Clearford Announces Binding Term Sheet for CDN$5.5 Million Term Loan

OTTAWA, (March 1, 2012) – Clearford Industries Inc. (“Clearford” or the “Company”) (TSX-V: CLI) today announced that it has entered into a binding term sheet with Mundaun Financial Design AG of Switzerland (the “Lender”) for a 20 year $5,500,000 CDN term loan. The loan bears interest at 11% per annum and is repayable at the end of a 20 year term. The term sheet is conditional on the completion of definitive agreements and is scheduled to close with initial advance of $3.5 million prior to March 15, 2012. Clearford will pay a 10% fee to an arm’s length third party as amounts are advanced. The loan is to be secured by a general security agreement over all of the assets of Clearford and senior security on underlying project collateral. The funds will be used for project-linked investments including hard and soft costs and expenses for projects approved by the Lender prior to closing.

Clearford anticipates that the proceeds of this term loan will provide funding for operations throughout 2012.

In connection with the loan, Clearford will grant 10,000,000 non-transferrable warrants entitling the Lender to purchase one treasury common share of Clearford for each warrant, at a price of $0.20 per share, until three years from the closing date. Common shares of Clearford issued by exercise of the warrants will be subject to a hold period until four months and one day from the closing date of the loan and warrant transaction. The grant of warrants remains subject to approval by the TSX Venture Exchange.

“Establishing a credible source of project finance is a significant milestone for Clearford. We now advance in the market with a world leading solution and the financial tools to accelerate the decision process” commented Clearford President & CEO Bruce Linton. Mr. Linton continued “In addition to this loan we now have a financial partner that we can include in larger-scale project financing discussions.”

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Clearford Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is the developer of the patented Small Bore Sewer™ (SBS™), a watertight small diameter wastewater collection system that provides servicing with superior operational and environmental performance at a significantly lower cost when compared to historic gravity sewers. Clearford’s SBS™ technology and industry expertise provide the enabling platform to deliver, on a global basis, turnkey, fixed-price wastewater collection, treatment and energy generation solutions that are ideally suited for water-scarce regions, those with unreliable water distribution networks, and new developments seeking a greener approach to water and wastewater management. For more information on Clearford, please visit

Forward Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to the Company and its management. Forward-looking statements are not historical facts but represent management’s current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.

By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this news release, Clearford will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities law, the Company assumes no obligation to update or revise any forward looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: industry cyclicality; the ability to secure third party agreements; successful integration of Clearford’s system with third party technology; competition; reduction in demand for products; collection from customers; relationships with suppliers; product liability; intellectual property; reliance on key personnel; environmental; interest rates; uninsured and underinsured losses; operating hazards; risks of future legal proceedings; income tax matters; credit facilities; availability and terms of financing; distribution of securities; restrictions on potential growth; effect of market interest rates on price of securities; and potential dilution.

For further information:

Sharilyn McNaughton
Clearford Industries Inc.
Phone: (613) 762-8402

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