**AMERICAN COAL CORPORATION**

**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, 2001

(  ) 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.)

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

(Address of principal executive offices)            (Zip Code)

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

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, 2001, 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, 2001, 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 10QSB 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, 2001.

**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, 2001, 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 September 30, 2000, 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, 2000 through June 30, 2001, 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, 2001, 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
|------------ | --- | ------------------ | -----------------------------
|Jennifer Ngo | 29  | Secretary/Director | 1997                         
|             |     | President          | 1999                         

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.

|Jennifer Ngo | Ms. Ngo is a graduate of the University of Utah with dual Baccalaureates in English and
Microbiology along with a minor in International Economics. She has extensive experience working
with public and private companies, ranging from start-ups to fully established operations.
|------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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, 2001, 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 | 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,
2001, 2000, and 1999.

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, 2001, 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: |                         |                        |        
|Jennifer Ngo                                       | Direct                  | 20,200                 | 43%    
|All Officers and Directors as a
Group (1 person)   | Direct                  | 20,200                 | 43%    

(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 Anderson, Anderson & Strong, Certified Public Accountants

Balance Sheet as of June 30, 2001

Statements of Operations for years ended June 30, 2001 and 2000 and the period from July 2, 1986 to June 30, 2001

Statements of Changes in Stockholders' Equity for the period from July 2, 1986 to June 30, 2001

Statements of Cash Flows for the years ended June 30, 2001 and 2000 and the period from July 2, 1986 to June 30, 2001

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

Change in Control of Registrant filed October 8, 1999 incorporated by reference.

**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: September 20, 2001                               By:  /s/ Jennifer Ngo

----------------------

Jennifer Ngo, President and Director

[Letterhead]

**ANDERSON ANDERSON & STRONG, L.C.**                                                                   941 East 3300 South, Suite 202
Certified Public Accountants and Business Consultants                                                        Salt Lake City, Utah 84106
                                                                                                                                                Telephone 801-486-0096

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 (a development stage company) at June 30,
2001 and the statements of operations, stockholders' equity, and cash flows for the years ended June 30, 2001 and 2000, and the
period July 2, 1986 (date of inception) to June 30, 2001. 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, 2001 and the results of operations, and cash flows for the years ended June 30, 2001 and
2000, 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 4, 2001                                                             /s/ Anderson Anderson & Strong

|**AMERICAN COAL CORPORATION**    
|---------------------------------
|**( Development Stage Company )**
|**BALANCE SHEETS**               
|**June 30, 2001**                

|                                                                                         | **June 30, 2001** 
|---------------------------------------------------------------------------------------- | ------------------
|                                                                                         | ------------------
|**ASSETS**                                                                               |                   
|**CURRENT ASSETS**                                                                       |                   
|Cash                                                                                     | $         -       
|                                                                                         | --------          
|Total Current Assets                                                                     | $        -        
|                                                                                         | ======            
|**LIABILITIES AND STOCKHOLDERS' EQUITY**                                                
|**CURRENT LIABILITIES**                                                                  |                   
|Accounts payable                                                                         | $15,128           
|                                                                                         | ---------         
|Total Current Liabilities                                                                | 15,128            
|                                                                                         | ---------         
|**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                                                           | 75,133            
|Deficit accumulated during the development stage                                         | (90,313)          
|                                                                                         | --------          
|Total Stockholders' Equity (deficiency)                                                  | $(15,128)         
|                                                                                         | ---------         
|                                                                                         | $          -      
|                                                                                         | ======            

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

|**AMERICAN COAL CORPORATION**                                                                                                                       
|----------------------------------------------------------------------------------------------------------------------------------------------------
|**( Development Stage Company )**                                                                                                                   
|**STATEMENTS OF OPERATIONS**                                                                                                                        
|**For the Years Ended June 30, 2001and 2000 and
                                      the Period July 2, 1986 (Date of Inception) to June 30, 2001**



|                               |             |               | **July 2, 1986**     
|------------------------------ | ----------- | ------------- | ---------------------
|                               | **2001**    | **2000**      | **to  June 30, 2001**
|**SALES**                      | $         - | $           - | $2,850,562           
|**COST OF SALES**              | -           | -             | 2,418,648            
|                               | ------      | ----------    | ------------         
|Gross Profit                   | -           | -             | 431,914              
|**EXPENSES**                   | 2,869       | 12,080        | 522,227              
|                               | ------      | ---------     | -----------          
|**NET LOSS**                   | $(2,869)    | $(12,080)     | $  (90,313)          
|                               | =====       | ======        | ======               
|**NET LOSS PER COMMON
SHARE**  |             |               |                      
|Basic                          | $   (.06)   | $    (.24)    |                      
|                               | =====       | ======        |                      
|**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, 2001**

|                                                                                                           | **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)              
|                                                                                                           | =======          | ========         | ========                           | =========              

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, 2001 and 2000 and
                                       the Period July 2, 1986 (Date of Inception) to June 30, 2001**

|                                                                               |            |            | ******July 2, 1986**
|------------------------------------------------------------------------------ | ---------- | ---------- | --------------------
|                                                                               | **2001**   | **2000**   | **to June 30, 2001**
|**CASH FLOWS FROM
OPERATING ACTIVITIES**                                       |            |            |                     
|Net loss                                                                       | $ (2,869)  | $(12,080)  | $(90,313)           
|Adjustments to reconcile net
loss to net cash provided by
operating activities |            |            |                     
|Loss in investments                                                            | -          | -          | 2,000               
|Loss on failed merger                                                          | -          | -          | 4,815               
|Changes in accounts payable                                                    | 200        | 2,080      | 15,128              
|Issuance of common stock for
expenses                                          | -          | 10,000     | 10,000              
|Contribution to capital -
expenses                                             | 2,669      | -          | 7,669               
|                                                                               | -------    | --------   | ---------           
|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   
|Contribution to capital - expenses - 1988 and 2001                           
|Issuance of 20,000 shares of common stock for services -
related party - 1999

The 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, 2001, the Company had net operating losses carry forward of $90,313. The tax benefit of approximately $27,094
from the loss carry forward  has 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 forward will expire starting  in the year 2004 though 2021.

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.

Comprehensive Income

The Company adopted Statement of Financial Accounting Standards No. 130. The adoption of this standard had no impact on
the total stockholders' equity.

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. RELATED PARTY TRANSACTIONS**

Related parties own 41% of the outstanding common capital stock.

**4.  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.

**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 necessary to service its debt and 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 long term financing and
additional equity funding which will enable the Company to operate for the coming year.