UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~December~~June 3130, ~~2010~~2011

o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ~~____________~~___________ to ~~____________~~___________

Commission file number: 00 000-50978

Americas Energy Company-AECo

(Exact name of small business issuer as specified in its charter)

Nevada	98-0343712
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

243 N. Peter Road

Knoxville, Tennessee 37823

(Address of principal executive offices)

(865) 238-0668

(Registrants telephone number, including area code)

____________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company; as defined within Rule 12b-2 of the Exchange Act.

o Large accelerated filer o Accelerated filer o Non-accelerated filer x Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

The number of shares outstanding of each of the issuer's classes of common equity as of ~~December~~July 3113, ~~2010~~2011: 79 88,~~212~~862,~~617~~983 shares of common stock

Table of Contents

Americas Energy Company

(Formerly Trend Technology Corporation)

Contents

		Page
		Number
PART I	FINANCIAL INFORMATION
Item 1	Financial Statements ~~December~~June 3130, ~~2010~~2011
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to the Consolidated Financial Statements	7
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3	Quantitative and Qualitative Disclosures About Market Risk	2624
Item 4T	Controls and Procedures	26
Item 4	Controls and Procedures	24
PART II	OTHER INFORMATION
Part II	OTHER INFORMATION
Item 1	Legal Proceedings	2725
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	2725
Item 3	Defaults Upon Senior Securities	2725
Item 4	(Removed and Reserved)	2725
Item 5	Other Information	2725
Item 6	Exhibits	2826
SIGNATURES		2927

Table of Contents

Part III - ~~FINANCIAL~~OTHER INFORMATION

Item 1 - Financial Statements

AMERICAS ENERGY COMPANY - AECo
(Formerly Trend Technology Corporation)
CONDENSED CONSOLIDATED BALANCE SHEETS
	December 31,			March 31,
	June 30,			March 31,
	2010			2010
	2011			2011
	(Unaudited)
ASSETS
Current assets
Cash	$	26202,~~408~~870		$	~~542~~10,~~331~~622
Trade receivables		~~269~~4,~~651~~857			~~256,377~~-
Other receivables		10,000			-10,000
Prepaid expense		~~191~~33,~~184~~448			~~103~~23,~~913~~329
Deferred tax asset		-			718,150
Total current assets		251,175			43,951
Total current assets		497,243			1,620,771
Property, plant, and equipment - net		5,086,329			5,233,106
Property, plant, equipment and mining development - net		22,772,959			33,963,696
Other assets
Deposit		363,500			100,000
Capitalized mining properties		17,540,028			17,628,588
Certificates of deposit - pledged		1,580,508			1,580,508
Investment in unconsolidated subsidiary		250,000			250,000
Certificates of deposit - pledged		1,594,110			1,594,110
Goodwill		742,000			742,000
TOTAL ASSETS	$	25,956,210		$	38,006,975
Total other assets		20,126,138			20,214,698
TOTAL ASSETS	$	25,463,642		$	25,491,755
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Accounts payable	$	1322,~~457,676~~080		$	~~296~~466,~~013~~130
Accrued expenses		9867,~~529~~682			~~132~~93,~~835~~051
Convertible debenture		100,000			-
Accrued interest		20,768
Current maturities of long-term debt		722,659			859,814
Line of credit		225,683			277,419
Current portion of capital lease obligations		13,731			13,091
Notes payable - related party		20,000			70,000
Current maturities of long-term debt		31,620			27,699
Current portion of capital lease obligations		8,492			13,943
Loans payable		1,198,685			1,198,685
Total current liabilities		31,~~591~~895,~~280~~010			2,~~500~~146,~~438~~927
Asset retirement obligations		1,338,642			1,296,674
Convertible debenture, net of discount
Accrued royalty		-			5,676,000
net of discount		538,175			-
Deferred tax liability - long-term		15,375			15,375
Asset retirement obligations		1,355,842			1,339,573
Long-term portion of capital lease obligations		21,587			31,736
Accrued officers' severance pay		4,712,132			-
Long-term debt		1,014,069			19,140,141
Accrued royalty		7,372,110			7,291,321
Total long-term liabilities		2,389,673			26,159,926
Long-term portion of capital lease obligations		20,104			18,060
Total liabilities		5,980,953			28,660,364
Long-term debt		845,074			853,764
Derivative and warrant liabilities		467,096
Total long-term liabilities		15,310,533			9,502,718
Total liabilities		17,205,543			11,649,645
Commitments and contingencies		-			-
Stockholder's equity
Common stock; $0.0001par value; 100,000,000 shares
authorized; 79,212,617 issued and outstanding at December 31, 2010		7,921			7,052
authorized; 87,862,983 issued and outstanding at June 30, 2011		8,786			8,162
and 70,5245,595 shares issued and outstanding on March 31, 2010
and 81,619,595 shares issued and outstanding on March 31, 2011
Additional paid in capital		2426,~~440~~988,~~011~~126			1924,~~066~~836,~~614~~380
Retained deficit		(418,~~472~~739,~~675~~439	)		(911,~~727~~002,~~055~~432	)
Total stockholder's equity		198,~~975,~~257,473			913,~~346~~842,~~611~~110
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY	$	25,~~956~~463,~~210~~016		$	3825,~~006~~491,~~975~~755

(See accompanying notes ~~to financial statements)~~.

Table of Contents

AMERICAS ENERGY COMPANY - AECo
(Formerly Trend Technology Corporation)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
	For the Three Months Ended
(UNAUDITED)
		June 30,
											From Inception
		2011			2010
		For the Three Months Ended						For the Nine			(July 13, 2009)
REVENUES
		December 31,						Months Ended			Through
Coal sales and related income		$	136,105		$	3,615,819
		2010			2009			December 31, 2010			December 31, 2009
Other income			5,796			15,481
REVENUES
Total revenues			141,901			3,631,300
Coal sales and related income		$	764,033		$	990,560		$	6,522,570		$	990,560
OPERATING EXPENSES
Other income			10,897			22,075			31,504			22,075
Cost of sales (exclusive of accretion, depreciation and depletion)			284,531			3,194,737
Total revenues			774,930			1,012,635			6,554,074			1,012,635
Accretion, depreciation and depletion			192,350			161,666
OPERATING EXPENSES
Compensation expense (including non-cash compensation of
Cost of sales (exclusive of accretion, depreciation and depletion)			461,871			838,042			6,479,645			885,551
$6,432,715 in 2011 and $2,764,500 in 2010)			6,610,885			3,061,686
Impairment loss			-			-			12,419,894			-
Professional fees			192,348			89,084
Accretion, depreciation and depletion			98,283			11,340			537,459			12,043
General and administrative expenses			52,767			183,520
Compensation expense			652,043			73,652			4,676,495			300,689
Total operating expenses			7,332,881			6,690,693
Professional fees			57,313			13,610			335,708			16,414
Loss from operations			(7,190,980	)		(3,059,393	)
General and administrative expenses			98,382			90,996			355,752			114,134
OTHER INCOME (EXPENSES)
Total operating expenses			1,367,892			1,027,640			24,804,953			1,328,831
Interest income			5,442			9,084
Loss from operations			(592,962	)		(15,005	)		(18,250,879	)		(316,196	)
Interest expense			(91,171	)		(353,507	)
OTHER INCOME (EXPENSES)
Gain on disposition of asset			6,798			-
Interest income			7,154			-			25,091			-
Change in fair value of derivative and warrant liabilities			(467,096	)		-
Interest expense			(144,449	)		(5,992	)		(999,084	)		(28,305	)
Total other income (expenses)			(546,027	)		(344,423	)
Gain on disposition of asset			7,926			-			7,926			-
LOSS BEFORE INCOME TAXES			(7,737,007	)		(3,403,816	)
Gain on extinguishment of debt			2,058			-			25,189,476			-
PROVISION FOR INCOME TAXES			-			(718,150	)
Total other income (expenses)			(127,311	)		(5,992	)		24,223,409			(28,305	)
NET LOSS		$	(7,737,007	)	$	(4,121,966	)
INCOME (LOSS) BEFORE INCOME TAXES			(720,273	)		(20,997	)		5,972,530			(344,501	)
PER SHARE DATA
PROVISION FOR INCOME TAXES			-			-			(718,150	)		-
Basic and diluted loss per common share		$	(0.09	)	$	(0.06	)
NET INCOME (LOSS)		$	(720,273	)	$	(20,997	)	$	5,254,380		$	(344,501	)
Weighted average common shares outstanding			85,889,961			71,428,716
PER SHARE DATA
Basic and diluted loss per common share		$	(0.01	)	$	(0	)	$	0.07		$	(0	)
Weighted average common shares outstanding			77,431,451			53,524,595			73,714,024			53,524,595

(See accompanying notes ~~to financial statements)~~.

Table of Contents

AMERICAS ENERGY COMPANY - AECo
(Formerly Trend Technology Corporation)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
	For the Three Months Ended
				From Inception
	June 30,
	For the Nine			(July 13, 2009)
	2011			2010
	Months Ended			Through
	December 31, 2010			December 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss)	$	5,254,380		$	(344,501.0	)
Net loss	$	(7,737,007	)	$	(4,121,966	)
Adjustment to reconcile net income (loss) to net cash
Adjustment to reconcile net loss to net cash
provided by (used in) operating activities:
Gain on extinguishment of debt		(25,187,419	)		-
Accretion, depreciation and depletion		192,350			161,666
Impairment loss		12,419,894			-
Sharers issued for services		1,720,583			2,764,500
Gain on disposal of asset		(7,927	)		-
Amortization of discount on convertible debentures		46,892			14,465
Accretion, depreciation and depletion		537,459			12,043
Gain on disposition of assets		(6,798	)
Sharers issued for services		4,044,738			200,000
Change in fair value of derivative and warrant liabilities		467,096
Amortization of discount on convertible debentures		70,666			-
Changes in operating assets and liabilities:
(Increase) in accounts receivable		(134,~~274~~857	)		(~~339~~835,~~358~~430	)
Decrease in prepaid expenses		(35,818	)		(38,285	)
Decrease (increase) in prepaid expenses		(10,120	)		9,614
Decrease in deferred tax asset		~~718,150~~			-718,150
Increase in accounts payable		1,505,220			357,495
Increase (decrease) in accounts payable		(144,051	)		786,046
Increase in accrued expenses		~~(53~~4,~~455~~788,321	)		~~123~~80,~~847~~090
Accrued interest expense added to principal		~~750,554~~-			2297,~~691~~215
Net cash provided by (used in) operating activities		3,168			(26,068	)
Net cash used in operating activities		(687,591	)		(125,650	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment		(306,675	)		(19,454	)
Proceeds on sale of assets		100,000			-
Proceeds from insurance recovery on equipment		93,100			-
Purchase of equipment		(10,000	)		(187,142	)
Purchase of building and improvements		~~(47,599~~-	)		-(32,599	)
Coal and oil development costs		(481,547	)		(996,371	)
Coal production costs		(100,875	)		(520,004	)
Loans to unrelated third party		~~(10,000~~-	)		-(10,000	)
Deposits		(262,500	)		-
Other investment activities		-			(160,000	)
Net cash used in investing activities		(110,~~015,221~~875	)		(1909,~~015,825~~745	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debt		~~100~~1,000,000			-100,000
Proceeds from note payable		~~500,000~~-			1500,~~350,~~000
Loan fees		-			(35,000	)
Payment on related party loan		(50,000	)		-
Payment of obligation under capital lease		(93,~~509~~407	)		-(6,412	)
Payments on accrued royalties payable		~~(28,708~~-	)		-(28,708	)
Payment on note payable		(65,653	)		(8,791	)
Payment on credit line		(51,736	)		-
Net cash provided by financing activities		496,130			1,306,209
Payment on note payable		(4,769	)		(60,804	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(515,923	)		264,316
Net cash provided by financing activities		890,088			504,076
CASH AND CASH EQUIVALENTS - beginning of period		542,331			-
NET (DECREASE) IN CASH AND CASH EQUIVALENTS		191,622			(531,319	)
CASH AND CASH EQUIVALENTS - end of period	$	26,408		$	264,316
CASH AND CASH EQUIVALENTS - beginning of period		10,622			542,331
CASH AND CASH EQUIVALENTS - end of period	$	202,244		$	11,012
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	$	70,232		$	34,443
Income taxes paid	$	-		$	-

(See accompanying notes ~~to financial statements)~~.

Table of Contents

AMERICAS ENERGY COMPANY - AECo
(Formerly Trend Technology Corporation)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
(UNAUDITED)
	Supplemental disclosures of non-cash investing and financing activities:
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
		In April 2011, the Company received $1,000,000 through its convertible line of credit note.
Interest paid		$	177,864	$	25,613
		Under the terms of the agreement the Company issued warrants to purchase 1,000,000
Income taxes paid		$	-	$	-
		shares of its common stock at $0.14 per share, warrants to purchase 1,000,000 shares
		of common stock at $0.20 per share, and warrants to purchase 1,000,000 shares of
		common stock at of $0.25 per share. Until the credit line is paid in full, the holder has the
		right to convert up to $2,000,000 of the indebtedness due into shares of the Company's
		common stock at a conversion price of $0.136815 per share. The Company recorded
		a discount against the principal of $26,316 which was allocated to the beneficial conversion
		feature of the note. The discount is being amortized over the term of the indebtedness.
		During the three months ended June 30, 2011, amortization on the discount totaled
		$46,892, which was charged to interest expense.
		In April 2011, the Company sold all of its oil properties to RJCC Group 1 and
		in accordance to the terms of the sale received the initial payment of $100,000.
		RJCC Group 1 is wholly owned by family members of the Company's management
		and therefore the recognized loss on the sale of $76,929 was charged to equity.
		In June 2011, the Company purchased mining equipment with a total cost of
		$35,000. In the purchase, the Company paid $10,000 and traded in used
		equipment valued at $25,000. The Company treated the trade-in as a sale and
		recorded a gain of $6,798 on the transaction.
		In May 2010, the Company purchased a commercial building for $975,000. Under the
		terms of the agreement, the Company made a down payment of $20,956 (See Note 8).
		In May 2010, the Company issued 25,000 shares of its common stock to a director
		as interest in connection with a $100,000 loan he made to the Company. The 25,000
		shares were valued at their respective market value on date of issuance totaling
		$32,000 which being amortized and charged to operations over the six month term
		of the loan. The director has the right to convert all or a portion of the $100,000
		loan into common shares of the Company at a conversion price of $0.75 per share.
		The Company recognized a beneficial conversion feature of $70,666 which was
		accounted for a discount against the $100,000 principal balance of the note.
		The discount is being amortized and charged to interest expense over the six
		month term of the loan In March 2011, the debt was cancelled in exchange
		through the issuance of 400,000 shares of common stock.
		In May 2010, the Company issued a total of 1,425,000 shares of its common stock
		for consulting services. The shares were valued on the date the shares were issued of
		$2,764,500, which was charged top operations and included in compensation expense.

	Supplemental disclosures of non-cash investing and financing activities:
		In May 2010, the Company purchased a commercial building for $975,000. Under the
		terms of the agreement, the Company made a down payment of $20,956 (See Note 8).
		In May 2010, the Company issued 25,000 shares of its common stock to a director
		as interest in connection with a $100,000 loan he made to the Company. The 25,000
		shares were valued at their respective market value on date of issuance totaling
		$32,000 which being amortized and charged to operations over the six month term
		of the loan. The director has the right to convert all or a portion of the $100,000
		loan into common shares of the Company at a conversion price of $0.75 per share.
		The Company recognized a beneficial conversion feature of $70,666 which was
		accounted for a discount against the $100,000 principal balance of the note.
		The discount is being amortized and charged to interest expense over the six
		month term of the loan (See Note 8).
		In September 2010, the Company negotiated a new agreement with the shareholders
		of Evans Coal Company relating to the purchase of Evans. Under the new terms,
		the $25,000,000 promissory note and 2% finders fee were canceled. The Company
		recognized a fain on the extinguishment of this debt amounting to $25,183,147
		which was credited to operations and included in the net gain on modification of acquisition.
		On October 25, 2010, the Company authorized the issuance of 5,000,000 shares of its
		common stock in exchange for the cancelation of its obligation to RJCC Group totaling
		$1,168,164 on the acquisition of the mineral rights on the Bledsoe property. RJCC Group
		is owned by an officer of the Company and the $1,168,164 was credited to equity on
		the debt cancelation.
		During the nine-months ended December 31, 2010, the Company issued a total
		of 3,486,320 shares of its common stock to officers, employees and consultants.
		These shares were valued on their respective trading price on date of issuance
		totaling $4,019,988, of which $4,002,738 was charged to operations and $17,250
		was recorded as a prepaid expense.
		During the nine-months ended December 31, 2010, the Company issued 176,702
		shares of its common stock in cancelation of past due professional fees. The Company
		valued the shares at their respective trading price on date of issuance and
		recognized a gain of $4,272 on the debt cancelation.
		In July 2009, the Company issued 33,000,000 shares of its common stock to its founding
		shareholders. The shares were valued at their estimated market value of $200,000, which
		was charged to operations as compensation.
		In July 2009, the Company entered into an agreement to acquire mineral rights for the
		mining of coal from its Executive Vice President for payments totaling $1,250,000 of which
		the Company has paid $25,000. The remaining balance of $1,225,000 is payable in 49
		monthly installments of $25,000 commencing in January 2010. As the terms of the purchase
		did not provide for interest on the installments, the Company imputed interest using an
		effective annual interest rate of 6% and discounted the remaining balance due to $1,061,801.
		As discussed above, in October 25, 2010, the balance of this obligation totaling $1,168,164
		was cancelled in exchange for the issuance of 5,000,000 shares of the Company's common
		stock.
		In July 2009, the Company entered into an agreement to acquire an oil lease from an officer,
		who is also a director, for payments totaling $370,000 of which the Company has paid
		a total of $150,000. The remaining balance of $220,000 is payable upon the completion of
		the Company's due diligence.

See accompanying notes.

(See accompanying notes to financial statements)

Table of Contents

~~Americas~~AMERICAS ~~Energy Company~~ENERGY COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1Nature of Operations – Americas Energy Company – AECo (“the Company”) was incorporated under the name of Trend Technology Corporation in the State of Nevada on February 16, 2001. ~~Organization~~ ~~and~~On ~~Summary~~October 14, 2009, the Company changed its name to Americas Energy Company-AECo in anticipation of ~~Significant~~the ~~Accounting~~acquisition ~~Policies~~of Americas Energy Company “(AECO”).

~~Nature~~Basis of ~~Operations~~Presentation – ~~Americas~~The ~~Energy~~accompanying ~~Company~~unaudited –condensed ~~AECo~~consolidated ~~(“the~~financial ~~Company”)~~statements ~~was~~contain ~~incorporated~~all ~~under~~adjustments ~~the~~(consisting ~~name~~only of ~~Trend~~normal ~~Technology~~recurring ~~Corporation~~adjustments) which, in the ~~State~~opinion of ~~Nevada on February 16~~management, ~~2001.~~are Onnecessary ~~October~~to ~~14,~~present ~~2009,~~fairly the ~~Company~~financial ~~changed~~position ~~its~~of ~~name~~the toCompany ~~Americas~~as ~~Energy~~of ~~Company-AECo~~June in30, ~~anticipation~~2011, ofand the ~~acquisition~~results of ~~Americas~~its ~~Energy~~operations ~~Company~~and ~~“(AECO”).~~cash ~~The~~flows ~~acquisition~~for ~~occurred~~the onthree ~~January~~months ~~21,~~ended ~~2010~~June ~~when~~30, ~~the~~2011 ~~Company~~and ~~issued~~2010. ~~33,000,000~~Certain ~~shares~~information ofand ~~its~~footnote ~~common~~disclosures ~~stock~~normally included in ~~exchange~~financial ~~for~~statements ~~receiving~~have ~~all~~been ofcondensed ~~the~~or ~~outstanding~~omitted ~~shares~~pursuant ofto ~~AECO.~~rules ~~The~~and ~~transaction~~regulations ~~was~~of ~~accounted~~the ~~for~~U.S. asSecurities aand ~~reverse~~Exchange ~~acquisition~~Commission ~~pursuant~~(the to“Commission”). ~~ASC~~The ~~Topic~~Company ~~805-40~~believes ~~whereby~~that ~~AECO is~~ the ~~accounting~~disclosures ~~acquirer~~in ~~and~~the ~~its~~unaudited ~~operation~~condensed ~~continue~~consolidated tofinancial bestatements ~~reported~~are asadequate ifto itmake ~~had~~the ~~actually~~information ~~been~~presented ~~the~~not ~~acquirer~~misleading. ~~AECO~~ ~~was~~However, ~~organized~~the inunaudited ~~Nevada~~condensed onconsolidated ~~July~~financial ~~13,~~statements ~~2009.~~included Inherein ~~recording~~should ~~the~~be ~~acquisition,~~read ~~the~~in ~~Company~~conjunction ~~valued~~with the ~~shares~~financial ~~issued~~statements ~~using~~and ~~the~~notes ~~net~~thereto ~~book~~included ~~value~~in ofthe ~~AECO~~Company’s ~~and~~Annual ~~recorded~~Report ~~$742,000~~on asForm ~~goodwill,~~10-K ~~which~~for ~~represented~~ the ~~difference~~year ~~between~~ended ~~the~~September ~~fair~~30, ~~value~~2010 offiled ~~the~~with ~~common shares issued and~~ the ~~net~~Commission ~~assets~~on ofDecember ~~AECO~~29, 2010.

OnThe ~~March~~accompanying ~~31,~~consolidated ~~2010,~~financial ~~the~~statements ~~Company~~are ~~acquired~~prepared ~~all~~using of the ~~outstanding~~accrual ~~shares~~method of ~~Evans~~accounting ~~Coal Corp. (“Evans”) In exchange for $7,000,000~~ in ~~cash,~~accordance awith ~~$25,000,000~~accounting ~~promissory~~principles ~~note~~generally ~~and~~accepted ~~a 2% overriding royalty on all coal sales generated from the properties acquired from Evans. Evans was organized~~ in ~~Kentucky on July 9, 1987 and is engaged in~~ the ~~business~~United States of ~~mining high-grade steam coal from its properties located in Southeast Kentucky~~America.

~~Since~~Principles ~~acquiring~~of ~~Evans,~~Consolidation ~~the~~- ~~Company~~The ~~determined~~accompanying ~~that~~condensed ~~the~~consolidated ~~reserves~~financial ~~actually~~statements ~~received~~include in the ~~acquisition~~accounts ~~were~~of ~~less~~Americas ~~than~~Energy ~~what~~Company ~~was~~– ~~expected.~~AECo ~~Based~~and ~~upon~~its ~~the~~wholly ~~new~~owned ~~information~~subsidiary, ~~management initiated negotiations with~~ Evans ~~whereby~~Coal ~~requesting a modification to the purchase price and terms of the original agreement~~Corp. ~~Pursuant~~Intercompany totransactions ~~the agreed upon modifications effective September 28, 2010, Evans agreed to cancel the $25,000,000 promissory note present valued at $19,535,854~~ and ~~the~~balances 2%have ~~overriding~~been ~~royalty~~eliminated ~~valued at $5,647,293~~ in exchange for granting the former shareholders of Evans a $2 per ton royalty on all coal produced from the leases acquired as a result of this agreement, excluding the Cardinal lease on which a royalty of $1 per ton will be paidconsolidation. As of September 30, 2010, the Company recorded a gain on the modification of $12,763,252 which is comprised of the de-recognition of liabilities totaling $25,183,147 less $12,419,895, the adjusted value of reserves acquired (See Note 8).

~~Basis~~Use of ~~Presentation~~Estimates – The ~~accompanying~~preparation ~~unaudited~~of ~~condensed consolidated~~ financial statements ~~contain~~in ~~all~~conformity ~~adjustments~~with ~~(consisting~~generally ~~only~~accepted ofaccounting ~~normal~~principles ~~recurring~~requires ~~adjustments) which, in the opinion of~~ management, ~~are necessary~~ to ~~present~~make ~~fairly~~estimates ~~the~~and ~~financial~~assumptions ~~position~~that ofaffect the ~~Company~~reported asamounts of ~~December~~assets ~~31,~~and ~~2010,~~liabilities and ~~the~~disclosure ~~results~~ of ~~its~~contingent ~~operations~~assets and ~~cash~~liabilities ~~flows~~at ~~for~~ the ~~nine~~date ~~months~~of ~~ended~~the ~~then~~consolidated ~~ended. Certain information and footnote disclosures normally included in~~ financial statements ~~have~~and ~~been~~the ~~condensed~~reported oramounts ~~omitted pursuant to rules and regulations~~ of ~~the~~revenues ~~U.S. Securities~~ and ~~Exchange~~expenses ~~Commission~~during (the ~~“Commission”)~~reporting period. ~~The~~Actual ~~Company~~results ~~believes~~could ~~that~~differ ~~the~~from ~~disclosures~~those inestimates. ~~the~~Estimates ~~unaudited~~of ~~condensed~~coal, ~~consolidated~~oil ~~financial~~and ~~statements~~gas ~~are~~reserves, ~~adequate~~asset toretirement ~~make the information presented not misleading. However~~obligations, ~~the~~and ~~unaudited~~impairment ~~condensed~~on ~~consolidated~~unproved ~~financial~~properties ~~statements~~are ~~included~~inherently ~~herein~~imprecise ~~should be read in conjunction with the financial statements~~ and ~~notes~~may ~~thereto~~change ~~included~~materially in the ~~Company’s~~near ~~Annual Report on Form 10-K for the year ended March 31, 2010 filed with the Commission on July 14, 2010~~term.

~~The~~Cash ~~accompanying~~and ~~unaudited~~Cash ~~condensed~~Equivalents ~~consolidated~~– ~~financial~~The ~~statements~~Company ~~are~~considers ~~prepared~~all ~~using~~highly ~~the~~liquid ~~accrual~~debt ~~method~~instruments ofand ~~accounting~~other inshort-term ~~accordance~~investments with ~~accounting~~maturities ~~principles~~of ~~generally~~three ~~accepted~~months inor ~~the~~less, ~~United~~when ~~States~~purchased, ofto ~~America~~be ~~and~~cash ~~have~~equivalents. The ~~been~~Company ~~prepared~~maintains oncash abalances ~~going~~at ~~concern~~one ~~basis,~~financial ~~which~~institution ~~contemplates~~that ~~the~~is ~~realization~~insured ofby ~~assets and~~ the ~~settlement~~Federal ofDeposit ~~liabilities~~Insurance inCorporation ~~the~~(“FDIC”) ~~normal~~up ~~course~~to ~~of business~~$250,000. As ~~shown~~of inJune ~~the~~30, ~~accompanying~~2011, ~~financial statements~~ the Company’s ~~has~~cash anbalances ~~accumulated~~did ~~deficit~~not ~~since~~exceed ~~its~~the ~~inceptions~~FDIC ~~(July 13, 2009) of $4,472,675 and a working capital deficit of $3,094,037 as of December 31, 2010~~limits.

InAccounts ~~view~~Receivable of– ~~current~~Accounts ~~matters,~~receivable ~~the~~are ~~continuation~~recorded ofat the ~~Company’s~~invoiced ~~operations~~amount ~~is dependent on revenue from its coal mining operations, advances made by its officers~~ and ~~directors,~~do ~~and~~not ~~the~~bear ~~raising of capital through the sale of its equity instruments or issuance of debt~~interest. The ~~Management~~Company ~~believes~~evaluates ~~that these sources of funds will allow~~ the ~~Company~~need tofor ~~continue~~an asallowance afor ~~going~~doubtful ~~concern~~accounts ~~through~~based ~~2011.~~on ~~However,~~review ~~no assurances can be made that current or anticipated future sources~~ of ~~funds~~historical ~~will~~write-off ~~enable~~experience ~~the~~and ~~Company~~industry ~~to finance future periods’ operations~~data. InAs ~~light~~ of ~~these~~June ~~circumstances~~30, ~~substantial~~2011 ~~doubt~~and ~~exists~~2010, ~~about~~there ~~the~~was ~~Company’s~~no ~~ability~~allowance tofor ~~continue~~doubtful asaccounts, asince ~~going~~all ~~concern. These financial statements do not include any adjustments relating to the recoverability and classification~~ of ~~recorded assets or liabilities that might be necessary should~~ the Company’s bereceivables ~~unable~~were tosubsequently ~~continue as a going concern~~collected.

Advanced Mining Royalties – Lease rights to coal lands are often acquired in exchange for royalty payments. Advance mining royalties are advance payments made to lessors under terms of mineral lease agreements that are recoupable against future production. These advance payments are deferred and charged to operations as the coal reserves are mined. The Company regularly reviews recoverability of advance mining royalties and establishes or adjusts the allowance for advance mining royalties as necessary using the specific identification method. In instances where advance payments are not expected to be offset against future production royalties, the Company establishes a provision for losses on the advance payments that have been paid and the scheduled future minimum payments are expensed and recognized as liabilities. Advance royalty balances are charged off against the allowance when the lease rights are either terminated or expire. The Company did not have any advanced royalties at June 30, 2011.

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~Property and Equipment – Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method and with useful lives used in computing depreciation ranging from 3 to 5 years. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Expenditures for maintenance and repairs are charged to operations as incurred; additions, renewals and betterments are capitalized.

Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates of coal, oil and gas reserves, asset retirement obligations, and impairment on unproved properties are inherently imprecise and may change materially in the near term.

Cash and Cash Equivalents – The Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased, to be cash equivalents. The Company maintains cash balances at two financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000.

Accounts Receivable – Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company evaluates the need for an allowance for doubtful accounts based on review of historical write-off experience and industry data. As of December 31, 2010, there was no allowance for doubtful accounts, since all of the Company’s receivables were subsequently collected.

Advanced Mining Royalties – Lease rights to coal lands are often acquired in exchange for royalty payments. Advance mining royalties are advance payments made to lessors under terms of mineral lease agreements that are recoupable against future production. These advance payments are deferred and charged to operations as the coal reserves are mined. The Company regularly reviews recoverability of advance mining royalties and establishes or adjusts the allowance for advance mining royalties as necessary using the specific identification method. In instances where advance payments are not expected to be offset against future production royalties, the Company establishes a provision for losses on the advance payments that have been paid and the scheduled future minimum payments are expensed and recognized as liabilities. Advance royalty balances are charged off against the allowance when the lease rights are either terminated or expire. As of December 31, 2010, the Company had advanced royalties totaling $124,000, which is included on the balance sheet in prepaid expenses.

Property and Equipment – Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method and with useful lives used in computing depreciation ranging from 3 to 20 years. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Expenditures for maintenance and repairs are charged to operations as incurred; additions, renewals and betterments are capitalized.

Coal Properties – Costs incurred to purchase, lease or otherwise acquire mineral properties are capitalized when incurred. Mine development costs are recorded at cost as incurred. The Company’s coal reserves are controlled either through direct ownership or through leasing arrangements, which generally last until the recoverable reserves are depleted. Depletion of reserves and amortization of mine development costs is computed using the units-of-production method over the estimated proven and probable recoverable tons.

The Company reviews its long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If impairment indicators are present and the future undiscounted cash flows are less than the carrying value of the assets, the carrying values are reduced to ~~the~~their estimated fair value.

~~Oil~~Long-Lived ~~and~~Assets ~~Gas Property~~ – The Company ~~follows~~accounts ~~the~~for ~~full~~its ~~cost~~long-lived ~~method~~assets ofin ~~accounting~~accordance ~~for~~with ~~its~~ASC ~~oil~~Topic ~~and~~360-10, ~~gas~~Formerly ~~property~~SFAS No. 144, ~~which~~"Accounting isfor ~~located~~the inImpairment ~~Cumberland~~or ~~County,~~Disposal ~~Kentucky.~~of ~~Accordingly,~~Long-Lived ~~all~~Assets." ASC ~~costs~~Topic ~~associated~~360-10 ~~with~~requires ~~acquisition,~~that ~~exploration~~long-lived ~~and~~assets ~~development~~be ofreviewed ~~oil~~for ~~and~~impairment ~~gas~~whenever ~~reserves~~events ~~are~~or ~~capitalized.~~changes ~~All~~in ~~capitalized~~circumstances ~~costs,~~indicate ~~including~~that the ~~estimated~~historical ~~future~~cost ~~costs~~carrying tovalue ~~develop~~of ~~proved~~an ~~reserves~~asset ~~are~~may ~~amortized~~no onlonger ~~the~~be ~~unit-~~appropriate. The Company assesses recoverability of~~-production~~ ~~method~~the ~~using~~carrying ~~estimates~~value of ~~proved~~an ~~reserves.~~asset ~~Investments~~by inestimating ~~unproved~~the ~~properties~~future ~~and~~net ~~major~~cash ~~development~~flows ~~projects~~expected ~~will~~to ~~not~~result befrom ~~amortized~~the ~~until~~asset, ~~proved~~including ~~reserves~~eventual ~~associated~~disposition. ~~with~~If the ~~projects~~future ~~can~~net becash ~~determined~~flows orare ~~until~~less ~~impairment~~than ~~occurs.~~the ~~Potential~~carrying ~~impairment~~value of ~~unproved~~the ~~properties~~asset, ~~and~~an ~~other~~impairment ~~oil~~loss ~~and~~is ~~gas~~recorded ~~property~~equal ~~and~~to ~~equipment~~the ~~are~~difference ~~assessed~~between ~~periodically. If~~ the ~~assessment~~asset's ~~indicates~~carrying ~~that~~value ~~the~~and ~~properties~~fair ~~are~~value ~~impaired,~~or ~~the~~disposable ~~amount~~value. As of June 30, 2011, the ~~impairment~~Company ~~will~~has bedetermined ~~added~~that tonone ~~the~~of ~~capitalized~~its ~~costs~~long-term toassets bewere ~~amortized~~impaired.

Intangible assets – Goodwill consists of the cost in excess of the fair value of the acquired net assets of the Company’s subsidiaries. Goodwill is subject to annual impairment tests which require the comparison of the fair value and carrying value of reporting units. The Company assesses the potential impairment of goodwill annually and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Upon completion of such annual review, if impairment is found to have occurred, a corresponding charge will be recorded. The Company has determined that it has one reporting unit, and uses three generally accepted methods for estimating fair value of the reporting unit; the income approach, market approach and market capitalization to determine the overall fair value. There were no events or changes in circumstances during the three months ended June 30, 2011 that indicated to management that the carrying value of goodwill and the intangible asset may not be recoverable.

Asset Retirement Obligations –Minimum standards for mine reclamation have been established by various regulatory agencies and dictate the reclamation requirements at the Company’s operations. The Company’s asset retirement obligations consist principally of costs to reclaim acreage disturbed at surface operations and estimated costs to reclaim support acreage and perform other related functions at underground mines. The Company records these reclamation obligations at fair value in the period in which the legal obligation associated with the retirement of the long-lived asset is incurred. When the liability is initially recorded, the offset is capitalized by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. To settle the liability, the obligation is paid, and to the extent there is a difference between the liability and the amount of cash paid, a gain or loss upon settlement is recorded. The Company annually reviews its estimated future cash flows for its asset retirement obligations. See Note 10 for further disclosures related to the Company’s asset retirement obligations.

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

(Unaudited)

Long-Lived Assets – The Company accounts for its long-lived assets in accordance with ASC Topic 360-10, Formerly SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value or disposable value.

Goodwill - Goodwill represents the excess of the purchase price over the fair value of the net identifiable tangible and intangible assets of acquired companies. Goodwill is not amortized; instead, it is tested for impairment annually or more frequently if indicators of impairment exist. On an ongoing basis, absent any impairment indicators, the Company performs its goodwill impairment testing as of March 31 of each year.

The Company tests its consolidated goodwill for impairment using a fair value approach at the consolidated level, and performs the goodwill impairment test in two steps. Step one compares the fair value to its carrying amount. If step one indicates that an impairment potentially exists, the second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value.

For purposes of the step one analysis, estimates of fair value are based on discounted cash flows (the “income approach”). Under the income approach, the fair value is based on the present value of estimated future cash flows. The income approach is dependent on a number of significant management assumptions including markets, sales volumes and prices, costs to produce, capital spending, working capital changes and the discount rate. The discount rate is commensurate with the risk inherent in the projected cash flows and reflects the rate of return required by an investor in the current economic conditions. The Company estimates the fair value of goodwill using a number of factors, including the application of multiples and discounted cash flow estimates.

Goodwill was $742,000 as of December 31, 2010 and was acquired January 21, 2010 in connection with the Company’s reverse Merger of AECO.

Income Taxes – Income taxes are accounted for under the asset and liability method in accordance with ASC Topic 740-10, formerly SFAS 109 "Accounting for Income Taxes." Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When it is considered to be more likely than not that a deferred tax asset will not be realized, a valuation allowance is provided for the excess.

Revenue Recognition – The Company earns revenues primarily through the sale of coal, but also earns revenue from the leasing of its equipment. The Company recognizes revenues utilizing the following general revenue recognition criteria: 1) pervasive evidence of an arrangement exists; 2) delivery has occurred; 3) the price to the buyer is fixed or determinable; and 4) collectability is reasonably assured.

Delivery of coal sales is determined to be complete for revenue recognition purposes when title and risk of loss has passed to the customer in accordance with stated contractual terms and there is no future obligations related to the shipment. Title generally passes as the coal is loaded into transport carriers for delivery to the customer.

Pneumoconiosis (Black Lung) Benefits - The Company is required by federal and state statutes to provide benefits to employees for awards related to black lung. Charges are made to operations for state black lung claims. The Company recognizes on its balance sheet the amount of the Company’s unfunded Accumulated Benefit Obligation (“ABO”) at the end of the year. Amounts recognized in Accumulated other comprehensive income (loss) are adjusted out of Accumulated other comprehensive income (loss) when they are subsequently recognized as components of net periodic benefit cost.

Share-Based Compensation – The Company measures and records compensation expense for all share-based payment awards to consultants, employees and directors based on estimated fair values. Additionally, compensation costs for share-based awards are recognized over the requisite service period based on the grant-date fair value.

Loss Per Share – The Company reports earnings (loss) per share in accordance with ASC Topic 260-10, formerly SFAS No. 128, "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Potential common shares at June 30, 2011 comprised of 12,000,000 Warrants and $1,020,768 of debt convertible into 7,460,936 shares of the Company’s common stock.

Convertible Debentures - If the conversion feature of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense or equity (if the debt is due to a related party), over the life of the debt using the effective interest method.

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~NOTE 2 – RECENT ACCOUNTING PRONOUNCMENTS

~~Revenue~~In ~~Recognition~~June –of ~~The~~2011, ~~Company~~Accounting ~~earns~~Standards ~~revenues~~Codification ~~primarily~~Topic ~~through~~220, Comprehensive Income was amended to increase the ~~sale~~prominence of ~~coal~~items reported in other comprehensive income. Accordingly, ~~but~~a ~~also~~company ~~earns~~can ~~revenue~~present ~~from~~all ~~the~~non-owner ~~sale~~changes in stockholders’ equity either in a single continuous statement of ~~oil.~~comprehensive ~~The~~income ~~Company~~or ~~recognizes~~in ~~revenues~~two ~~utilizing~~separate ~~the~~but ~~following~~consecutive ~~general~~statements ~~revenue~~The ~~recognition~~Company ~~criteria:~~plans 1)to ~~pervasive~~adopt ~~evidence~~this ofguidance anas ~~arrangement~~of ~~exists;~~January 2)1, ~~delivery~~2012 and ~~has~~does ~~occurred;~~not 3)expect the ~~price~~adoption thereof to ~~the~~have ~~buyer~~a ismaterial ~~fixed~~effect oron ~~determinable;~~the ~~and~~Company’s 4)condensed ~~collectability~~consolidated isfinancial ~~reasonably assured~~statements.

~~Delivery~~In onMay ~~coal~~of ~~sales~~2011, isAccounting ~~determined~~Standards toCodification beTopic ~~complete~~820, ~~for~~Fair ~~revenue~~Value ~~recognition~~Measurement ~~purposes~~was ~~when~~amended ~~title~~to ~~and~~develop ~~risk~~common ofrequirements ~~loss~~for ~~has~~measuring ~~passed~~fair tovalue ~~the~~and ~~customer~~for disclosing information about fair value measurements in accordance with ~~stated~~U.S. ~~contractual~~generally ~~terms~~accepted accounting principles and ~~there~~International isFinancial noReporting ~~future~~Standards. ~~obligations~~The ~~related~~Company plans to ~~the~~adopt ~~shipment.~~this ~~Title~~guidance ~~generally~~as ~~passes~~of asJanuary ~~the~~1, ~~coal~~2012 ison ~~loaded~~a ~~into~~prospective ~~transport~~basis ~~carriers~~and ~~for~~does ~~delivery~~not expect the adoption thereof to have a material effect on the ~~customer~~Company’s condensed consolidated financial statements.

~~Pneumoconiosis~~In ~~(Black~~March ~~Lung)~~of ~~Benefits~~2010, –Accounting ~~The~~Standards ~~Company~~Codification isTopic ~~required~~605, byRevenue ~~federal~~Recognition was amended to define a milestone and ~~state~~clarify ~~statutes~~that tothe ~~provide~~milestone ~~benefits~~method toof ~~employees~~revenue ~~for~~recognition ~~awards~~is ~~related~~a valid application of the proportional performance model when applied to ~~black~~research ~~lung~~or development arrangements. ~~Charges~~Accordingly, ~~are~~a ~~made~~company tocan ~~operations~~make ~~for~~an ~~state~~accounting ~~black~~policy ~~lung~~election ~~claims.~~to ~~The~~recognize ~~Company~~a ~~recognizes~~payment onthat ~~its~~is ~~balance~~contingent ~~sheet~~upon the ~~amount~~achievement of ~~the~~a ~~Company’s~~substantive ~~unfunded~~milestone ~~Accumulated~~in ~~Benefit~~its ~~Obligation~~entirety ~~(“ABO”)~~in at the ~~end~~period ofin which the ~~year.~~milestone ~~Amounts~~is ~~recognized~~achieved. inThis ~~Accumulated~~guidance ~~other~~was ~~comprehensive~~adopted ~~income~~effective ~~(loss) are~~January ~~adjusted~~1, ~~out~~2011 ofon ~~Accumulated~~a ~~other~~prospective ~~comprehensive~~basis ~~income~~and ~~(loss) when~~did ~~they~~not ~~are~~have ~~subsequently~~a ~~recognized~~material aseffect ~~components~~on ofthe ~~net~~Company’s ~~periodic~~condensed ~~benefit~~consolidated ~~cost~~financial statements.

~~Convertible~~NOTE ~~Debentures~~3 – IfGOING the conversion feature of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense or equity (if the debt is due to a related party), over the life of the debt using the effective interest method.CONCERN

~~Financial~~The ~~Instruments~~accompanying –financial ~~Financial~~statements ~~instruments~~have ~~consist~~been ofprepared ~~cash,~~on ~~accounts~~a ~~receivable,~~going ~~accounts~~concern ~~payable~~basis, ~~notes~~which ~~payable~~contemplates ~~and~~the ~~advances~~realization ~~payable.~~of ~~Recorded~~assets ~~values~~and ofthe ~~cash,~~satisfaction ~~receivables,~~of ~~accounts~~liabilities ~~payable~~in ~~and~~the ~~accrued~~normal ~~liabilities~~course ~~approximate~~of ~~fair~~business. ~~values~~The ~~due~~Company tohas ~~the~~incurred ~~short~~a ~~maturities~~net loss of ~~such~~$7,736,381 ~~instruments. Recorded values~~ for ~~notes~~the ~~payable~~three ~~and~~months ~~related~~ended ~~liabilities~~June ~~approximate~~30, ~~fair~~2011, ~~values~~In addition, ~~since~~at ~~their~~June ~~stated~~30, or2011, ~~imputed~~the ~~interest~~Company ~~rates~~had ~~are~~negative ~~commensurate~~working ~~with~~capital ~~prevailing~~of ~~market~~$1,643,835 ~~rates~~and ~~for~~an ~~similar~~accumulated ~~obligations~~deficit of $18,738,813.

~~Share-Based~~These ~~Compensation~~conditions –give ~~The~~rise to doubt about the Company’s ~~measures~~ability ~~and~~to ~~records~~continue ~~compensation~~as ~~expense~~a ~~for~~going ~~all~~concern. ~~share-based~~These ~~payment~~financial ~~awards~~statements do not include adjustments relating to ~~consultants,~~the ~~employees~~recoverability and ~~directors~~classification ~~based~~of onreported ~~estimated~~asset ~~fair~~amounts ~~values. Additionally,~~or ~~compensation~~the ~~costs~~amount ~~for~~and ~~share-based~~classification ~~awards~~of ~~are~~liabilities ~~recognized~~that ~~over~~might be necessary should the ~~requisite~~Company ~~service~~be ~~period~~unable ~~based~~to oncontinue ~~the~~as ~~grant-date~~a ~~fair~~going ~~value~~concern. The Company’s continuation as a going concern is dependent upon its ability to obtain additional financing or sale of its common stock as may be required and ultimately to attain profitability.

~~Loss~~NOTE ~~Per~~4 ~~Share~~ – ~~The~~CONCENTRATION ~~Company~~OF ~~reports~~CREDIT earnings (loss) per share in accordance with ASC Topic 260-10, formerly SFAS No. 128, "Earnings per Share." Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares available. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Potential common shares at December 31, 2010 comprised of 9,000,000 Warrants.RISK

2Significantly, all of the Company’s revenues during the three months ended June 30, 2011 were derived from two customers of whom one customer purchased approximately 87% Company’s total coal sales. ~~Recent~~ ~~Accounting~~During ~~Pronouncements~~the three months ended June 30, 2010 significantly all of the Company’s revenues were derived from five customers of whom two customers purchased approximately 85% of the Company’s total coal sales for the period.

InTrade ~~January~~receivable ~~2011,~~balance ~~the~~at Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2011-01 (ASU 2011-01) Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20. ASU 2011-01 temporarily delay the effective date of the disclosures about troubled debt restructurings. The effective date of the new disclosures about troubled debt restructurings for public entities and the guidance for determining what constitutes a troubled debt restructuring will then be coordinated. Currently, the guidance is anticipated to be effective for interim and annual period ending after June 1530, 2011~~. The~~ ~~Company does not expect the provisions~~ of ~~ASU 2011-01 to have a material effect on its financial position~~$4,857 ~~results~~is ofdue ~~operations~~from orone ~~cash flows~~customer.

All of the Company’s coal mining during the period was subcontracted to one operator.

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~NOTE 5 – PROPERTY, PLANT, EQUIPMENT AND MINING DEVELOPMENT

~~In December 2010~~Property, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2010-29 (ASU 2010-29) Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update specify that if a public entity presents comparative financial statementsplant, ~~the entity should disclose revenue~~ and ~~earnings~~equipment ofat ~~the~~June combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. The amendments in the Update also expand the supplemental pro forma disclosures under Topic 805 to include a description of the nature and amount of material30, ~~nonrecurring~~2011 ~~pro~~consist forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments in the Update are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. The Company does not expect the provisions of ASU 2010-29 to have a material effect on its financial position, results of operations or cash flows.following:

In December 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2010-28 (ASU 2010-28) Intangibles – Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts (a consensus of the FASB Emerging Issued Task Force). The amendments in the Update modify Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that a goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that an impairment may exist. The qualitative factors are consistent with the existing guidance which requires that goodwill of a reporting unit be tested for impairment between annual tests if an event occurs or circumstances change that would more like than not reduce the fair value of a reporting unit below its carrying amount. For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2010. Early adoption is not permitted. The Company does not expect the provisions of ASU 2010-28 to have a material effect on its financial position, results of operations or cash flows.

	Useful
	Life

Land		$	244,348
Building and improvements	5 to 20 years		768,886
Mining and transportation equipment	5 to 10 years		4,736,521
Trucks held under capital leases	3 years		49,439
Office equipment	3 to 5 years		21,299
			5,820,493
Less accumulated depreciation and depletion			(734,164	)
		$	5,086,329

~~3. Concentration~~Depreciation ofexpense ~~Credit~~for ~~Risk~~the months ended June 30, 2011 and 2010 totaled $160,124 and $123,495, respectively.

~~Significantly,~~Mining ~~all~~properties of the Company’s revenues during the three months ended and nine months ended December 31, 2010 were derived from five customers of whom two customers purchased approximately 85% of the Company’s total coal sales for the period. Trade receivables at ~~December~~June 3130, ~~2010~~2011 ~~totaling~~consisted ~~$269,651 were due from two customers~~ of ~~which one owed $261,142 of~~ the ~~total.~~following:

All of the Company’s coal mining during the period was subcontracted to two operators.

Mining properties	$	17,672,425
Less accumulated depletion		(132,397	)
	$	17,540,028

~~4. Property,~~Depletion ~~Plant~~expense for the three months ended June 30, ~~Equipment~~2011 and ~~Mining~~2010 ~~Development~~totaled $2,361 and $10,621, respectively.

~~Property,~~NOTE ~~plant,~~6 ~~equipment,~~– ~~and~~OTHER ~~mining development at December 31, 2010 consist of the following:~~ASSETS

	Useful		December 31,
	Life		2010
Land		-	$	244,348
Mining properties				17,540,377
Mining and transportation equipment	5 to 10 years			4,596,970
Building and improvements	5 to 20 years			778,251
Trucks held under capital leases	3 years			49,439
Office equipment and furnishings	3 to 5 years			21,298
				23,230,683
Less accumulated depreciation and depletion				(457,724	)
			$	22,772,959

Investment in unconsolidated subsidiary

As of June 30, 2011, the Company owns 250,000 shares of Proton Power, Inc., and subsidiaries (“Proton”) that it acquired for $250,000. The 250,000 shares represent approximately 2.2% of the total outstanding shares of Proton. Proton is located in Lenoir City, Tennessee and is in the process of developing hydrogen based power systems that it will manufacture and sale to business customers with access to cellulosic biomass or cellulosic waste streams such as woody waste, agricultural by-products, and paper waste.

Proton is privately held and the Company is accounting for its $250,000 investment under the cost method pursuant to ACS 325-20 “Cost method investment”. As of March 31, 2011, the Company has not evaluated its investment in Proton for impairment.

Investment in certificate of deposits

On March 31, 2010, the Company acquired $1,580,508 in certificates of deposit in connection with its acquisition of Evans Coal Corp., which are offset against an assumed liability to the former president of Evans in the amount of $1,198,685. The certificates of deposit are pledged as collateral for future reclamation costs attributable to the mining permits acquired through the aforementioned acquisition. From the date of the modified purchase agreement of

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~Evans, all interest earned on the certificate of deposits is being distributed to the seller. During the year ended March 31 2011, the Company increased its investment in certificates of deposits by $13.600. The new certificates are also pledged as collateral for mining permits. The balance of the investments at June 30, 2011 totaled $1,594,110.

~~Depreciation~~NOTE ~~expense~~7 ~~for~~– ~~the~~OBLIGATIONS ~~three~~UNDER ~~and~~CAPITAL nine months ended December 31, 2010 totaled $64,788 and $426,081, respectively. Depletion expense for the three and nine months ended December 31, 2010 totaled $4,430 and $26,293, respectively. Depreciation expense for the three months ended December 31, 2009 totaled $2,742. Depreciation expense for the period from inception (July 13, 2009) through December 31, 2009 totaled $3,445. Depletion expense for the three and nine months ended December 31, 2010 totaled $4,430 and $26,293, respectively. Depreciation expense for the three months ended December 31, 2009 and for the period from inception (July 13, 2009) through December 31, 2009 totaled $7,776.LEASE

AsThe ~~discussed~~Company inis ~~Note~~leasing 1,two Ford F150 trucks under capital leases. The assets and related obligations have been recorded at the ~~fair~~present ~~values~~value of ~~mining~~the ~~properties~~minimum ~~acquired~~lease inpayments. The capitalized costs of the ~~Evans~~trucks ~~acquisition~~are ~~were~~$49,439, ~~reduced~~which is being depreciated over their estimated useful lives of 3 years. The leases are payable in ~~December~~payments ~~2010~~of by$3,883 per quarter. The imputed interest rate on the capital leases is 6%. The discounted balance due on the leases at June 31, 2011 totaled $1228,~~419~~596. The net book of the value of these leased trucks as of June 30,~~895~~ 2011 amounted to $25,501, which is net of accumulated depreciation of $23,938.

~~5. Deposits~~Minimum future lease payments under the capital lease at June 30, 2011 and ~~Other~~for ~~Assets~~each year of the lease are as follows:

On March 30, 2010, the Company entered into a non-binding letter of intent to purchase all of the outstanding shares of Proton Power, Inc., and subsidiaries located in Lenoir City, Tennessee, for the purpose of diversification into new energy production technologies. As of December 31, 2010, the Company has made good faith deposits in the amount of $250,000. The final terms of the purchase were still under negotiations as of December 31, 2010.

2012	$	15,534
2013		9,653
2014		5,714
Total minimum future lease payments		30,901
Less: amount representing interest		(2,305	)

Present value of minimum
Future lease payments	$	28,596

~~During~~Imputed interest charged to operations on these leases for the ~~nine~~three months ended ~~December~~June 3130, 2011 and 2010, ~~the~~totaled ~~Company~~$477 ~~paid~~and $~~113~~1,~~500~~357, asrespectively. ~~deposits~~Depreciation ~~and~~expense ~~good~~on ~~faith~~the ~~payments~~leased ontrucks ~~acquisition~~for ofthe ~~various~~three ~~leases~~months ofended ~~coal~~June ~~properties~~30, As2011 ofand ~~December~~2010 ~~31,~~totaled ~~2010~~$4,120 ~~the~~and ~~final~~$4,120, ~~term~~respectively, ofand ~~these~~is ~~leases~~included ~~were~~in ~~still~~accretion ~~under~~depreciation ~~negotiation~~ and ~~the~~depletion ~~$113,500~~expense ~~was included~~ in ~~deposits~~the asaccompanying ~~reflected~~consolidated onstatement ~~the~~of ~~Company’s balance sheet~~operations.

OnNOTE ~~March~~8 ~~31,~~– ~~2010,~~NOTES ~~the~~AND ~~Company~~LOANS acquired $1,580,508 in certificates of deposit in connection with its acquisition of Evans Coal Corp., which are offset against an assumed liability to the former president of ECC in the amount of $1,198,685. The certificates of deposit are pledged as collateral for future reclamation costs attributable to the mining permits acquired through the aforementioned acquisition.PAYABLE

~~Under the new agreement with the former shareholder of~~ Evans, the certificates of deposits remain in place until the related reclamation has been completed and releases have been obtained as to the respective pledged permit. The principal of an unsecured certificate of deposit may be used to secure future Evan Coal ~~Company permits~~Corp. ~~Commencing September 1, 2010, all interest earned on the certificates of deposit are being paid to the former shareholder of Evans.~~

On March 31, 2010, the Company finalized its acquisition of all of the outstanding shares of Evans Coal Corp (“Evans”). Pursuant to the terms of the purchase, the Company issued a $25,000,000 promissory note payable initially in consecutive monthly payments at the rate of ($5.00) Dollars per short ton of coal mined, sold and shipped by the Company with the first payment being due in April 2010. Commencing in March 2011, the Company was required to make monthly payments of the greater of $5.00 per short ton or a minimum quarterly payment of $500,000 through maturity. Further, Evans has stipulated in the agreement that in the event the Company was unable to obtain all coal mining regulatory permits on the leasehold area known as the Breathitt County Project by December 31, 2016, then the note shall be reduced in principal by $5,000,000. The assets acquired from Evan’s have been pledged as collateral on this obligation. Based on the terms of the Note, the face value of $25,000,000 was inclusive of imputed simple interest at the applicable Federal Rate of 4.37%. In accordance with ASC 835, the Company present valued the obligation utilizing a fair market rate of 6. ~~Accrued~~34% ~~Expenses~~to $18,974,900.

~~Accrued~~As ~~expenses~~part ~~and~~of ~~other~~the ~~liabilities~~aforementioned ~~consisted~~Acquisition Agreement, the Company assumed a note payable to the former President of Evan’s in the ~~following:~~amount of $1,198,685. The note is non-interest bearing and due on demand.

	December 31,
	2010
Interest earned on CD’s due B. Evans	$	3,584
Accrued royalties		18,559
Accrued taxes payable		12,499
Employee benefits		31,032
Accrued insurance		32,855
Total accrued expenses and other current liabilities	$	98,529

7. Obligations Under Capital Leases

The Company is leasing two Ford F150 trucks under capital leases. The assets and related obligations have been recorded at the present value of the minimum lease payments. The capitalized costs of the trucks are $49,439, which is being depreciated over their estimated useful lives of 3 years. The leases are payable in payments of $3,883 per quarter. The imputed interest rate on the capital leases is 6%. The discounted balance due on the leases at December 31, 2010 totaled $35,318. The net book of the value of these leased trucks as of December 31, 2010 amounted to $33,741, which is net of accumulated depreciation of $15,698.

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~The terms of the acquisition were modified effective September 28, 2010, and the $25,000,000 note was canceled. Imputed interest charged to operation during the three months ended June 30, 2010 and 2011, totaled $0 and $22,935, respectively.

Minimum future lease payments under the capital leases as of December 31, 2010 and for each year of the leases are as follows:

2011	$	15,534
2012		15,534
2013		7,749
Total minimum future lease payments		38,817
Less: amount representing interest		(3,499	)
Present value of minimum
Future lease payments	$	35,318

Imputed interest charged to operations on these leases for the three and nine month period ended December 31, 2010 amounted to $137 and $2,261, respectively. Depreciation expense on the leased trucks for the three and nine month period ended December 31, 2010 totaled $4,120 and $12,360, respectively, and are included in accretion, depreciation and depletion expense in the accompanying condensed consolidated statements of operations. Imputed interest charged to operations on these leases for the three months ended December 31, 2009 and from inception (July 13, 2009) through December 31, 2009 amounted to $247.

8. Notes and Loans Payable

Evans Coal Corp.

On March 31, 2010, the Company finalized its acquisition of all of the outstanding shares of Evans Coal Corp (“ECC”). Pursuant to the terms of the purchase, the Company issued a $25,000,000 promissory note. Based on the terms of the Note, the face value of $25,000,000 was inclusive of imputed simple interest at the applicable Federal Rate of 4.37%. In accordance with ASC 835, the Company present valued the obligation utilizing a fair market rate of 6.34% to $18,974,900.

As discussed in Note 1, the former shareholders of Evans and the Company agreed to modify the terms of the purchase agreement effective September 28, 2010. Under the new terms, the $25,000,000 promissory note and a 2% overriding royalty were cancelled in exchange for granting the former shareholders of Evans a $2 per ton royalty on all coal produced on existing Evan Coal Corp leases with the exception of the Cardinal lease, where a $1 per ton is to be paid on production. . In addition, the Company recognized a gain on the modification of 12,763,252 that was recorded as other income. The $12,763,252 gain consisted of the balance of the note amounting to $19,535,854, the balance of the 2% overriding royalty of $5,647,293 less the decrease in reserves of $12,419,895.

During the three and nine months ended December 31, 2010, the Company accrued imputed interest of $298,467 and $599,494, respectively, which was charged to operations. During the nine months ended December 31, 2010, the Company paid $38,540 on the note based upon coal production.

As part of the aforementioned Acquisition Agreement, the Company assumed a note payable to the former President of ECC in the amount of $1,198,685. The note is non-interest bearing and due on demand. (See Notes 5 & 6)

Bledsoe Acquisition – Related party

On July 27, 2009, the Company entered into an Assignment of Mineral Lease with RJCC#1 (“RJCC”), a Tennessee Partnership whereby RJCC agreed to assign their interest in mineral leases located in Bledsoe County Tennessee in exchange for $1,250,000. Pursuant to the ~~original~~ terms of the agreement, $25,000 was paid upon the execution of the Agreement and the remaining balance iswas payable in 49 monthly installments of $25,000 each beginning on January 1, 2010. As the terms of the Agreement did not provide for interest on the installments, Inin accordance with ASC Topic 835, the Company imputed interest using an effective annual interest rate of 6% and discounted the balance due to $1,086,801.

On October 25, 2010, the Company ~~issued~~agreed to issue 5,000,000 shares of its common stock valued at $2,300,000 to RJCC, a related party, in exchange for cancelling the ~~total~~remaining ~~balance~~obligation of $1,168,163, inclusive of accrued imputed interest. Imputed interest charged to operations for the ~~obligation~~period ~~then~~three ~~due~~months ~~totaling~~ended $1June 30,~~168,164.~~ ~~The~~2011 and 2010 totaled $10 and $15,~~168~~077,~~164~~ ~~was~~respectively. ~~credited~~RJCC tois ~~equity~~owned ~~upon~~by ~~cancellation~~family members of management.

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Americas Energy Company

Notes to Financial Statements

december 31, 2010

(Unaudited)

Imputed interest charged to operations for the three and nine months ended December 31, 2010, totaled $81,493 and $218,109, respectively. Imputed interest charged to operations for the three months ended December 31, 2010, and from the Company’s inception (July 13, 2009) through December 31 2009, totaled $16,312 and $27,691, respectively.

Note Payable – Related Party

On May 2010, the Company borrowed $500,000 from a shareholder that is evidenced by a Promissory Note. Under the original terms of the note, the loan was assessed interest at an annual rate of 10%, and is secured by the Company’s assets. The principal and accrued interest were initially fully due and payable on September 1, 2010; however, the note holder agreed to extend the maturity date to March 1, 2011 and reduce the interest rate to 8% per annum. Accrued interest for the three and nine months ended December 31, 2010 totaled $10,082 and $27,342, respectively, which was charged to operations. The balance of the obligation as of December 31, 2010 amounted to $527,342.

Term Loan

On December 29, 2010, $300,039 due a vendor for equipment maintenance and acquisitions was converted into a ~~term~~line ~~loan~~of credit with an available limit of $325,000. The ~~loan~~line of credit, is assessed interest at aan ~~variable~~ annual rate of 811.25% ~~over the prime lending rate~~ and is payable in monthly installments of $14,188 until the balance and accrued interest are fully paid. ~~The~~ As ~~effective~~of ~~annual~~June ~~interest~~30, ~~rate~~2011, atthe ~~December~~Company ~~31,~~had ~~2010~~available credit of $99,317 ~~was~~and 11an outstanding balance on this line of credit of $225,683.~~25%.~~ Interest charged to operations during the three months ended June 30, 2011 totaled $5,015

Mortgage Payable

On May 10, 2010, the Company acquired a commercial building where its corporate offices are now located. The property was purchased for $975,000 and included a down payment of $20,956. The remaining balance of $962,763 is assessed interest at an annual rate of 6~~.54~~% and is payable in 60 monthly installments of $6,985 commencing August 10, 2010. AnPer ~~additional~~the ~~payment~~terms of ~~$63~~the note,~~015~~ isthe ~~due~~Company onmade ~~October~~an ~~10,~~additional ~~2010~~payment ~~and~~of ~~paid~~$63,015 ~~with~~for the ~~remaining~~reduction of principal. The unamortized principal balance and accrued interest of approximately $~~764~~744,~~756~~385 iswill be fully due and payable on April 10, 2015. Interest charged to operations on this obligation for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2010~~2011 ~~totaled~~and 2011 amounted to $13,~~115~~345 and $378,~~490~~718, respectively. The balance of the note at ~~December~~June 3130, ~~2010~~2011 totaled $~~909~~876,~~347~~694.

~~9. Convertible~~The ~~Notes~~following ~~Payable~~are maturities of long-term debt for each of the next five years

On May 19, 2010, the Company received $100,000 from a former director through the issuance of a convertible promissory note. Under the terms of the note, the Company issued 25,000 shares of its common stock as interest. The common shares were valued at their respective trading price on the date of the loan amounting to $32,000, which was charged to prepaid expense and is being amortized over the six-month term of the loan. While the loan is outstanding, the director has the option to convert all or a portion of the $100,000 due into shares of the Company’s common stock at a conversion price of $0.75 per share.

June 30,
2012	$	31,620
2013		33,587
2014		35,679
2015		775,808
Total		876,694
Less current portion		(31,620	)
	$	845,074

~~Amortized~~Loan ~~interest~~Payable ~~charged~~– toRelated operations during the three and nine months ended December 31, 2010 totaled $8,440 and $32,000, respectively. While the loan is outstanding, the director has the option to convert all or a portion of the $100,000 due into shares of the Company’s common stock at a conversion price of $0.75 per share.Party

AsDuring the ~~conversion~~year ~~price~~ended ~~was~~March ~~less~~31, ~~the trading price of the Company’s common stock on the date of the note~~2011, the Company ~~recognized~~borrowed a ~~beneficial~~total ~~conversion feature~~ of $70,~~666~~000 ~~pursuant~~from toan ~~ASC~~officer. ~~Topic~~The ~~470-20~~loans ~~“Debt~~bear ~~with~~interest ~~conversion~~at ~~and other Options” that was recorded as~~ a ~~discount~~rate ~~against~~of ~~the $100~~8%,~~000~~ ~~principal~~are ~~balance~~unsecured, and due ~~with~~on ~~an offsetting credit to equity~~demand. The ~~discount~~balance ~~is amortized and charged to operations over the six month terms~~ of the loan ~~using~~at ~~the~~June ~~effective~~30, ~~interest~~2011 ~~method. The amount of discount that~~ was ~~amortized~~$20,000. ~~and~~Interest charged to operations ~~during~~on ~~the~~this ~~three~~obligation ~~and~~for ~~nine~~the three months ended ~~December~~June 3130, ~~2010~~2011 totaled $~~20,049 and $70,666, respectively~~617.

The note initially matured on November 17, 2010. The maturity of the note was extended for a period of six months maturing on May 17, 2011, and the conversion price was decreased to approximately $0.25 per share. On February 4, 2011, the balance of the Note was cancelled through the issuance of 375,000 shares of the Company’s common stock.13

Table of Contents

~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~NOTE 9 – CONVERTIBLE NOTES PAYABLE

10On April 20, 2011, the Company entered into an investment agreement with Hanhong (Hong Kong) New Energy Holdings Limited (“Hanhong”) whereby Hanhong will lend up to $2,000,000 to the Company as evidenced by a convertible line of credit note. ~~Asset~~Amounts ~~Retirement~~borrowed ~~Obligation~~on the credit line are assessed interest at a rate of 16.66%. The outstanding principal and accrued interest is payable in monthly installments equal to $3.00 per ton of coal sold and shipped in the previous month. Unless earlier converted into common shares, the outstanding principal and accrued interest shall be fully due and payable on October 12, 2012. Advances on the credit line are available through October 31, 2011. Prior to maturity date, Hanghong can choose to convert from time to time, up to, but to not exceed, $2,000,000 of any accrued but unpaid interest or principal then outstanding into shares of the Company's common stock at a conversion price of $0.136815 per share, The note is secured by all of the assets of the Company with the exception of the certificates of deposits totaling $1,594,110 that have been pledged against reclamation bonds. During the three months ended June 30, 2011, the Company received a total of $1,000,000 in advances under the credit note.

AsUnder the terms of ~~December 31,~~ ~~2010~~the investment agreement, the Company ~~had~~granted ~~recorded~~Hanhong ~~asset~~warrants ~~retirement~~to ~~obligation~~purchase ~~accruals~~up ~~for~~to ~~mine~~2,000,000 ~~reclamation~~shares ~~and~~of ~~closure~~the ~~costs~~Company’s ~~totaling~~common stock at an exercise price of $10.14 per share,~~324~~ warrants to purchase up to 2,~~224~~000,000 shares of the Company’s common stock at an exercise price of $0.20 ~~These~~per ~~regulatory~~share, ~~obligations~~and ~~are~~warrants ~~secured~~to bypurchase ~~certificates~~up to 2,000,000 shares of ~~deposit~~the Company’s common stock at an exercise price of $0.25 per share.

Pursuant to ASC Topic 470-20, “Debt with Conversion and Other Options,” the convertible notes were recorded net of discounts of $508,717 that include the relative fair value of the warrants. The discounts are amortized and charged to operations over the life of the debt using the effective interest method. The initial value of the warrants of $266,163 was calculated using the Black Scholes Option Model with a risk free interest rate of .69%, volatility of 152.75%, and trading price of $0.17 per share. The balance of the convertible debt at June 30, 2011 including accrued interest, net discount of $461,825, was $558,942.

Interest charged to operations on the principal balance of the notes for the three months ended June 30, 2011totaled $20,768. Amortization of the discount that was charged to operation during the three months ended June 30, 2011 was $46,892.

NOTE 10 – ASSET RETIREMENT OBLIGATION

As of June 30, 2011, the Company had recorded asset retirement obligation accruals for mine reclamation and closure costs totaling $1,355,842. These regulatory obligations are secured by certificates of deposit.

Changes in the asset retirement obligations from continuing operations were as follows:

Total asset retirement obligation at March 31, 2010	$	1,296,674
Total asset retirement obligation – April 1, 2011	$	1,339,574
Accretion for the period		8529,~~086~~865
Expenditures during the period		(43,118	)
Sites acquired during the period		-
Total asset retirement obligations at December 31, 2010	$	1,338,642
Less liabilities settled		(13,596	)
Total asset retirement obligations at June 30, 2010	$	1,355,842
Less current portion		-0-
Long-term portion	$	1,~~328~~355,~~642~~842

~~11. Other Non-Current Liabilities~~14

InTable ~~March 2010, the Company recorded accrued royalties in the amount~~ of $5,647,292 pursuant to the terms of the original purchase agreement with Evans. As discussed in Notes 1 and 8, the accrued royalty was canceled pursuant to the new agreement between the former shareholder, and $5,647,292 was credited to operations and is included in gain on acquisition modification.Contents

~~12. Fair~~AMERICAS ~~Value~~ENERGY ofCOMPANY- ~~Assets and Liabilities~~AECo.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2011 AND 2010

NOTE 11 – OTHER NON-CURRENT LIABILITIES

Accrued Royalty

The Company is obligated to pay a royalty to the former shareholders of Evans under the modified terms of the acquisition agreement. The royalty obligation is to be paid at a rate of $2 per ton on all coal produced from the leases acquired from Evans, excluding the Cardinal lease on which a royalty of $1 per ton will be paid. The fair value of the royalty obligation was discounted to its estimated present value. The balance at June 30, 2011 including accretion of accrued net royalties was $7,372,110. Included in the June 30, 2011 balance are royalties that accrued during the three months then ended of $83,750 net payment of $2,961 made during the three month period.

Accrued officers’ severance pay

On June 1, 2011, the Company entered into new employment agreements with three of its officers. Under the terms of the employment agreements, the Company agreed to pay each officer $2,000,000 in the event of termination by the Company for cause, without cause, or in the event the employee resigns for good reason. The Company valued the liability at June 1, 2011 by discounting the $6,000,000 total amount due over the five-year term of the contracts using a discount rate of 5%.

In addition, the employment contracts also provide compensation after death or disability. In the event of death or a debilitating disability while the employee is under contract, the Company is required to the respective officer or his legal representative, the employee’s base salary for the next two years in monthly installments, starting from the month after death or disability. Each of the three contracting officer’s annual salary is $120,000. Therefore in the event of death or disability, the Company would be required to pay $240,000 in equal monthly payments over 24 months. As the officers covered by the clause are of varying ages, the probability of death based on statistical averages is somewhat different per employee. Using a probability table, the Company determined that the fair value of its obligation for death and disability at June 1, 2011 was $3,658.

The present value of the total indicated liabilities of $6,003,658 at June 1, 2011 was $4,712,132 that was recorded as a liability with the offset being charged to operations as officers’ compensation. The liabilities accrete to their present value each period. During the one month ended June 30, 2011, the liabilities were increased by $39,695, which was charged to operations and included in officers’ compensation.

Derivative and warrant Liabilities

At June 30, 2011 (“the valuation date”), the Company recognized derivative and warrant liabilities and a correlating charge to operations in the amount of $467,096 pursuant to ASC 815-40-19 “Contracts in Entity's Own Equity” as the number of Company’s potential common shares and the number of actual common shares outstanding at the valuation date exceeded the number of common shares it currently is authorized to issue. The shortage in the number of committed shares over the number of authorized but unissued common shares at the valuation date totaled 7,323,919.

The total liabilities of $467,095 at the valuation date are based upon the fair value of the 12,000,000 granted warrants using the Black Scholes Option Model. The conversion feature of the convertible debt was not included in the June 30, 2011 derivative obligation as its conversion price per share was higher than the trading price of the Company’s common stock at the valuation date.

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AMERICAS ENERGY COMPANY- AECo.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2011 AND 2010

NOTE 12 – FAIR VALUE OF ASSETS AND LIABILITIES

Determination of Fair Value

The Company’s financial instruments consist of notes payable and loans payable. The Company believes all of the financial instruments’ recorded values approximate their fair values because of their nature and respective durations.

The Company complies with the provisions of ASC No. 820-10 (ASC 820-10), “Fair Value Measurements and Disclosures.” ASC 820-10 relates to financial assets and financial liabilities. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (GAAP), and expands disclosures about fair value measurements. The provisions of this standard apply to other accounting pronouncements that require or permit fair value measurements and are to be applied prospectively with limited exceptions.

ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions, about market participant assumptions, that are developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820-10 are described below:

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Americas Energy Company

Notes to Financial Statements

december 31, 2010

(Unaudited)

Level 1. Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3. Inputs that are both significant to the fair value measurement and unobservable. These inputs rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. The unobservable inputs are developed based on the best information available in the circumstances and may include the Company's own data.

Application of Valuation Hierarchy

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following is a description of the valuation methodology used to measure fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Notes Payable. The Company assessed that the fair value of these liabilities to approximate its carrying value based on the effective yields of similar obligations.

Loans Payable - Other. The Company assessed that the fair value of this liability approximates its carrying value due to its short-term nature.

The methodology described above may produce a current fair value calculation that may not be indicative of net realizable value or reflective of future fair values. If readily determined market values became available or if actual performance were to vary appreciably from assumptions used, assumptions may need to be adjusted, which could result in material differences from the recorded carrying amounts. The Company believes its method of determining fair value is appropriate and consistent with other market participants. However, the use of different methodologies or different assumptions to value certain financial instruments could result in a different estimate of fair value.

The following table presents the fair value of financial instruments that are measured and recognized on a non-recurring basis classified under the appropriate level of the valuation hierarchy described above, as of December 31, 2010:

Liabilities measured at fair value at December 31, 2010	Level 1		Level 2		Level 3		Total
Nonrecurring:
Notes payable	$	-0-	$	1,736,728	$	-0-	$	1,736,728
Convertible debenture		-0-		100,000				100,000
Loans payable		-0-		1,198,685		-0-		1,198,685

13. Stockholders Equity

During the three months ended December 31 2010, the Company issued 1,061,777 shares of its common stock to employees and consultants valued at approximately $464,180 that was charged to operations. In addition, the Company issued 5,000,000 shares of its common stock in cancellation of $1,168,164 due RJCC (See Note 8).

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~The methodology described above may produce a current fair value calculation that may not be indicative of net realizable value or reflective of future fair values. If readily determined market values became available or if actual performance were to vary appreciably from assumptions used, assumptions may need to be adjusted, which could result in material differences from the recorded carrying amounts. The Company believes its method of determining fair value is appropriate and consistent with other market participants. However, the use of different methodologies or different assumptions to value certain financial instruments could result in a different estimate of fair value.

The following istable presents the fair value of financial instruments that are measured and recognized on a ~~schedule~~non-recurring basis classified under the appropriate level of ~~warrants~~the ~~outstanding~~valuation hierarchy described above, as of ~~December~~June 3130, ~~2010~~2011:

	Warrants Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Life		Aggregate Intrinsic Value
Liabilities measured at fair value at June 30, 2011	Level 1		Level 2		Level 3		Total
Balance, April 1, 2010		9,000,000	$	0.75		3 Years	$	-
Nonrecurring:
Warrants granted		-		-	-			-
Line of credit	$	-0-	$	225,683	$	-0-	$	225,683
Warrants expired		-		-		-		-
Notes payable		-0-	$	846,694	$	-0-	$	846,694
Balance, December 31, 2010		9,000,000	$	0.75	2.2 Years		$	-
Loans payable - other		-0-		1,198,685		-0-		1,198,685
Derivative and warrant liabilities		-0-		467,096		-0-		467,096

~~All~~NOTE ~~the~~13 ~~warrants~~– ~~are~~STOCKHOLDERS ~~available for exercise at December 31, 2010.~~EQUITY

~~14. Income~~Common ~~Taxes~~share issuances

~~The~~On ~~Company~~May ~~accounts~~1, ~~for income taxes under Statement of Financial Accounting Standards No. 109~~2011, ~~“Accounting~~the ~~for~~Company ~~Income~~issued ~~Taxes” (“SFAS No. 109”)~~5,243,388 ~~which~~shares ~~requires use~~ of ~~the~~its ~~liability~~common ~~method. SFAS~~stock ~~No.~~to ~~109~~its ~~provides~~employees ~~that deferred tax assets~~ and ~~liabilities~~officers. ~~are~~The ~~recorded~~shares ~~based~~were onvalued ~~the~~at ~~differences~~$1,520,583 ~~between the tax bases of assets~~ and ~~liabilities~~were ~~and~~charged ~~their carrying amounts for financial reporting purposes, referred~~ to operations as ~~temporary differences~~compensation.

AtOn ~~December~~June ~~31,~~1 ~~2010~~2011, the Company ~~had~~issued ~~a total of approximately $5~~1,~~250~~000,000 ofshares federal and state net operating losses subject to the limitations imposed by the change in control under Internal Revenue Code Section 382. These losses can be utilized to offset future taxable income. An allowance of ~~$980,000~~its ~~has~~common ~~been~~stock ~~provided~~ to ~~reduce~~its ~~the~~chief ~~tax~~financial ~~benefits~~officer ~~accrued by the Company for these operating losses to zero~~ as itcompensation ~~cannot~~valued beat ~~determined when~~$200, ~~or if, the tax benefits derived from these losses will materialize~~000. Timing differences between expenses deducted for income tax and deducted for financial reporting purposes are insignificant and have no material impact to the differences in the reporting of income taxes. During the period ended December 31, 2010,

~~Deferred tax liabilities are summarized below:~~Warrants

Deferred tax liability
Property, plant and equipment		$	15,375

The following is a schedule of warrants outstanding:

The provision for income tax expense for the nine months ended December 31, 2010 is as follows:

	Warrants Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value
Balance, March 31, 2011		9,000,000	$	0.75	3 Years -	$	-
Warrants granted		3,000,000		0.20	2 Years		-
Warrants expired		-		-			-
Balance, June 30, 2011		12,000,000	$	0.62	2.5 Years	$	-

Current income tax benefit	$	( -	)
Deferred income tax benefit previously recognized		(718,150	)
Net income tax expense	$	(718,150	)

All the warrants are available for exercise at June 30, 2011.

15. Commitments and Contingencies

Liabilities for loss contingencies, arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.

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~~Americas~~AMERICAS ~~Energy~~ENERGY ~~Company~~COMPANY- AECo.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~december~~JUNE 3130, 2011 AND 2010

~~(Unaudited)~~NOTE 14 – INCOME TAXES

~~Minimum~~At ~~Royalty~~June ~~Payments~~30, 2011, the Company has a net operating loss carryover of approximately $6,500,000 available to offset future income for income tax reporting purposes, which will expire in various years through 2031, if not previously utilized. However, the Company’s ability to use the carryover net operating loss may be substantially limited or eliminated pursuant to Internal Revenue Code Section 382.

~~The~~We ~~Company~~adopted ~~has~~the ~~future~~provisions ~~minimum~~of ~~royalty~~FIN ~~commitments~~48, ~~under~~“Accounting ~~coal~~for ~~lease~~Uncertainty ~~agreements~~in atIncome ~~December~~Taxes.” ~~31,~~We ~~2010~~had ~~they~~no ~~were~~material asunrecognized ~~follows:~~income tax assets or liabilities for the three months ended June 30, 2011.

2011	$	126,000
2012		126,000
2013		126,000
2014		126,000
2015		126,000
Thereafter		403,000
	$	1,033,000

Our policy regarding interest and penalties assessed on income tax is to expense those items as general and administrative expense. During the three months ended June 30, 2011 and 2010, there were no income tax interest and penalty items in the income statement, or as a liability on the balance sheet. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. We are no longer subject to U.S. federal or state income tax examination by tax authorities for years before 2004. We are not currently involved in any income tax examinations.

~~Certain~~NOTE ~~coal~~15 ~~leases~~– doCOMMITMENTS ~~not~~AND ~~have set expiration dates but extend until completion of mining of all merchantable and minable coal reserves. We have assumed a period of ten years for this table.~~CONTINGENCIES

~~16.~~Liabilities ~~Subsequent~~for ~~Events~~loss contingencies, arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.

InNOTE ~~January~~16 ~~2011,~~– ~~the~~SUBSEQUENT ~~Company issued 31,978 shares of its common stock for legal services.~~EVENTS

InPursuant ~~February~~to the terms of his employment agreement, on July 1, 2011, the Company ~~agreed~~issued ~~to issue 375~~1,000,000 shares of its common stock into ~~exchange~~an ~~for~~officer, ~~the~~who ~~cancellation~~is also a director of ~~its~~the ~~May~~Company ~~19,~~as ~~2010~~compensation ~~promissory~~valued ~~note~~at tothe ashares’ ~~related~~market ~~party~~value inon ~~the~~date ~~amount~~of issuance of $~~100~~180,000.

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Americas Energy Company- Aeco

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations

The following contains forward-looking statements that involve risks and uncertainties, as described below. Americas Energy Company-AECo (previously known as Trend Technology Corporation) (the “Company”, “we”, “us” or “our”) actual results could differ materially from those anticipated in these forward-looking statements. The following discussion should be read in conjunction with the unaudited financial statements and notes thereto and the Plan of Operation included in this Quarterly report on Form 10-Q for the period ended December 31, 2010.

~~Our~~Americas ~~financial~~Energy Company-AECo (the “Company”, “we”, “us” or “our”) actual results could differ materially from those anticipated in these forward-looking statements. ~~are~~The ~~stated~~following discussion should be read in ~~United~~conjunction ~~States~~with ~~Dollars~~the unaudited financial statements and ~~are~~notes ~~prepared~~thereto and the Plan of Operation included in ~~accordance~~this ~~with~~Quarterly ~~United~~report ~~States~~on ~~Generally~~Form ~~Accepted~~10-Q ~~Accounting~~for ~~Principles~~the three-month period ended June 30, 2011.

Our financial statements are stated in United States Dollars and are prepared in accordance with accounting principles generally accepted in the United States of America.

Forward-Looking Statements

This quarterly report ~~contains~~may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

~~Financial~~Critical ~~Condition~~Accounting Policies and ~~Results of Operations~~Estimates

~~The~~Our ~~following~~financial ~~should~~statements beare ~~read~~prepared in ~~conjunction~~accordance with ~~our~~accounting ~~Consolidated~~principles ~~Condensed~~generally ~~Financial~~accepted ~~Statements~~in the United States of America. The reported financial results and ~~related~~disclosures ~~Notes~~were ~~thereto~~determined ~~included~~using ~~elsewhere~~the insignificant ~~this~~accounting ~~Quarterly~~policies, ~~Report~~practices onand ~~Form~~estimates ~~10-Q~~described below.

~~Explanatory~~Coal ~~Note~~Properties – Costs incurred to purchase, lease or otherwise acquire mineral properties are capitalized when incurred. Mine development costs are recorded at cost as incurred. The Company’s coal reserves are controlled either through direct ownership or through leasing arrangements, which generally last until the recoverable reserves are depleted. Depletion of reserves and amortization of mine development costs is computed using the units-of-production method over the estimated proven and probable recoverable tons.

OnThe ~~January 21, 2010, Americas Energy~~ Company, areviews ~~private~~its ~~Nevada corporation. (“AEC”) and Americas Energy Company~~long-~~AECo,~~lived ~~(formerly~~assets ~~Trend~~for ~~Technology~~impairment ~~Corporation)~~when ~~(“AECo”)~~events ~~merged,~~or ~~with~~changes ~~AECo~~in ~~continuing~~circumstances asindicate that the ~~surviving~~carrying ~~legal~~amount ~~corporation~~ of the ~~Merger.~~assets ~~For~~may ~~accounting~~not ~~purposes,~~be ~~the~~recoverable. ~~Merger~~If isimpairment ~~treated~~indicators asare apresent ~~“reverse~~and ~~acquisition” with AEC considered~~ the ~~accounting~~future ~~acquirer.~~undiscounted ~~Accordingly,~~cash ~~AEC’s~~flows ~~historical financial statements~~ are ~~included~~less inthan ~~periodic~~the ~~filings~~carrying value of ~~AECo only from~~ the ~~period it commenced operations in November 2009~~assets, ~~therefore a comparison for~~ the ~~nine~~carrying ~~months~~values ~~ended~~are ~~December~~reduced ~~31 2010 as compared~~ to the ~~nine~~estimated ~~months~~fair ~~ended December 31, 2009 is not presented herein~~value.

~~For~~Revenue ~~the~~Recognition ~~three~~– ~~months~~Revenues ~~ended~~include ~~December~~sales ~~31,~~to ~~2010~~customers asof ~~compared~~Company-produced tocoal ~~the~~and ~~three~~oil. ~~months~~The ~~ended~~Company ~~December~~recognizes ~~31,~~revenue ~~2009~~when title or risk of loss passes to the common carrier or customer.

~~During~~Asset ~~the~~Retirement ~~three~~Obligations ~~month~~–The ~~period~~Surface ~~ended~~Mining ~~December~~Control ~~31,~~and ~~2010,~~Reclamation weAct ~~have~~of ~~generated~~1977 ~~$774,930~~and insimilar ~~total~~state ~~revenue~~statutes asrequire ~~compared~~mine properties to ~~$1,012,635~~be restored in ~~total~~accordance ~~revenue~~with specified standards. Accounting Standards Codification (“ASC”) Topic 410-20, formerly Statement of Financial Accounting Standards No. 143 (“SFAS No. 143”) requires recognition of an asset retirement obligation (“ARO”) for eventual reclamation of disturbed acreage remaining after mining has been completed. The Company records its reclamation obligations on a permit-by-permit basis using requirements as determined by the ~~prior~~Office ~~year’s~~of ~~same~~Surface ~~three~~Mining ~~month~~of ~~period~~the U.S. ~~Our~~Department ~~primary~~of ~~revenue~~the ~~source~~Interior (“OSM”). The liability is ~~derived~~calculated ~~through~~based ~~internal~~upon ~~mining~~the reclamation activities onremaining ~~our~~after ~~permitted~~coal ~~leases~~removal ceases, assuming that reclamation activities have been contemporaneous within state and federal guidelines during mining. AsA weliability ~~continue~~is recorded for the estimated future cost that a third party would incur to ~~acquire~~perform the required reclamation and ~~expand~~mine ~~our~~closure discounted at the Company’s credit-adjusted risk-free rate. A corresponding increase in the asset carrying value of mineral rights, weis ~~anticipate~~also ~~increases~~recorded. inThe ~~our~~ARO ~~future~~asset is amortized on the units-of-production ~~capacity~~method toover ~~result~~the proven and probable reserves associated with that permit. These expenses are included in ~~revenue~~depreciation, ~~growth~~depletion, amortization, and accretion in the operating expenses section of the statement of operations.

Our total operating expenses for the three months ended December 31, 2010 were $1,367,892 as compared to $1,027,640 that were incurred during the three months ended December 31, 2009. Our operating expenses in 2010 consisted of $461,871 in cost of sales, $98,283 in accretion, depreciation and depletion costs, compensation expense of $652,043 including $464,180 in stock based compensation, professional fees of $57,313, and other general and administrative expenses of $98,382. During the three month period ended December 31 2009, our cost of sales totaled $838,042, accretion, depreciation, and depletion totaled $11,340, compensation expense was $73,652, professional fees were $13,610, and other general and administrative expenses were $90,996.

We experienced a loss from operations of $592,962 for the three months ended December 31, 2010 compared to a loss of $15,005 for the same three month period of the prior year. Our increased loss in 2010 pertains mainly to increased mining costs and the recognition of stock based compensation.

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Americas Energy Company- Aeco

~~During~~Long-Lived ~~the~~Assets ~~three~~– ~~months~~The ~~ended~~Company ~~December~~accounts ~~31,~~for ~~2010,~~its ~~our~~long-lived ~~interest~~assets ~~expense~~in ~~totaled~~accordance ~~$144~~with ASC Topic 360-10,~~449~~ Formerly SFAS No. ~~During~~144, "Accounting for the ~~same~~Impairment ~~three~~or ~~month~~Disposal ~~period,~~of weLong-Lived ~~had~~Assets." ~~interest~~ASC ~~income~~Topic of360-10 ~~$7,154~~requires that islong-lived ~~required~~assets to be ~~paid~~reviewed tofor aimpairment ~~third~~whenever ~~party.~~events Weor ~~charged~~changes ~~our~~in ~~$7,154~~circumstances ~~payment~~indicate ~~obligation~~that tothe ~~royalty~~historical ~~expense~~cost ~~which~~carrying isvalue ~~included~~of inan ~~mining~~asset ~~costs~~may no longer be appropriate. ~~During~~The Company assesses recoverability of the ~~three~~carrying ~~months~~value ~~ended~~of ~~December~~an ~~31,~~asset ~~2010,~~by weestimating ~~had~~the afuture net ~~gain~~cash offlows ~~$7,926~~expected to result from athe asset, including eventual disposition. ofIf ~~vehicle~~the ~~and~~future anet ~~$2,058~~cash ~~gain~~flows ~~from~~are less than the ~~extinguishment~~carrying value of ~~debt.~~the ~~During~~asset, an impairment loss is recorded equal to the ~~three~~difference ~~months~~between ~~ended~~the ~~December~~asset's ~~31,~~carrying ~~2009,~~value ~~our~~and ~~interest~~fair value or disposable value. Share-Based Compensation – The Company measures and records compensation expense ~~totaled~~for $5all share-based payment awards to consultants,~~992~~ employees and directors based on estimated fair values. Additionally, compensation costs for share-based awards are recognized over the requisite service period based on the grant-date fair value.

~~For~~Convertible ~~the nine months ended December 31, 2010~~Debentures

~~During~~If the ~~nine~~conversion ~~months~~feature ~~ended~~of ~~December~~conventional ~~31,~~convertible ~~2010,~~debt weprovides ~~have~~for ~~generated~~a $6rate of conversion that is below market value,~~544,074~~ inthis ~~total~~feature ~~revenue~~is characterized as a beneficial conversion feature (“BCF”). A ~~Again~~BCF ~~our~~is ~~primary~~recorded ~~revenue~~by ~~source~~the Company as a debt discount pursuant to ASC Topic 470-20 “Debt with Conversion and Other Options.” In those circumstances, the convertible debt is ~~derived~~recorded ~~through~~net ~~internal~~of ~~mining~~the ~~activities~~discount onrelated ~~our~~to ~~permitted~~the ~~leases~~BCF and the Company amortizes the discount to interest expense or equity (if the debt is due to a related party), over the life of the debt using the effective interest method.

~~Our~~Use ~~total~~of ~~operating~~Estimates ~~expenses~~– ~~for~~The ~~the~~preparation ~~nine~~of ~~months~~financial ~~ended~~statements ~~December~~in ~~31,~~conformity ~~2010~~with ~~totaled~~generally ~~$24,804,953~~accepted ofaccounting ~~which~~principles ~~cost~~requires ofmanagement ~~sales~~to ~~totaled~~make ~~$6,479,645,~~estimates ~~accretion, depreciation~~ and ~~depletion~~assumptions ~~costs~~that ~~were~~affect ~~$537,459,~~the ~~compensation~~reported ~~expense~~amounts ~~amounted~~of toassets ~~$4,676,495~~ and ~~includes~~liabilities ~~$3,994,818~~and indisclosure ~~stock~~of ~~based~~contingent ~~compensation,~~assets ~~professional~~and ~~fees~~liabilities ~~were~~at ~~$355,708,~~the ~~and~~date ~~other~~of ~~general~~the ~~and~~consolidated ~~administrative~~financial ~~expenses~~statements ~~totaled~~and ~~$355,752. During~~ the ~~same~~reported ~~nine~~amounts ~~month~~of ~~period,~~revenues weand ~~recognized~~expenses anduring ~~impairment~~the ~~loss~~reporting ofperiod. ~~$12,419,894~~Actual ~~regarding~~results acould ~~decrease~~differ infrom ~~the~~those ~~value~~estimates. Estimates of ~~our~~ coal, ~~reserves~~oil ~~that~~and ~~were~~gas ~~acquired~~reserves, ~~from~~asset ~~Evans.~~retirement Weobligations, ~~experienced~~and aimpairment ~~loss~~on ~~from~~unproved ~~operations~~properties ofare ~~$18,250,879~~inherently ~~for~~imprecise ~~the~~and ~~nine~~may ~~months~~change ~~ended~~materially ~~December~~in ~~31,~~the ~~2010~~near term.

During the nine months ended December 31, 2010, our interest expense totaled $999,084. During the same nine month period, we had interest income of $25,091 of which $7,154 is required to be paid to a third party, a net gain of $7,926 from a disposition of vehicle and $25,189,476 gain from the extinguishment of debt. Of the $25,189,476 in gain from extinguishment of debt, $25,183,147 pertains to the relief of debt due Evans that was initially due on its purchase (See Note 1 to the accompanying financial statements).

Liquidity and Capital Resources

For the nine month period ended December 31, 2010, net cash provided by operating activities totaled $3,168. Net cash used in investing activities totaled $1,015,221.Our only receipt from investing activities during the nine month period ended December 31, 2010 was $93,100 from insurance proceeds on a damaged vehicle. Expenditures pertaining to our investing activities during the same nine month period included $481,547 in coal and oil development costs, $262,500 in deposits, and $306,675 for the purchase of equipment, $47,599 in building improvement costs, and we made a $10,000 loan to an unrelated third party. Financing activities provided a total of $496,130, which included $600,000 in proceeds from loans evidenced by promissory notes. Expenditures pertaining to our financing activities during the same nine month period included $9,509 in principal payments on our capital leases, $28,708 towards our royalty obligation, and $65,653 in principal payments towards our mortgage and other debt The resulting change in cash for the period was a decrease of $515,923; cash at the beginning of the period totaled $542,331, the decrease resulted in $26,408 in cash at the end of the period ending December 31, 2010.

For the period from inception (July 13, 2009) through December 31, 2009, net cash used in operating activities totaled $26,068. Net cash used in investing activities totaled $1,015,825, which included $996,371 in coal and oil development costs, and $19,454 used in the purchase of equipment. Financing activities provided a net total of $1,306,209, which included $1,350,000 in proceeds from a note payable. Financing expenditures during the period included $35,000 in loan fees and $8,791 in principal payments on debt, The resulting change in cash for the period was an increase of $264,316, which was our cash balance at December 31, 2009.

Critical components of our operating plan impacting our continued existence are the net revenue to be generated from the production and sale of coal and the ability to obtain additional capital through additional equity and/or debt financing. Over the next twelve months we believe that our existing capital and funds from the production and sale of coal and oil will not be sufficient to sustain operations at current levels.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Based upon current operating levels and obligations, we may require additional capital to sustain our operations for the foreseeable future. The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should we be unable to continue as a going concern. Our continuation as a going concern is dependent upon our ability to generate sufficient cash flow to meet our obligations on a timely basis and ultimately to attain profitability.

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~~Off-Balance~~Financial ~~Sheet~~Condition ~~Arrangements~~and Results of Operations

WeThe ~~have~~following noshould ~~off-balance~~be ~~sheet~~read ~~arrangements~~in orconjunction ~~financing~~with ~~activities~~our ~~with~~Consolidated ~~special~~Financial ~~purpose~~Statements ~~entities~~and related Notes thereto included elsewhere in this Annual Report on Form 10-K.

~~Plan~~Results of ~~Operation~~Operations

~~Americas Energy Company~~Three-~~AECo~~Months ~~with~~Ended ~~offices~~June ~~located in Knoxville~~30, Tennessee currently operates surface mines in southeastern Kentucky. Americas Energy Company holds Evans Coal Corp. as a wholly owned subsidiary. The company owns or controls by lease mineral rights and currently operates by use of contractors, two surface mines in Bell County and one in Knox County, Kentucky. Their primary product is a high BTU, mid-sulfur steam coal.2011 InCompared ~~addition,~~to the ~~Company~~Three-Months ~~has~~Ended ~~rights~~June ~~to oil properties located in Cumberland County~~30, ~~Kentucky that are intended for future development.~~2010

~~Evans~~During ~~Coal~~the ~~Corp.~~three-months ~~was~~ended ~~organized~~June in30, ~~Kentucky~~2011, onwe ~~July~~have 9generated $141,901 ~~1987~~in ~~and~~total revenue which is ~~engaged~~comprised inprimarily from sales of coal compared to our total sales during the ~~business~~three-month period ended June 30, 2010 of ~~mining~~$3,631,300. ~~high~~The ~~grade~~total coal ~~from~~production ~~its~~sold ~~property~~during ~~located~~our first quarter of 2011 was 1,736 tons as compared to 25,109 tons ((excluding brokered coal) sold in ~~Bell~~the ~~County~~prior year’s first quarter. We sold our oil properties in March 2011. However oil production was minimal during the three months ended June 30, ~~Kentucky~~2010. We ~~The~~did ~~company~~not ~~holds~~have ~~various~~any ~~leases~~brokered ~~and~~coal ~~permits~~sales toduring ~~mine~~the ~~those~~three ~~lease~~months ~~rights~~ended June 30, 2011. The ~~Company~~decrease ~~owns~~in arevenue ~~variety~~for the three months ended June 30, 2011 as compared to the same period in the prior year of $3,489,399 was due to severe weather conditions that caused interruption of surface mining ~~equipment~~operations ~~consisting~~and our required shift from production to reclamation as ordered by the State of ~~trucks~~Kentucky, ~~loading~~Office of Surface Mining. We believe we have completed the required reclamation deficiency and began limited auger production on August 1, ~~drilling~~2011, ~~dozers~~but are were unable to sell that coal until the suspension order was cleared by State of Kentucky, Office of Surface Mining on August 15, 2011. We are now able to transport coal for sale and ~~other~~have ~~heavy~~resumed ~~equipment~~auger and surface mining at prior production rates. In addition, we are investigating the costs and potential for ~~use~~recover for claims against the mining contractor that failed, in our opinion, to perform the necessary reclamation under its mining ~~operations~~agreement with us causing the reclamation deficiency and related suspension of production.

~~Americas~~The ~~Energy~~following ~~Company~~table ~~currently~~presents ~~has~~the ~~two mining projects, located in Kentucky and Tennessee. Americas Energy~~ Company ~~presently uses two distinct extraction techniques: dozer and front-end loader surface mining and auger mining. In 2009, all of Americas Energy Company~~’s ~~production~~consolidated ~~was~~revenues ~~shipped~~and ~~via~~operating ~~truck~~results ~~to various locations~~ for ~~purchase. Beginning in 2010~~ the ~~Company~~three-months ~~has~~ended ~~made~~June ~~additional~~30, ~~shipments~~2011 ofand ~~coal via unit train.~~2010:

The Company looks to identify coal properties with potential to produce high grade specialty coal. (coal rendering a high amount of thermal energy per pound with low sulfur and ash content.) The properties must be permitted and ready for mining operations. Once a suitable property is identified and mining rights are obtained we will begin mining. We subcontract mining operations on each project utilizing miners experienced in the type of extraction required that may be particular to each site.

	The Three-Months Ended
	June 30,						Increase (Decrease)
	2011			2010				$		%
REVENUES
Coal sales and related income	$	136,105		$	3,615,819		$	(3,479,714	)		(96	%)
Other income		5,796			15,481			(9,685	)		(63	%)
Total revenues		141,901			3,631,300			(3,489,399	)		(96	%)

OPERATING EXPENSES
Cost of sales (exclusive of accretion,
depreciation and depletion)		284,531			3,194,737			(2,910,206	)		(91	%)
Accretion, depreciation and depletion		192,350			161,666			30,684			19	%
Compensation expense		6,610,885			3,061,686			3,549,199			116	%
Professional fees		192,348			89,084			103,264			116	%
General and administrative expenses		52,767			183,520			(130,753	)		(71	%)
Total operating expenses		7,332,881			6,690,693			642,188			10	%
Loss from operations		(7,190,980	)		(3,059,393	)		4,131,587			135	%
OTHER INCOME (EXPENSES)
Interest income		5,442			9,084			(3,642	)		(40	%)
Interest expense		(91,171	)		(353,507	)		262,336			(74	%)
Gain on disposition of asset		6,798			-			6,798			100	%
Change in fair value of derivative and warrant liabilities		(467,096	)		-			(467,096	)		(100	%)
Total other income (expenses)		(546,027	)		(344,423	)		(201,604	)		59	%

INCOME (LOSS) BEFORE INCOME TAXES	$	(7,737,007	)	$	(3,403,816	)	$	(4,333,191	)		127	%

Our intended focus is on high grade specialty coal used in industrial applications due to higher sales margins. We are not a large operation producer who is able to better exploit the lower margin coal typical to steam generation. These large volume producers employ high capital cost mining equipment which produce at a volume sufficient to reduce per ton mining costs to compete in the market for these grades of coal.

In addition to direct production, the Company on occasion, has brokered coal and will continue to do so when profitable opportunities exist.

Mining Status

i)	Upland Church-
	a)	Permits- one strip permit in the Hance coal seams (Surface Mining in Hance has been completed) , one strip permit in the Harlan seam and two deep mine permits, one in the Darby coal seam and the other in the Kellioka coal seam, we are negotiating with a contract miner for both seams. The Harlan seam is permitted for reclamation only resulting in zero production.
	b)	Mining Conditions- Clear Development, LLC is engaged to act as our contract miner on the property. With the exception of a substantial recoverable tonnage discrepancy, no problems were encountered in the mining.
	c)	Current status- Strip and auger mining on the existing surface permit were finished in October 2010 with a total production of approximately 82,000 short tons of coal. The reduced production resulted in a deficit of more than 500,000 producible tons. Clear Development is currently reclaiming the surface mine in the Hance seams.

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ii)	Hwy 92
	a)	Permits- 1 strip and auger permit allowing production in both the Rooster (2 seams- upper and lower) and the Dean seam.
	b)	Mining Conditions- Black Diamond Energy, Inc. is no longer our contract miner on the property. We have signed a contract mining agreement with RECOAL, LLC in Flat Lick, KY to provide contract mining services. Upon completion of the requisite reclamation of the areas previously mined we plan to resume operations.
	c)	Current status- We plan to have RECOAL begin operations at the beginning of our first quarter in a limited capacity on the Fireclay and Dean seams producing approximately 1,800- 2,000 tons per month.
iii)	Artemus
	a)	Leases- Having resolved the discrepancies noted in our title work we have successfully negotiated settlements with three heirs, and continues to await the results of a suit for quiet title on two unknown heirs. The majority of the Estimated Recoverable Underground tonnage is situated on properties on which AENY has negotiated leases that were in discovered to be actually verbal agreements made by Evans Coal Corp. AENY is negotiating an option on several of those properties with plans to begin exploration in early Spring. The exploration will determine tonnage as well as economic feasibility, where warranted AENY will begin expanding permitting.
	b)	Permits- Issued on April 1, 2010. The permits included were surface, auger and deep permits for the Jellico, Blue Gem and Lily seams.
	c)	Mining Conditions- RECOAL has been hired as the contract miner for both the Jellico and Lily surface and auger mining. Production in the Lily seam is currently awaiting a permit amendment to our haul road plan. Initial production in the Jellico seam resulted in a review of the mining ratios. Excessive ratios required an amendment to the mining plan changing planned surface mine area to auger mine area.
	d)	Current status- Clear Development, LLC and RECOAL are completing reclamation on the property disturbed while mining the Jellico seam. RECOAL estimates production in the Lily and Jellico seams by strip and auger to be approximately 12,000 tons per month.
iv)	Breathitt County
	a)	Permits- Leases are being reviewed; Exploration permit is awaiting the outcome of the lease review.
	b)	Mining Conditions- to be determined by exploration.
	c)	Current status- Pending exploration.

The net loss of $7,737,007 that we incurred during the three months ended June 30, 2011 included compensation expense of $6,432,715 and a loss of $467,096 from changes in the fair value of our derivative and warrant liabilities. Excluding these costs, our loss for June 30, 2011 would have been $837,196. Of the $6,432,715, $1,720,583 relates to the fair value of the issuance of 6,243,388 shares of the Company’s common stock to employees, officers, and directors, and $4,712,132 relates to the present value of the severance pay that the Company is obligated under its employment agreement with three of its officers (See Note 11 to the accompanying unaudited financial statements). Our derivative and warrant obligations are due to the number of our potential common shares that we are committed to issue under our warrant grants and convertible debt and the number of actual common shares outstanding at June 30, 2011 that exceed the number of common shares we currently are authorized to issue (See Note 11 to the accompanying unaudited financial statements).

Interest expense for the three months ended June 30, 2011 of $91,171 includes is $46,892 of amortization on the discount pertaining to our convertible debt with Hanhong New Energy Holdings, and $20,768 of accrued interest on the related $1,000,000 principal owed of the convertible debt (See Note 9 to the accompanying unaudited financial statements). Interest expense for the three months ended June 30, 2010 of $353,507 included imputed interest of $301,027 on our then $25,000,000 obligation due to the Evans family on our purchase of Evans Coal Company. We were relieved of this indebtedness in September 2010.

Liquidity and Capital Resources

During the fiscal three-months ended June 30, 2011, net cash used by operating activities totaled $687,591. Net cash used in investing activities totaled $10,875 of which $100,875 was paid in the development of mineral properties and $10,000 was incurred in the purchase of equipment used in our operations. Our total investment expenditures of $110,875 were subsidized by the $100,000 we received from the sale of our oil properties to RJCC Group I (a related party). Financing activities provided during the three months totaled $890,088 of which the $1,000,000 advance we received during the three month period from Hanhong was netted against the $50,000 payment we made against the debt we owed to an officer, $3,407 in principal payments on a capital lease obligations, $51,736 in principal payments on our credit line and $4,769 in principal payments on notes payable. The resulting change in cash for the period was an increase of $191,622. The cash balance at the beginning of the fiscal three-months was $10,622. The cash balance at the end of the fiscal three-months totaled $202,244.

For the three month period ended June 30, 2010, net cash used in operating activities totaled $125,650. Net cash used in investing activities totaled $909,745, which included $187,142 to purchase equipment used in our operations. Financing activities provided a total of $504,076, which included $500,000 in proceeds from a note payable, $100,000 in proceeds from convertible note, less ($60,804) in payments on a note payable obligation. The resulting change in cash for the period was an decrease of $531,319; Cash at the beginning of the period totaled $542,331, the decrease resulted in $11,012 in cash at the end of the period ending June 30, 2010.

Critical components of our operating plan impacting our continued existence are the net revenue generated from the production and sale of coal and the ability to obtain additional capital through additional equity and/or debt financing.

Going Concern

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Plan of Operation

Americas Energy Company-AECo with offices located in Knoxville, Tennessee currently operates surface mines in southeastern Kentucky. Americas Energy Company holds Evans Coal Corp. as a wholly owned subsidiary. The company owns or controls by lease mineral rights and currently operates two surface mines in Bell County and one in Knox County, Kentucky. The primary product is a high BTU, mid-sulfur steam coal.

Evans Coal Corp. was organized in Kentucky on July 9, 1987 and is engaged in the business of mining high grade coal from its property located in Bell County, Kentucky. The company holds various leases and permits to mine those lease rights. The company owns a variety of mining equipment consisting of trucks, loading, drilling, dozers and other heavy equipment for use in its mining operations.

Americas Energy Company currently has two mining complexes, located in Kentucky and Tennessee. A mining complex is defined as all mines that supply a single wash plant. These complexes blend, process and ship coal that is produced from one or more mines. Americas Energy Company presently uses two distinct extraction techniques: dozer and front-end loader surface mining and auger mining. In 2011 we primarily shipped coal via truck to various locations for purchase.

In addition to direct production, the company on occasion, has brokered coal and may continue to do so when profitable opportunities exist.

Mining Operations Summary

Our ~~current~~ mining operations ~~are~~during ~~limited~~the tomajority of the three month period covered by this report on Form 10Q were suspended pending the satisfactory completion of certain reclamation work by order of the State of Kentucky, Office of Surface Mining. As of the date of this report we have cleared the suspension order and resumed surface mining on the Artemus Property in the Lily and Jellico seams ~~and~~at ~~should~~an ~~produce~~approximate ~~approximately~~production rate of 12,000 tons per month, ~~Surface~~with surface mining on the HWY 92 Property in the Fireclay and Dean seams ~~and~~expected ~~should~~ produce approximately 1,800-2,000 tons per month.

WeUntil ~~are~~recently ~~currently~~we ~~using~~utilized contract miners for all of our mining operations. We have now begun to mine utilizing our own employees and equipment. We believe that on a going forward basis this decision will give us more control over operations, ~~Clear~~better ~~Development~~profitability, ~~LLC~~better ~~and~~control ~~RECOAL~~over ~~for~~the ~~all~~maintenance of our ~~current~~equipment ~~mining~~and ~~operations~~help us avoid costly delays as encountered this period due to the issues with timely reclamation.

~~Critical~~Off-Balance ~~Accounting~~Sheet ~~Policies and Estimates~~Arrangements

~~Our~~We ~~financial~~have ~~statements~~no ~~are~~off-balance ~~prepared~~sheet inarrangements ~~accordance~~or ~~with~~financing ~~accounting~~activities ~~principles~~with ~~generally~~special ~~accepted~~purpose ~~in the United States of America~~entities. ~~The reported financial results and disclosures were determined using the significant accounting policies, practices and estimates described below.~~

Advanced Mining Royalties – Lease rights to coal lands are often acquired in exchange for royalty payments. Advance mining royalties are advance payments made to lessors under terms of mineral lease agreements that are recoupable against future production. These advance payments are deferred and charged to operations as the coal reserves are mined. The Company regularly reviews recoverability of advance mining royalties and establishes or adjusts the allowance for advance mining royalties as necessary using the specific identification method. In instances where advance payments are not expected to be offset against future production royalties, the Company establishes a provision for losses on the advance payments that have been paid and the scheduled future minimum payments are expensed and recognized as liabilities. Advance royalty balances are charged off against the allowance when the lease rights are either terminated or expire. As of December 31, 2010, the Company had advanced royalties totaling $124,000, which is included on the balance sheet in prepaid expenses.

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Oil and Gas Property – The Company follows the full cost method of accounting for its oil and gas property, which is located in Cumberland County, Kentucky. Accordingly, all costs associated with acquisition, exploration and development of oil and gas reserves are capitalized. All capitalized costs, including the estimated future costs to develop proved reserves are amortized on the unit-of-production method using estimates of proved reserves. Investments in unproved properties and major development projects will not be amortized until proved reserves associated with the projects can be determined or until impairment occurs. Potential impairment of unproved properties and other oil and gas property and equipment are assessed periodically. If the assessment indicates that the properties are impaired, the amount of the impairment will be added to the capitalized costs to be amortized.

Goodwill was $742,000 as of December 31, 2010 and was acquired January 21, 2010 in connection with the Company’s reverse Merger of AECO.

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Revenue Recognition – The Company earns revenues primarily through the sale of coal, but also earns revenue from the sale of oil. The Company recognizes revenues utilizing the following general revenue recognition criteria: 1) pervasive evidence of an arrangement exists; 2) delivery has occurred; 3) the price to the buyer is fixed or determinable; and 4) collectability is reasonably assured.

Delivery on coal sales is determined to be complete for revenue recognition purposes when title and risk of loss has passed to the customer in accordance with stated contractual terms and there is no future obligations related to the shipment. Title generally passes as the coal is loaded into transport carriers for delivery to the customer.

Financial Instruments – Financial instruments consist of cash, accounts receivable, accounts payable, notes payable and advances payable. Recorded values of cash, receivables, accounts payable and accrued liabilities approximate fair values due to the short maturities of such instruments. Recorded values for notes payable and related liabilities approximate fair values, since their stated or imputed interest rates are commensurate with prevailing market rates for similar obligations.

Recent Accounting Pronouncements

In January 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2011-01 (ASU 2011-01) Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20. ASU 2011-01 temporarily delay the effective date of the disclosures about troubled debt restructurings. The effective date of the new disclosures about troubled debt restructurings for public entities and the guidance for determining what constitutes a troubled debt restructuring will then be coordinated. Currently, the guidance is anticipated to be effective for interim and annual period ending after June 15, 2011. The Company does not expect the provisions of ASU 2011-01 to have a material effect on its financial position, results of operations or cash flows.

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In December 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2010-29 (ASU 2010-29) Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations (a consensus of the FASB Emerging Issues Task Force). The amendments in this Update specify that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. The amendments in the Update also expand the supplemental pro forma disclosures under Topic 805 to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The amendments in the Update are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. The Company does not expect the provisions of ASU 2010-29 to have a material effect on its financial position, results of operations or cash flows.

Item 3 - Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4 - Controls and Procedures

Evaluation of Disclosure Controls and Procedures

WeThe ~~carried~~Company’s ~~out~~management anis ~~evaluation~~responsible offor ~~the~~establishing ~~effectiveness~~and ofmaintaining ~~the~~a ~~design~~system ~~and operation~~ of ~~our~~ disclosure controls and procedures (as defined in ~~Exchange~~Rule ~~Act Rules~~ 13a-15(e) and 15d-15(e) under the Exchange Act) asthat ofis ~~December~~designed ~~31,~~to ~~2010. This~~ensure ~~evaluation~~that ~~was~~information ~~carried~~required ~~out~~to be disclosed by the Company in the reports that the Company files or submits under the ~~supervision~~Exchange Act is recorded, processed, summarized and ~~with~~reported, within the ~~participation~~time ofperiods ~~our~~specified ~~Principal~~in ~~Executive~~the ~~Officer~~SEC’s rules and ~~Principal~~forms. ~~Financial~~Disclosure ~~Officer.~~controls ~~Based~~and ~~upon~~procedures ~~that~~include, ~~evaluation~~without limitation, ~~our~~controls ~~Principal~~and ~~Executive~~procedures ~~Officer~~designed ~~and~~to ~~Principal~~ensure ~~Financial~~that ~~Officer~~information ~~concluded~~required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, asincluding ofits ~~December~~principal 31executive officer or officers and principal financial officer or officers, ~~2010~~or persons performing similar functions, ~~our~~as ~~disclosure~~appropriate ~~controls~~to ~~and~~allow ~~procedures~~timely ~~were~~decisions ~~effective~~regarding required disclosure.

WeIn ~~have~~accordance ~~made~~with ~~the~~Exchange ~~determination~~Act ~~that~~Rules ~~our~~13a-15 ~~disclosure controls~~ and ~~procedures~~15d-15, ~~were~~an ~~effective,~~evaluation ~~due~~was tocompleted under the ~~small~~supervision ~~scale~~and with the participation of ~~our~~the ~~operations~~Company’s management, weincluding ~~anticipate~~the ~~that~~Company’s ~~when~~principal ~~operational~~executive ~~activities~~officer ~~expand~~and itprincipal ~~will~~financial beofficer, ~~necessary~~of tothe ~~add~~effectiveness ~~additional~~of the design and operation of the Company’s disclosure controls and procedures toas ~~ensure~~of ~~effectiveness~~the end of the period covered by this quarterly report.

~~Disclosure~~Based ~~controls~~on that evaluation, the Company’s management including the principal executive officer and ~~procedures~~principal ~~are~~financial officer, concluded that the Company’s disclosure controls and ~~other~~ procedures ~~that~~were ~~are~~not ~~designed~~effective toin ~~ensure~~providing reasonable assurance that information required to be disclosed in ~~our~~the Company’s reports filed or submitted under the Exchange Act ~~are~~was recorded, processed, summarized, and reported, within the time periods specified in the SEC'’s rules and forms. because ~~Disclosure~~there ~~controls~~exist ~~and~~material ~~procedures~~weaknesses ~~include,~~affecting ~~without~~our ~~limitation,~~internal ~~controls~~control ~~and~~over ~~procedures~~financial ~~designed~~reporting todescribed ~~ensure that information required to be disclosed~~ in our ~~reports~~annual ~~filed~~report ~~under~~for the ~~Exchange~~year ~~Act~~ended isMarch ~~accumulated and communicated to management~~31, ~~including~~2011 ~~our~~on ~~Principal~~Form ~~Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure~~10-K.

ADue ~~control~~to ~~system,~~the nopresent ~~matter~~scale ~~how~~of ~~well~~our ~~conceived~~operations orand ~~operated,~~limited ~~can~~financial ~~provide~~resources, ~~only~~we ~~reasonable,~~do not ~~absolute~~intend to, ~~assurance~~immediately ~~that~~take any action to remediate the ~~objectives~~material ofweaknesses identified beyond those actions already identified in our annual report for the ~~control~~year ~~system~~ended ~~are~~March ~~met~~31, 2011.

26Changes in Internal Controls over Financial Reporting

During the period covered by this report, there was no change in our internal controls over financial reporting or in other factors that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

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Changes in Internal Controls

Part II - OTHER INFORMATION

Item 1 - Legal Proceedings

No legal proceedings were initiated or served upon the Company in the three month period ending ~~December~~June 3130, ~~2010~~2011.

From time to time the Company may be named in claims arising in the ordinary course of business. Currently, no legal proceedings or claims, other than those disclosed above, are pending against or involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition.

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

OnNo ~~October~~disclosure 25, 2010, the Company agreed to issue 5,000,000 shares of its common stock to RJCC Group 1, Inc. on or about December 1, 2010 in exchange for cancelling the total balance of an obligation then due totaling $1,168,164. The shares were issued on December 23, 2010. RJCC is owned by John Gargis, a director of the Company.required

On October 29, 2010, the Company issued a former director David Nelson 200,000 common shares as compensation for his past service.

On October 29, 2010, the Company issued an employee, Hersh Hayden, 100,000 common shares as compensation for services.

All of the above sales were issued as exempted transactions under Section 4(2) of the Securities Act of 1933 and are subject to Rule 144 of the Securities Act of 1933. The recipient(s) of our securities took them for investment purposes without a view to distribution. Furthermore, they had access to information concerning our Company and our business prospects; there was no general solicitation or advertising for the purchase of our securities; and the securities issued are restricted pursuant to Rule 144.

Item 3 - Defaults upon Senior Securities

~~None,~~No ~~for~~disclosure ~~the period ending December 31, 2010.~~required

Item 4 - (Removed and Reserved)

None, for the period ending December 31, 2010.

Item 5 - Other Information

~~None,~~No ~~for~~disclosure ~~the period ending December 31, 2010.~~required

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Item 6 - Exhibits

Americas Energy Company- AECo includes by reference the following exhibits:

	3.1	Articles of Incorporation (1)
	3.2	Bylaws (1)
	3.3	Amended Articles of Incorporation - Name Change to Americas Energy Company, ~~filed October 14, 2009 (2)~~
		filed October 14, 2009 (2)
	4.1	Form of Warrant - filed on Form 10-K as Exhibit 4.1 on July14, 2010
	4.2	Americas Energy Company-AECo 2010 Employee and Consultant Stock Plan - filed on Form S-8 as Exhibit 4.1 on August 13, 2010
	14.1	Code of Business Conduct and Ethics - filed on Form 10KSB as Exhibit 14.1 on June 28, 2005
	10.1	Agreement – Letter of Intent, between Americas Energy Company and Hanhong (Hong Kong) New Energy Holdings Limited, dated April 20, 2011; Received signed by Hanhong on April 27, 2011; includes Promissory Note, Security Agreement and form of warrants. (3)
	10.1	Agreement and Plan of Merger, as amended January 21, 2009 - between Americas Energy Company - AECo (PubCo) and Americas Energy Company - AECo (Private) (2)
	(1) Filed with the Registrant’s Registration Statement on Form 10SB, October 07, 2004
	10.2	Agreement - Assignment of Leases and Permits, between Americas Energy Company and Evans Coal Corporation, dated July 17, 2009 (2)
	(2) Filed with Registrant’s Current Report on Form 8K, January 27, 2010
	10.3	Agreement - Assignment of Mineral Lease, between Americas Energy Corporation and RJCC Group 1, dated July 27, 2009 (2)
	(3) Filed with Registrant’s Quarterly Report on Form 8-K/A, June 13, 2011
	10.4	Agreement - Letter of Intent, between Americas Energy Corporation and D and D Energy, Inc., dated July 7, 2009 (2)
	10.5	Agreement - Letter of Intent, between Americas Energy Corporation and Evans Coal Corporation, dated November 5, 2009 (2)
	10.6	Agreement - Agreement for the Sale of all Shares in Evans Coal Corp., between Americas Energy Corporation and Barbara Evans, widow and not married, and Evans Coal Corporation, dated February 6, 2010 (3)
	10.7	Agreement- Confidential Settlement Agreement, Release and Covenant not to Sue, between Americas Energy Company-AECo, Evans Coal Corporation, Mrs. Barbara Evans and A.Y. Evans, Jr. dated September 28, 2010(4)

(1) Filed with the Registrant’s Registration Statement on Form 10SB, October 07, 2004 (2) Filed with Registrant’s Current Report on Form 8K, January 27, 2010 (3) Filed with Registrant’s Quarterly Report on Form 10-Q, February 18, 2010 (4) Filed with Registrant’s Current Report on Form 8K, October 12, 2010

Americas Energy Company- AECo includes herewith the following exhibits:

	10.8	Settlement Agreement, dated October 18, 2010, between Americas Energy Corporation and RJCC Group 1, Inc.
	31.1	Certification of Principal Executive Officer (Rule 13a-14(a)/15d-14(a))
	10.9	Agreement for Contract Mining Services - Mining Clear Development, LLC, Dated January 14, 2010
	31.2	Certification of Principal Accounting Officer (Rule 13a-14(a)/15d-14(a))
	10.10	Agreement for Contract Mining Services – RECOAL LLC, dated February 7, 2011
	32.1	Certification of Principal Executive Officer (18 U.S.C. 1350)
	21.1	List of Subsidiaries
	32.2	Certification of Principal Accounting Officer (18 U.S.C. 1350)
	31.1	Certification of Principal Executive Officer and Principal Accounting Officer (Rule 13a-14(a)/15d-14(a))
	32.1	Certification of Principal Executive Officer and Principal Accounting Officer (18 U.S.C. 1350)

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Table of Contents

Americas Energy Company- Aeco

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Americas Energy Company
Date: February 22, 2011	By:	/s/ Christopher L. Headrick
Date: August 16, 2011	By:	/s/ Christopher L. Headrick
		Christopher L. Headrick, President
		Principal Executive Officer
Date: August 16, 2011	By:	/s/ Hong Duan
		Hong Duan, CFO
		Principal Financial Officer

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