AFG Flameguard Ltd.: Successful Demonstration of DSPA Technology in Ontario's Muskoka Lakes Region

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 3, 2012) - AFG Flameguard Ltd. ("AFG" or the "Corporation") (CNSX:AFG) is pleased to announce it has completed two successful demonstrations before more than 150 observers including the Muskoka Lakes Fire Department, Perry Sound Fire Department, Jack Hepworth, Councilor for Seguin Township, vacation homeowners, business owners and representatives of the Muskoka Lakes Association ("MLA"). The demonstrations are an initial marketing effort to target homeowners focusing on remote cottages, luxury homes and camps. The objective of these demonstrations is to promote the sale of AFG's Remote Response Station lock boxes ("Lock Boxes"). These Lock Boxes hold two DSPA-5 units and a variety of other fire suppression and safety equipment. The Lock Box is installed outside of a building in an area that can be accessed easily. This enables a first responder to subdue a structure fire from outside of the building.

A custom building was constructed for the Muskoka fire demonstrations. A living room setting was created replicating a likely home fire scenario including furniture and other combustibles. A fire was ignited and left to burn for the approximate time it would take to retrieve the DSPA-5. The average time for fire services to arrive in this remote region is approximately 20 minutes but the audience could see through the tempered glass that two minutes was enough time for the room to be fully engaged in fire. The DSPA-5 was deployed after a few minutes of burning. The flames were knocked down immediately, thereby reducing heat and eliminating the threat of flashover and backdraft. The scene was left untouched for 30 minutes while the spectators were allowed to watch and ask questions. This created a realistic simulated time-line for the fire department to arrive at this fairly remote location. A fire which would normally consume the entire building well before any fire service could react was completely knocked down after the DSPA-5 unit was deployed. When the fire department overhauled the fire scene (31 minutes later) they saw that there were no flames whatsoever. They used only 2 gallons of water at the seat of the fire to make sure that any remaining hotspots were completely cooled down.

AFG executives including President and CEO Thomas Bell, director Frans Vogelzangs from AFG Group Nijmegen B.V. ("AFG Group") of Holland and newly appointed director John Russell were in attendance.

Mr. Bell stated, "Muskoka is a region with high value remotely located recreational homes that are often difficult for fire departments to attend to quickly in the event of a fire. Most often even a small fire will result in the total loss of property and contents. Through our successful demonstrations we were able to demonstrate to residents that inexpensive DSPA technology can provide the property owner and the local fire service professionals a fighting chance to save cottages, homes and businesses in the event of fire."

Mr. Russell stated: "I am extremely excited to be a part of bringing this extraordinary product to Canadians and witnessing the amazing results that are achieved when DSPA technology is used. This innovative product has brought great relief to a community that is very mindful of fire following the evacuations last month due to wildfires."

AFG greatly appreciates the cooperation and support of the local fire services, the MLA and Daniel Sturgeon, shareholder and organizer of the Muskoka demonstrations. AFG's next demonstration is planned for September 9, 2012 in Ste-Anne-des-Lacs, Quebec. This demonstration will be conducted using a house that has been donated to the local fire service for training purposes. There will be approximately 23 fire departments present from Ontario and Quebec as well as three insurance companies. Provincial and local government representatives, media as well as commercial and residential property owners are expected to attend.

For more information, please visit AFG's website at www.afg5.com and view AFG's disclosure record on the Canadian National Stock Exchange website at www.csnx.ca and on SEDAR at www.sedar.com.

About AFG Flameguard Ltd.

AFG markets and distributes an environmentally friendly suite of fire and life safety products that save lives and reduce property loss. AFG's product line includes dry sprinkler powdered aerosol systems ("DSPA"), NOFIQ fire suppression systems ("NOFIQ"), intumescent (fire resistant) paints, coatings and fabric sprays and photoluminescent products. The recent deployments of the DSPA-5 device by fire departments in Canada has resulted in millions of dollars in savings related to less property and content damage, environmental contamination, lower associated costs and personal safety. Through AFG's exclusive distribution agreement with AFG Group Nijmegen B.V. ("AFG Group") AFG can market and distribute AFG Group's wide range of products in Canada, Mexico, Guyana, Panama and Kurdistan to fire departments, businesses, government agencies, homeowners, commercial building owners, the military - practically any institution that needs to protect their personnel and assets from the devastation of fire.

Follow AFG on Twitter at twitter.com/afgflameguard.