AFPW AlumiFuel Power Corporation (CE)

Early production stage hydrogen generation company AlumiFuel Power, Inc. ("API"), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW) (the "Company"), announced today that the Air Force Special Operations Command (AFSOC) customer was very pleased with API's recent status report on the design and build of the Portable Balloon Inflation System (PBIS)-2000. (See API news release of December 7, 2011). Computer-Aided Design (CAD) drawings and updated specs on the new unit contained in the report were used by AFSOC personnel in briefing the system to adjacent and higher organizational levels in the Air Force.

The revolutionary PBIS-2000, scheduled to be delivered by the end of February 2012, represents a significant advancement in API's lift gas generation technology. The system is capable of generating sufficient hydrogen to launch a 200g weather balloon and special instrumentation payload within 20 minutes, operating at ambient pressure. From the customer's perspective, this is a far better lift gas solution than using K-Cylinders, which are under very high pressure, costly to distribute, and awkward to handle.

The current weather balloon lift gas market is pegged at $150-$200 million per year, and encompasses military as well as civil government meteorological users worldwide. Traditionally, helium has been used as the primary lift gas for weather balloons, but with the increasing scarcity and cost of helium, users are rapidly switching to hydrogen, and API's PBIS family is far more mobile, safe, and cost effective than other on-site hydrogen generation systems. After purchasing a PBIS unit, typical customers continue to purchase replacement cartridges to launch up to 700 balloons per unit each year (up to 4,200 cartridges)., API has been approached by other military and meteorological users from the US, NATO, and around the world interested in the PBIS technology and products.

API's Director of Engineering, Mr. Sean McIntosh, said, "We are gratified that the Air Force has been such a strong supporter of our technology in designing, developing and fielding this remarkable new system."

About AlumiFuel Power, Inc. API (www.alumifuelpowerinc.com), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation, is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. API's hydrogen feeds fuel cells for portable and back-up power; fills inflatable devices such as weather balloons; can replace costly, hard-to-handle and high pressure K-Cylinders; and provides fuel for flameless heater applications. Its hydrogen/heat output is also being designed and developed to drive fuel cell-based and turbine-based undersea propulsion systems and auxiliary power systems. API has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products.

About AlumiFuel Power Corporation AlumiFuel Power Corporation operates through its wholly owned operating subsidiary, AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and heat for multiple applications requiring on-site, on-demand fuel sources.

Safe Harbor for Forward-looking Statements

This news release may contain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

CONTACTS: Investor Relations: AlumiFuel Power, Inc. Thomas B. Olson Corporate Secretary 303-796-8940 Technical Information & Marketing: API Laboratories 484-466-2427 Email Contact