American Ammunition Receives State Department Approval for Canadian Export.

MIAMI -- American Ammunition, Inc. (OTCBB:AAMI) announced today that it has received United States Department of State approval for 500,000 rounds to enable it to export to its Canadian distributor. Initial sales to the Canadian distributor were previously announced on July 5, 2005 and the Department of State approval includes additional orders since that date.

Paul Goebel, Director of Sales and Marketing of American Ammunition, Inc. stated: "moving into the Canadian market opens the door for a healthy export business. I am happy to see this trend continuing. These Canadian sales along with other announced foreign sales bring an added dimension to our portfolio of business."

About American Ammunition, Inc. - AAMI is an autonomous manufacturer of ammunition, with the technology and equipment to take advantage of the growing market. It has an excellent reputation within the industry. The ammunition industry has experienced a 28% average increase in revenues annually between 1991 through 1998, and the trend is expected to continue through the year 2005 and beyond. For further product information, please call 1-305-835-7400 or visit the website at: http://www.a-merc.com For Investor Relations information, please call: 1-305-446-4800 or e-mail: [e-mail].

This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.