ARSC Forms Fuel Cell Marketing Corporation

Worldwide Marketing and Licensing Opportunities
Warrant Separate Corporation

Houston, TX (Business Wire) September 27, 2005 – American Security Resources Corporation (OTCBB: ARSC), announced today that its subsidiary, Hydra Fuel Cell Corporation, has formed Hydra Fuel Cell Marketing Corporation to market and license the proprietary Hydra hydrogen fuel cell. The Hydra fuel cell is an energy source with a broad array of commercial and military applications.

American Security Resources is acquiring the exclusive marketing and licensing rights to the Hydra fuel cell from privately-held EGO Design, Inc., which holds the patents for the Hydra silicon-based, hydrogen fuel cells. EGO Design’s research indicates that the current market for fixed power is approximately $5 billion and, within a few years, may exceed $7 billion. EGO expects to penetrate roughly 17% of the market, which could generate sales to the company in excess of $100 million annually within two years, and lead to Hydra sales of $1 billion annually within 8 years.

According to Joe Grace, President of ARSC, “We previously formed Hydra Fuel Cell Corporation and Hydra Fuel Cell Manufacturing Corporation to produce the proprietary Hydra hydrogen fuel cell. Our Board of Directors believes that the worldwide marketing and licensing opportunities for this technology could become so great that they warrant the formation of a separate corporation.”

Identified applications for the 5kW - 40kW systems include back-up power for telecommunications, UPS, light commercial and residential applications. There are also licensing opportunities for motor vehicles, larger power systems and portable electronics.

 About American Security Resources Corporation
American Security Resources Corp. is a holding company actively seeking to acquire profitable, well-managed companies that provide products or services for homeland security or national defense. The company is currently in discussions to acquire several companies.

For more information, please see: www.americansecurityresources.com.

SafeHarbor Statement

This news release contains certain “forward looking statements” within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934. Although the Company believes the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that results will meet or exceed such expectations.

For more information contact:

Joe Grace, President
American Security Resources Corporation
713-465-1001
9601 Katy Freeway, Suite 220
Houston, Texas 77024
jgrace@amsrcorp.com

Pete Belcher, President
B&B Marketing Communications
713-774-0642
pete@bbmarcom.com