American Exploration Corp. is an independent oil and gas exploration company formed in 2008. The Company was founded by a highly experienced management group who understands the urgent need for American energy independence, and recognize the new range of opportunities to tap into previously unknown or inaccessible domestic energy resources arising out of dramatic changes in recovery technology.

Through valuable legacy relationships and technical insight into current trends, founding management has identified new areas with major discovery potential where the Company can participate without the exhaustive capital needs typically associated with tapping large oil and gas opportunities. These include emerging plays in unconventional resources, such as shale gas and other opportunities.

This unique combination of historical experience supported by strong industry ties and forward-thinking management gives American Exploration Corp. the capabilities of a traditional E&P firm with the fresh approach of a dynamic exploration company.

Projects

American Exploration Corp. is pursuing an initial natural gas prospect located in the Gulf Coast Salt Basin trend. This prospect has been selected based on numerous factors assessed by independent geologists, the Company’s management team and proprietary historical data gained by the Company.

After a detailed review of these factors, management believes that it has developed a multi-faceted target with potential for immediate revenues through discovery of one or possibly several significant natural gas fairways. American Exploration has signed an agreement securing lease interest in approximately 5,000 acres, with an option to acquire additional interest in surrounding lands.

US Interior Gulf Coast

In the last ten years, a number of basin analysis studies and resource assessments commissioned by the United States Geological Survey and the Department of Energy have examined the deep gas potential of the interior basins fringing the Gulf Coast from east Texas to Mississippi. All report that the deeper Upper Jurassic through Lower Cretaceous succession consists of favorable exploration targets with very significant resources yet to be discovered.

In the North Louisiana Salt Basin, a very recent unconventional deep gas play formation (shale) has developed in the Haynesville Shale (deep gas section) of Upper Jurassic age. Major oil and gas companies including Chesapeake Energy, Petrohawk Energy, Encana and Goodrich Petroleum have created what is now projected to be the largest onshore gas field in the United States. Using new recovery methods, the fairway has emerged as an enormous gas resource with productive zones in the Haynesville, Hosston/Cotton Valley and more recently, the Bossier formations. Estimated ultimate reserves are roughly nine to eleven billion cubit feet (Bcf) per well, characterized by high initial production, quick production of reserves, and high returns on investment due to the quick monetization of reserves.

American Exploration Corp. is engaged in the acquisition and development of oil and gas prospects. Its initial property acquisition is in an undisclosed target region within Mississippi. The historically prolific Hosston and Cotton Valley formations will be targeted as well as the newly recognized Haynesville Formation, the giant shale gas reservoir of northeastern Louisiana.

Potential For Haynesville Shale Type Gas Accumulations

American Exploration’s exploration land base lies within the prolific Haynesville shale trend. Recognizing the enormous upside within this evolving play, principals of the company began early negotiation for a premier 5000-acre land position, having identified a unique gas opportunity at a fraction of current lease level costs. An exploration well was drilled within the area through the Haynesville shale in the early 1980s prior to the technology existing, which could have enabled gas production from the zone. Data from that early well not only demonstrates the presence and quality of the zone, but also the inherent rock characteristics sought after in a commercial shale gas well.

The Company believes that development of this enormous resource requires the drilling of new wells with the implementation of modern completion techniques.

The Company has assessed proprietary existing data and has evaluated the deep gas potential of this acreage, including the unconventional widespread Haynesville Shale play. This geotechnical work confirms enormous upside from the Hosston, Cotton Valley and potentially the Haynesville formations.

Historical

The regional setting of the onshore interior salt basins of the Gulf coast plain of the United States is illustrated in Figure 1-1. These basins were major Mesozoic depocenters separated by a number of structural uplifts and ridges. Deposition in these basins was associated with the extensional rift tectonics of the passive continental margin of the Gulf of Mexico.

During the Late Jurassic to Early Cretaceous, a large amount of accommodation space for sediment accumulation was generated by basement cooling and subsidence. Much of this deep gas-bearing stratigraphic succession from Late Jurassic to Early Cretaceous age still remains extensively unexplored in these interior basins. These include the clastic reservoirs of the Norphlet, Haynesville, Cotton Valley and Hosston formations deposited in continental, coastal and marine siliciclastic environments as well as the underlying carbonate reservoirs of the Smackover Formation deposited in nearshore marine carbonate environments.

The organic rich lime mudstone facies of the lower to middle sections of the Smackover Formation has been identified as an important regional source rock in the North Louisiana and Mississippi Interior salt basins. Basin analysis modeling indicates that the generation of hydrocarbons from the Smackover source beds began when they were first buried to a depth of 8,000 to 11,000 feet during the Early Cretaceous to Tertiary. Most of the petroleum traps in these interior basins are associated with salt related structural features. Movement of the Jurassic Louann Salt has produced a complex of salt-related traps associated with pillows, diapirs, extensional faults, turtle structures and half-graben systems.

In 2002, the United States Geological Survey published a detailed assessment of the prospective resources of the Lower Cretaceous Hosston Formation in these interior basins. The Hosston Formation consists of prodelta and fluvial-deltaic deposits and marks the second major influx of terrigenous clastic sediments into the Gulf of Mexico. There are also two Hosston fluvial-deltaic depocenters consisting of the ancestral Red River in east Texas and the ancestral Mississippi River to the east. Major clusters of Hosston gas pools are associated with the depocenter of the ancestral Red River while a smaller cluster is associated with the ancestral Mississippi River. The Target Prospect acreage is located within this productive fairway with a productive Hosston gas pool adjoining the acreage held by the Company.

Shale Gas

Shale gas is natural gas produced from shale. Because shales ordinarily have insufficient permeability to allow significant fluid flow to a well bore, most shales have not historically been large producers of natural gas. Shale gas is one of a number of “unconventional” sources of natural gas; other unconventional sources of natural gas include coalbed methane, tight sandstones, and methane hydrates.

Shale has low matrix permeability, so gas production in commercial quantities requires fractures to provide flow pathways. Limited gas volumes have been produced for years from shales with natural fractures; the shale gas boom in recent years has been due to modern technology enabling the creation of extensive artificial fractures around well bores. Horizontal drilling is often used with shale gas wells.

Shales that host economic quantities of gas have a number of properties in common. They are rich in organic material, and are mature petroleum source rocks, having passed through the thermogenic gas window. They are sufficiently brittle and rigid enough to maintain open fractures. In some areas, shale intervals with high natural gamma radiation are the most productive.

Some of the gas produced is held in natural fractures, some in pore spaces, and some is adsorbed onto the organic material. The gas in the fractures is produced immediately; the gas adsorbed onto organic material is released as the formation pressure declines.

Haynesville Shale

The Haynesville Shale, is a black, organic-rich shale of Upper Jurassic age that underlies much of the Gulf Coast area of the United States. "Haynesville Shale" is a drillers term for shale rock units within the Haynesville Formation.

The Haynesville Formation is underlain by the Smackover Formation and overlain by rocks of the Cotton Valley Group. It was deposited about 150 million years ago in a shallow offshore environment.

Geologists have long known that the Haynesville Formation contained natural gas. However, because of its low permeability the Haynesville was originally considered to be a gas source rock rather than a gas reservoir.

Today, natural gas production from the Haynesville occurs from rocks about two miles beneath northwestern Louisiana, southwestern Arkansas and eastern Texas. The most productive areas have been Caddo, Bienville, Bossier, DeSoto, Red River and Webster Parishes of Louisiana plus adjacent areas in southwest Arkansas and east Texas.

Management

Steven C. Harding, (Hon) B.Sc. & M.Sc. Geology - President, CEO and Director

With almost 27 years experience, Steven C. Harding has occupied various senior positions within EnCana Corporation, its predecessor Alberta Energy and Husky Energy. His experience includes positions of Vice President Northern Canada and Vice President Alaska/MacKenzie Delta at EnCana and Chief Geoscientist at Husky Energy.

Mr. Harding has extensive experience with oil and gas exploration and development within numerous geological basins, both within and outside of North America. Included in his accomplishments is developing the geological model which lead to the discovery of the giant White Rose field, offshore Newfoundland. The White Rose field has total reserves currently estimated at about 450 to 500 Million bbls and from 3 to 4 Tcf of gas. It is a major field currently producing about 125,000 bbls/day.

While at EnCana, Mr. Harding and his team negotiated and secured the largest exploration position in the US and Canadian Arctic, leading to the discovery of the Umiak field and receiving an MMS corporate citizen award for outstanding cultural and environmental efforts in Alaska.

Mr. Harding’s Bachelor of Science degree in Geology is from McMaster University in Hamilton, Ontario and he earned his Masters degree in Geology at the University of Alberta in Edmonton. Mr. Harding is a Registered Professional Geologist by APEGGA (Association of Professional Engineers, Geologists and Geophysicists of Alberta).

Dev Randhawa, MBA - Director

Dev Randhawa is an experienced senior manager with broad international experience in developing resource and energy companies. He is a skilled negotiator with a record of realizing exceptional value in growing companies. Most recently, Mr. Randhawa was the founder, CEO and Chairman of the Board of Pacific Asia Canada Energy (“PACE”), a company involved in the coal bed methane business in three provinces of China. In July of 2008, Mr. Randhawa successfully negotiated and consummated the sale of Pacific Asia Canada Energy to Green Dragon of Hong Kong for an estimated USD $32.5 million.

Prior to his tenure with PACE, Mr. Randhawa founded Strathmore Minerals Ltd. in 1996 and served as its CEO until January of 2008. Strathmore was one of the very early participants in the newly revitalized uranium industry. Mr. Randhawa helped grow Strathmore to its current stature as a significant industry player with diversified uranium assets in the United States, Canada and Peru. Notably, he was also the founder of Royal County, which was involved in gold exploration in northwestern British Columbia, Canada. In 2003, Mr. Randhawa successfully arranged the sale of Royal Country Minerals to Canadian Gold Hunter of Vancouver (part of Lundin group of Companies).

Mr. Randhawa was educated in Canada, where he now resides. He received his MBA from the University of British Columbia in Vancouver, Canada after graduating with High Honors from Trinity Western University with a Bachelors’ degree in Business Administration.

Mr. M.S. (Moni) Minhas (B.Sc. Eng.) - Director

Moni Minhas is a professional engineer and entrepreneur with more than 26 years experience. Moni is a Board of Director of American Oil & Gas Inc. (AOGI), a public oil and gas company based in Denver, Colorado, an active oil and gas exploration and development company in the Rocky Mountain region of the USA, with a market capitalization of almost $200 million. Since 2002 He has also served as President of Daroli Khurd Investments Inc., a privately held real estate investment company based in Alberta.

Moni was employed at Encana Corp. and its predecessor Pan Canadian Petroleum for more than 13 years. During this time he was involved with the successful development of oil and gas properties resulting in capital expenditure in excess of $250 million. These projects added gas production of 175 mmscf/day and oil production of 10,000 bbl/day, contributing almost 300,000 BOE in reserves. Moni’s depth of experience and expertise encouraged Pan Canadian to appoint him leader of the Reserves Task Force, whereby he was responsible for reviewing and evaluating the company’s portfolio of petroleum reserves.

Moni is a highly respected author and instructor, designing and teaching numerous oil and gas seminars worldwide.

Moni Minhas graduated with B.Sc. (Mechanical Engineering) from the University of Calgary, Calgary, Alberta, Canada in 1980. He also completed first years of Master of Engineering (M.Eng.) and MBA, both from the University of Calgary, Calgary, Alberta. Mr. Minhas is a Registered Professional Engineer by APEGGA (Association of Professional Engineers, Geologists and Geophysicists of Alberta).