Clearford Announces License Agreement in Canada, an International Program
Update and Q2 Results

OTTAWA, Aug. 27 /CNW Telbec/ - Clearford Industries Inc. ("Clearford" or the "Company", TSX-V:CLI) today announced it has signed a binding contract for the design and implementation of the Clearford SBS(TM) sanitary sewer solution in Ontario, and strong response in India, China, Africa and Latin America to its turnkey waste-water collection and conversion system yielding clean water and methane fuel. The announcement of Q2 results marks one year after the announcement of its focus on regions of the world with water scarcity.

The Ontario site implementation license announced today is for a project that has been in the Clearford sales pipeline and has now reached the construction stage. Clearford will be paid a design license fee of $75,000 immediately and $75,000 prior to year end. While Clearford is primarily focused on international design and construct agreements, the Ontario design license agreement remains valuable as a means to increase the number and localities of the reference sites in Canada.

In Q3 of 2009, the Company announced its business priority to deliver turn-key projects for waste-water collection and conversion yielding clean water and green fuel. The primary market for this offering is developing countries that have significant populations, limited waste-water infrastructure, scarce water resources and the economic capacity to act.

In the last year, the Clearford Canadian reference sites have hosted government, private sector and international banking representatives from China and Africa.

Company operations in the past 12 months have been focused on finalizing systems design, in-field technology trials and intellectual property protection. The distributed digestion and methane collection process is unique to Clearford. The output of the Clearford process is clean water and bio-gas fuel produced from the sewage bio-solids, suitable for electricity generation and eligible for carbon credits. This outcome is in sharp contrast to the historic gravity sewer system. Within China and India, the bio-gas element of the Clearford system is sought after for both the revenue generation from green energy and the effective elimination of sludge, a liability associated with the historic gravity sewer system.

In the first half of 2010, the Company developed design tools, a knowledge base of country specific design standards and incremented the team with technical resources with the linguistic capacities of the target markets. The Company now has capability to respond to the target market opportunities and is confident in the value and security of its intellectual property.

"The Clearford solution is enjoying a very positive response from the developing world marketplace, most specifically India, China and Latin America," said Bruce Linton, President of Clearford. Mr. Linton further commented, "The announcement in July of the 1st China based project and strategic investor was a major milestone for Clearford's international program. Clearford expects to announce in the next few weeks a similar program to design and implement the first Clearford clean water and green fuel solution in India. Specific projects are now nearing final decision in Ecuador and Colombia, which would give Clearford its first projects in Latin America."

The Clearford country programs operate on the principle of aligning the interests of the customer, constructor and investor. Partnerships with international project management and construction companies are in advanced stages of development and are expected to be implemented in 2010. These project and construction management relationships will enable Clearford to deliver its patented technology to a range of tendered international projects, while limiting Clearford's responsibility and risk to its core competence. It is through the combination of in-country program platforms, project and construction management relationships and utilization of the Canadian reference sites that the Company expects to execute design and construction agreements in China, India and Latin America in the current fiscal year.

The Company's cash flow forecast from operations is to become positive during the 1st half of 2011.

As previously announced, the Company raised $1,954,501 of equity through private placements during the second quarter and the early part of the third quarter of the current fiscal year. Approximately half of the equity investment came from Directors and half from, China, and Europe.

The Company today announced financial results for the second quarter of 2010, which ended June 30, 2010, (all figures in Canadian dollars and in accordance with Canadian GAAP). The Company recorded a net loss for the second quarter ended June 30, 2010 of $558,862 or $0.02 per share as compared to a net loss of $411,214 or $0.02 per share for the same period of the prior year and a net loss of $551,474 or $0.02 per share for the first quarter of 2010. The Company reported no revenue in the current quarter.

For the six months ended June 30, 2010 the Company recorded a net loss of $1,110,336 or $0.04 per share as compared to a net loss of $879,744 or $0.03 per share for the same period of the prior year.

For the second quarter ending June 30, 2010, cash used in continuing operations was $620,088 compared to cash used in continuing operations of $498,191 for the same period of the prior year and cash used in continuing operations of $408,321 for the first quarter of 2010. For the six months ended June 30, 2010, cash used in continuing operations was $1,028,408 compared to cash used in continuing operations of $987,543 for the same period of the prior year.

While Clearford believes that significant and near term opportunities exist for the Company's solution, there can be no assurance that customer agreements will be reached or that such agreements will be profitable should they be implemented.

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(TM) (SBS(TM)), 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(TM) 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 www.clearford.com.

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 managements 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.

SOURCE Clearford Industries Inc.

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

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