Alliance News

July 12, 2005

SEC Approves Alliance Recovery Corporation Registration

Shareholders should be advised that the SEC has notified the Company that the SEC has no further comments on the Company's SB-2 Registration Statement and such registration was deemed effective on July 7, 2005. The Company had previously advised shareholders in January 2005 that the initial filing of the SB-2 occurred December 27 th , 2004. At that time, it had been suggested that the SB-2 approval process could take as long as 180 days and from the date of the filing in December, the process actually took 186 days.

Our legal counsel advised the Company that throughout the SEC review process, it would not be appropriate to provide updated news or information on the website. Therefore, it was in the Company's best interest to remain silent until now.

For the benefit of those shareholders not familiar with the process of moving a US company onto a public exchange, the completion of the SB-2 process allows a market maker to submit a 15c 211 Application to the National Association of Securities Dealers (NASD) on behalf of the Company. In order to commence this application process, it is necessary that a broker/dealer member of the NASD be required to act as the sponsor of Alliance Recovery Corporation and submit an application on behalf of the Company to the NASD.

The broker/dealer member acts in the capacity of a “market maker” and exclusively trades all shares for a period 28 days from when the Company receives approval to trade. Subsequently, trading is expanded by involving other NASD member organizations. Once the Company has received approval from the NASD, the Company is then in a position to commence public trading. NASD approval may be obtained in 60 to 90 days. Management remains hopeful that the process will be expedited although there are no guarantees that the process will be completed in a timely manner.

In furtherance of Alliance being a publicly traded company, Florida Atlantic Stock Transfer Inc. has been selected as the Company's transfer agent and will be preparing share certificates pursuant to our instructions. Such share certificates will be forwarded to all shareholders prior to trading. Shareholders will be notified by the transfer agent in advance of the Company's shares being available for public trading.

Canadian Shareholders

To streamline the ability of shareholders living in Canada to sell their shares, management is working to establish a conduit through an Ontario based broker/dealer. Current regulations in Canada and the US will not allow Canadians to work directly with a US broker dealer. It is necessary for a Canadian residence use a Canadian broker/dealer to facilitate the trade of US securities.

As the regulatory environment continues to evolve in both jurisdictions, establishing a relationship with a Canadian based broker/dealer that is familiar with both the regulatory environment and the Company's securities will ensure the expedient sale of securities held by those shareholders residing in Canada. In any event, shareholders will not be restricted to trading their shares through the recommended broker/dealer. However, management strongly encourages shareholders to utilize the relationship the Company is establishing with a Toronto broker/dealer to facilitate expedient and appropriate transactions in connection with the sale of their shares.

The Company will provide instructions and information pertaining to the sale of shares well in advance of the trading activity commencing. Additionally, it is the intention of management to provide our shareholders access to knowledgeable professionals that will outline the process of selling shares at a forthcoming Shareholder Meeting. Preliminary information related to the Shareholder Meeting will be discussed later in this news release.

Shareholder Meeting

The Company is in the process of identifying a suitable location in Buffalo, New York as well as a suitable date for a Shareholder Meeting prior to the public trading of the Company's common stock. The Company's management, securities counsel, Mirador representatives promoting our stock, representatives of the market maker and, a representative of the Ontario securities firm that the Company is recommending for the sale of shares into the US market will be in attendance and will address shareholders after the Shareholder Meeting. Further information regarding the meeting will be posted on the website and a Notice to Shareholders and agenda will be forwarded well in advance of the meeting.

An Independent Overview of the Alliance Business Prospects

During January and early February 2005, Scheft Ticks, a publication providing investment advice and opinions, was circulated to several thousand broker/dealers in the US. Mr. Michael Scheft, an independent research analyst and editor of Scheft Ticks, had over a period of several months, interviewed the Company's Management, counsel, their consulting mechanical and environmental engineers and scientists, as well as conducting his own independent research pertaining to the Alliance initiative.

Mr. Scheft had appeared regularly on CNBC and the Financial News Network and was a weekly guest on GEM radio, along with several other financial programs throughout the country. It is Management's opinion that the fact the following observations were circulated to a vast number of broker/dealers in the US, our shareholders should be advised of the observations and opinions of this credible and knowledgeable analyst. In particular, in the “Outlook” section of the report, Mr. Scheft offers a third party perspective pertaining to several aspects of the Company. The “Outlook” section is as follows:

“Alliance Recovery Corporation is looking for future growth as it furthers its development of its production of electrical energy from waste for sale to local industries and local utilities. In the process of reducing rubber waste into fuel oil for electrical energy generation, ARC will also produce the required process fuel and marketable by-products, such as carbon black, steel, and steam and/or hot water, derived from the thermal process. The Company intends, through its future wholly owned subsidiaries, to develop sites in various large urban centers of the U.S., which are known to generate vast quantities of rubber waste. The Company plans to operate strategically positioned manufacturing ARC processing units in selected states. ARC will also receive tipping fees in exchange for providing a point of final disposition for rubber waste. In addition to process fuel gases generated in the conversion reaction, the ARC unit also has the ability to recover other by-products to further expand potential profit streams. Currently, the Company has no direct competitors. Based upon the Company's first showcase facility, each ARC unit's disposal capacity is expected to be capable of processing 100 million pounds of waste rubber annually, which is equivalent to about five million passenger tires. The Company's overall project will be managed by Resource International, a Virginia-based engineering firm that will be responsible for equipment installation, site engineering, permits, construction surveillance, system design, sourcing and fabrication, mechanical and structural installation and EPA approved operator training. The Company recently filed a preliminary prospectus on Form SB-2 with the Securities and Exchange Commission.† The preliminary prospectus is subject to amendment and has not yet been declared effective. With state-of-the-art technology, potential worldwide penetration, a diligent business model, environmentally friendly process technology, virtually unlimited supply of waste, solid margins, very favorable industry backdrop, supportive governmental legislation, a myriad of significant profit centers, first-class joint alliances and a talented hands-on management team, Alliance Recovery Corporation represents a significant entry in the lucrative resource recovery industry.

Michael Scheft

January, 2005”

Furthermore, as with all Scheft Ticks documents, the following paragraph was included in his opinions related to Alliance:

“Mr. Scheft is an independent research analyst and editor of Scheft Ticks, an equities newsletter providing unique insight to the markets since 1987. Mr. Scheft has appeared regularly on CNBC and Financial News Network and is a weekly guest on GEM radio, along with several other financial programs throughout the country. The information contained herein is based on sources and data, which we believe reliable but is not guaranteed by us. The above information contains certain forward-looking statements. For this purpose, any statements contained in the above information that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may", "will", "expect", "believe", "anticipate", "estimate", or "continue" or comparable terminology are intended to identify forward-looking statements. These statements, by their nature, involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors. Furthermore, this information is furnished for informational purposes and is not intended to be construed as an offer to buy or sell securities. Compensation has been paid by the Company to cover printing, postage, transmissions and other related costs.”

Now that the SEC Registration process has been completed, it is our intention to provide our shareholders with information in a more timely manner. We will continue to provide you with further information pertaining to our progress as information becomes available.