American Security Resources Corp. Receives Funding
Will Take Hydra Subsidiary to Cash Flow Positive

Houston, TX (BusinessWire) August 25, 2006 – American Security Resources Corporation [OTCBB: ARSC] today announced the signing of a funding agreement with Golden Gate Investors, Inc. providing an immediate capital infusion and a minimum $3,000,000 funding for operations for the next twelve months. The funding will be received on a monthly basis as needed and will be based on ARSC';s stock price at the time of receipt.

"This funding agreement allows us to focus our energy on bringing our HydraStax™ fuel cell to the market. Commercial production is slated for later this year and our Hydra Fuel Cell Corp. subsidiary should be cash flow positive before we use all of this funding," said Bob Farr, President of ARSC. "Since we will have the operating capital we need for the next year, we can concentrate on growing ARSC internally and through strategic acquisitions," Farr continued.

The HydraStax™ fuel cell is a proprietary technology developed by ARSC';s wholly owned subsidiary, Hydra Fuel Cell Corp. ( www.hydrafuelcell.com ), that increases both the efficiency and useful life of electric generating hydrogen fuel cells. The HydraStax™ unit is designed to be commercially mass produced.

American Security Resources Corporation, "ARSC" is a holding company acquiring and developing technologies that will advance the development of alternative energies. ARSC, through its Hydra subsidiary, is developing high efficiency, 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