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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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AFG Flameguard Ltd.: Extensive Testing and Certification Program Complete

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/28/12 -- AFG Flameguard Ltd. (CNSX:AFG) ("AFG" or the "Company") is pleased to provide the following update regarding the completion of product testing and certification.

UPDATE ON TESTING AND CERTIFICATION PROGRAM

Further to the Company's news release of July 27, 2012, AFG is pleased to announce that an extensive testing and certification program commissioned by DSPA.NL is now complete. Testing was conducted over several months at an independent international testing agency, Kiwa Netherland B.V. ("KIWA") (http://www.kiwa.nl). KIWA is accredited by the Dutch Accreditation Council and is recognized by the Standards Council of Canada and certain foreign accreditation organizations that are members of the International Accreditation Forum.

On November 6, 2012, DSPA Condensed Aerosol Generators DSPA 11-1, DSPA 11-2, DSPA 11-3, DSPA 11-4, DSPA 11-5, DSPA 11-6 and DSPA 8-1 received declarations of conformity based on parts of CEN/TR 15276-1, ISO15779 and UL 2775 from KIWA. The tests included, among other attributes, the durability, reliability and measurement of the effectiveness of our DSPA installed unit.

The Standards Council of Canada (SCC) has confirmed that by virtue of its membership in the International Accreditation Forum's (IAF) Mutual Recognition Agreement (MRA), it recognizes accreditation certificates issued by the Dutch Accreditation Council to certification bodies, including Kiwa Netherland B.V., equivalent to the certificates issued by SCC to its own accredited organizations.

AFG President and Chief Executive Officer, Thomas Bell, stated, "These certifications represent a significant milestone for AFG and its line of DSPA fixed installation systems. We believe that the results of the KIWA tests and related certifications will facilitate the future sales of DSPA fixed systems. The fire prevention and suppressions systems market as it relates to new construction in Canada alone is a multibillion dollar industry. Fire safety protection, utilizing AFG's innovative aerosol technology when compared to conventional systems is the most cost effective solution."

DSPA systems will be marketed for use in circumstances where installed fire suppression systems are used or required. DSPA systems offer a cost effective alternative solution when compared to traditional fire suppression systems. AFG intends to market these systems in Canada and its other territories through agents and national distributors that already market and install fixed fire suppression systems. The Company is now seeking additional agents and distributors.

DEMONSTRATIONS AND PRODUCT PLACEMENTS

On October 14, 2012, the Company conducted two demonstrations with 240 firefighters in attendance from the Saskatchewan Volunteer Firefighters Association at the North Battleford Fire School's fall session. To date, the Company has placed over 400 units in the hands of first responders. The initial marketing program has successfully proven the units in the field and has saved over 20 structures in the past year alone. North Battleford was the first fire department in Saskatchewan to include DSPA-5 units on their front line fire apparatus and they have deployed three DSPA-5 units to date.

THIRD QUARTER 2012 RESULTS

Sales for the three and nine months ended September 30, 2012 were $36,175 and $74,432 (2011 - $11,039 and $29,680) and included sales of DSPA-5 units and carrying cases, HCA products and miscellaneous fire-suppression related products. Gross margin for the three and nine months ended September 30, 2012 was $17,445 (48%) and $40,097 (54%) (2011 - $4,586 (42%) and $13,067 (44%)). The higher margins in 2012 were due to increased efficiencies in both pricing and costing procedures.

Total assets have decreased from $973,506 as at December 31, 2011 to $790,541 as at September 30, 2012. The $182,965 decrease is attributed primarily to cash utilized to fund operations offset by HST refunds received during the period.

As at September 30, 2012, the Company had working capital deficiency of $195,718 (December 31, 2011 - working capital of $24,881) and a deficit of $53,074 (December 31, 2011 - equity of $170,208). The decrease in working capital is a direct result of the interest-free promissory note of $466,812 due June 30, 2013, becoming a current liability as it is less than a year from becoming due and payable. The Company currently has enough inventory on hand to generate approximately $1.2 million in sales.

As the activity of the Company has focused on new sales channels and the potential of the new certifications to gain acceptance from the broader target markets, AFG plans to continuously improve sales and raise capital to meet its capital needs.

The third quarter financial statements of the Company have been filed on www.sedar.com.

ABOUT AFG FLAMEGUARD AND DSPA TECHNOLOGY

AFG is a life safety technology focused company providing innovative fire suppression and prevention products and services. AFG products include intumescent paints and coatings as well as the revolutionary line of Dry Sprinkler Powder Aerosol generators ("DSPA") which utilizes environmentally friendly waterless aerosol technology to rapidly suppress fire. The use of DSPA technology significantly reduces air, water and soil contamination caused by excessive amounts of water used in conventional methods of firefighting. DSPA technology is available in portable and fixed installation systems. A DSPA fixed extinguishing system consists of one or more DSPA aerosol generators which are activated by a detection and activation system. DSPA aerosol generators are not pressurized and are installed inside the compartment or room that requires protection. After activation, a non toxic aerosol cloud is generated which expands volumetrically, flooding the space and extinguishing the fire.

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 www.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.

Contacts:
AFG Flameguard Ltd.
Thomas Bell
President and Chief Executive Officer
604-629-8629
604-638-8106 (FAX)
useit@afg5.com
www.afg5.com

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