| U.S.      SECURITIES AND EXCHANGE COMMISSIONWashington,      D.C. 20549Form      10-Q |
|---------------------------------------------------------------------------------------|

| American      Exploration Corporation(Name      of small business issuer in its charter)                   |
|------------------------------------------------------------------------------------------------------------|
|                                                                              |        |
| Nevada(State      or other jurisdiction of incorporationor      organization)                              | 98-0518266(I.R.S.      Employer Identification No.) |
|                                                                              |        |
|                                                                                                       |   |
| 407      2nd      Street SW, Calgary, Alberta, Canada T2P 2Y3(Address      of principal executive offices) |
|                                                                              |        |
| (403)      233-8484(Issuer’s      telephone number)                                                  |
|                                                                              |        |
| Securities      registered pursuant to Section12(b) of theAct:                                             | Name      of each exchange on whichregistered: |
| None                                                                                                       |   |
|                                                                         |        |
| Securities      registered pursuant to Section 12(g) of the Act:                                           |
| Common      Stock, $0.001                                                                                  |   |
| (Title      of Class)                                                                                      |   |

----

| Class                     | Outstanding      as of May 19, 2010 |
|---------------------------|-------------------------------------|
| Common      Stock, $0.001 | 60,273,333                          |

----

| Part      1.                      | FINANCIAL      INFORMATION                                                                            |              Page     |
|--------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------|
|                                             |                                                                                                  |                                                     |
| Item      1.                                     | Financial      Statements                                                                             |                                                     |
|                                   |    Balance      Sheets (Unaudited)                                                     | 5                                                        |
|                    |    Statements      of Operations (Unaudited)                                           | 6                                                        |
|                                             |    Statement      of Changes in Stockholders’ Equity (Unaudited)                 | 7                                                        |
|                                             |    Statements      of Cash Flows (Unaudited)                                           | 9                                                        |
|                                             |    Notes      to Financial Statements                                                  | 10                                                       |
|                                             |                                                                                                  |                                                     |
| Item      2.                      | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |               19 |
|                    |                                                                                                  |                                                     |
| Item      3.                      | Quantitative      and Qualitative Disclosures About Market Risk                                       |          29 |
|                    |                                                                                                  |                                                     |
| Item      4.                                     | Controls      and Procedures                                                                          | 29                                                       |
|                                             |                                                                                                  |                                                     |
| Part      II.                                    | OTHER      INFORMATION                                                                                |                                                     |
|                    |                                                                                                  |                                                     |
| Item      1.                      | Legal      Proceedings                                                                                | 30                                                       |
|                    |                                                                                                  |                                                     |
| Item      1A.                     | Risk      Factors                                                                                     | 30                                                       |
|                                             |                                                                                                  |                                                     |
| Item      2.                           | Unregistered      Sales of Equity Securities and Use of Proceeds                                      | 30                                                       |
|                                             |                                                                                                  |                                                     |
| Item      3.                      | Defaults      Upon Senior Securities                                                                  | 31                                                       |
|                    |                                                                                                  |                                                     |
| Item      4.       | Removed      and Reserved                                                                             | 31                                                       |
|                                             |                                                                                                  |                                                     |
| Item      5.                           | Other      Information                                                                                | 31                                                       |
|                    |                                                                                                  |                                                     |
| Item      6.       | Exhibits                                                                                              | 31                                                       |
|                    |                                                                                                  |                                                     |

----

----

|                                                                            |                                                                                       | March      31,2010                                                 |    | December      31, 2009                                                   |
|---------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------|---------|--------------------------------------------------------------------------|
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| ASSETS                                                                          |                                                                                       |                                                               |    |                                                                     |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| Current      Assets                                                             |                                                                                       |                                                               |    |                                                                     |
|                                                                            | Cash      and cash equivalents                                                             | $          1,883 |    | $                9,560 |
| Total      Current Assets                                                       |                                                                                       | 1,883                                                              |    | 9,560                                                                    |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| Oil      and gas properties – unevaluated, not subject to    amortization |                                                                                       | 3,771,001                                                          |    | 3,771,001                                                                |
| Website,      net of amortization                                               |                                                                                       | 5,550                                                              |    | 6,392                                                                    |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| Total      Assets                                                               |                                                                                       | $  3,778,434                                             |    | $         3,786,953                                       |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| LIABILITIES      & STOCKHOLDERS’ EQUITY                               |                                                                                       |                                                               |    |                                                                     |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| Current      Liabilities                                                        |                                                                                       |                                                               |    |                                                                     |
|                                                                            | Accounts      payable and accrued liabilities                                              | $               8,559 |    | $         32,500            |
|                                                                            | Accounts      payable - related parties                                                    | 8,895                                                              |    | 5,422                                                                    |
|                                                                            | Short      term notes payable – related parties                                      | 88,075                                                             |    | 87,809                                                                   |
|                                                                            | Convertible      notes – related parties                                             | 98,480                                                             |    | 95,227                                                                   |
| Total      Current Liabilities                                                  | 204,009                                                                                    |                                                               | 220,958 |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| Commitments      and contingencies                                              |                                                                                       | -                                                                  |    | -                                                                        |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| Stockholders’      Equity                                                 |                                                                                       |                                                               |    |                                                                     |
|                                                                            | Common      stock, $0.001 par value, 150,000,000 shares authorized:                        |                                                               |    |                                                                     |
|                                                                            | 60,073,333      and  59,773,333 shares issued and outstanding,      respectively | 60,073                                                             |    | 59,773                                                                   |
|                                                                            | Additional      paid in capital                                                            | 5,721,576                                                          |    | 5,577,683                                                                |
|                                                                            | Accumulated      deficit during exploration stage                                          | (2,207,224)                                                        |    | (2,071,461)                                                              |
| Total      Stockholders’ Equity                                           |                                                                                       | 3,574,425                                                          |    | 3,565,995                                                                |
|                                                                            |                                                                                       |                                                               |    |                                                                     |
| Total      Liabilities and Stockholders’ Equity                           |                                                                                       | $   3,778,434                                       |    | $    3,786,953                                       |
|                                                                            |                                                                                       |                                                               |    |                                                                     |

----

|                                                    |                                                                                                     | For      the three months ended |                                                                                               |                         |
|---------------------------------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------|----------------------------------------------------------------------------------------------------|------------------------------|
|                                                    |                                                                                                     | March      31, 2010             |                                                                                               | March      31, 2009          |   | Inception  (May      11, 2006) toMarch      31, 2010 |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
| Revenue                                                 | $                 - |                            | $                - |                         | $                - |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
| Operating      Expenses                                 |                                                                                                     |                            |                                                                                               |                         |   |
|                                                    | General      and administrative                                                                          | 206,476                         |                                                                                               | 121,358                      |   | 2,210,239 |
|                                                    | Depreciation      and amortization                                                                       | 842                             |                                                                                               | 825                          |   | 5,727 |
| Total      Operating Expenses                           | 207,318                                                                                                  |                            | 122,183                                                                                            |                         | 2,215,966 |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
| Loss      from operations                               | (207,318)                                                                                                |                            | (122,183)                                                                                          |                         | (2,215,966) |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
| Other      income (expense)                             |                                                                                                     |                            |                                                                                               |                         |   |
|                                                    | Interest      expense                                                                                    | (3,445)                         |                                                                                               | -                            |   | (65,097) |
|                                                    | Loss      on sale of assets                                                                              | -                               |                                                                                               | -                            |   | (1,161) |
| Other      income                                       | 75,000                                                                                                   |                            | -                                                                                                  |                         | 75,000 |
| Total      other income (expense)                       | 71,555                                                                                                   |                            | -                                                                                                  |                         | (8,742) |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
| Net      loss                                           |                                                                                                     | $   (135,763)    |                                                                                               | $   (122,183) |   | $   (2,207,224) |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
| Net      loss per common share - basic and diluted      | $          (0.00)                                      |                            | $         (0.00)                                      |                         |   |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
| Weighted      average common shares - basic and diluted | 59,900,000                                                                                               |                            | 137,686,667                                                                                        |                         |   |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |
|                                                    |                                                                                                     |                            |                                                                                               |                         |   |   |

----

|                                                  |                    |   |                                                                                               |   |                                                                                               |   | Deficit                                                                                            |   |                                                                                               |
|-------------------------------------------------------|-------------------------|--------|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
|                                                  |                    |   |                                                                                               |   |                                                                                               |   | Accumulated                                                                                        |   |                                                                                               |
|                                                  |                    |   |                                                                                               |   | Additional                                                                                         |   | During      the                                                                                    |   | Total                                                                                              |
|                                                  | Common  Stock |   | Paid      in                                                                                       |   | Exploration                                                                                        |   | Stockholders’                                                                                |
|                                                  | Shares                  |   | Amount                                                                                             |   | Capital                                                                                            |   | Stage                                                                                              |   | Equity                                                                                             |
| Balance      at inception on May 11, 2006             | -                       |   | $                - |   | $                - |   | $                - |   | $                - |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Initial      capitalization, sale of                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| of      common stock to directors on                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| May      11,2006 $0.00005/share                       | 94,500,000              |   | 94,500                                                                                             |   | (90,000)                                                                                           |   | -                                                                                                  |   | 4,500                                                                                              |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Private      Placement - September 30, 2006           |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
|  at      0.0024/share                            | 41,475,000              |   | 41,475                                                                                             |   | 57,275                                                                                             |   | -                                                                                                  |   | 98,750                                                                                             |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Net      loss                                         | -                       |   | -                                                                                                  |   | -                                                                                                  |   | (9,055)                                                                                            |   | (9,055)                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Balance,      December 31, 2006                       | 135,975,000             |   | 135,975                                                                                            |   | (32,725)                                                                                           |   | (9,055)                                                                                            |   | 94,195                                                                                             |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Net      loss                                         | -                       |   | -                                                                                                  |   | -                                                                                                  |   | (60,078)                                                                                           |   | (60,078)                                                                                           |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Balance,      December 31, 2007                       | 135,975,000             |   | 135,975                                                                                            |   | (32,725)                                                                                           |   | (69,133)                                                                                           |   | 34,117                                                                                             |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Private      Placement- November 19,                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| 2008      at $0.692/share                             | 1,350,000               |   | 1,350                                                                                              |   | 898,650                                                                                            |   | -                                                                                                  |   | 900,000                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Private      Placement - November 24,                 |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| 2008      at $0.689/share                             | 150,000                 |   | 150                                                                                                |   | 99,850                                                                                             |   | -                                                                                                  |   | 100,000                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Net      loss                                         | -                       |   | -                                                                                                  |   | -                                                                                                  |   | (106,170)                                                                                          |   | (106,170)                                                                                          |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Balance      December 31, 2008                        | 137,475,000             |   | 137,475                                                                                            |   | 965,775                                                                                            |   | (175,303)                                                                                          |   | 927,947                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Private      Placement - February 2009                |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
|  at      $0.667/share                            | 487,500                 |   | 488                                                                                                |   | 324,512                                                                                            |   | -                                                                                                  |   | 325,000                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Forgiven      loan from director                      | -                       |   | -                                                                                                  |   | 5,000                                                                                              |   | -                                                                                                  |   | 5,000                                                                                              |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Cancellation      of shares                           | (83,100,000)            |   | (83,100)                                                                                           |   | 83,100                                                                                             |   | -                                                                                                  |   | -                                                                                                  |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Shares      issued for oil and  gas lease - |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| August      2009 at $0.66/share                       | 4,037,500               |   | 4,037                                                                                              |   | 2,660,713                                                                                          |   | -                                                                                                  |   | 2,664,750                                                                                          |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Private      Placements – August 2009           |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| at      $0.50/share                                   | 660,000                 |   | 660                                                                                                |   | 329,340                                                                                            |   | -                                                                                                  |   | 330,000                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Private      Placements – September 2009        |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| at      $0.75 and $1.00/share                         | 158,333                 |   | 158                                                                                                |   | 124,842                                                                                            |   | -                                                                                                  |   | 125,000                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Private      Placement - October 2009                 |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| at      $1.00/share                                   | 55,000                  |   | 55                                                                                                 |   | 54,945                                                                                             |   | -                                                                                                  |   | 55,000                                                                                             |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Amortization      of share-based                      |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| compensation                                          | -                       |   | -                                                                                                  |   | 968,511                                                                                            |   | -                                                                                                  |   | 968,511                                                                                            |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Discount      on convertible debt                     | -                       |   | -                                                                                                  |   | 60,945                                                                                             |   | -                                                                                                  |   | 60,945                                                                                             |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Net  Loss                                   | -                       |   | -                                                                                                  |   | -                                                                                                  |   | (1,896,158)                                                                                        |   | (1,896,158)                                                                                        |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |
| Balance,      December 31, 2009                       | 59,773,333              |   | $   59,773                                                                          |   | $  5,577,683                                                                             |   | $  (2,071,461)                                                                           |   | $  3,565,995                                                                             |
|                                                  |                    |   |                                                                                               |   |                                                                                               |   |                                                                                               |   |                                                                                               |

----

|                                          |                    |   |                            |   |                         |   | Deficit                  |   |                   |
|-----------------------------------------------|-------------------------|--------|---------------------------------|--------|------------------------------|--------|--------------------------|--------|------------------------|
|                                          |                    |   |                            |   |                         |   | Accumulated              |   |                   |
|                                          |                    |   |                            |   | Additional                   |   | During      the          |   | Total                  |
|                                          | Common  Stock |   | Paid      in                    |   | Exploration                  |   | Stockholders’      |
|                                          | Shares                  |   | Amount                          |   | Capital                      |   | Stage                    |   | Equity                 |
|                                          |                    |   |                            |   |                         |   |                     |   |                   |
| Balance,      December 31, 2009               | 59,773,333              |   | $   59,773       |   | $  5,577,683       |   | $  (2,071,461) |   | $  3,565,995 |
|                                          |                    |   |                            |   |                         |   |                     |   |                   |
| Private      Placement – Feb 24, 2010   |                    |   |                            |   |                         |   |                     |   |                   |
| at $0.25/share                           | 300,000                 |   | 300                             |   | 74,700                       |   | -                        |   | 75,000                 |
|                                          |                    |   |                            |   |                         |   |                     |   |                   |
| Amortization      of share-based compensation | -                       |   | -                               |   | 69,193                       |   | -                        |   | 69,193                 |
|                                          |                    |   |                            |   |                         |   |                     |   |                   |
| Net      Loss                                 | -                       |   | -                               |   | -                            |   | (135,763)                |   | (135,763)              |
|                                          |                    |   |                            |   |                         |   |                     |   |                   |
| Balance,      March 31, 2010                  | 60,073,333              |   | $    60,073 |   | $   5,721,576 |   | $  (2,207,224) |   | $  3,574,425 |
|                                          |                    |   |                            |   |                         |   |                     |   |                   |
|                                          |                    |   |                            |   |                         |   |                     |   |                   |

----

|                                                                        | For      the three months ended                                                                                |   | Inception      (May 11, 2006) to                                                                               |
|-----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|
|                                                                        | March      31, 2010                                                                                            |   | March      31, 2009                                                                                            |   | March      31, 2010 |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                   |                                                                                                           |   |                                                                                                           |   |   |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| Net      loss                                                               | $  (135,763)                                                                                         |   | $   (122,183)                                                                                   |   | $   (2,207,224) |
| Adjustments      to reconcile net loss to cash used in operatingactivities: |                                                                                                           |   |                                                                                                           |   |   |
| Depreciation      and amortization expense                                  | 842                                                                                                            |   | 825                                                                                                            |   | 5,727 |
| Amortization      of debt discount                                          | -                                                                                                              |   | -                                                                                                              |   | 60,945 |
| Share-based      compensation                                               | 69,193                                                                                                         |   | -                                                                                                              |   | 1,037,704 |
| Loss      on sale of assets                                                 | -                                                                                                              |   | -                                                                                                              |   | 1,161 |
| Changes      in operating assets and liabilities:                           |                                                                                                           |   |                                                                                                           |   |   |
| Accounts      payable and accrued liabilities                               | (20,423)                                                                                                       |   | 8,319                                                                                                          |   | 11,940 |
| Accounts      payable - related parties                                     | 3,474                                                                                                          |   | -                                                                                                              |   | 8,895 |
| Net      cash used in operating activities                                  | (82,677)                                                                                                       |   | (113,039)                                                                                                      |   | (1,080,852) |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                   |                                                                                                           |   |                                                                                                           |   |   |
| Website                                                                     | -                                                                                                              |   | -                                                                                                              |   | (10,000) |
| Acquisition      of unproved oil and gas properties                         | -                                                                                                              |   | (325,000)                                                                                                      |   | (1,108,551) |
| Net      cash used in investing activities                                  | -                                                                                                              |   | (325,000)                                                                                                      |   | (1,118,551) |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                   |                                                                                                           |   |                                                                                                           |   |   |
| Proceeds      from issuance of common stock and warrants                    | 75,000                                                                                                         |   | 325,000                                                                                                        |   | 2,013,250 |
| Proceeds      from notes payable - related parties                          | -                                                                                                              |   | -                                                                                                              |   | 92,809 |
| Proceeds      from issuance of convertible debt - related parties           | -                                                                                                              |   | -                                                                                                              |   | 95,227 |
| Net      cash provided by financing activities                              | 75,000                                                                                                         |   | 325,000                                                                                                        |   | 2,201,286 |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| (Decrease)      increase in cash during the period                          | (7,677)                                                                                                        |   | (113,039)                                                                                                      |   | 1,883 |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| Cash,      beginning of the period                                          | 9,560                                                                                                          |   | 160,832                                                                                                        |   | - |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| Cash,      end of the period                                                | $        1,883                                                         |   | $          47,793                                            |   | $        1,883 |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| Supplemental      cash flow information:                                    |                                                                                                           |   |                                                                                                           |   |   |
| Taxes      paid                                                             | $                  - |   | $                  - |   | $                  - |
| Interest      paid                                                          | $                  - |   | $                  - |   | $                  - |
|                                                                        |                                                                                                           |   |                                                                                                           |   |   |
| NON-CASH      TRANSACTIONS                                                  |                                                                                                           |   |                                                                                                           |   |   |
|    Common      stock issued for oil and gas property         | $                  - |   | $                  - |   | $   2,664,750 |
|    Cancellation      of  loan from director        | $                  - |   | $                  - |   | $          5,000 |
|    Cancellation      of shares                               | $                  - |   | $                  - |   | $        83,100 |

----

----

----

|   | • | The Company has      completed a Registration Statement and obtained a trading symbol for its      common shares on the OTCBB. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

|   | • | Management      intends to raise additional funds through public or private equity or debt      offerings. |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | • | Management      has changed the focus of the Company’s operations to oil and gas      exploration and development from the provision of engineering services.      There can be no assurances, however, that management’s expectations of      future revenues will be realized. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                  | Options   |   |   | Weighted-Average      Exercise Price |   |   | Aggregate      Intrinsic Value |
|---------------------------------------|-----------|--------|--------|--------------------------------------|--------|--------|--------------------------------|
|                                  |      |   |   |                                 |   |   |                           |
| Outstanding      at December 31, 2009 | 2,700,000 |   | $      | 0.80                                 |   | $      | -                              |
| Granted                               | -         |   |   | -                                    |   |   | -                              |
| Exercised                             | -         |   |   | -                                    |   |   | -                              |
| Forfeited                             | -         |   |   | -                                    |   |   | -                              |
| Outstanding      at March 31, 2010    | 2,700,000 |   | $      | 0.80                                 |   | $      | -                              |
| Exercisable      at March 31, 2010    | 1,094,473 |   | $      | 0.80                                 |   | $      | -                              |

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|                                               | Warrants |   |   | Weighted-Average      Exercise Price |   |   | Aggregate      Intrinsic Value |
|----------------------------------------------------|----------|--------|--------|--------------------------------------|--------|--------|--------------------------------|
|                                               |     |   |   |                                 |   |   |                           |
| Outstanding      at December 31, 2009              | 652,916  |   | $      | 1.01                                 |   | $      |                           |
| Granted                                            | 150,000  |   |   | 0.50                                 |   |   |                           |
| Exercised                                          | -        |   |   | -                                    |   |   |                           |
| Forfeited                                          | (243,750 | )      |   | 1.33                                 |   |   |                           |
| Outstanding      and exercisable at March 31, 2010 | 559,166  |   | $      | 0.73                                 |   |   | -                              |

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| STATEMENT      OF INCOME AND EXPENSES    | Three      Month Periods Ended March 31, 2010 and 2009                                                               | For      the Period from May 11, 2006 (inception) to March 31,      2010                                             |
|------------------------------------------|----------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                                                                 |                                                                                                                 |   |
| Revenue                                  | $                   - | $                   - | $                   - |
|                                     |                                                                                                                 |                                                                                                                 |   |
| Operating      Expenses                  |                                                                                                                 |                                                                                                                 |   |
| General      and administrative expenses | 206,476                                                                                                              | 121,358                                                                                                              | 2,210,239 |
| Depreciation      and amortization       | 842                                                                                                                  | 825                                                                                                                  | 5,727 |
| Total      Operating Expenses            | 207,318                                                                                                              | 122,183                                                                                                              | 2,215,966 |
|                                     |                                                                                                                 |                                                                                                                 |   |
| Net      Loss From Operations            | (207,318)                                                                                                            | (122,183)                                                                                                            | (2,215,966) |
|                                     |                                                                                                                 |                                                                                                                 |   |
| Other      Income (Expense)              |                                                                                                                 |                                                                                                                 |   |
| Interest      expense                    | 3,445                                                                                                                | -                                                                                                                    | (65,097) |
| Loss      on sale of assets              | -                                                                                                                    | -                                                                                                                    | (1,161) |
| Other      Income                        | 75,000                                                                                                               | -                                                                                                                    | 75,000 |
| Total      Other Expense                 | 71,555                                                                                                               | -                                                                                                                    | (8,742) |
|                                     |                                                                                                                 |                                                                                                                 |   |
| Net      Loss                            | ($135,763)                                                                                                           | ($122,183)                                                                                                           | ($2,207,224) |
|                                     |                                                                                                                 |                                                                                                                 |   |
| BALANCE      SHEET DATA                  |                                                                                                                 |                                                                                                                 |   |
| Total      Assets                        | $3,778,434                                                                                                           |                                                                                                                 |   |
| Total      Liabilities                   | $   204,009                                                                                           |                                                                                                                 |   |   |
| Total      Stockholders’ Equity    | $3,574,425                                                                                                           |                                                                                                                 |   |

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| EXHIBIT      NO.                                                                                                                                                                                                                                                                   | DOCUMENT                                                                                                                                                                                                              |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1.1                                                                                                                                                                                                                                                                              | Articles      of Incorporation (1)                                                                                                                                                                                         |
| 3.1.2                                                                                                                                                                                                                                                                              | Articles      of Incorporation as amended.                                                                                                                                                                                 |
| 3.1.3                                                                                                                                                                                                                                                                              | Articles      of Merger between Minhas Energy Consultants and American Energy Corp.      (2)                                                                                                                               |
| 3.1                                                                                                                                                                                                                                                                                | Bylaws      (1)                                                                                                                                                                                                            |
| 10.1                                                                                                                                                                                                                                                                               | Option      Agreement between American Energy      Corporation  and  Westrock Land Corporation dated      October 2008. (3)                                                                            |
| 10.2                                                                                                                                                                                                                                                                               | 5%      Convertible Debenture dated October 13, 2009 between American Exploration      Corporation and DMS Ltd. (4)                                                                                                        |
| 10.3                                                                                                                                                                                                                                                                               | Stock      Option Plan of American Exploration Corporation dated September 14, 2009.      (5)                                                                                                                              |
| 10.4                                                                                                                                                                                                                                                                               | Merger      Agreement and Plan of Merger dated March 22, 2010 between American      Exploration Corporation and Mainland  Resources Inc.      (8)                                                                |
| 16.      1                                                                                                                                                                                                                                                                         | Letter      from Moore & Associates dated August 11,      2009.  (6)                                                                                                                                         |
| 16.      2                                                                                                                                                                                                                                                                         | Letter      from Seale & Beers, CPAs dated November 2, 2009.(7)                                                                                                                                                        |
| 31.1                                                                                                                                                                                                                                                                               | Certification  of  Chief  Executive   Officer  Pursuant  to      Rule 13a-14(a) or 15d-14(a) of the Securities Exchange  Act.                             |
| 31.2                                                                                                                                                                                                                                                                               | Certification      of Chief Financial Officer Pursuant  to  Rule      13a-14(a) or 15d-14(a) of the Securities Exchange Act.                                                                           |
| 32.1                                              | Certification  of      Chief  Executive  Officer  and Chief      Financial Officer Under Section 1350 as Adopted  Pursuant to      Section 906 of the Sarbanes-OxleyAct. |

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|                           |  AMERICAN EXPLORATION      CORPORATION   |
|--------------------------------|---------------------------------------------------------|
|  Dated: May 24,      2010 |  By:                                               |  /s/ STEVE      HARDING |
|                           |                                                    |  Steve      Harding |
|                           |                                                    |  President/Chief      Executive Officer |
|                           |                                                    |   |
|  Dated: May 24,      2010 |  By:                                               |  /s/ BRIAN      MANKO |
|                           |                                                    |  Brian      Manko |
|                           |                                                    |  Chief      Financial Officer |

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