Afton Files OSC Policy 57-603 Notice.

BURLINGTON, Ontario -- On July 16th, Afton Food Group Ltd. (the "Company") (TSX VENTURE:AFF) was granted protection under the Companies' Creditors Arrangement Act (Canada) (the "CCAA"). The Court subsequently approved the extension of the Company's restructuring under CCAA to October 13, 2004. During this time, the Company will continue its efforts to strengthen the franchise system and reduce operating costs. In addition, the Court approved the engagement of a merchant banking firm to assist with to assist with the selection of investors that are able to aid in the recapitalization of the Company's balance sheet or the marketing of the business for sale.

Today, in compliance with Ontario Securities Commission Policy 57-603, the Company submitted to the Ontario Securities Commission a notice that it is in default of the financial statement filing requirement for the period ended June 30, 2004.

Past financial statements of the Company have been based on generally accepted accounting principles on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. The Company's audited financial statements and Management Discussion and Analysis for the periods ended December 31, 2003 and 2002 identified concerns with respect to the going concern assumption and the Company's ability to operate as a going concern. Financial statements based on generally accepted accounting principles prepared on a going concern basis, while the Company is proceeding under CCAA restructuring, may result in misleading information being provided to shareholders and other interested readers.

The Company expects to issue financial statements at the conclusion of the CCAA restructuring process. In the interim, the Company intends to satisfy the requirement to file "Default Status Reports" until such time as the default filing requirement for the issue of financial information has been corrected.

Afton, through its subsidiaries, is a franchisor in the Quick Service Restaurant industry with locations throughout Canada operating under two principal brands, 241 Pizza and Robin's Donuts.

This document may contain forward-looking statements, relating to the Company's operations or to the environment in which it operates, which are based on the Company's expectations, estimates, forecasts and projections. These statements are not guarantees of future performance, and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. These statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update them, to reflect new information or the occurrence of future events or circumstances.