ARSC Board Authorizes Spin-Off of Hydra Fuel Cell to Shareholders

HOUSTON--(Business Wire)--
The Board of Directors of American Security Resources Corp. (OTCBB:ARSC) has
voted to spin off 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 spin-off. The spin-off 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 spin-off Hydra`s stock will
trade independently

Frank Neukomm, Chairman and CEO of ARSC, explained, "A spin-off 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.

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

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