferson County, Kansas and Chautauqua County, Kansas. At year-end a
test well had been drilled on the Jefferson County lease (the Noll lease) and
production casing has been set, and further completion procedures are planned.

The Company continues to seek additional working capital which will allow the
Company to retain larger interests in the properties. Until we acquire this
additional working capital, the Company will be forced to operate using the
farmout method which results in a lower working and net revenue interest to the
Company.

During the current fiscal year the Company continued to raise needed funds
through the sale of common stock to existing shareholders. During the year we
sold 663,456 shares and received $91,600 in proceeds from these sales. In order
to continue operations the Company will need to continue to raise additional
funds from common stock sales or other sources.

As shown in the accompanying financial statements, American Resources incurred
recurring net losses of $401,267 and $217,319 in years ended September 30, 2007
and 2006, respectively, has an accumulated deficit of $4,535,812 and has minimal
working capital. These conditions raise substantial doubt as to American
Resource's ability to continue as a going concern. Management is trying to raise
additional capital through sales of common stock. The financial statements do
not include any adjustments that might be necessary if American Resources is
unable to continue as a going concern.

As of September 30, 2007 the Company has been able to place $50,000 in long-term
debt with a maturity of three years bearing interest at ten per cent per annum.
These notes are convertible into shares of the Company's stock which
collateralizes the notes. The Company continues to seek these and other sources
of financing.

Subsequent Events

On November 1, 2007 the Company's Board of Directors elected to declare a 10%
stock dividend effective for shareholders of record as of November 30, 2007. The
dividend shares are scheduled to be issued shortly. The dividend resulted in the
issuance of 1,097,036 new shares.

In October of 2007 the Company sold 160,000 of its common shares for $25,000 to
an investor. The investor received options exercisable at $0.15625 per share for
160,000 shares expiring in October 2008. Additionally an additional 403,500
shares were issued for consulting services valued at $79,770. An additional
$10,000 in long-term debt was incurred with the same parameters as the above
discussed long-term debt and the issuance of 80,000 shares as collateral.

In the period subsequent to December 31, 2007 the Company issued 200,000 shares
for consulting services valued at $26,000, and sold 562,500 shares for cash of
$45,000. The purchasers of the 562,500 shares also received one-year options for
the purchase of 281,250 shares at $0.08 per share.

Currently the Company is attempting to finalize a gas supply and repurchase
agreement with one of the largest gas producers and marketers in southeast
Kansas. When finalized, American Resources will use the supplied gas in its gas
re-pressurization project on the Ownbey lease in Chautauqua County, Kansas. The
gas supplier will purchase any gas produced from the leases under the same
contractual arrangement. At the time of this filing the Company was still
finalizing the agreement.

Income Taxes

See Note 6 to the Financial Statements.


                                       6
<PAGE>


Disclosure Regarding Forward-Looking Statements

This Form 10-KSB includes "forward-looking" statements within the meaning of
Section 27A of the Securities Act and the Company desires to take advantage of
the "safe harbor" provisions thereof. Therefore, the Company is including this
statement for the express purpose of availing itself of the protections of such
safe harbor provisions with respect to all of such forward-looking statements.
The forward-looking statements in this Form 10-KSB reflect the Company's current
views with respect to future events and financial performance. These
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ from those anticipated. In the Form 10-KSB,
the words "anticipates", "believes", "expects", "intends", "future" and similar
expressions identify forward-looking statements. The Company undertakes no
obligation to publicly revise these forward-looking statements to reflect events
or circumstances that may arise after the date hereof. All subsequent written
and oral forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by this section.

Item 7. Financial Statements

The financial statement information for the Company is set forth immediately
following the signature page of this Form 10-KSB. See the Index to Financial
Statements on page F-1.

Item 8. Changes in and Disagreements with Accountants on Accounting and
        Financial Disclosure

In August of 2006 the Company dismissed Malone-Bailey, PC, of Houston, Texas as
its independent auditor and appointed Turner, Stone, & Company LLP of Dallas,
Texas as its independent auditor. The Company made the change because of the
proximity of Turner, Stone & Company, LLP's location.

In August of 2005 the Company dismissed Bateman & Co., Inc., PC of Houston,
Texas as its independent auditor and appointed Malone-Bailey, PC as its
independent auditor. In March of 2005 Clyde Bailey, P.C. resigned as the firm's
independent auditor. Therefore the Company engaged Bateman & Co., Inc. P. C. of
Houston, Texas to perform the audit of the Company's financial statements as of
September 30, 2004. The Company has had no disagreements on accounting and
financial disclosure with its auditor or the previous auditors.

Item 8A. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in its Exchange Act reports is
recorded, processed, summarized and reported within the time periods specified
in the SEC's rules and forms, and that such information is accumulated and
communicated to its management, including its Chief Executive Officer, to allow
timely decisions regarding required disclosure based closely on the definition
of "disclosure controls and procedures" in Rule 13a-15(e). In designing and
evaluating the disclosure controls and procedures, management recognized that
any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives,
and management necessarily was required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures.

At the end of the period covered by this Annual Report, we carried out an
evaluation, under the supervision and with the participation of our management,
including its Chief Financial Officer, of the effectiveness of the design and
operation of our disclosure controls and procedures. Based upon the foregoing,
our Chief Executive Officer concluded that, as of September 30, 2006, our
disclosure controls and procedures were not effective to ensure that the
information required to be disclosed in the Company's Exchange Act reports was
recorded, processed, summarized and reported on a timely basis.


                                       7
<PAGE>


In connection with the completion of its audit of, and the issuance of its
report on the financial statements of American Resources for the year ended
September 30, 2005, Malone & Bailey, PC identified deficiencies in our internal
controls related to the failure to record the value of common stock issued for
services disclosure controls relating to such transactions during the interim
periods of 2005. The adjustments to these accounts and the footnote disclosure
deficiencies were detected in the audit process and have been appropriately
recorded and disclosed in this Form 10-KSB. We are in the process of improving
our internal controls by training our new bookkeeper in an effort to remediate
these deficiencies. Additional effort is needed to fully remedy these
deficiencies and we are continuing our efforts to improve and strengthen our
control processes and procedures. Our management and directors will continue to
work with our auditors and other outside advisors to ensure that our controls
and procedures are adequate and effective.

Item 8B. Other Information.

         None.

                                    PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons

Each of the officers and directors hold office for one year terms. None of the
officers or directors have been involved in any material legal proceedings. The
following are the officers and directors of the Company as of September 30,
2007:

         Name              Age             Position               Director Since
         ----              ---             --------               --------------
B. Fred Oden, III          52    President and Director                  2004
Michael H. McIlvain        61    Executive Vice President and Director   1999
Hugh Fowler                51    Secretary and Director                  2004

Management.

B. Fred Oden III, age 52, Lewisville, Texas, has been President since August 1,
2006 and a director of the Company since November 15, 2004. He is also President
and Chief Executive Officer of Sabine Operating Services, Inc., Westminster,
Texas which is a Texas and Kansas licensed petroleum operator. Mr. Oden has more
than twenty years experience in the oil and gas industry. A sociology and law
enforcement graduate of Lamar State University, Beaumont, Texas, Mr. Oden is a
Texas certified peace officer.

Michael H. McIlvain, age 61, Trophy Club, Texas is Executive Vice President and
a director of the Company. Mr. McIlvain holds BS and MBA degrees from the
University of Kansas. He has more than 20 years of experience in the oil and gas
business, mainly with Clinton Oil Co., Wichita, Kansas, and Rickelson Oil and
Gas Company, Tulsa, Oklahoma. Between 1994 and 1997, he was executive vice
president of BeneFund, Inc., a publicly held telecommunications company based in
Tulsa.

Hugh W. Fowler, age 51, Richardson, Texas has been a Vice-President and a
director of the Company since November 15, 2004. He is a business administration
graduate of Stephen F. Austin University, Nacogdoches, Texas and since 1977 has
worked in the oil and gas industry, primarily in Southeastern, Kansas.

Item 10. Executive Compensation

None

Item 11. Security Ownership of Certain Beneficial Owners and Management

The following is certain information regarding the Company's common stock as of
September 30, 2007 with respect to (a) security ownership of each person known
by the Company to own beneficially more than 5% of the Company's common stock,
and (b) security ownership of management.


                                       8
<PAGE>


                         Ownership at September 30, 2007

                 Name and Address       Number of        Percent
Title of Class   of Beneficial Owner    Shares Owned     of Class      Notes
--------------   -------------------    ------------     --------      -----

Common Stock     M. H. McIlvain             766,872         7.31%   See 1 below.
No Par Value     110 Seminole
                 Trophy Club, TX  76262

Common Stock     B. Fred Oden               480,000        4.57%    See 2 below.
No Par Value

Common Stock     Hugh Fowler                137,219        1.31%    See 3 below.
No Par Value     505 Tiffany Trail
                 Richardson, Texas

All directors and officers
as a group (3 persons)                    1,384,091       13.19%

There are no family relationships between the officers and directors.

     1.   Of Mr. McIlvain's shares 8,000 are held by Elizabeth L. McIlvain, his
          wife; 2,000 held by Elizabeth L. McIlvain as custodian for a minor
          child; and the remaining 756,872 shares are held directly.

     2.   140,000 of Mr. Oden's shares are held by Sabine Operating Services,
          Inc. of which he is the President and majority shareholder.


     3.   43,120 shares are held as tenants in common with Mr. Fowler's wife,
          Ruthye, and 40,000 shares are held by Mr. Fowler's minor children.

     4.   The directors include M. H. McIlvain, B. Fred Oden, and Hugh Fowler.

(c) Changes in Control

None.

Item 12. Certain Relationships and Related Transactions

Sabine Operating Services, Inc. (Sabine), a company of which Mr. Oden is the
majority owner, operates the Kansas properties for the Company pursuant to a
joint operating agreement. See Note 7 to the financial statements.

Item 13. Exhibits and Reports on Form 8-K

On November 1, 2007 a filing on Form 8-K was made informing that the directors
had declared a 10% stock dividend to shareholders of record as of November 30,
2007.

On April 4, 2007 a filing on Form 8-K was made informing that the directors,
acting upon shareholder approval had declared a reverse stock split of 1 for 50
effective April 16, 2007. Additionally, the Company's was changed from Golden
Chief Resources, Inc. to American Resource Technologies, Inc.

On February 15, 2007 a filing on Form 8-K was made informing that an amended
filing of the Company's 10-KSB dated September 30, 2005 was inadvertently made
without the consent of the then independent auditor, and that the financial
statements contained therein should not be relied upon.


                                       9
<PAGE>


                                   SIGNATURES

In accordance with Section 13 or 15 (d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                            AMERICAN RESOURCE TECHNOLOGIES, INC.


Date:  June 26, 2008                        /s/  B. FRED ODEN, III
                                             --------------------------
                                            By: B. Fred Oden, III, President,
                                            Chief Executive Officer

Date:  June 26, 2008                        /s/  M. H. MCILVAIN
                                             --------------------------
                                            By: M. H. McIlvain,
                                            Executive Vice President,
                                            and Principal Accounting Officer

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated:

       Signature                        Title                      Date
       ---------                        -----                      ----

/s/ B. FRED ODEN, III          President & Director               June 26, 2008
-----------------------
B. Fred Oden, III


/s/ M. H. MCILVAIN             Exec. Vice President & Director    June 26, 2008
-----------------------
M. H. McIlvain


/s/ HUGH FOWLER                Secretary & Director               June 26, 2008
-----------------------
Hugh Fowler


                                       10
<PAGE>



             Report of Independent Registered Public Accounting Firm
             -------------------------------------------------------


Board of Directors and Stockholders
American Resource Technologies, Inc.


We have audited the accompanying balance sheets of American Resource
Technologies, Inc. (the Company) as of September 30, 2007 and 2006, and the
related statements of operations, changes in stockholders' equity, and cash
flows for the years then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of American Resource Technologies,
Inc. at September 30, 2007 and 2006, and the results of its operations and cash
flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 1 to the
financial statements at September 30, 2007, the Company has limited working
capital, and has incurred substantial operating losses resulting in an
accumulated deficit of $4,535,812. These conditions raise substantial doubt
about the Company's ability to continue as a going concern. Management's plans
in regard to these matters are also described in Note 1. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.


/s/ Turner, Stone & Company, L.L.P.

Dallas, Texas.
June 25, 2008


                                      F-1
<PAGE>

<TABLE>
<CAPTION>

                                            American Resource Technologies, Inc.
                                                      Balance Sheets


                                                                                   September 30,         September 30,
                                                                                       2007                  2006
A S S E T S                                                                        ------------          ------------
-----------
<S>                                                                                <C>                   <C>
Current assets
--------------
              Cash                                                                 $     25,280          $        191
                                                                                   ------------          ------------
              Total current assets                                                       25,280                   191
                                                                                   ------------          ------------

Property & equipment
--------------------
              Producing oil & gas property, net of accumulated depletion
               of $10,993 and $3,313 respectively                                       243,311               155,991
              Furniture & fixtures, net of accumulated depreciation of
               $4,750 and $1,750 respectively                                            20,250                23,250
                                                                                   ------------          ------------
                   Total                                                                263,561               179,241
                                                                                   ------------          ------------

Other assets
------------
              Non-producing oil & gas properties                                           --                  95,000
              Montgomery pipeline                                                        34,789                34,789
                                                                                   ------------          ------------
               Total                                                                     34,789               129,789
                                                                                   ------------          ------------

              Total assets                                                         $    323,630          $    309,221
                                                                                   ============          ============


L I A B I L I T I E S and S T O C K H O L D E R E Q U I T Y
-----------------------------------------------------------

Current liabilities
-------------------
              Accounts payable                                                     $     19,980          $     33,936
              Advances from related party                                                 5,040                20,759
                                                                                   ------------          ------------
              Total current liabilities                                                  25,020                54,695
                                                                                   ------------          ------------

Long-term liabilities
---------------------
              Long-term notes payable                                                    50,000                  --
                                                                                   ------------          ------------
              Total long-term liabilities                                                50,000                  --
                                                                                   ------------          ------------


Stockholders' equity
--------------------
              Common stock, no par value
              authorized 500,000,000 shares;                                         10,492,985
              and 5,508,727 issued and outstanding                                    4,784,422             4,389,071

              Accumulated deficit                                                    (4,535,812)           (4,134,545)
                                                                                   ------------          ------------

              Total stockholders' equity                                                248,610               254,526
                                                                                   ------------          ------------

              Total liabilities and stockholders' equity                           $    323,630          $    309,221
                                                                                   ============          ============



                          The accompanying notes are an integral part of the financial statements.

                                                                F-2

<PAGE>


                               American Resource Technologies, Inc.
                                      Statements of Operations


                                                            For the Years Ended
                                                               September 30
                                                  ----------------------------------------
                                                      2007                         2006
                                                  -----------                  -----------

Revenue:
  Oil and gas                                     $    18,550                  $    11,218
                                                  -----------                  -----------
  Total revenue                                        18,550                       11,218
                                                  -----------                  -----------

Cost of revenues:
  Lease operating expenses                             76,653                       51,937
  Depletion                                             7,680                        3,313
                                                  -----------                  -----------
              Total cost of revenues                   84,333                       55,250
                                                  -----------                  -----------

                                                      (65,783)                     (44,032)
                                                  -----------                  -----------

Operating expenses:
  Compensation expense                                   --                         34,836
  Consulting fees                                     245,500                       24,500
  Depreciation                                          3,000                        1,750
  Professional fees                                    35,470                       35,243
  Public relations                                        250                        4,721
  Travel                                                4,861                        6,368
  Rent                                                 17,100                       15,725
  General and administrative                           44,687                       50,144
                                                  -----------                  -----------
       Total operating expenses                       350,868                      173,287
                                                  -----------                  -----------

Loss from operations                                 (416,651)                    (217,319)
                                                  -----------                  -----------

Other income (expenses):
  Gain on early extinguishment of debt                 15,384                         --
                                                  -----------                  -----------

Net loss                                          $  (401,267)                 $  (217,319)
                                                  ===========                  ===========

Basic loss per share                              $     (0.06)                 $     (0.04)
                                                  ===========                  ===========

Weighted average shares outstanding                 6,786,281                    5,363,104

                                                  ===========                  ===========


       The accompanying notes are an integral part of the financial statements.


                                      F-3


<PAGE>


                                           American Resource Technologies, Inc.
                                       Statements of Changes in Stockholders' Equity
                                      For the Years Ended September 30, 2007 and 2006


                                                                                                             Total
                                                  Common Stock                     Accumulated           Stockholders'
                                           Shares               Amount                Deficit                Equity
                                       -----------           -----------           -----------           -------------

Balances September 30, 2005              5,207,887           $ 4,215,071           $(3,917,226)          $   297,845

Shares issued for:
  Cash                                     250,840               149,000                                     149,000
  Furniture                                 50,000                25,000                                      25,000

Net loss                                                                              (217,319)             (217,319)
                                       -----------           -----------           -----------           -----------

Balance September 30, 2006               5,508,727             4,389,071            (4,134,545)              254,526

Shares issued for:
  Cash                                     663,456                91,600                                      91,600
  Services                               3,340,090               245,667                                     245,667
  Payables                                 580,845                58,084                                      58,084
  Note collateral                          400,000                  --                                          --
  Adjust for reverse split                    (133)                 --                                          --

Net loss                                                                              (401,267)             (401,267)
                                       -----------           -----------           -----------           -----------

Balances September 30, 2007             10,492,985           $ 4,784,422           $(4,535,812)          $   248,610
                                       ===========           ===========           ===========           ===========


                          The accompanying notes are an integral part of the financial statements.

                                                         F-4

<PAGE>


                                  American Resource Technologies, Inc.
                                      Statements of Cash Flows
                            For the Years Ended September 30, 2007 and 2006


Cash Flows from Operating Activities:                              2007                  2006
-------------------------------------                            ---------              ---------

           Net Loss                                              $(401,267)             $(217,319)
           Adjustments to reconcile net loss to net cash
             used in operating activities:
             Depreciation                                            3,000                  1,750
             Depletion                                               7,680                  3,313
             Stock issued for services                             245,667                   --
             Gain on early extinguishment of debt                  (15,384)                  --
           Changes in:
             Accounts payable                                       59,512                 14,827
                                                                 ---------              ---------

Net Cash Used in Operating Activities                             (100,792)              (197,429)
                                                                 ---------              ---------

Cash Flows from Investing Activities:
-------------------------------------
                                                                 ---------              ---------
Net Cash Provided by Investing Activities                             --                     --
                                                                 ---------              ---------

Cash Flows from Financing Activities:
-------------------------------------

           Proceeds from long term notes payable                    25,000                   --
           Proceeds from stock sales                                91,600                149,000
           Advances from related parties                             9,281                 41,527
                                                                 ---------              ---------

Net Cash Provided By Financing Activities                          125,881                190,527
                                                                 ---------              ---------

Net Increase (Decrease) in Cash                                     25,089                 (6,902)

Cash
           Beginning of year                                           191                  7,093
                                                                 ---------              ---------

           End of year                                           $  25,280              $     191
                                                                 =========              =========

Supplementary Disclosure:
-------------------------
           Cash Paid for Interest                                $    --                $    --
           Cash Paid for Taxes                                        --                     --

Non-cash transactions:
----------------------
           Shares issued:
             For services                                          245,667                   --
             For furniture and equipment                              --                   25,000
             For accounts payable                                   58,084                   --
             Proceeds from notes payable deposited
             by related party                                       25,000


           The accompanying notes are an integral part of the financial statements.

                                           F-5
<PAGE>


                      American Resource Technologies, Inc.
                          Notes to Financial Statements


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF BUSINESS

The Company was incorporated as Arts Antique Autos, Ltd. in November 1976 in
Kansas. During the early 1980's the Company engaged in oil and gas operating,
mining, real estate operations. During the mid 1980's, economic conditions
caused the Company to lose its asset and revenue base. Management decided to
discontinue any further business operations and completed the liquidation of the
few remaining assets during 1986. The Company did not operate a line of business
until the year ended September 30, 2000. During the fiscal year ended September
30, 1998, new assets were contributed in an attempt to revive the Company. In
October 1999, interests in oil and gas properties were contributed by third
parties in exchange for newly issued stock. This resulted in a change in control
of the Company. In July of 2002, the Company abandoned the oil assets by
transferring the assets to one of the shareholders in exchange for the debt
associated with the property. Management's plans include efforts to raise
operating and development capital followed by further acquisition and
development of oil and gas properties.

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.

CASH AND CASH EQUIVALENTS

American Resources considers all highly liquid investments with an original
maturity of three months or less to be cash equivalents for purposes of
preparing its Statement of Cash Flows.

PROPERTY & EQUIPMENT

Property and equipment are carried at cost. Depreciation of property and
equipment is provided using the straight-line method for financial reporting
purposes at rates based on their estimated useful lives (5-10 years). The cost
of asset additions and improvements that extend the useful lives of property and
equipment are capitalized. Routine maintenance and repair items are charged to
current operations. The original cost and accumulated depreciation of asset
dispositions are removed from the accounts and any gain or loss is reflected in
the statement of operations in the period of disposition.

American Resources follows the policy of beginning to depreciate property and
equipment on the date the asset is available for use, which is when the asset is
in the location and condition necessary to operate as intended. The Montgomery
pipeline is not in condition to operate as intended as it requires testing and
inspection before it will be available for use. Accordingly, no depreciation has
been recorded on this asset as of September 30, 2007.

OIL AND GAS PROPERTIES

Method of Accounting for Oil and Gas Properties

The Company uses the successful efforts method of accounting for oil and gas
producing activities, as set forth in the Statement of Financial Accounting
Standards (SFAS) No. 19 "Financial Accounting and Reporting by Oil and Gas
Producing Companies." Costs to acquire mineral interests in oil and gas
properties, to drill and equip exploratory wells that find proved reserves, and
to drill and equip development wells are capitalized. Costs to drill exploratory
wells that do not find proved reserves, geological and geophysical costs and
costs of carrying and retaining unproved properties are expensed as incurred.

                                      F-6
<PAGE>


Unproved oil and gas properties that are individually significant are assessed
annually for impairment of value, and a loss is recognized at the time of
impairment (See "Impairment" below). Other unproved properties are amortized
based on the Company's experience of successful drilling and average holding
period. Capitalized costs of producing oil and gas properties, after considering
estimated dismantlement and abandonment costs and estimated residual salvage
values, are depreciated and depleted by the units-of-production method. For the
year ended September 30, 2007, the Company recorded depletion expense totaling
$7,681 and in the year ended September 30, 2006 totaled $3,313. All of the
Company's reserves are located within the United States.

On the sale or retirement of a complete unit of proved property, the cost and
related accumulated depreciation, depletion, and amortization are eliminated
from the property accounts, and the resultant gain or loss is recognized. On the
retirement or sale of a partial unit of proved property, the cost is charged to
accumulated depreciation, depletion, and amortization with a resulting gain or
loss recognized in income.

On the sale of an entire interest in an unproved property for cash or cash
equivalent, gain or loss on the sale is recognized, taking into consideration
the amount of any recorded impairment if the property had been assessed
individually. If a partial interest in an unproved property is sold, the amount
received is treated as a reduction of the cost of the interest retained.

LONG-LIVED ASSETS

Long-lived assets consist primarily of property and equipment. The
recoverability of long-lived assets is evaluated at the operating unit level by
an analysis of operating results and consideration of other significant events
or changes in the business environment. If an operating unit has indications of
impairment, such as current operating losses, the Company will evaluate whether
impairment exists on the basis of undiscounted expected future cash flows from
operations for the remaining amortization period. If impairment exists, the
carrying amount of the long-lived asset is reduced to its estimated fair value,
less any costs associated with any final settlement. As of September 30, 2007,
there was no impairment of the Company's long-lived assets.

IMPAIRMENT

The Company has adopted SFAS No. 144, "Accounting for the Impairment or Disposal
of Long-Lived Assets" and periodically evaluates, using independent appraisals
and projected undiscounted cash flows, the carrying value of its long-lived
assets and proved oil and gas properties whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. In addition, long-lived assets to be disposed of are reported at
the lower of carrying value or fair value less cost to sell. Fair values used
for impairment identification are based on discounted cash flow amounts
determined by the reserve reports. There were no impairment charges for the
years ended September 30, 2007 and 2006. Unproved oil and gas properties are
periodically assessed for impairment following the guidance provided in SFAS No.
19, "Financial Accounting and Reporting by Oil and Gas Producing Companies". The
Company also reviewed the Montgomery County Pipeline regarding a possible
impairment since it has not yet been put into operation. Based on management's
estimates of the start-up costs to bring the pipeline into operation and the
fact that drilling activity in the area surrounding the pipeline has increased
the Company deemed that no impairment was required.

INCOME TAXES

American Resources recognizes deferred tax assets and liabilities based on
differences between the financial reporting and tax bases of assets and
liabilities using the enacted tax rates and laws that are expected to be in
effect when the differences are expected to be recovered. American Resources
provides a valuation allowance for deferred tax assets for which it does not
consider realization of such assets to be more likely than not.

                                      F-7
<PAGE>


American Resource's differences arise principally from the difference in the way
oil and gas assets are deducted for tax purposes.

EARNINGS PER SHARE

Generally accepted accounting principles provide for the calculation of "Basic"
and "Diluted" earnings per share. Basic earnings per common share excludes
dilutive securities and is computed by dividing net income available to common
stockholders by the weighted average number of common shares outstanding for the
period. Diluted earnings per common share reflect the potential dilution of
securities that could share in the earnings of the entity on an "as if"
converted basis. This is done by dividing net income available to common
shareholders, as adjusted if necessary, by the weighted average number of common
shares outstanding plus potential dilutive securities. American Resources had no
dilutive securities during 2006 or 2007.

CONCENTRATIONS

American Resource's operations are all in the oil and gas industry. As such,
revenues, costs, etc. are subject to changes due to national and international
inventory levels, variations in consumption, and other factors. The Company
currently owns interests in only two properties and deals with a single operator
on each property. Should anything happen to the operator of either property, it
is believed that a substitute operator would be available. The Company's
producing oil and gas wells are all located in Chautauqua and Montgomery
counties, Kansas.

During the year ended September 30, 2007, the following customers accounted for
greater than 10% of our oil and gas sales:

                  Plains Marketing LP                  100%

American Resources has no other relationship with this customer. This
concentration is a matter of convenience for us rather than necessity since
these customers are active buyers in the areas where our wells are located, and
prices between potential customers vary little or not at all as prices are tied
to the going market rate for the commodity. If the Company lost its largest
customer, management believes the Company could quickly replace the lost
customer with other buyers paying comparable prices. Consequently, management
does not believe the loss of one or more of American Resource's major customers
would have a material adverse effect on its business.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

American Resources does not expect the adoption of recently issued accounting
pronouncements to have a significant impact on its results of operations,
financial position or cash flow.

FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with the reporting requirements of SFAS No. 107, Disclosures About
Fair Value of Financial Instruments, the Company calculates the fair value of
its assets and liabilities which qualify as financial instruments under this
statement and includes this additional information in the notes to the financial
statements when the fair value is different than the carrying value of those
financial instruments.

STOCK-BASED COMPENSATION

In December 2004 the FASB issued Statement of Financial Accounting Standards No.
123 (revised 2004), "Share-Based Payment" ("SFAS 123(R)") which requires
companies to recognize in the statement of operations all share-based payments
to employees, including grants of employee stock options based on their fair
values. The Company has not granted any options to employees in the past two
fiscal years, but has issued options to certain unrelated parties.

                                      F-8
<PAGE>


GOING CONCERN

As shown in the accompanying financial statements, American Resources incurred
net losses of $401,267 and $217,319 in years ended September 30, 2007 and 2006,
respectively, has an accumulated deficit of $4,535,812 and has minimal working
capital. These conditions raise substantial doubt as to American Resource's
ability to continue as a going concern. Management is trying to raise additional
capital through sales of common stock and debt. The financial statements do not
include any adjustments that might be necessary if American Resources is unable
to continue as a going concern.

NOTE 2:  OIL AND GAS PROPERTIES

The Company acquired an interest in a non-producing lease during fiscal year
2005, and put it in production late in calendar year 2005. Disclosures of
unaudited information regarding reserves are presented at Note 10.

Asset Retirement Obligations

Effective January 1, 2003, the Company adopted SFAS No. 143, "Accounting for
Asset Retirement Obligations". Pursuant to this accounting standard, the Company
did not recognize additional net liabilities at September 30, 2007, or at
September 30, 2006, for asset retirement obligations related to the future costs
of plugging and abandoning its oil and gas properties, the removal of equipment
and facilities from lease acreage and returning such land to its original
condition. These costs reflect the legal obligations associated with the normal
operation of oil and gas properties and were capitalized by increasing the
carrying amounts of the related long-lived assets by the fair value of these
obligations, discounted to their present value.

No accretion expense is included in "Depreciation, depletion, and amortization"
in the accompanying statement of operations for the years ended September 30,
2007 and 2006 since the Company's estimates reflect that the remaining salvage
value of recoverable property exceeds the liability of the potential retirement
obligations. The Company estimates that due to the shallow depths of the wells
involved the average "plugging" or abandonment cost per well will average just
under $1,500 per well while the salvage value per well should average over
$2,300 per well.

NOTE 3 - STOCK TRANSACTIONS

During the fiscal year ended September 30, 2007 we sold 663,456 shares and
received $91,600 in proceeds from these sales.

At September 30, 2007, American Resources reserved 440,000 shares of its
authorized but un-issued common stock for possible future issuance in connection
with the potential exercise of stock options.

On August 10, 2007 the Company entered into an agreement with Pinnacle
Consulting Group, Inc. which calls for Pinnacle to provide investor relations
services to the Company. The term of the agreement begins August 13, 2007 and
concludes on February 12, 2008 unless extended by mutual agreement. The
agreement calls for the Company to issue 200,000 shares of its restricted common
stock immediately to Pinnacle and pay them $2,000 per month along with
additional issuances of 100,000 shares of restricted common stock to Pinnacle
beginning in October of 2007 and culminating in February of 2008 with an
ultimate total issuance of shares totaling 600,000 shares. The agreement also
calls for the issuance of options to Pinnacle for the acquisition of 100,000
shares of the Company's common stock at $0.10 per share expiring August 10,
2012, and 100,000 shares at $0.15 per share expiring August 10, 2012.

On August 28, 2007, Eric Oden, the son of Fred Oden, the Company's president,
agreed to provide consulting services to the Company in the area of field
operations for the receipt of 750,000 shares of the Company's restricted common
stock. The Company on the same date entered into an agreement with Osage Hills
Energy Company to provide consulting services in the area of oil and gas
reporting and administrative assistance for the issuance of 750,000 shares of
the Company's restricted common stock.

During the fiscal year the Company has provided restricted common shares to John
Stafford in exchange for assistance in investor relations activities.

                                      F-9
<PAGE>


NOTE 4 - LONG TERM DEBT

As of September 30, 2007 the Company has been able to place $50,000 in long-term
debt with a maturity of three years bearing interest at ten per cent per annum.
These notes are convertible into shares of the Company's stock which
collateralizes the notes. The Company continues to seek these and other sources
of financing.


NOTE 5 - STOCK OPTIONS

The following table lists the options outstanding at September 30, 2007.

                               Date of
Grantee                         Grant      Exp. Date        Price     #Shares
-------                         -----      ---------        -----     -------


The following table is an analysis of options for the purchase of American
Resources's common stock outstanding as of September 30, 2007 & 2006.

                                         2007                    2006
                         --------------------------  ------------------------
                                          Weighted                  Weighted
                                          Average                    Average
                                          Exercise                  Exercise
                            Shares        Price        Shares         Price
                         ------------  ------------  -----------  -----------
Outstanding, beginning
  of year                     50,000  $       0.05        4,000  $      0.12
Granted                      440,000          0.125      50,000          .05
Expired/Cancelled            (50,000)         0.05       (4,000)            -
Exercised                           -             -            -            -
                         ------------  ------------  -----------  -----------
Outstanding end of year     440,000  $       0.091       50,000  $      0.05
                         ============  ============  ===========  ===========
Exercisable                 440,000  $       0.091       50,000  $      0.05
                         ============  ============  ===========  ===========

                               Outstanding                     Exercisable
                     --------------------------------     ---------------------
                                   Weighted
                       Number      Average     Weighted    Number       Weighted
                     Outstanding   Remaining   Average   Exercisable    Average
Range of             at Sept. 30, Contractual  Exercise   at Sept. 30,  Exercise
Exercise Prices         2007        Life        Price       2007         Price
-------------------  ----------  ----------  --------  -----------      --------
  $0.10                100,000     5 years  $  0.10       100,000       $ 0.10
  $0.15                100,000     5 years  $  0.15       100,000       $ 0.15
  $0.125               240,000    11 months $  0.125      240,000       $ 0.125
                     ----------  ----------  --------  -----------     --------
   Total               440,000   31 Months  $  0.125      440,000       $ 0.125
                     ==========  ==========  ========  ===========     ========

The outstanding options were purchased by the holders as part of their purchase
of restricted common shares on or about the issue date of the options.

In December 2004 FASB issued Statement of Financial Accounting Standards No. 123
(revised 2004), "Share-Based Payment" ("SFAS 123(R)") which requires companies
to recognize in the statement of operations all share-based payments to
employees, including grants of employee stock options based on their fair
values.

Note 6.  INCOME TAXES

The Company accounts for corporate income taxes in accordance with Statements of
Financial Accounting Standards (SFAS) No. 109. Under SFAS No. 109, deferred tax
assets and liabilities are recognized for the estimated future tax consequences
attributable to differences between the financial statements carrying amounts of


                                      F-10
<PAGE>


existing assets and liabilities and their respective tax bases. In addition,
future tax benefits, such as those from net operating loss carry forwards, are
recognized to the extent that realization of such benefits is more likely than
not. Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the
period that includes the enactment date.

Since 1999, the Company has not filed any federal tax returns. When such filings
are made, the Company may be subject to failure to file penalties. The Company
periodically assesses the liabilities and contingencies in connection with this
matter based upon the latest information available. The Company estimates that
the amount of penalties, if any, will not have a material effect on the results
of operations, cash flows or financial position. No provisions have been made in
the financial statements for such penalties, if any.

A reconciliation of income tax (expense) benefit at the statutory federal rate
of 34% to income tax (expense) benefit at the Company's effective tax rate for
the years ended September 30, 2007 and 2006 is as follows:

                                                         2007           2006
                                                      ---------       ---------

Tax benefit computed at statutory rate                $ 136,000       $  74,000
Less valuation allowance                               (136,000)        (74,000)
                                                      ---------       ---------
Income tax benefit                                    $    --         $    --
                                                      =========       =========

The significant components of the Company's deferred tax assets at September 30,
2007 are summarized as follows:

Deferred tax asset:
     Start-up costs                                                 $      --
     Net operating loss carry forward                                 1,200,000
     Less valuation allowance                                        (1,200,000)
                                                                    -----------
     Income tax benefit                                             $      --
                                                                    ===========

At September 30, 2007, the Company had approximately $3,539,000 of estimated net
operating losses available to offset future taxable income. These carry forwards
expire between the years 2018 and 2027. There are no deferred tax liabilities.

NOTE 7 - RELATED PARTY TRANSACTIONS

Sabine Operating Services, Inc. (Sabine) a company controlled by the Company's
president is the operator of record for all of its oil and gas properties
located in Kansas. Consequently all lease operating expense and all charges
relating to the properties are originated by Sabine. During the fiscal year
ending September 30, 2007 and 2006 the Company paid Sabine $76,653 and $51,937
respectively for lease operating expenses. The Company is satisfied that
Sabine's charges are based on industry standards and are at most equivalent to
those that would be charged by third-party unrelated operators. The Company's
related parties are Sabine Operating Services, Inc., M. H. McIlvain, and Striker
One Resources, Inc., owned by Hugh Fowler. These parties' transactions are shown
on the balance sheet as "Advances from related parties." At September 30, 2007
the Company had a payable to Sabine of $4,134 and a payable to Striker One
Resources, Inc. of $906.

On September 29, 2006 the Company entered into a farmout agreement with Sabine
Operating Services, Inc., a company controlled by Fred Oden, the Company's
president. This agreement allows Sabine to seek funds and investors to begin the
development and exploitation of the Ownbey and Troyer leases located in
Chautauqua County, Kansas. The Company had sought investors for this project
without success, but Sabine has provided the Company assurances that they will
be able to provide investors and industry partners who can assist in the
development of the leases. The Company will receive a carried twenty-five per
cent working interest in all except four wells to be drilled in which the
Company will receive a twelve and one-half per cent carried working interest.
The Company felt that activity on the leases was extremely important and did not
feel the necessity to receive any compensation for the farmout agreement other
than the increased activity and development of the leases.

                                      F-11
<PAGE>


During the year ended September 30, 2007, the Company issued 580,845 shares of
common stock as payment for payables to related parties as follows:

                                                         Shares          Value
                                                         ------          -----

Sabine Operating Services, Inc.                         476,854         $ 47,685
Striker One Resources, Inc.                              83,119            8,312
M. H. McIlvain                                           20,872            2,087
                                                       --------         --------
                                                        580,845         $ 58,084

During the fiscal year ending September 30, 2006 the Company paid Sabine
Operating Services, Inc., a related party, $51,937 for lease operating expenses
on the oil and gas properties. The Company has a payable to Sabine Operating
Services, Inc, of $15,952 at September 30, 2006 included in advance from related
parties. At September 30, 2006 the Company had a payable to Striker One
Resources, Inc, of $1,926, and a payable to M. H. McIlvain of $2,881.

NOTE 8 - LEASE OBLIGATION

American Resources leases its office space from an unrelated third party under a
six-month lease that expired December 31, 2005. Rent expense totaled $17,100 for
the year ended September 30, 2007. The Company continues to lease the space on a
month to month basis.

NOTE 9 - SUBSEQUENT EVENTS

On November 1, 2007 the Company's Board of Directors elected to declare a 10%
stock dividend effective for shareholders of record as of November 30, 2007. The
dividend will result in the issuance of 1,097,036 shares.

In October of 2007 the Company sold 160,000 of its common shares for $25,000 to
an investor. The investor received options exercisable at $0.15625 per share for
160,000 shares expiring in October 2008. Additionally an additional 403,500
shares were issued for consulting services valued at $79,770. An additional
$10,000 in long-term debt was incurred with the same parameters as the above
discussed long-term debt and the issuance of 80,000 shares as collateral.

In the period subsequent to December 31, 2007 the Company issued 200,000 shares
for consulting services valued at $26,000, and sold 562,500 shares for cash of
$45,000. The purchasers of the 562,500 shares also received one-year options for
the purchase of 281,250 shares at $0.08 per share.

Currently the Company is attempting to finalize a gas supply and repurchase
agreement with one of the largest gas producers and marketers in southeast
Kansas. When finalized, American Resources will use the supplied gas in its gas
re-pressurization project on the Ownbey lease in Chautauqua County, Kansas. The
gas supplier will purchase any gas produced from the leases under the same
contractual arrangement. At the time of this filing the Company was still
finalizing the agreement.

NOTE 10:  DISCLOSURES REGARDING OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED)

Oil and Gas Estimates and Producing Activity

The following table sets forth information as to the net proved and proved
developed reserves as of September 30, 2007. "Proved reserves" are estimated
quantities of crude oil, natural gas, and natural gas liquids that geological
and engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and operating
conditions. "Proved developed reserves" are those reserves that are expected to
be recovered through existing wells with existing equipment and operating
methods. "Proved undeveloped reserves" are those reserves that are expected to
be recovered from new wells on un-drilled acreage or from existing wells where a
relatively major expenditure is required for re-completion.

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The following table also shows present value of the reserves as of September 30,
2007, (based on an annual discount rate of 10 percent) of the estimated future
net revenues from the production and sales of the reserves. The future prices
received on sales of production from the properties may be higher or lower than
the prices used in calculating the estimates of future net revenues, and the
operating costs and other costs relating to such production may also increase or
decrease from existing levels. The Company's management produced its own reserve
study for the Ownbey Lease for use in preparing depletion tables. An independent
petroleum engineer provide the study of reserves and cash flows for the Lindley
lease, but an independent study was not used on the Ownbey since the property
had only been in production for a very short time. Management expects an
independent study will result in differences.


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Future net cash flows were computed using year-end prices and year-end
quantities of proved reserves. Future price changes were not considered.
Estimated future development and production costs are determined by estimating
the expenditures to be incurred in developing and producing the proved oil and
gas reserves at the end of the year, based on year-end costs and assuming
continuation of existing economic conditions. Estimated future income tax
expense is calculated by applying year-end statutory tax rates (adjusted for
permanent differences and tax credits) to estimated future pretax net cash flows
related to proved oil and gas reserves, less the tax basis of the properties
involved.

These estimates are furnished and calculated in accordance with requirements of
the Financial Accounting Standards Board and the Securities and Exchange
Commission. Actual results may vary substantially. There are numerous
uncertainties inherent in estimating quantities of proved reserves and in
projecting future rates of production and the timing of development
expenditures, including many factors beyond the control of the producer. The
reserve data set forth herein only represents estimates. Reserve engineering is
a subjective process of estimating underground accumulations of oil and gas that
cannot be measured in an exact way and the accuracy of any reserve estimate is a
function of the quality of available data and of engineering and geological
interpretation and judgment and the existence of development plans. Results of
drilling, testing and production subsequent to the date of an estimate may
justify a revision of such estimate. Accordingly, reserve estimates are
generally different from the quantities of oil and gas that are ultimately
produced. Further, the estimated future net revenues from proved reserves and
the present value thereof are based upon certain assumptions, including
geological success, prices, future production levels, operating costs,
development costs and income taxes that may not prove to be correct. Predictions
about prices and future production levels are subject to great uncertainty, and
the meaningfulness of these estimates depends on the accuracy of the assumptions
upon which they are based

Reserve estimates are presented in the Supplementary Information Regarding Oil
and Gas Production Activities accompanying the financial statements included
herein. Reserve estimates for 2007 and 2006, were prepared by an independent
engineering firm. Original reserve estimates used for depletion purposes and for
the Ownbey/Troyer lease (which are not listed above due to the short time they
have been in production) were made using internal estimates by the Company.

Oil and Gas Reserves

The process of estimating quantities of oil and gas reserves is complex,
requiring significant decisions in the evaluation of all available geological,
geophysical, engineering and economic data. The data for a given field may also
change substantially over time as a result of numerous factors including, but
not limited to, additional development activity, evolving production history and
continual reassessment of the viability of production under varying economic
conditions. As a result, material revisions to existing reserve estimates may
occur from time to time. Although every reasonable effort is made to ensure that
reserve estimates reported represent the most accurate assessments possible, the
subjective decisions and variances in available data for various fields make
these estimates generally less precise than other estimates included in the
financial statement disclosures.

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American Resource Technologies, Inc. uses the unit-of-production method to
depreciate and deplete the capitalized costs of our producing oil and gas
properties. Changes in proved developed reserve quantities will cause
corresponding changes in depletion expense in periods subsequent to the quantity
revision.

The following supplemental oil and gas information is provided in accordance
with Statement of Financial Accounting Standards No. 69 " Disclosures about Oil
and Gas Producing Activities (SFAS 69). The Company has properties in the United
States.

All of the Company's reserves are located within the United States. No estimates
of reserves have been reported to or filed with any other Federal authority or
agency during the year presented.

Costs Incurred in Oil and Gas Producing Activities for the Year Ended September
30, 2007 and 2006

Results of Operations for Oil and Gas Producing Activities for the Year Ended
September 30, 2007 and 2006:

Reserve Information
-------------------

The following estimates of proved and proved developed reserve quantities and
related standardized measure of discounted net cash flows are estimates only,
and do not purport to reflect realizable values or fair market values of the
Company's reserves. The Company emphasizes that reserve estimates are inherently
imprecise and that estimates of new discoveries are more imprecise than those of
producing oil and gas properties. Accordingly, these estimates are expected to
change as future information becomes available. All of the Company's reserves
are located in the United States.

Proved reserves are estimated reserves of crude oil (including condensate and
natural gas liquids) and natural gas that geological and engineering data
demonstrate with reasonable certainty to be recoverable in future years from
known reservoirs under existing economic and operating conditions. Proved
developed reserves are those expected to be recovered through existing wells,
equipment, and operating methods.

The standardized measure of discounted future net cash flows is computed by
applying year-end prices of oil and gas (with consideration of price changes
only to the extent provided by contractual arrangements) to the estimated future
production of proved oil and gas reserves, less estimated future expenditures
(based on year-end costs) to be incurred in developing and producing the proved
reserves, less estimated future income tax expenses (based on year-end statutory
rates, with consideration of future tax rates already legislated) to be incurred
on pretax net cash flows less the tax basis of the properties and available
credits, and assuming continuation of existing economic conditions. The
estimated future net cash flows are then discounted using a rate of ten percent
a year to reflect the estimated timing of the future cash flows.

Standardized Measure of Discounted Future Net Cash Flows at September 30, 2007
and 2006.

The following reconciles the change in the standardized measure of discounted
future net cash flows for the years ended September 30, 2007 and 2006.
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