March 24, 2010 (FinancialWire) — American Exploration Corp. (OTCBB: AEXP) and Mainland Resources, Inc. (OTCBB: MNLU) said that their respective boards of directors have approved a stock-for-stock merger to be effected under the laws of Nevada, and that the companies have signed a definitive merger agreement and plan of merger.

If the merger is completed, Mainland will be the surviving corporation, and will become vested with all of American Exploration's assets and property.

Under the terms of the agreement, American Exploration's stockholders will receive one share of Mainland common stock for every four shares of American Exploration common stock they own.

Currently, there are around 59,718,000 shares of American Exploration common stock outstanding, with the result that around 14,929,500 shares of Mainland common stock are anticipated to be issued to former stockholders of American Exploration upon completion of the merger.

Based on the closing market price of Mainland's common stock of $1.23 per share, as reported by the OTCBB, on March 22, 2010, the total share consideration to be issued to American Exploration's stockholders will be worth around $18,363,285, and they will hold around 15.6% of the issued and outstanding common stock of Mainland, as the surviving corporation.

American Exploration is engaged in the exploration and development of oil and gas prospects with the potential for discovery of new or unconventional hydrocarbon resources in the continental United States.

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