NTG Clarity Announces Closing of Final Tranche of Convertible Debenture Financing

August 1, 2013 - Toronto, Ontario. NTG Clarity Networks Inc., (TSX VENTURE:NCI) announces that it has closed the final tranche of its non-brokered private placement for an additional CAD $295,000. The Debentures shall bear interest at the rate of ten (10%) percent per annum and shall mature on August 1, 2015 (the "Maturity Date"). The principal amount of the Debenture will be payable on the Maturity Date and accrued interest will be payable every six months.

The Debenture is convertible into common shares of NTG Clarity (the "Common Shares") at the option of the holder at any time prior to the Maturity Date, at a conversion price equal to CAD 0.25 per Common Share. On conversion, the Holder will receive accrued interest on the Debenture from the date of issue of the Debenture up to and including the last day prior to conversion.

Forced conversion of the Debenture into Common Shares will occur, at a conversion price of CAD 0.25 per Common Share, if, at any time, the weighted average trading price of the common shares of the Company listed on the TSX Venture Exchange is equal to or above CAD 0.35 per share for a period of 20 consecutive trading days.

The Private Placement is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The Debenture and the underlying securities, as applicable, will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.

The Company intends to use the net proceeds of the Private Placement predominantly as working capital to fund NTG Clarity's growth. The Private Placement was a related party transaction within the meaning of applicable Canadian securities laws as the subscribers included directors and officers of the Company that subscribed for convertible debentures in the additional aggregate principal amount of $100,000. The Board of Directors of the Company (excluding the interested parties) approved the transaction. The transaction was exempt from valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction was less than 25 percent of the Company's market capitalization.

ABOUT NTG CLARITY

NTG Clarity Networks' (www.ntgclarity.com) vision is to be a global leader in providing networking solutions. Established in 1993, NTG Clarity is a leader in Canada in delivering networking, IT and network enabled application software solutions to network service providers and large enterprises. More than 200 network professionals provide design, engineering, implementation, software development and security expertise to the industry's leading network service providers and enterprises.

Neither 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.

For more information please contact:

Doren Quinton, President QIS Capital

Ph: 250-377-1182

Fax: 250-377-1183

Email: info@smallcaps.ca

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