AFG FlameGuard Announces Result of Latest Deployment and Plan to Expand Marketing Direct to Building and Homeowners; DSPA-5 Continues to Impress Firefighters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 23, 2012) - AFG FlameGuard Ltd. (CNSX:AFG) ("AFG" or the "Corporation") is a life safety technology focused company providing innovative fire suppression and prevention products and services. AFG is pleased to announce the latest impressive savings from deployment by first responders of the revolutionary waterless extinguisher known as Dry Sprinkler Powder Aerosol ("DSPA") generator and its plan for DSPA's to now be marketed to residential and marine markets in Canada. DSPA systems can extinguish fires in their incipient stage or knockdown fully developed fires in a contained environment within seconds.

On April 5, 2012 Chief Reni Parent and Captain Guy Mailhiot of the Roberval Quebec Fire Department arrived at the scene of a house fire with the second story fully engulfed with 10-20 foot flames coming from the windows. The trucks were still enroute so they deployed a DSPA and within a few minutes the flames were knocked down. (See before and after pictures inset). The result: Ample time was provided for the truck to arrive and save the first floor of the house with minimal effort and water usage.

AFG has focused on introducing and marketing the DSPA-5 model to fire departments in Canada and has saved dozens of structures that would most likely be completely destroyed. The DSPA-5 model is hand held and serves first responders well, protecting firefighters from flashover and backdraft to avoid personal injury as it can squelch a fire more quickly than any conventional method. DSPA's are environmentally friendly and can significantly reduce air, water and soil contamination.

The DSPA-5M model is specifically designed for marine applications. In a market that has been impacted by the ban of Halon systems, the DSPA-5M proves to be a safe and very effective alternative.

AFG's President and CEO, Thomas Bell, commented, "We have supplied over 400 DSPA-5 units to 175 fire departments in Ontario, Quebec, Saskatchewan and PEI. The testimonials and data collected from the successful use of our DSPA-5's have certainly demonstrated the effectiveness of this revolutionary technology. DSPA technology has been embraced in 22 countries around the world and has only recently been introduced to Canada. We are convinced of the urgent need for this technology as a modern fire prevention and suppression tool for the residential, marine, industrial and commercial markets. These markets encompass the next phase of our market development in Canada."

The introduction of DSPA's in Canada has resulted in property savings that could have never been achieved using only the conventional method of fighting fires with water. For further details on AFG's products, services and testimonials see our prior news releases and listing application on CNSX.ca.

AFG is now embarking on a strategy to market the whole line of DSPA models in Canada, Mexico, Guyana, Panama and Kurdistan that include fully installed systems that come in various sizes for dozens of applications. This market can include virtually any location an extinguisher or fire suppression system is required particularly in closed spaces.

The initial target markets AFG is pursuing are home, business and cottage owners who are at risk because of the distance from fire departments and water sources. AFG will offer a safe and simple option to protecting buildings and belongings from the devastation of fire. There are hundreds of thousands of vacation homes across Canada that are at risk because of their remote locations. A fire grows very rapidly and every second counts. AFG will begin this targeted market initiative in the Muskoka region of Ontario where there is a high concentration of valuable properties without timely or adequate fire response capability.

The initial campaign for industry will concentrate in the areas where water and other fire fighting materials are either not available or can sometimes cause more damage than the fire itself. AFG will target data centres with sophisticated and sensitive equipment, archive storage facilities, museums, hospitals and military departments.

AFG is working with wholesale fire product distributors and independent industry specialists to access the industry and residential market. The DSPA and HCA fire retardant paints and coatings can be invaluable to provide a cost effective solution to otherwise prohibitively expensive alternatives to ensure compliance with fire codes, as we work with code examination officials, industry, home owners and government organizations. AFG will mobilize specialists in each of these sectors to ensure prompt penetration. AFG has demonstrated and proven its products for active fire situations and is now entering the much larger passive fire prevention sales market.

The expansion of the market for DSPA installed systems is being made possible by the progress towards Underwriters Laboratory ("UL") certification of the DSPA model line. Through its supplier and affiliated company AFG Group.nl ("AFG Group"), AFG will benefit from AFG Group's efforts to obtain certification to UL standards on the installed or fixed DSPA models. AFG will be able to utilize the certification obtained in Europe, which has been in progress for over a year and is near completion, to expedite certification in Canada.

DSPA installed systems can be customized to protect enclosed spaces of any size, without risk of harm to equipment or inventory in the event of a deployment and are cost effective compared to water based sprinklers, carbon dioxide and other fire suppression systems. Installed systems can protect warehouses, industrial and manufacturing environments, computer/electrical equipment, water and land-based transportation systems, technical rooms in hotels and high-rise buildings, power plants, construction and development projects. Installed model systems vary in size and capacity depending on the volume of area to be protected and the classification of the fire to be suppressed, including Class A, B, C and K fires - a DSPA is effective with each class.

The fixed installation DSPA units are being tested by a world recognized independent testing agency, KIWA Netherlands (Kiwa N.V. and Kiwa Nederland B.V., http://www.kiwa.nl). KIWA is accredited to certify the performance of the DSPA fixed models in accordance with Underwriters laboratory Standard 2775: FIXED CONDENSED AEROSOL EXTINGUISHING SYSTEM UNITS. AFG may apply the results of the European tests to obtain UL certification in North America and will benefit by time and cost savings by being able to use the AFG Group results. That certification enables the next phase of the Company's marketing plan to develop beyond the first responder market.

The AFG Group owns 12.6 percent of AFG and is represented on the AFG board of directors by their Chief Executive Officer, Mr. Frans Vogelzangs, who founded the AFG Group over 20 years ago. The AFG Group's wide range of products are sold in 22 countries around the globe, with the primary focus on the DSPA fire extinguishers and the WL brand of fire resistant paints and coatings product lines.

MARKET FOR AFG PRODUCTS

AFG's products apply to many markets both at the manufacturing and new product stage and to any structures or closed spaces already in existence or undergoing revision or upgrade of their fire protection systems. AFG is now prioritizing its target markets which include fire departments, heavy industry, marine and shipping companies, mobile home manufacturers, government institutions and buildings, computer and data facilities, manufacturers, emergency response services, and military markets throughout our territories.

Thomas Bell, AFG's President and CEO, commented, "AFG has been focused on marketing the DSPA-5 as an introduction of this amazing fire suppression technology to the first responder market and is now poised to begin marketing its full line of products to heavy industry, marine and shipping companies, mobile home manufacturers, hospitals and other government institutions and buildings, computer and data facilities, manufacturers, emergency response services, and military markets. The recent success stories in Canada have established DSPA technology as a credible, effective and a reliable tool for battling fires and will pave the way for the sale of AFG's fixed installation systems. These installed DSPA systems are ideal for virtually any enclosed structure, specifically those lacking water sprinkler systems or where access to fire service is problematic."

AFG believes that its products are in increasing demand because they substantially reduce the damage to structures and contents caused by fires and water which is commonly used to extinguish fires. The data from insurance companies suggests that water, typically applied under high-pressure while extinguishing fires, causes major damage over and above the damage caused by fire. Furthermore, AFG's products are friendly to the environment and cost effective. To date, AFG's products have received positive feedback from insurance companies, governments, industry and the public.

AFG PRODUCTS: INNOVATION IN LIFE SAFETY

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.

DSPA - DRY SPRINKLER POWDER AEROSOL - AFG's DSPA systems can extinguish fires in their incipient stage or knockdown fully developed fires in a contained environment within seconds. The DSPA-5 model is one of a series of model variations but the only handheld or mobile version and has been introduced most effectively as a first response tool by firefighters for initial attack purposes and to protect firefighters from flashover and backdraft. The DSPA-5M model is specifically designed for marine applications which is a market significantly impacted by the Halon ban and is seeking a safe alternative system which the DSPA-5M provides. DSPA-5 utilization as an initial response attack tool is changing the way fires are fought - not just putting fires out faster, but also allowing first responders to develop strategies for small crews in light vehicles to arrive on fire scenes more rapidly.

DSPA extinguishing systems act volumetrically, in which an area or a compartment is filled with a specific amount of extinguishing material and propelled through a chemical reaction that is released by heat or flame. The solid material of the DSPA (as opposed to gas systems) enables the release of aerosol particles directly onto the flames, not the surrounding oxygen, thereby rapidly extinguishing the flames. DSPA systems can be used for Class A, B, C and K fires and are successful in early stage or fully developed fires.

DSPA installed systems were developed so that the temperature level for triggering automatic detonation can be set by a thermostat, and thus setup for automatic or manual detonation.

AFG offers a number of DSPA handheld and installed models suitable for various applications.

DSPA Installed Systems: Installations can be customized to protect spaces of any size, without any risk of harm to equipment or inventory in the event of a deployment. Installed systems can protect warehouses, industrial and manufacturing environments, computer/electrical equipment, water and land-based transportation systems, technical rooms in hotels and high-rise buildings, power plants, construction and development projects. Installed model systems vary in size and capacity depending on the volume of area to be protected and the classification of the fire to be suppressed, including Class A, B, C and K fires- a DSPA can deal with each class.

NOFIQ FIRE SUPPRESSION SYSTEMS - NOFIQ fire suppression systems combine the aerosol technology, carbon monoxide gas detection and wireless radio signaling to alert on the occurrence of gas emitted from smoldering electric wires, and ability to douse a fire on occurrence of flames. NOFIQ is ideal for electric boxes and control panels.

INTUMESCENT FIRE RESISTANT PAINTS AND COATINGS - AFG other products include a line of safe, non-toxic and easy to apply intumescent (fire resistant) paints, coatings, fire retardants and fabric sprays. These are appropriate for a wide variety of applications where fire prevention is critical, including industrial, schools, and remote/difficult to access locations.

AFG's paints and coatings, marketed under the brand name "HCA", are fire and building code compliant, environmentally friendly, and guaranteed effective. When applied to gyproc, panel board, plywood, OSB board, or dimensional lumber, HCA paints and coatings prevent flame spread and thermal damage for at least 30 minutes longer than the normal time to burn for those materials. The HCA WL thin-coat paint has recently been listed with QAI and has the longest heat resistant rating in the industry for flame retardant properties.

The AFG HCA coatings have been tested by Intertek Testing Services and certified to have passed the Can/ULC-S102-M88 standard for the Canadian market and the ASTM E84 standard for the United States market. The coatings also comply with European standards.

AFG is a Quality Auditing Institute (QAI) listed company. The AFG HCA coatings are certified to the U.S. flame spread requirement - ASTM E84 "Standard Test Method for Surface Burning Characteristics of Building Materials" and the Canadian flame spread requirement - CAN/ULC S102-M88 "Standard Test Method for Surface Burning Characteristics of Building Materials and Assemblies", the CAN/ULC S101-07 "Standard Methods of Fire Endurance Tests of Building Construction and Materials", and ASTM E-119-08a "Standard Methods for Fire Tests of Building Construction and Materials" (NFPA 251-2008).

To view the pictures associated with this press release, please click on the following link: http://media3.marketwire.com/docs/afg.jpg

For more information, please visit AFG's website at www.afg5.com and view AFG's disclosure record on the CNSX website at www.csnx.ca and on SEDAR at www.sedar.com. Follow AFG on Twitter at twitter.com/afgflameguard.

FORWARD-LOOKING STATEMENTS

Except for statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" or "information" (collectively "statements"). These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. In some cases, forward-looking statements can be identified by terminology such as "anticipate", "believe", "continue", "estimate", "expect", "forecast", "intend", "likely", "may", "outlook", "plan", "potential", "predict", "should", "will", or the negative of these terms or other comparable terminology. The reader should not place undue reliance on forward-looking statements and information because they involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements and information include, but are not limited, risks related to our limited operating history and history of no earnings, competition from other companies in various consumer industries, changes to government regulations, dependence on key personnel, general economic conditions, local economic conditions, including the marketing of similar products and services in close proximity to licensed territories of the Corporation, timely introduction of these newly licensed Corporation's products or services; the uncertainties in acceptance of such products or services by the market, approvals the Corporation may require in having the agreements and interests being assigned to them, interest rates, availability of equity and debt financing, increased development costs, including costs of labor, equipment and environmental compliance and other risks factors described from time to time in the documents filed by the Corporation with applicable securities regulators and the CNSX, including in the Form 2A Listing Statement under the heading "Risk Factors", which is filed on the CNSX website.

Neither the Canadian National Stock Exchange (the "CNSX") nor its Regulation Services Provider (as that term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.
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