**U.S. SECURITIES AND EXCHANGE COMMISSION**

**Washington, D. C. 20549**

**FORM 10-KSB**

(X)  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE  SECURITIES EXCHANGE ACT OF 1934
              For the fiscal year ended: **June 30, 2002**

(  ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934                  For the transition period from           to

Commission File number: **33-8067-NY**

**AMERICAN COAL CORPORATION**

(Exact name of registrant as specified in charter)

|**Nevada**                                                   | **13-3368082**            
|------------------------------------------------------------ | --------------------------
|State or other jurisdiction of incorporation or organization | (I.R.S. Employer I.D. No.)

**2469 E. Fort Union Blvd., Suite 214, Salt Lake City, UT   84121**

(Address of principal executive offices)                          (Zip Code)

Issuer's telephone number, including area code:  **801 274-1011**

4685 S. Highland Dr., Suite 202, Salt Lake City, UT     84117

(Former address of principal executive office if changed since last report)

Securities registered pursuant to section 12 (b) of the Act: None

Securities registered pursuant to sections 12 (g) of the Act: None

Check whether the Issuer (1 ) 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.   (1) Yes [X]   No [ ]   (2)  Yes [X]    No [  ]

Check if there is no 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 the registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of the Form 10-KSB or any amendment to this Form 10-KSB. [ ]

State issuer's revenue for its most recent fiscal year: $ 0.00

State the aggregate market value of the voting stock held by nonaffiliates of the registrant. The aggregate market value
shall be computed by reference to the price at which the stock was sold, or the average bid and asked prices of such stock,
as of a specific date within the past 60 days.

At June 30, 2002, the aggregate market value of the voting stock held by nonaffiliates is undeterminable and is considered
to be 0.

(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Not applicable

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

As of June 30, 2002, the registrant had 51,805 shares of common stock issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the part of the form 10-KSB (e.g., part I, part II,
etc.) into which the document is incorporated: (1) Any annual report to security holders; (2) Any proxy or other
information statement; and (3) Any prospectus filed pursuant to rule 424 (b) or (c) under the Securities Act of 1933:    None

FORWARD-LOOKING INFORMATION

THIS FORM 10KSB AND OTHER STATEMENTS ISSUED OR MADE FROM  TIME TO TIME BY THE COMPANY
OR ITS REPRESENTATIVES CONTAIN  STATEMENTS WHICH MAY CONSTITUTE "FORWARD-LOOKING
STATEMENTS" WITHIN THE MEANING OF THE SECURITIES ACT OF 1933 AND THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED BY THE PRIVATE SECURITIES LITIGATION REFORM  ACT OF
1995, 15 U.S.C.A. SECTIONS 77Z-2 AND 78U-5. THOSE STATEMENTS INCLUDE STATEMENTS REGARDING
THE INTENT, BELIEF OR CURRENT EXPECTATIONS  OF THE COMPANY AND MEMBERS OF ITS
MANAGEMENT TEAM AS WELL AS THE ASSUMPTIONS ON WHICH SUCH STATEMENTS ARE BASED.

PROSPECTIVE INVESTORS ARE CAUTIONED THAT ANY SUCH FORWARD-LOOKING STATEMENTS ARE
NOT GUARANTEES OF FUTURE PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES, AND THAT
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED BY SUCH
FORWARD-LOOKING STATEMENTS. IMPORTANT FACTORS CURRENTLY KNOWN TO MANAGEMENT
THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM  THOSE IN FORWARD- LOOKING
STATEMENTS ARE SET FORTH HEREIN. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR
REVISE FORWARD-LOOKING STATEMENTS TO REFLECT CHANGED ASSUMPTIONS, THE OCCURRENCE
OF UNANTICIPATED EVENTS OR CHANGES TO  FUTURE OPERATING RESULTS OVER TIME.

**PART I**

**ITEM 1.  DESCRIPTION OF BUSINESS**

History and Organization

The Company was incorporated under the laws of the state of Nevada on July 2, 1986 with authorized common stock of
300,000,000 shares at a  par value of $.001, with the name of Technical Solutions, Ltd. On July 3, 1989 the name was
changed to American Coal Corporation.

On November 1, 1987 the company issued 66 shares of its common stock in exchange for all of the outstanding shares of
American Coal Corporation, a Virginia corporation. No revenues were ever realized because operations ceased soon after
the acquisition.

On March 25, 1989 the Company acquired all of the outstanding stock of King Koals, Inc. in exchange for 84 common
shares of the Company. King Koals, Inc. ceased operations in 1990, and until that time was in the business of developing
and operating coal leases.

During 1990 the Company abandoned its interest held in the subsidiary and its efforts to develop and operate mineral
leases, and since that date has remained inactive.

On August 25, 1998 the Company acquired all of the outstanding stock of U S Jet, Inc. in a stock for stock exchange. On
September 27, 1999 the transaction was retroactively rescinded by court order.

On August 25, 1998 the Company completed a reverse stock split of one share for 100 outstanding shares.

As a result of the retroactive rescission of the acquisition of US Jet, Inc., the majority of the shares issued pursuant to the
AGREEMENT AND PLAN OF MERGER with US Jet were cancelled.  See Item 3 and Ex-99.2 to the Company's Form
8-K, filed October 8, 1999.

On October 21, 1999 the Company completed a reverse stock split of  one share for 500 outstanding shares with no
certificate being reversed below 100 shares.

**ITEM 2.   DESCRIPTION OF PROPERTIES**

Office Space

The Company has not had a need to rent office space. A shareholder of the Company is allowing the Company to use its
address, as needed, at no expense to the Company. The Company does not own any property.

**ITEM 3.   LEGAL PROCEEDINGS**

None.

**ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS**

No matters were submitted to a vote of shareholders of the Company during the fiscal year ended June 30, 2002.

**ITEM 5.   MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS**

During the past five years there has been no established trading market for the Company's common capital stock. Since its
inception, the Company has not paid any dividends on its common stock, and the Company does not anticipate that it will
pay dividends in the foreseeable future. At June 30, 2002, the Company had 176 shareholders.

**ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OR OPERATION**

Plan of Operation

The Company is seeking to acquire assets or shares of an entity actively engaged in business which generates revenues.
The Company has no particular acquisitions in mind and has not entered into any negotiations regarding such an
acquisition. None of the Company's officers, directors, promoters or affiliates have engaged in any substantive contact or
discussions with any representative of any other company regarding the possibility of an acquisition or merger between the
Company and such other company as of the date of this quarterly report. The Board of Directors intends to obtain certain
assurances of value of the target entity's assets prior to consummating such a transaction.  Any business combination or
transaction will likely result in a significant issuance of shares and substantial dilution to present stockholders of the
Company.

The Company has, and will continue to have, no capital with which to provide the owners of business opportunities with
any significant cash or other assets. However, management believes the Company will be able to offer owners of
acquisition candidates the opportunity to acquire a controlling ownership interest in a publicly registered company without
incurring the cost and time required to conduct an initial public offering. The owners of the business opportunities will,
however, incur significant legal and accounting costs in connection with the acquisition of a business opportunity,
including the costs of preparing Form 8-K's, 10-KSB's, 10-QSB's, agreements and related reports and documents.

Liquidity and Capital Resources

The Company remains in the development stage and, since inception, has experienced no significant change in liquidity or
capital resources or stockholder's equity. The Company's balance sheet as of June 30, 2002, reflects a total asset value of
$0.00. The Company has no cash or line of credit, other than that which present management may agree to extend to or
invest in the Company, nor does it expect to have one before a merger is effected.  The Company will carry out its plan of
business as discussed above. The Company cannot predict to what extent its liquidity and capital resources will be
diminished prior to the consummation of a business combination or whether its capital will be further depleted by the
operating losses (if any) of the business entity which the Company  may eventually acquire.

Results of Operations

During the period from July 1, 2001 through June 30, 2002, the Company has engaged in no significant operations other
than maintaining its reporting status with the SEC and seeking a business combination.  No revenues were received by the
Company during this period.

For the current fiscal year, the Company anticipates incurring a loss as a result of legal and accounting expenses, and
expenses associated with locating and evaluating acquisition candidates. The Company anticipates that until a business
combination is completed  with an acquisition candidate, it will not generate revenues, and may continue to operate at a
loss after completing a business combination, depending upon the performance of the acquired business.

Need for Additional Financing

Based upon current management's willingness to extend credit to the Company and/or invest in the Company until a
business combination is completed, the Company believes that its existing capital will be sufficient to meet the Company's
cash needs required for the costs of compliance with the continuing reporting requirements of the Securities Exchange Act
of 1934, as amended, and for the costs of accomplishing its goal of completing a business combination, for an indefinite
period of time. Accordingly, in the event the Company is able to complete a business combination during this period, it
anticipates that its existing capital will be sufficient to allow it to accomplish the goal of completing a business
combination. There is no assurance, however, that the available funds will ultimately prove to be adequate to allow it to
complete a business combination, and once a business combination is completed, the Company's needs for additional
financing are likely to increase substantially.  In addition, as current management is under no obligation to continue to
extend credit to the Company and/or invest in the Company, there is no assurance that such credit or investment will
continue or that it will continue to be sufficient for future periods.

**ITEM 7.   FINANCIAL STATEMENTS**

The financial statements of the Company are included following the signature page of this form 10-KSB.

**ITEM 8.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE**

The Company has had no disagreements with its certified public accountants with respect to accounting practices or
procedures of financial disclosure.

**ITEM 9.   DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL  PERSONS;
COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.**

The following table sets forth as of June 30, 2002, the name, age, and position of each executive officer and director and
the term of office of each director of the Company.

|Name                | Age | Position                  | Director and/or Officer Since
|------------------- | --- | ------------------------- | -----------------------------
|Michael L. Labertew | 38  | Sole Officer and Director | 2002                         

Each director of the Company serves for a term of one year and until his successor is elected at the Company's annual
shareholders' meeting and is qualified, subject to removal by the Company's shareholders. Each officer serves, at the
pleasure of the board of directors, for a term of one year and until his successor is elected at the annual meeting of the
board of directors and is qualified.

Set forth below is certain biographical information regarding each of the Company's executive officers and directors.

|Michael L. Labertew | Michael Labertew, age 38, was appointed as the Company's
president, secretary and treasurer, and sole director in 2002.
Mr. Labertew is and has been for the last 13 years an
attorney in Salt Lake City, Utah. Mr. Labertew has a
bachelor of arts degree from the University of Iowa and a
Juris Doctorate from the University of Utah.
|------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Except as indicated below, to the knowledge of management, during the past five years, no present or former director,
executive officer or person nominated to become a director or an executive officer of the Company:

(1) filed a petition under federal bankruptcy laws or any state insolvency law, nor had a receiver, fiscal agent or similar
officer appointed by a court for the business or property of such person, or any partnership in which he was a general
partner at or within two years before the time of such filing.

(2) was convicted in a criminal proceeding or named subject of a pending criminal proceeding (excluding traffic violations
and other minor offenses);

(3) Was the subject of any order, judgement or decree, not subsequently reversed, suspended or vacated, of any court of
competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting, the following activities:

(i) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator,
floor broker, leverage transaction merchant, associated person of any of the foregoing, or as an investment advisor,
underwriter, broker or dealer in securities, or as an affiliate person, director or employee of any investment company, or
engaging in or continuing any conduct or practice in connection with such activity;

(ii) engaging in any type of business practice; or

(iii) engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with
any violation of federal or state securities laws or federal commodities laws;

(4) was the subject of any order, judgement, or decree, not subsequently reversed, suspended, or vacated, of any federal or
state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any
activity described under this Item, or to be associated with persons engaged in any such activity;

(5) was found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission to have
violated any federal or state securities law, and the judgement in such civil action findings by the Securities and Exchange
Commission has not been subsequently reversed, suspended, or vacated.

(6) was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to
have violated any federal commodities law, and the judgement in such civil action or filing by the Commodity Futures
Trading Commission has not been subsequently reversed, suspended or vacated.

Compliance with Section 16(a) of the Exchange Act

Since the Company ceased operations in 1990, other than as set forth below, the Company knows of no person, who at any
time during the subsequent fiscal years, was a director, officer, beneficial owner of more than ten percent of any class of
equity securities of the registrant registered pursuant to Section 12 ("Reporting Person"), that failed to file on a timely basis
any reports required to be furnished pursuant to Section 16(a). Based upon a review of Forms 3 and 4 furnished to the
registrant under Rule 16a-3(d) during its most recent fiscal year, other than disclosed below, the registrant knows of no
Reporting Person that failed to file the required reports during the most recent fiscal year or prior years.

The following table sets forth as of June 30, 2002, the name and position of each Reporting Person that failed to file on a
timely basis any reports required pursuant to Section 16(a) during the most recent fiscal year or prior years.

|Name         | Position                            | Report to be Filed
|------------ | ----------------------------------- | ------------------
|Jennifer Ngo | Former President/Secretary/Director | Form 5            

**ITEM 10.  EXECUTIVE COMPENSATION**

Cash Compensation

There was no cash compensation paid to any director or executive officer of the Company during the fiscal years ended
June 30, 2002, 2001, and 2000.

Bonuses and Deferred Compensation

None.

Compensation Pursuant to Plans

None.

Pension Table

None.

Other Compensation

None.

Compensation of Directors

None.

Termination of Employment and Change of Control Arrangement

There are no compensatory plans or arrangements, including payments to be received from the Company, with respect to
any person named in Cash Compensation set out above which would in any way result in payments to any such person
because of his resignation, retirement, or other termination of such person's employment with the Company or its
subsidiaries, or any change in control of the Company, or a change in the person's responsibilities following a changing in
control of the Company.

**ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

The following table sets forth as of June 30, 2002, the name and address and the number of shares of the Company's
Common Stock, par value $0.001 per share, held of record or beneficially by each person who held of record, or was
known by the Company to own beneficially, more than 5% of the issued and outstanding shares of the Company's
Common Stock, and the name and shareholdings of each director and of all officers and directors as a group.

|Name of Person or Group                            | Nature of Ownership (1) | Number of Shares Owned | Percent
|-------------------------------------------------- | ----------------------- | ---------------------- | -------
|Officers and Directors and
Principal Shareholders: |                         |                        |        
|Michael L. Labertew                                |                         | 0                      | 0%     
|Jennifer Ngo                                       | Direct                  | 20,200                 | 43%    
|All Officers and Directors as
a Group (1 person)   |                         | 0                      | 0%     

(1) All shares owned directly are owned beneficially and of record, and such shareholder has sole voting, investment, and
dispositive power, unless otherwise noted.

**ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

Transactions with Management and Others

There have been no material transactions, or series of similar transactions, since the beginning of the Company's last fiscal
year, or any currently proposed transactions, or series of similar transactions, to which the Company was or is to be party,
in which the amount involved exceeds $60,000, and in which any  director or executive officer, or any securities holder
who is  known by the Company to own of record or beneficially more than 5% of any class of the Company's common
stock, or any member of  the immediate family of any of the foregoing persons, has an interest.

Indebtedness of Management

There were not material transactions, or series of similar transactions, since the beginning of the Company's last fiscal year,
or any currently proposed transactions, or series of similar transactions, to which the Company was or is to be a party, in
which the amount involved exceeds $60,000 and in which any director or executive officer, or any security holder who is
known to the Company to own of record or beneficially more than 5% of any class of the Company's common stock, or any
member of the immediate family of any of the foregoing persons, has an interest.

Transactions with Promoters

The Company was organized more than five years ago, therefore transactions between the Company and its promoters or
founders are not deemed to be material.  There were no transactions between the Company and any promoters or founders
during the twelve months that are the subject of this report.

**ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K**

(a)(1) Financial Statements. The following financial statements are included in this report:

Report of Andersen, Andersen & Strong, Certified Public Accountants

Balance Sheet as of June 30, 2002

Statements of Operations for years ended June 30, 2002 and 2001 and the period from July 2, 1986 to June 30, 2002

Statement of Changes in Stockholders' Equity for the period from July 2, 1986 to June 30, 2002

Statements of Cash Flows for the years ended June 30, 2002 and 2001 and the period from July 2, 1986 to June 30, 2002

Notes to Financial Statements

(a)(2) Financial Statements Schedules. The following financial statement schedules are included as a part of this report:

None.

(a)(3) Exhibits. The following exhibits are included as part of this report by reference:

None.

(b) Reports on Form 8-K

None.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the dates indicated:

AMERICAN COAL CORPORATION

Date: October 9, 2002                               By:  /s/ Michael L. Labertew

Michael L. Labertew, President and Director

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of American Coal Corporation (the "Company") on Form 10-KSB for the period
ended June 30, 2002 as filed with the Securities and Exchange Commission on the Date hereof (the "Report"), the
undersigned certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of
2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934;
and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of
operations of the Company.

Date: October 9, 2002                                              By: /s/ Michael L. Labertew

Michael L. Labertew , Chief Executive Officer

Date: October 9, 2002                                              By: /s/ Michael L. Labertew

Michael L. Labertew, Chief Financial Officer

[Letterhead]

**ANDERSEN ANDERSEN & STRONG, L.C.**                                      941 East 3300 South, Suite 202

Certified Public Accountants and Business Consultants                          Salt Lake City, Utah 84106

Member SEC Practice Section of the AICPA                                          Telephone 801 486-0096

Fax 801 486-0098

Board of Directors

American Coal Corporation

Salt Lake City, Utah

**REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS**

We have audited the accompanying balance sheet of American Coal Corporation (development stage company) at June 30,
2002 and the related statements of operations, stockholders' equity, and cash flows for the years ended June 30, 2002 and
2001, and the period July 2, 1986 (date of inception) to June 30, 2002. 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 audit in accordance with auditing standards generally accepted in the United States of America. 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 financials 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
audit provides 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 Coal Corporation at June 30, 2002 and the results of operations, and cash flows for the years ended June 30,
2002 and 2001, 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.
The Company will need working capital to service its debt and for any planned activity, which raises substantial doubt
about its ability to continue as a going concern. Management's plans in regard to these matters are described in Note 5.
These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Salt Lake City, Utah

September 25, 2002                                                             /s/ Andersen Andersen & Strong LC

|**AMERICAN COAL CORPORATION**    
|---------------------------------
|**( Development Stage Company )**
|**BALANCE SHEET**                
|**June 30, 2002**                

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

|**ASSETS**                                                                               |             
|---------------------------------------------------------------------------------------- | ------------
|**CURRENT ASSETS**                                                                       |             
|Cash                                                                                     | $         - 
|                                                                                         | __________  
|Total Current Assets                                                                     | $        -  
|                                                                                         | =========   
|**LIABILITIES AND STOCKHOLDERS' EQUITY**                                                
|**CURRENT LIABILITIES**                                                                  |             
|Accounts payable                                                                         | $13,428     
|                                                                                         | __________  
|Total Current Liabilities                                                                | 13,428      
|                                                                                         | __________  
|**STOCKHOLDERS' EQUITY**                                                                 |             
|Common stock                                                                             |             
|300,000,000 shares authorized, at $0.001 par value;
51,805 shares issued and outstanding | 52          
|Capital in excess of par value                                                           | 78,361      
|Deficit accumulated during the development stage                                         | (91,841)    
|                                                                                         | __________  
|Total Stockholders' Equity (deficiency)                                                  | $(13,428)   
|                                                                                         | __________  
|                                                                                         | $          -
|                                                                                         | =========   

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

|**AMERICAN COAL CORPORATION**                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------------------------
|**(Development Stage Company)**                                                                                                                    
|**STATEMENT OF OPERATIONS**                                                                                                                        
|**For the Years Ended June 30, 2002and 2001 and
                                     the Period July 2, 1986 (Date of Inception) to June 30, 2002**

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

|                               |             |               | **July 2, 1986**     
|------------------------------ | ----------- | ------------- | ---------------------
|                               | **2002**    | **2001**      | **to  June 30, 2002**
|**SALES**                      | $         - | $           - | $2,850,562           
|**COST OF SALES**              | -           | -             | 2,418,648            
|                               | __________  | __________    | __________           
|Gross Profit                   | -           | -             | 431,914              
|**EXPENSES**                   | 1,528       | 2,869         | 523,755              
|                               | __________  | __________    | __________           
|**NET LOSS**                   | $(1,528)    | $  (2,869)    | $  (91,841)          
|                               | =========   | =========     | ========             
|**NET LOSS PER
COMMON SHARE**  |             |               |                      
|Basic                          | $   (.03)   | $    (.06)    |                      
|                               | ======      | =======       |                      
|**AVERAGE
OUTSTANDING SHARES** |             |               |                      
|Basic                          | 51,805      | 51,805        |                      
|                               | ======      | ======        |                      

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

|**AMERICAN COAL CORPORATION**                              
|-----------------------------------------------------------
|**( Development Stage Company )**                          
|**STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY**           
|**Period July 2, 1986 (Date of Inception)to June 30, 2002**

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

|                                                                                                           | **Common Stock** | **Common Stock** | **Capital in Excess of
Par Value** | **Accumulated Deficit**
|---------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ---------------------------------- | -----------------------
|                                                                                                           | **Shares**       | **Amount**       |                                    |                        
|**Balance July 2,
1986**(Date of inception)                                                                | -                | $     -          | $      -                           | $       -              
|Issuance of common
stock for cash at $17.65
- 1986                                                         | 340              | -                | 6,000                              | -                      
|Issuance of common
stock for cash at
$1,241.69 net of
issuance costs - 1987                                | 36               | -                | 44,701                             | -                      
|Net operating income
for the period ended
June 30, 1987                                                    | -                | -                | -                                  | 331                    
|Issuance of common
stock for all of the
outstanding stock of
American Coal
Corporation -value
unknown-1987 | 66               | -                | -                                  | -                      
|Contribution to capital -
expenses - 1988                                                                  | -                | -                | 5,000                              | -                      
|Net operating loss for
the year ended June 30,
1988                                                        | -                | -                | -                                  | (48,949)               
|Issuance of common
stock for all of the
outstanding stock of
King Koals, Inc. - at
$23.81 - 1989           | 84               | -                | 2,000                              | -                      
|Net operating loss for
the year ended June 30,
1989                                                        | -                | -                | -                                  | (169,294)              
|Net operating income
for the year ended June
30, 1990                                                      | -                | -                | -                                  | 160,211                
|Net operating loss for
the years ended June
30, 1991 to June 30,
1996                                      | -                | -                | -                                  | -                      
|Net operating loss for
the year ended June 30,
1997                                                        | -                | -                | -                                  | (3,575)                
|Net operating loss for
the year ended June 30,
1998                                                        | -                | -                | -                                  | (5,773)                
|Issuance of common
stock for failed merger
at $1.54 - Note 3                                               | 31,279           | 32               | 4,783                              | -                      
|Net operating loss for
year ended June 30,
1999                                                            | -                | -                | -                                  | (8,315)                
|Issuance of common
stock for services at
$.50 - October 21, 1999                                           | 20,000           | 20               | 9,980                              | -                      
|Net operating loss for
the year ended June 30,
2000                                                        | -                | -                | -                                  | (12,080)               
|                                                                                                           | __________       | __________       | __________                         | __________             
|**Balance June 30, 2000**                                                                                  | 51,805           | 52               | 72,464                             | (87,444)               
|Contribution to capital -
expenses - related
parties                                                       | -                | -                | 2,669                              | -                      
|Net operating loss for
the year ended June 30,
2001                                                        | -                | -                | -                                  | (2,869)                
|                                                                                                           | __________       | __________       | __________                         | __________             
|**Balance June 30, 2001**                                                                                  | 51,805           | $    52          | $75,133                            | $(90,313)              
|Contribution to capital -
expenses - related
parties                                                       | -                | -                | 3,228                              | -                      
|Net operating loss for
the year ended June 30,
2002                                                        | -                | -                | -                                  | (1,528)                
|                                                                                                           | __________       | __________       | __________                         | __________             
|**Balance June 30, 2002**                                                                                  | 51,805           | $    52          | $78,361                            | $(91,841)              
|                                                                                                           | =======          | ========         | ========                           | =========              

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

|**AMERICAN COAL CORPORATION**                                                                                                                      
|---------------------------------------------------------------------------------------------------------------------------------------------------
|**( Development Stage Company )**                                                                                                                  
|**STATEMENT OF CASH FLOWS**                                                                                                                        
|**For the Years Ended June 30, 2002 and 2001 and
                                    the Period July 2, 1986 (Date of Inception) to June 30, 2002**

===============================================================================****June 30,**
**June 30,**
**July 2, 1986****2002**
**2001**
**to June 30, 2002****CASH FLOWS FROM
OPERATING
ACTIVITIES**Net loss
$ (1,528)
$(2,869)
$(91,841)Adjustments to reconcile net
loss to net cash provided by
operating activitiesLoss in investments
-
-
2,000Loss on failed merger
-
-
4,815Changes in accounts payable
(1,700)
200
13,428Issuance of common stock for
expenses
-
-
10,000Contribution to capital -
expenses
3,228
2,669
10,897__________
__________
__________Net Cash Used From
Operations
-
-
(50,701)__________
__________
__________**CASH FLOWS FROM
INVESTING ACTIVITIES**
-
-
-__________
__________
__________**CASH FLOWS FROM
FINANCING ACTIVITIES**Proceeds from issuance of
common stock
-
-
50,701__________
__________
__________Net Increase (Decrease) in
Cash
-
-
-Cash at Beginning of Period
-
-
-__________
__________
__________Cash at End of Period
$     -
$    -
$   -=========
=========
========**SCHEDULE OF NONCASH OPERATING AND INVESTING ACTIVITIES**Issuance of 66 shares of common stock for stock of
American Coal Corp - 1987
$        -Issuance of 84 shares of common stock for stock of King
Koals, Inc. - 1989
2,000Contribution to capital - expenses - 1988 through 2002
10,897Issuance of 20,000 shares of common stock for services -
related party - 1999
10,000The accompanying notes are an integral part of these financial statements.

**AMERICAN COAL CORPORATION****(A Development Stage Company )****NOTES TO FINANCIAL STATEMENTS**=============================================================================== **1. ORGANIZATION**

The Company was incorporated under the laws of the state of Nevada on July 2, 1986 with authorized common stock of
300,000,000 shares at a  par value of $.001 with the name of Technical Solutions, Ltd. On July 3, 1989 the name was
changed to American Coal Corporation.

On March 25, 1989 the Company acquired all of the outstanding stock of King Koals, Inc. in exchange for 84 common
shares of the Company. King Koals, Inc. ceased operations in 1990, and until that time was in the business of developing
and operating coal leases.

On August 25, 1998 the Company acquired all of the outstanding stock of U S Jet, Inc. in a stock for stock exchange. On
September 27, 1999 the transaction was retroactively rescinded by court order. (Note 3)

On August 25, 1998 the Company completed a reverse stock split of one share for 100 outstanding shares and on October
21, 1999 a stock split of one share for 500 outstanding shares. This report has been prepared showing after stock split
shares from inception.

The Company has been in the development stage since inception and has been engaged in the business of seeking mineral
leases for potential development. During 1990 the Company abandoned its interest held in a subsidiary and its efforts to
develop and operate mineral leases, and since that date has remained inactive.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

Accounting Methods

The Company recognizes income and expenses based on the accrual method of accounting.

Dividend Policy

The Company has not yet adopted a policy regarding payment of dividends.

Income Taxes

On June 30, 2002, the Company had net operating losses available for carry forward of $91,841. The tax benefit of
approximately $27,552 from the carry forwards have been fully offset by a valuation reserve because the use of the future
tax benefit is undeterminable since the Company has no operations. The loss carry forwards expire starting in the years
2004 though 2022.**AMERICAN COAL CORPORATION****(A Development Stage Company )****NOTES TO FINANCIAL STATEMENTS (Continued)**=============================================================================== **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** (continued)

Earnings (Loss) Per Share

Earnings (loss) per share amounts are computed based on the weighted average number of shares actually outstanding.

Financial Instruments

The carrying amounts of financial instruments, including accounts payable,  are considered by management to be their
estimated fair values. These values are not necessarily indicative of the amounts that the Company could realize in a
current market exchange.

Estimates and Assumptions

Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted
accounting principles.  Those estimates and assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could vary from the
estimates that were assumed in preparing these financial statements.

Recent Accounting Pronouncements

The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on
its financial statements.

**3.  ACQUISITION AND RETROACTIVE RESCISSION OF U.S. JET, INC.**

On August 14, 1998 the Company completed an acquisition and merger with U.S. Jet, a private corporation. On May 19,
1999 a complaint was filed in the Third District Court, Salt Lake County, by a former officer of the Corporation to rescind
the merger, based on misrepresentations and nondisclosure by U.S. Jet. On September 27, 1999 a default judgement was
rendered in favor of the Company rescinding the August 14, 1998 Agreement and Plan of Merger between the Company
and U.S. Jet, Inc., in the matter of Jennifer Ngo v. U.S. Jet, Inc., Kenneth R. Debree and Paul A. Price, Civil Number
990905347, and restoring the Company to its condition immediately preceding the merger. Subsequently, Mr. DeBree filed
a Motion to set aside the default judgement, which was not ruled upon. The Parties ultimately entered into an agreement
rescinding and terminating the merger release and indemnification on March 13, 2000, resolving all disputes between the
parties and confirming the rescission of the August 14, 1998 merger.**AMERICAN COAL CORPORATION****(A Development Stage Company )****NOTES TO FINANCIAL STATEMENTS****============================================================================= 
4. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES**

Officers/directors have made contributions to capital by the payment of Company expenses of $10,897.****

**5.  GOING CONCERN**

The Company intends to acquire interests in various business opportunities which, in the opinion of management, will
provide a profit to the Company, however, the Company does not have the working capital to be successful in this effort.

Continuation of the Company as a going concern is dependent upon obtaining additional working capital and the
management of the Company has developed a strategy, which it believes will accomplish this objective through additional
equity funding which will enable the Company to operate for the coming year, however there is no assurance that the
Company will be able to obtain this objective.**