American Southwest Holdings Inc. Market Update.

SCOTTSDALE, Ariz. -- Alan Doyle, president of American Southwest Holdings Inc. (Pink Sheets: ASWT), has announced the company filed a preliminary proxy statement with the SEC on Feb. 18, 2005, to enable it to amend the company's certificate of incorporation to increase the number of authorized shares of common stock of the corporation from 100,000,000 shares to 300,000,000 shares. It is the company's intention to hold a shareholders meeting on March 28 to vote on the proposal and, subject to SEC approval, implement the change. Recent expansion of the company's exploration activities necessitates the raising of additional working capital for which the increase in the authorized number of shares is required. This will also enable the company to take advantage of corporate opportunities as they present themselves to the company. E[acute accent]The recent rejuvenation of the company has seen trading in the company's shares recommence on Pink Sheets. The company intends to reapply to Nasdaq for OTCBB status once the filing of its 10-K is completed. E[acute accent]The company recently commenced an exploration program at its "Governor Broome" property in the southwestern part of Western Australia. The project is located in an area that has supported active titanium mineral sands mining operations since the 1950s and is serviced by well-developed infrastructure and downstream processing facilities. Infrastructure includes power, haulage roads and port, and strong government support for the mineral sands industry has been demonstrated by construction of an $80 million haulage road. This will provide direct access from the company's project to export shipping. E[acute accent]The exploration program was designed to delineate near-surface, heavy mineral sands deposits containing titanium. This is the first stage of a scoping study to develop these resources. Five thousand meters of drilling has been completed and two bodies, each with a length of about 1 kilometer and average width of 450 meters, have been identified. Both bodies remain open along strike. Mineralization has an average thickness of about 4.5 meters and lies beneath about 8 meters of loose sand cover. The heavy minerals are hosted in unconsolidated sand with a low clay content which should prove amenable to low-cost gravity concentration of the product. Assays will be completed in about three weeks. E[acute accent]The company has made application for one exploration license on King Island (Tasmania) where past production has focused on zircon and rutile. Previous drilling has identified heavy mineral deposits within the area, close to the shore of Sea Elephant Bay. Historic records indicate sphalerite (an ore of tin) and gold have also been recovered from heavy mineral sands in Sea Elephant Bay. E[acute accent]For further details, and including an information memorandum, please contact our office at 4225 N. Brown Ave., Scottsdale, AZ 85251. The telephone number is 480-946-4006.