08/29/2006

Amendment of Articles, Approval of Amended Stock Option Plan, Resignation of Director and Option Grant

Ottawa, Ontario – (August 29, 2006) – Clearford Industries Inc., (Clearford, or the Company) (TSX-V: CLI), announced today the approval at the annual shareholders meeting on August 22, 2006 of a special resolution amending the Articles of Clearford to create a Special Class of Shares. The Company further announced the issuance of one Class A Share to the Trustee. The Trustee will hold the Class A Share which will entitle the Trustee, on behalf of the Debentureholders, to receive notice of and attend all meetings of shareholders of Clearford and will give the right to the Trustee, separately as a class, to vote for and elect Directors to the Board of Directors of Clearford. Two nominees of the Debentureholders, for as long as two thirds or more of the principal amount of the debentures remains outstanding and one nominee of the Debentureholders, for as long as one third or more of the principal amount of the debentures remains outstanding. At the annual meeting of shareholders of Clearford held on August 22, 2006, the special resolution described above was passed and the Class A Share was created.

The Clearford Stock Option Plan was amended, by ordinary resolution, at the annual shareholders meeting of Clearford held on August 22, 2006, such that the total number of shares available under the plan increased from 3,241,000 to 4,971,233, being approximately 20% of the number of shares of the Company currently issued and outstanding. The Clearford Stock Option Plan has also been updated to comply with the policies of the Exchange. On August 22, 2006, the Board of Directors of Clearford approved the issuance of the following Stock Options under the Clearford Stock Option Plan: to Bruce Linton, President and Chief Executive Officer of the Company, 150,000 Stock Options; to Gerald Leahy, Chief Financial Officer of the Company, 60,000 Stock Options and to Tammie Brown, Secretary of the Company, 30,000 Stock Options.

Clearford would also like to thank Richard Connelly for his contributions during his five years of service on the Board of Directors of the Company.

About Clearford Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is comprised of two 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