Though he worked mostly for Saadi, he also guarded Gaddafi's other sons, Seif al-Islam and Hannibal, and said he had escorted Hannibal and his sister Aisha from Libya to Algeria in a convoy.
The team had moved Saadi Gaddafi to Niger, and were returning to Libya when gunmen opened fire on their three-vehicle convoy.
"The convoy got attacked and two of us got hit," he said, not elaborating on the nationality of his injured colleague.
He said he made his way to Tunisia and Frankfurt, then got on a flight to Toronto.
"I bled on the plane. I fell asleep and when I woke up - I felt a trickle and there was blood everywhere. There was a little bit of shrapnel in there."
He got to the airport parking lot before he became weak from blood loss. He was taken to a nearby hospital to have the shrapnel removed.
Mr Peters said he met Saadi Gaddafi while in the Australian Army. He was visiting the Sydney 2000 Olympics and Mr Peters was assigned to protect him.
Mr Peters had met Muammar Gaddafi and said he was intimidating and hostile. Saadi Gaddafi was "a very nice man, very educated. However, don't p*** them off, very revengeful people."