North American Liability Group Agrees to Purchase Mexico Steel Mill Operations.

FORT LAUDERDALE, Fla. -- North American Liability Group (OTCBB:NOAL) announces today the closing of a Letter of Intent previously released on Tuesday June 15, 2004 to acquire Grupo Industrial NKS, S.A. de CV.

North American Liability Group (OTCBB:NOAL) announced today that the company has renegotiated the Letter of Intent to originally acquire 100% of all classes of shares issued and outstanding of Grupo Industrial N.K.S., S.A., de CV ("NKS"). As of this date NOAL and stock holders NKS have mutually agreed that NOAL will only acquire 75% of all the shares of NKS in a share exchange agreement, whereby NOAL will deliver 250,000,000 common restricted shares in exchange for 75% of all the issued outstanding shares of NKS.

NKS, a Mexican corporation, is the owner of a Steel Mill Foundry and other assets in Lazaro Cardenas, Mexico. NKS has represented to NAOL that the value of these hard assets has a value in excess of USD$200,000,000.00. For more information on NKS, see: http://www.NKS.com.mx .

In conducting its due diligence, NOAL has established that the audit, balance sheet and financial statements of NKS, which were prepared by a Mexican Audit firm through 2003, have been done in accordance with US G.A.P. (General Accounting Practices). Further, there are assignable contracts in place to acquire the existing debt for a substantially lesser amount than that is reflected in the financial statements. NOAL will issue 250,000,000 common shares, voluntarily restricted for two years in exchange for 75% of all the outstanding shares of NKS.

NOAL will appoint Mr. Bernardo Vergara to the board of Directors to oversee Mexico operations. The NKS Board of Directors will report directly to Mr. Vergara. Mr. Vergara was formerly the Consul of Mexico for the Province of Alberta and is fluent in Spanish and English. Mr. Vergara brings with him former experience as a director of public companies as well as his acumen in negotiations with the Mexican Government and Government agencies.

NKS will be operated as a wholly-owned subsidiary of NOAL. NOAL will retain the current board of directors of NKS for the operation of the facility in Lazaro Cardenas, reporting to the parent company.

Directors of Grupo Industrial NKS S.A. de C.V.
Mexico Operations:
CEO                              Mr. David Gomez Arnau
Director of operations           Mr. Ing. Luis Jaime Carrion
Director of Admin. Finance       Mr. Mario Alberto Cruz
Director of Commerce             Mr. Ing. Javier Herrera
Director of Export               Mr. Ing. Rogelio Macia

Commenting upon the acquisition, the Company stated: "This is an exciting opportunity for NOAL. It brings an operating business that, provided with working capital, can enter into manufacturing contracts that will produce positive cash flows in the first quarter of 2005, as well as hard assets into the Company. We look forward to working with the operations board of NKS to make this a successful business combination."

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from those discussed in such forward-looking statements.