American Environmental Energy Wins Civil Fraud Judgment in Excess of $10 Million

On August 4, 2010, the Securities and Exchange Commission filed a complaint for civil fraud against Joseph R. Porche, Larry R. Crowder and others in connection with sales of shares of common stock of American Environmental Energy, Inc. (the “Company”). News and media reports of this proceeding have inaccurately stated or implied that the Company was involved in the fraud. In fact, the Company and its shareholders were victims of the fraud when Porche and Crowder, and their company, Kensington Resources, misdirected millions of dollars from the Company to their own personal use. The Company was not named in the SEC complaint, and none of the named defendants in the case were ever officers or directors or employees of the Company. The Company has voluntarily cooperated with the SEC and the Federal Bureau of Investigation in the course of their investigations.

Upon learning of the fraud, the Company filed a civil lawsuit alleging fraud against Kensington Resources and both Crowder and Porche, and has been awarded a judgment in excess of $10.0 million. (American Environmental Energy, Inc. v. Kensington Resources et al, Orange County Superior Court, Case No. 03-2009-120502, filed March 24, 2009.) The Company intends to pursue the defendants to satisfy this judgment.

In response to recent media inquiries, Brent A Brewer, the current CEO of the Company issued the following statement:

“The American Environmental Energy team did not choose to leave our post once we learned of how the Kensington Resources individuals had damaged our shareholders and our company, but rather decided to accept the challenge of working at great deficit, pursue those responsible for our harm, and to put American Environmental Energy back on a forefront - by instilling true value in the company with dedicated effort, personal sacrifice, and pursuing high quality renewable energy opportunities. We look forward to publicly releasing the fruits of those labors in the near future.

It is the continuing focus of the board of directors and my directive to forge on with this mission. Despite challenging circumstances and misperceptions that may be held regarding what happened, my team and I remain sincerely committed to generating value to all shareholders.

During my tenure as a Marine Corps Officer and leader, I’ve always fostered a belief in doing the right thing; working hard and persevering against challenges, whatever they might be and whenever they might arise. I do not intend to waiver from my commitment in remaining by our shareholders.”

About American Environmental Energy, Inc. (Pink Sheets: AEEI)

AEEI capitalizes on global renewable energy opportunities focused on wind, solar, hydro and bio-fuel generation, clean water, and waste to energy. AEEI participates as principal in project risk equity and adds value by solving for market inefficiencies between project entrepreneurs and sophisticated financing sources. The approach effectively integrates the skill sets necessary to encompass the full project lifecycle. The company actively participates worldwide to source, evaluate, qualify, package, finance, and manage renewable energy opportunities; from which the company then adds an additional level of support systems and services to ensure transparency and success.