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.

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