ARSC Board Authorizes Spinoff of Hydra Fuel Cell to Shareholders

Houston, Texas, April 7, 2009 (BusinessWire) – The Board of Directors of American Security Resources Corp. has voted to spinoff its wholly owned subsidiary, Hydra Fuel Cell Corporation (www.hydrafuelcell.com ), in a special dividend to the shareholders. 

The plan approved by the Board calls for a significant investment directly into Hydra before the spinoff. The spinoff will be submitted to the shareholders in a proxy which will describe the transaction and contain the ratio of Hydra shares to ARSC shares for the dividend. The company expects to have the details of the spin-off completed within 60 days. After the spinoff Hydra’s stock will trade independently

Frank Neukomm, Chairman and CEO of ARSC, explained, “A spinoff is the quickest and most effective way we could find to get the remaining investment that Hydra needs to complete certification and begin commercial production.  We have had discussions with European investors who have expressed an interest in participating in this with us. Considering Hydra’s $21,000,000 order backlog and its technologically advanced HydraStax® fuel cells, we believe that this is the best method for our shareholders to receive the benefit of the significant value that Hydra has created which is clearly not reflected in the price of ARSC’s stock today.”

American Security Resources Corporation
ARSC is a holding company developing clean energy technologies. Its Hydra Fuel Cell Corp. subsidiary is developing high volume, mass producible hydrogen fuel cells. Its American Hydrogen Corp. subsidiary is developing methods to inexpensively formulate hydrogen. The Company also has created a financing arm, American Security Capital, to provide financing options to buyers of the subsidiaries products. For more information, please see: www.americansecurityresources.com

Safe Harbor 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 actual results will meet or exceed such expectations.

For more information, please contact:

Frank Neukomm or Bob Farr
American Security Resources Corporation
713-465-1001
info@amsrcorp.com