----

----

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

| Nevada(State or other jurisdiction ofincorporation or organization)                                                                                                                                                                                                                                                                | 27-4429450 (I.R.S. employeridentification number) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|
|  16 Market Square Center1400 16th Street Suite 400Denver, CO 80202Tel: 720.932.8389Fax: 720.222.5151(Address of principal executive offices)  Copies to:JPF Securities Law, LLCBox 523East Granby, CT 06026Phone: (646) 807-9094Fax: (980) 422-0334(Address of principal executive offices and zip code)  |

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

----

| PART I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  Page No. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
| Item 1.  Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
| Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 10             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 12             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
| Item 4.  Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 12             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
| Item 4T. Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 12             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
| PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |           |
|  Item 1.  Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
|  Item 1A. Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
|  Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
|  Item 3.  Defaults Upon Senior Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
|  Item 4.  Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
|  Item 5.  Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |
|  Item 6.  Exhibits                                                                                                                                          | 13             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |           |

----

| AMERICAN POWER CORPORATION                          |   | PAGE   |   |
|-----------------------------------------------------|--------|--------|--------|
|                                                |   |   |   |
| Balance Sheets                                      |   |   | 4      |   |
|                                                |   |   |   |   |
| Statements of Operations                            |   |   | 5      |   |
|                                                |   |   |   |   |
| Statement of Stockholders’ Equity   |   |   | 6      |   |
|                                                |   |   |   |   |
| Statements of Cash Flows                            |   |   | 7      |   |
|                                                |   |   |   |   |
| Notes to Financial Statements                       |   |   | 8      |   |

----

| AMERICAN POWER CORP.                                                                            |   |
|-------------------------------------------------------------------------------------------------|--------|
| (An Exploration Stage Company)                                                                  |   |
| BALANCE SHEETS                                                                                  |   |
|                                                                                            |   |
|                                                                                            |   | December 31, 2010 |   |   | September 30, 2010 |   |
|                                                                                            |   | (Unaudited) |   |   | (Audited) |   |
|                                                                                            |   |   |   |   |   |   |
| ASSETS                                                                                          |   |   |   |   |   |   |
| CURRENT ASSETS                                                                                  |   |   |   |   |   |   |
| Cash                                                                                            |   | $ | 167,337 |   |   | $ | 520,852 |   |
| Prepaids and deposit                                                                            |   |   | 57,550 |   |   |   | 6,324 |   |
| Advances to related party                                                                       |   |   | 5,727 |   |   |   | 18,416 |   |
| TOTAL CURRENT ASSETS                                                                            |   |   | 230,614 |   |   |   | 545,592 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| OTHER ASSETS                                                                                    |   |   |   |   |   |   |   |   |
| Mineral property                                                                                |   |   | 2,670,500 |   |   |   | 2,670,500 |   |
| Equipment - net                                                                                 |   |   | 4,148 |   |   |   | 4,480 |   |
| Website - net                                                                                   |   |   | 31,735 |   |   |   | 28,297 |   |
| TOTAL ASSETS                                                                                    |   | $ | 2,936,997 |   |   | $ | 3,248,869 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                      |   |   |   |   |   |   |   |   |
| CURRENT  LIABILITIES                                                                  |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                        |   | $ | 13,678 |   |   | $ | 18,728 |   |
| Promissory notes, current portion                                                               |   |   | 400,000 |   |   |   | 600,000 |   |
| TOTAL CURRENT LIABILITIES                                                                       |   |   | 413,678 |   |   |   | 618,728 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| LONG TERM LIABILITIES                                                                           |   |   |   |   |   |   |   |   |
| Promissory notes, net of current portion, net of debt discount of $1,017,236                    |   |   | 1,882,764 |   |   |   | 1,794,271 |   |
| TOTAL LIABILITIES                                                                               |   |   | 2,296,442 |   |   |   | 2,412,999 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’  EQUITY                                                           |   |   |   |   |   |   |   |   |
| Capital stock                                                                                   |   |   |   |   |   |   |   |   |
| Authorized                                                                                      |   |   |   |   |   |   |   |   |
|      500,000,000 shares of common stock, $0.001 par value              |   |   |   |   |   |   |   |   |
| Issued and outstanding                                                                          |   |   |   |   |   |   |   |   |
|      91,075,238 shares of common stock (90,480,000 September 30, 2010) |   |   | 91,075 |   |   |   | 90,480 |   |
|         Additional paid in capital                      |   |   | 1,027,503 |   |   |   | 528,098 |   |
|         Stock payable                                   |   |   | 871,410 |   |   |   | 1,106,410 |   |
| Accumulated deficit during exploration stage                                                    |   |   | (1,349,433 | ) |   |   | (889,118 | ) |
| TOTAL STOCKHOLDERS’ EQUITY                                                                |   |   | 640,555 |   |   |   | 835,870 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’  EQUITY                                     |   | $ | 2,936,997 |   |   | $ | 3,248,869 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements.                      |   |

----

| AMERICAN POWER CORP.                                        |
|-------------------------------------------------------------|
| (An Exploration Stage Company)                              |
| STATEMENTS OF OPERATIONS                                    |
| (Unaudited)                                                 |
|                                                        |
|                                                        |   |   |   |   |   |   |   | Cumulative results |   |
|                                                        |   |   |   |   |   |   |   | from inception |   |
|                                                        |   | Three Months Ended |   |   | Three Months Ended |   |   | (August 7, 2007) to |   |
|                                                        |   | December 31, 2010 |   |   | December 31, 2009 |   |   | December 31, 2010 |   |
| REVENUES                                                    |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |
| Revenues                                                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Total revenues                                              |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Office and general                                          |   |   | 41,940 |   |   |   | 954 |   |   |   | 139,292 |   |
| Management fees                                             |   |   | 292,500 |   |   |   | - |   |   |   | 491,164 |   |
| Professional fees                                           |   |   | 22,276 |   |   |   | 5,500 |   |   |   | 113,127 |   |
| Gain on debt forgiveness                                    |   |   | - |   |   |   | - |   |   |   | 8,000 |   |
| Exploration costs                                           |   |   | 15,107 |   |   |   | - |   |   |   | 15,107 |   |
| Total expenses                                              |   |   | (371,823 | ) |   |   | (6,454 | ) |   |   | (766,690 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                            |   |   | (88,492 | ) |   |   | - |   |   |   | (285,866 | ) |
| Loss on debt settlement                                     |   |   | - |   |   |   | - |   |   |   | (237,807 | ) |
| Total other expenses                                        |   |   | (88,492 | ) |   |   | - |   |   |   | (523,673 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                                    |   | $ | (460,315 | ) |   | $ | (6,454 | ) |   | $ | (1,274,363 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC LOSS PER COMMON SHARE                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        | $ | (0.01 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING- BASIC |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   | 91,042,888 |   |   |   | 87,380,000 |   |   |   |   |   |

----

| AMERICAN POWER CORP.                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
| (An Exploration Stage Company)                                                                                                                  |
| STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                     |
| From inception (August 7, 2007) to December 31, 2010                                                                                            |
| (Unaudited)                                                                                                                                     |
|                                                                                                                                            |   | Common Stock |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   | Number of shares |   |   | Amount |   |   | Additional Paid-in Capital |   |   | Share Subscription Receivable |   |   | Stock Payable |   |   | Deficit accumulated during the exploration stage |   |   | Total |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, August 7, 2007 (Inception)                                                                                                             |   |   | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Common stock issued for cash at $0.001per share on August 13, 2007                                                                              |   |   | 44,200,000 |   |   |   | 44,200 |   |   |   | - |   |   |   | (8,500 | ) |   |   | - |   |   |   | (35,700 | ) |   |   | - |   |
| Net loss                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,525 | ) |   |   | (2,525 | ) |
| Balance, September 30, 2007                                                                                                                     |   |   | 44,200,000 |   |   |   | 44,200 |   |   |   | - |   |   |   | (8,500 | ) |   |   | - |   |   |   | (38,225 | ) |   |   | (2,525 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription Receivable                                                                                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,500 |   |   |   | - |   |   |   | - |   |   |   | 8,500 |   |
| Common stock issued for cash at $0.03per share July and August 2008                                                                             |   |   | 43,180,000 |   |   |   | 43,180 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (39,370 | ) |   |   | 3,810 |   |
| Net loss                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (12,964 | ) |   |   | (12,964 | ) |
| Balance, September 30, 2008                                                                                                                     |   |   | 87,380,000 |   |   |   | 87,380 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (90,559 | ) |   |   | (3,179 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   | (21,338 | ) |   |   | (21,338 | ) |
| Balance, September 30, 2009                                                                                                                     |   |   | 87,380,000 |   |   |   | 87,380 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (111,897 | ) |   |   | (24,517 | ) |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forgiveness of debt by former director                                                                                                          |   |   |   |   |   |   | - |   |   |   | 16,198 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,198 |   |
| Common Stock, issued for mineral property at $0.05 per share April 9, 2010                                                                      |   |   | 2,300,000 |   |   |   | 2,300 |   |   |   | 112,700 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 115,000 |   |
| Common stock issued for cash at $0.50per share June 25, 2010                                                                                    |   |   | 800,000 |   |   |   | 800 |   |   |   | 399,200 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 400,000 |   |
| Common stock  to be issued on debt totalling $208,603 (including interest of $8,603) conversion at $0.50 per share September 10, 2010 |   |   |     - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 446,410 |   |   |   | - |   |   |   | 446,410 |   |
| Common stock to be issued for services at $0.96 per share at September 30, 2010                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 160,000 |   |   |   | - |   |   |   | 160,000 |   |
| Private placement received in advance                                                                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500,000 |   |   |   | - |   |   |   | 500,000 |   |
| Net loss                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (777,221 | ) |   |   | (777,221 | ) |
| Balance,  September 30, 2010                                                                                                          |   |   | 90,480,000 |   |   |   | 90,480 |   |   |   | 528,098 |   |   |   | - |   |   |   | 1,106,410 |   |   |   | (889,118 | ) |   |   | 835,870 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for 595,238 units at $0.84 per unit on October 5, 2010                                                                      |   |   | 595,238 |   |   |   | 595 |   |   |   | 499,405 |   |   |   | - |   |   |   | (500,000 | ) |   |   | - |   |   |   | - |   |
| Common stock to be issued for services at December 31, 2010                                                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 265,000 |   |   |   | - |   |   |   | 265,000 |   |
| Net loss                                                                                                                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (460,315 | ) |   |   | (460,315 | ) |
| Balance,  December 31,  2010                                                                                                |   |   | 91,075,238 |   |   | $ | 91,075 |   |   | $ | 1,027,503 |   |   | $ | - |   |   | $ | 871,410 |   |   | $ | (1,349,433 | ) |   | $ | 640,555 |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  The accompanying notes are an integral part of these financial statements.                                                                |

----

| AMERICAN POWER CORP.                                                                   |
|----------------------------------------------------------------------------------------|
| (An Exploration Stage Company)                                                         |
| STATEMENTS OF CASH FLOWS                                                               |
| (Unaudited)                                                                            |
|                                                                                   |   | Three Months Ended December 31, 2010 |   |   | Three Months Ended December 31, 2009 |   |   | Cumulative results from inception (August 7, 2007) to December 31, 2010 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                               |   | $ | (460,315 | ) |   | $ | (6,454 | ) |   | $ | (1,274,363 | ) |
| Adjustment to reconcile net loss to net cash                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| used in operating activities                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                          |   |   | 2,784 |   |   |   | - |   |   |   | 6,155 |   |
| Stock-based compensation                                                               |   |   | 265,000 |   |   |   | - |   |   |   | 425,000 |   |
| Accretion of debt discount                                                             |   |   | 88,493 |   |   |   | - |   |   |   | 285,866 |   |
| Gain on extinguishment of debt                                                         |   |   | - |   |   |   | - |   |   |   | (8,000 | ) |
| Loss on extinguishment of debt                                                         |   |   | - |   |   |   | - |   |   |   | 237,807 |   |
| (Increase) in prepaid expenses                                                         |   |   | (51,226 | ) |   |   | - |   |   |   | (57,551 | ) |
| Decrease (increase) in advances to related party                                       |   |   | 12,689 |   |   |   | 4,790 |   |   |   | (5,727 | ) |
| Increase in accounts payable and accrued liabilities                                   |   |   | (5,050 | ) |   |   | 1,666 |   |   |   | 21,680 |   |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                    |   |   | (147,625 | ) |   |   | 2 |   |   |   | (369,133 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Website                                                                                |   |   | (5,890 | ) |   |   | - |   |   |   | (37,081 | ) |
| Equipment                                                                              |   |   | - |   |   |   | - |   |   |   | (4,957 | ) |
| Mineral property                                                                       |   |   | - |   |   |   | - |   |   |   | (350,000 | ) |
| NET CASH USED IN INVESTING ACTIVITIES                                                  |   |   | (5,890 | ) |   |   | - |   |   |   | (392,038 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sale of common stock                                                     |   |   | - |   |   |   | - |   |   |   | 912,310 |   |
| Loans from related party                                                               |   |   | - |   |   |   | - |   |   |   | 16,198 |   |
| Proceeds from notes payable                                                            |   |   | - |   |   |   | - |   |   |   | 200,000 |   |
| Payment on promissory note                                                             |   |   | (200,000 | ) |   |   | - |   |   |   | (200,000 | ) |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                                    |   |   | (200,000 | ) |   |   | - |   |   |   | 928,508 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET INCREASE ( DECREASE) IN CASH                                                       |   |   | (353,515 | ) |   |   | 2 |   |   |   | 167,337 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH, BEGINNING OF PERIOD                                                              |   |   | 520,852 |   |   |   | 147 |   |   |   | - |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH, END OF PERIOD                                                                    |   | $ | 167,337 |   |   | $ | 149 |   |   | $ | 167,337 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental cash flow information and noncash financing activities:                   |   |   |   |   |   |   |   |   |   |
| Common stock payable for property acquisition                                          |   | $ | - |   |   | $ | - |   |   | $ | 115,000 |   |
| Promissory notes issued for property                                                   |   | $ | - |   |   | $ | - |   |   | $ | 2,405,500 |   |
| Forgiveness of debt by former director                                                 |   | $ | - |   |   | $ | - |   |   | $ | 16,198 |   |
| Common stock issued to satisfy common stock payable                                    |   | $ | 500,000 |   |   | $ | - |   |   | $ | 500,000 |   |
| Conversion of debt totalling $208,603, (including interest of $8,603) for common stock |   | $ | - |   |   | $ | - |   |   | $ | 446,410 |   |
|  The accompanying notes are an integral part of these financial statements        |

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|                |   | AtDecember 31,2010 |     |   | AtSeptember30,2010 |   |
|---------------------|--------|--------------------|----------|--------|--------------------|--------|
|                |   |               |     |   |               |   |
| Current assets      |   | $                  | 230,614  |   |               | $      | 545,592 |   |
| Current liabilities |   |               | 413,678  |   |               |   | 618,728 |   |
| Working capital     |   | $                  | (183,064 | )      |               | $      | (73,136 | )  |

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|                                      |   | Three-months Ended |     |
|-------------------------------------------|--------|--------------------|----------|
|                                      |   | December 31,       |     |
|                                      |   | 2010               |     |   | 2009 |   |
|                                      |   |               |     |   |   |   |
| Net Cash Used in Operating Activities     |   | $                  | (147,625 | )  |   |  $ | 2 |   |
| Net Cash Used in Investing Activities     |   |               | (5,890   | )  |   |   | - |   |
| Net Cash Provided by Financing Activities |   |               | (200,000 | )  |   |   | - |   |
| Net Increase (Decrease) in Cash           |   | $                  | (353,515 | )  |   | $  | 2 |   |

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|                    |                                                                    |                                                           |
|-------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------|
|                    | AMERICAN POWER CORPORATION (Registrant)                            |
|                    |                                                                    |                                                           |
| Date: February 14, 2011 | By:                                                                     | /s/ Alvaro Valencia                                            |
|                    |                                                                    | Alvaro ValenciaChief Executive Officer, President and Director |
|                    |                                                                    |                                                           |
|                    |                                                                    |                                                           |
| Date: February 14, 2011 | By:                                                           | /s/ Johannes Petersen                                          |
|                    | Johannes PetersenChief Financial Officer, Secretary, and Director  |