American Southwest Holdings Inc. Provides Technical Update; Funding Offer from U.K. Investment Firm.

SYDNEY, Australia -- Metal Sands Pty Ltd ("MSA") is the Australian operating arm of American Southwest Holdings Inc. (Pink Sheets: ASWT). In February 2005, MSA completed a drilling campaign within the company's Governor Broome project area located in the southwest of western Australia, in an area where mineral sands production has been established since the 1950s. MSA has been undertaking laboratory investigation of the material recovered from the drilling program and assessing the results since February. The drilling program was successful in intersecting a high-grade, near-surface zone of heavy mineral sands. Pilot scale testing on a composite bulk sample has commenced. Result from these tests will provide an indication of likely operating parameters for extraction of the heavy minerals.

The mineralization was identified in the 170 drill holes over a length of approximately 1,800m and a width of 1,000m. Preliminary results of drilling indicates the following:

--The ore zone has an average thickness of 4.2m

--The average grade from the mineralized zone over the 170 drill holes is approximately 6.5% heavy minerals

--The heavy mineral assemblage is

75%   ilmenite
              6%   zircon
            4.5%   leucoxene
            8.2%   garnet

The mineralized zone has a thin cover of unconsolidated sand resulting in a projected stripping ratio of 1.3:1.

The drilling has defined part of the ancient shoreline, which controlled the accumulation of heavy minerals. This structure is open to the north and south and the presence of further mineralization within the projected extensions is verified by a number of historic high-grade intercept obtained by past operators. Further drilling is planned to define the northern and southern extensions of the mineralization identified to date.

Some additional sampling of material obtained during the drill program is required to improve definition of the upper and lower enveloping surfaces of the ore zone. This work will be commenced in conjunction with resource modeling during the forthcoming period.

Corporate Funding

The company has been made an offer of funding from a substantial U.K.-based investment fund. This offer is subject to a number of conditions, which the board of directors are reviewing. The amount offered would be sufficient to advance the project to a full bankable feasibility stage.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.

Alan Doyle

President