ARSC Hydra Unit Demo's Hydrogen Fuel Cells to Government and Industry

Houston, TX (BusinessWire) January 26, 2006 – American Security Resources Corporation (O TCBB: ARSC) announced today that its Hydra Fuel Cell Corporation subsidiary successfully demonstrated beta units of its proprietary HydraStax™ hydrogen fuel cells in Beaverton, Oregon, on January 20, 2006.

Ed Davis, Chairman of Hydra, said “We had over twenty representatives of industry and government here to see the working beta units. The units performed flawlessly and the response from the attendees was very enthusiastic. We are currently following up on the requests for additional data from some of the groups who participated in the demo. We are expecting some to order units.”

The HydraStax™ is designed to be the first commercially mass producible hydrogen fuel cell. ARSC believes the market for this type of fixed power unit in military and commercial applications could number in the hundreds of thousands.

American Security Resources Corporation

ARSC is a holding company actively seeking to acquire companies and technologies that will advance the development of alternative energies. ARSC, through its Hydra subsidiary, is developing high volume, mass producible hydrogen fuel cells. 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