05/30/2006

Clearford Announces Results for the First Quarter of Fiscal Year 2006

Ottawa, Ontario – (May 30, 2006) – Clearford Industries Inc. (TSX-V: CLI) today announced financial results for the first quarter of fiscal year 2006, which ended March 31, 2006 (all figures in Canadian dollars and in accordance with Canadian GAAP).

Revenue for the three month period that ended March 31, 2006 was $1,410,000 as compared with revenue of $23,000 in the first quarter of last fiscal year. The increase in revenue during the first quarter of fiscal 2006 is due to the acquisition of Brooklin Concrete as of January 26, 2006. The quarter ending March 31 is traditionally a very low revenue period for Brooklin, with expenses which reflect annual maintenance and inventory building activities. The three remaining quarters have historically been strong in sales and profit for this Division and current activity levels indicate strong sales and earnings for the balance of 2006.

Net loss for the quarter was $2,213,000 as compared with a net loss of $884,000 in the first quarter of last fiscal year, resulting in diluted earnings per share of ($0.09) in the first quarter of fiscal year 2006, versus ($0.05) in the first quarter of fiscal year 2005. Revenues for the second quarter will reflect three months of Brooklin operations with seasonally strong customer deliveries. The increased loss for the first quarter reflects the seasonality of the Brooklin Concrete Division.

Clearford continued to build inventory and prudently manage expenses during the first quarter. As at March 31, the Company had a cash position of $2,801,274, working capital of $5,833,274 and an additional unused bank loan available in the amount of $8,050,000.

Highlights of the Quarter

• Acquisition of Brooklin Concrete was completed on January 26, 2006 with integration of the business into the Clearford corporate structure in Q1.
• Stronger than expected seasonal sales in March in the Brooklin Concrete Division.
• Increased production in Q1 FY06 over Q1 FY05 positioning for seasonal deliveries in Q2/Q3.

"The acquisition both solidifies our balance sheet and enhances our corporate credibility," said Clearford President and CEO Bruce Linton. "I expect that in Q2 of 2006, our first full quarter as the owner of Brooklin Concrete, we will post positive net operating income for the quarter."

Business Outlook

Management offers the following outlook for the second quarter of fiscal year 2006:

• Due to the seasonality of the business, we expect the second quarter to grow quarter over quarter as well as year over year in all aspects of the Concrete Division product lines.
• Revenue in the Wastewater Division is dependent upon sales prospects and contract opportunities the division continues to pursue.
• Our outlook for the balance of fiscal 2006 remains positive. In our view, our position in the market, our product offering, and our opportunity remain healthy.

Forward-Looking Statements
Any forward looking statements made in this press release involve risks and uncertainties, and actual results could differ materially from those expressed or implied in such statements. However, we disclaim any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Clearford Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is comprised of two separate divisions: the Wastewater Systems Division and the Brooklin Concrete Division.  The Wastewater Systems Division designs and implements the patented Small Bore Sewer™ (SBS™), a watertight small diameter wastewater collection system. This solution provides wastewater collection servicing with superior operational and environmental performance at a significantly lower cost when compared to historic gravity sewers.  With its first installation in 1989, the SBS™ has since had several installations within Canada and the U.S. The Brooklin Concrete Division has been in operation since 1952, with 4 plants in Ontario, including: Brooklin, Newmarket, Huntsville and Haliburton. A leading producer of septic tanks in Ontario, Brooklin manufactures pre-cast concrete products ranging from patio stones and retaining walls, to transformer foundations and switching chambers. For more information on Clearford Industries Inc., please visit www.clearford.com.

For more information contact:
Mr. Bruce Linton
President and CEO
Clearford Industries Inc.
Phone: (613) 599-6474 ext. 301
www.clearford.com