Alternative Fuel Systems (2004) Inc. - Symbol AFX on TSXV - Grant of Share
Options under the Company's Stock Option Plan

/Not for Distribution to U.S. Newswire Services or for Dissemination in the United States/

CALGARY, Nov. 10 /CNW/ - Alternative Fuel Systems (2004) Inc. (TSX-V) announces that effective November 10, 2010, in accordance with the Company's Stock Option Plan, the Board of Directors approved the granting of 535,000 share options to Directors and Employees at a price of CDN $0.32 which was the closing price on the TSX Venture Exchange on November 10, 2010. The options shall be granted effective November 10, 2010 and may be exercised for a period of five years from that date. One fifth of the options will vest immediately, and one fifth will vest at the end of each of six, twelve, eighteen and twenty-four months from the effective date.

Of the recipients, a total of 405,000 share options were granted to Directors and senior employees as follows:

Jim Perry    Paul Newman    Baljit Dhaliwal    Wendy Ashman       Harvie Andre    David Checkel    Darshan Kailly    Jay Zammit

CEO and Director   Vice President     Vice President     Corporate Secretary                 Director and Chairman             Director     Director     Director

115,000 85,000 60,000 25,000 30,000 30,000 30,000 30,000

Upon granting the options, the company will have a total of 1,202,000 shares under option representing approximately 6.87% of total shares outstanding and under option. Fully diluted, the company will have 18,688,580 issued and outstanding shares.

Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

%SEDAR: 00020995E

For further information:

Jim F. Perry, President and CEO
Tel (403) 516 - 6632
e-mail[email protected]