AFG FlameGuard Ltd. ("AFG") (CNSX:OP), a technology focused company that
provides innovative products and services to the fire suppression and prevention
industry, is pleased to announce the appointment of Thomas Bell as President and
Chief Executive Officer of the Company. Mr. Bell has served as a Director of AFG
since October 12, 2011 and held the position of Vice President, Corporate
Development and Communication until his current appointment.


Mr. Bell is replacing Donald Gordon who served as President and CEO during the
amalgamation process which resulted in AFG becoming a reporting issuer. Mr.
Gordon is a director of the Company and will continue serving AFG as Vice
President, Corporate Development. The Board of Directors would like to thank Mr.
Gordon for his efforts as President and CEO in developing the Company to its
present operational stage.


The Company has reorganized its senior officer positions in order to better
manage its expanding operations and marketing programs. Mr. Bell will focus on
the day-to-day operations of the Company and oversee the further implementation
of the 'roll-out' strategy that is working to accelerate the rate of product
distribution to fire departments. Mr. Gordon will focus on corporate development
initiatives including the current share offering and future expansion related
financing.


Mr. Bell has extensive executive, business, operational and regulatory
experience that he gained in various senior management positions including
Executive Vice President, Corporate Development at Great Canadian Gaming
Corporation, a TSX listed company, from 1993 to 2009. Mr. Bell has broad public
company, corporate finance and operational expertise and has served as an
officer and director of numerous public and private companies in the gaming,
financial services, mining exploration and renewable energy industries. "Thomas
has proven to be a quick study at AFG and his commitment, enthusiasm and
operational focus make him a perfect fit to lead AFG through the next stage of
growth," stated Donald Gordon.


DSPA-5 DEPLOYMENTS RECEIVING ACCOLADES

AFG markets an innovative line of environmentally friendly products for battling
fire including the revolutionary Dry Sprinkler Powder Aerosol ("DSPA")
technology and a complete line of safe, non-toxic and easy to apply thin-coat
intumescent (fire resistant) paints, coatings and sprays. The AFG product line
led by the DSPA-5 has the potential to significantly transform the firefighting
and prevention, renovation and construction industries.


The DSPA-5 first responder tool is AFG's premier product. As a unique handheld
portable fire knockdown tool, the DSPA-5 is already in use in fire departments
across North America and internationally. It is designed primarily for use by
trained firefighters, but is also an appropriate tool for a wide variety of
applications, including fire departments, remote businesses, homes and cottages,
marine, industrial, high-rise buildings and military. With the ability to
extinguish flames at the source within seconds, the DSPA-5 is proving itself to
be the first responder tool of choice for the firefighting industry.


Recent deployments of the DSPA-5 by firefighters in Canada were successful and
have received very positive media attention because their use dramatically
reduced the property damage that is usually caused when traditional methods are
used to fight the fire.


The most recent deployment occurred on Sunday December 4, 2011 in Cornwall
Prince Edward Island. Fire Chief Kirby Wakelin, North River Fire Department,
commented, "It (DSPA-5) is a fire suppression unit and it was doing its job. It
knocked the flames out and it saved the mini-home. There is no question about
it. The home would not be standing if it wasn't for that (DPSA-5). I have been a
firefighter for 25 years and many people have made claims of offering products
better than water. This is the first one that really lives up to that claim."


In other recent deployments of the DSPA-5 in Port Elgin, Meaford, Chatsworth,
Durham, Mildmay and Trenton, Ontario as well as Oromocto and Canning, New
Brunswick and Roberval, Quebec resulted in savings as reported by the attending
fire chief of over $3 million in potential structure damage that would have been
caused if traditional methods were used to extinguish the fires. These savings
do not include other benefits to insurance companies, property and business
owners and fire departments related to the reduced use of other equipment,
minimal use of water, less exposure to injury and toxins by firefighters and
residents. Savings on occupant displacement expense, reduced environmental
damage, reduced business interruption and saving irreplaceable personal property
and records are all positive benefits of the DSPA-5 that multiply the savings
reported on the scene.


In one of these cases, the Meaford Golf Course fire, the DSPA-5 completely
extinguished the fire and no water was used to battle the fire. Damage was
limited to $40,000 in a $500,000 building. The DSPA-5 was instrumental in
protecting priceless vintage trophies and golf artifacts and the property owner
was back in business within two weeks of the fire.


After using the DSPA-5 to battle a fully engulfed fire in Port Elgin, Fire Chief
Phil Eagleson stated, "Utilizing DSPA fire suppression technology prevented loss
to the two storey portion of the structure." Eagleson further stated,
"Firefighters were also successful in protecting two vehicles and saving two
felines from the fire."


As a result of the effective use of the DSPA-5 in Roberval, Quebec the Fire
Chief in a radio interview explained how the DSPA-5 recently saved a three
storey structure from being completely destroyed. He also recommended that fire
trucks in the area carry two DSPA-5 units and each firefighter should not
hesitate to use the DSPA-5. This is the case in the country of South Korea where
every new fire truck is required to have two DSPA-5 units on board.


MUNICIPALITIES CHANGING BY-LAWS TO INCLUDE DSPA'S AS BUDGETED ESSENTIAL EQUIPMENT

In Ontario, Grimsby, West Lincoln County and Haldimand County are among the
first areas to amend their emergency and rescue cost recovery by-laws, to
reflect the use of a DSPA-5 as a budgetary item and a recognized tool used for
the suppression and containment of fire during an incident. Fire Marque, an
independent company that many counties have engaged to recover firefighting
costs from insurance companies has recently added DSPA-5 to their list of items
covered under their cost recovery program.


AFG is proposing similar municipal by-law amendments in all areas where
deployments occur and over 400 units are currently rolled out to 180 fire halls.
Such amendments will assist the municipalities in recovering the cost of the
DSPA-5 and further simplify the purchase process of units and assist in the
insurance recovery program.


LIVE BURN DEMONSTRATIONS AND TRAINING PROGRAM

AFG is continuing to aggressively market the DSPA-5 to fire departments and has
recently conducted demonstrations in various locations including Lachute, Quebec
and in Hamilton, Brampton, Rosseau and Minto, Ontario. Live burn demonstrations
are extremely effective and have been well attended by local fire departments,
insurance companies, politicians and the media. Early in the new year a series
of demonstrations is planned in the western provinces primarily in British
Columbia. Training support is a key part of rolling out the units to
firefighters and each demonstration serves as a training exercise for an entire
region.


AFG'S UNIQUE DISTRIBUTION MODEL

To ensure acceptance and growth in the residential, business, and government
markets, AFG has created a unique distribution Roll-Out Program designed to
accelerate the rate of product distribution to qualified fire departments in
Canada. As use and sales of the DSPA-5 grow, our strategy will secure a
reputation for AFG within the firefighting community as well as with the public
and demonstrate significant savings to insurance companies and property owners
compared to losses normally incurred using traditional fire suppression methods.


The DSPA-5 is clearly a revolutionary product but it is not the only innovative
product that AFG markets. We also offer advanced technological sensing and
extinguishing products as well as high quality fire resistant thin-coat paints
and coatings. AFG's HCA paint is now listed with Quality Auditing Institute
("QAI"). HCA WL thin-coat paint has met UL/ULC flame spread ratings as an 'A'
class flame retardant on a variety of substrates. Recently HCA WL has been
tested to meet a one hour duration for fire resistant as a membrane application
for wall assemblies. No other thin-coat intumescent paint has met all these
standards. The AFG sales team is currently targeting a diverse client base for
all of our products including: residences, businesses, municipalities, nuclear
plant operators, First Nation communities, cottagers, museums, farms, hotels,
restaurants, marine and military.


AFG PRODUCTS: INNOVATION IN LIFE SAFETY 

DSPA - DRY SPRINKLER POWDER AEROSOL - AFG's Dry Sprinkler Powder Aerosol (DSPA)
extinguishing systems are environmentally friendly powder aerosol generators
that extinguish fires in their early stages and knockdown fully developed A, B,
C and K fires in a contained environment within seconds. AFG's premier DSPA-5
product is a unique handheld first responder portable knockdown tool, already in
use in fire departments across North America and worldwide.


NOFIQ FIRE SUPPRESSION SYSTEMS - NOFIQ fire suppression systems are capable of
detecting carbon monoxide (CO) and temperature rise - both an indication of fire
in its earliest form. The detection component will sound an alarm in the
surrounding area and send a wireless message to an alarm management station. If
a fire fully ignites, the built-in aerosol fire-extinguishing component will
extinguish the fire. These systems are the perfect solution for server stations,
electrical panels and other business applications where the equipment and the
environment would be significantly damaged by water suppression units.


INTUMESCENT FIRE RESISTANT PAINTS AND COATINGS - AFG's intumescent (fire
resistant) paints and coatings include a complete line of safe, non-toxic and
easy to apply intumescent paints, coatings, fire retardants, fire containment
products and fabric sprays. They are designed for a wide variety of industrial,
commercial and construction industry applications. They can be implemented
wherever regular paint is used - primarily on steel and wood. The HCA paint has
recently been listed with QAI and has the longest heat resistant rating in the
industry for flame retardant properties.


For more information, please visit http://www.afg5.com and follow AFG on Twitter
at twitter.com/afgflameguard.


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