07/15/2008

Clearford Announces Resumption of Trading and Business Direction

Ottawa, Ontario – (July 15, 2008) – Clearford Industries Inc. (“Clearford”, the “Company”, TSX-V: CLI) today announced that on July 15, 2008, the TSX Venture Exchange approved the trade resumption of Clearford’s stock for July 17, 2008. Trading of the Company’s stock had been halted on December 13, 2007 as a result of the announced Letter of Intent (“LOI”) signed to purchase a private precast concrete company in Ontario. The name of the target company could not be disclosed at that time, per a term of the LOI. The transaction considered in the LOI and subsequent Share Purchase Agreement (“SPA”) has been assigned as disclosed by the Company in a press release on June 25, 2008.

The divestiture of the Brooklin Concrete Division assets and assignment of the SPA, announced on June 25, 2008 (the “Transaction”) have a July 31, 2008 target closing date and are subject to shareholder approval, TSX Venture approval and the standard terms of a transaction of this nature. Shareholders are advised to review the fulsome disclosure provided in the management information circular filed on SEDAR. Upon the successful conclusion of the Transaction, Clearford will be exclusively focused upon the wastewater market.

Over the course of the two and one half years that Clearford has owned Brooklin Concrete, the Brooklin Division has provided approximately $5,000,000 of financial resources to the Wastewater Division. In addition, the Transaction indicated above is expected to result in the immediate repayment in full of Clearford's bank debt and convertible debentures and forecasted to leave the Company with a tangible net asset position of $4,000,000, all of which will be applied to fund the Wastewater Division.  

Research on the SBS™ system has been directed to achieve the conversion of sewage into electricity and clean water, with no requirement to pump the clarifier tanks for periods as long as the design life of a historic sewer system. Specific areas of research that have been undertaken (and in some cases the filing of provisional patents), include: advancements in the conversion of the solid portion of sewage waste into methane gas; the collection and conveyance of this gas for conversion into electricity; and matching the effluent flowing from SBS™ with world-leading treatment options.

“The Board will consider adjustments in management to reflect the focus of the Company after the sale of the Concrete Division, and expects to announce the results of this review prior to the Annual General Meeting on July 30, 2008. The period of Clearford’s stock halt was both a long and productive one for Clearford. We have been focused on the global market and the advancements of the SBS™ system, both of which Management believes are required to become a world leader in the design and license of wastewater infrastructure,” stated Bruce Linton, President and CEO of Clearford. “Wastewater and water infrastructure is unavailable to nearly half the population of the world. Further, for many of those with sewage and water systems, the systems are of a quality or age that demand wholesale replacement. The enhanced SBS™ system offers a durable, economical solution that will allow communities to satisfy per capita demand for clean water with as little as 10% of the water required by the current western standard sewage systems.”

HSBC Covenants

It has been confirmed as of June 30, 2008, Clearford was in contravention of certain covenants of its facility letter agreement with HSBC, including the ratio of EBITDA to Interest Expense covenant, the ratio of Funded Debt to EBITDA covenant and the current ratio covenant. HSBC has agreed to extend the credit facility terms and defer obligations of the Company under its terms to July 31, 2008, which is the scheduled closing of the Transaction that was announced June 25, 2008.

Clearford also confirmed today that pursuant to the Intercreditor Agreement entered into with HSBC and BNY Trust Company of Canada as previously announced on May 8, 2008, no payments will be made to the debenture holders, including the interest payment due and owing on June 30, 2008, and such payments will be postponed until the closing of the Transaction on July 31, 2008.

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, except as required by National Instrument 51-102 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. More detailed information of the matters described herein is included in the public documents Clearford files from time to time with Canadian securities regulatory authorities.

About Clearford Industries Inc.
Clearford Industries Inc. 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 for developers, municipalities and First Nations communities who need to create, expand or upgrade their sewage systems. This solution provides 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 locations in Ontario, including: Brooklin, Newmarket, Huntsville and Haliburton. A leading producer of septic tanks in Ontario, Brooklin manufactures precast concrete products ranging from interlocking pavers and patio slabs, to retaining walls and storage structures. 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