Kelso Technologies Inc.
TSX VENTURE : KLS
OTCQX : KEOSF

Kelso Technologies Inc.

April 16, 2013 09:00 ET

Kelso Klincher® Completes Independent Testing

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwired - April 16, 2013) - Kelso Technologies Inc. (The "Company" or "Kelso") (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that it has successfully completed independent testing of its "Kelso Klincher®" Manway ("KKM").

The evaluation and testing was performed by Engineering Systems Inc. ("ESI"), an established engineering and scientific investigation firm that serves clients both domestically and abroad. For more than two decades clients have leveraged ESI's multidisciplinary team of engineers, scientists, and professional technical staff when they need help investigating major accidents, incidents and disasters around the world. Their technical expertise, practical experience, and technological resources are well recognized and respected in the railroad industry.

The ESI report has concluded that the KKM design incorporates safety and operational advantages and is a commercially suitable product for railroad applications. The results of their evaluation confirm that the KKM is a leading technology product when compared to similar "legacy" technology products currently in use in the industry. This evaluation is expected to be the last stage of qualification for our KKM for railroad use.

Our KKM is a revolutionary one bolt-and-strap design that provides a long overdue technology change for the railroad industry. The arguments for customer adoption of our KKM are compelling. The KKM provides higher speed loading and unloading capability; improved containment of HAZMAT; safer environment for operators; improved longevity; better reliability; improved economics of operations; reduced wear-and-tear and failure incidents resulting in lower maintenance and repair costs; and can be defined as a "best available technology" based on comparisons with current "legacy" manway designs.

Kelso will now move the KKM into commercial production in Bonham, Texas. The initial capacity goal will be 4,500 units per year. Output can be scaled with limited capital investment as demand for the KKM becomes more predictable. The KKM will be made available in both an OEM and a retrofit version. The move into production has commenced with suppliers and production output is scheduled for the fall of 2013.

About Kelso Technologies

Kelso is a railroad equipment supplier that produces and sells proprietary tank car components used in the safe loading, unloading and containment of hazardous materials during transport. Products are specifically designed to provide economic and operational advantages while reducing the potential effects of human error and environmental harm during the transport of hazardous materials.

For a more complete business and financial profile of the Company, please view the Company's website at www.kelsotech.com and public documents posted on www.sedar.com.

On behalf of the Board of Directors,

James R. Bond, CEO and President

Legal Notice Regarding Forward-Looking Statements: This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that the ESI evaluation is expected to be the last stage of qualification for our KKM for railroad use; the arguments for customer adoption of our KKM are compelling; that the Company can produce and sell 4,500 KKM units per year; that output can be scaled with limited capital investment; and that production output is scheduled for the fall of 2013. The Company's products involve detailed proprietary and engineering knowledge and specific customer adoption criteria, hence factors that could cause actual results to be materially different include that we may be unsuccessful in raising any additional capital needs that may arise; we may not have sufficient capital to develop, produce and deliver new orders; product development may face unexpected delays; orders that are placed may be cancelled; anticipated order deliveries may be rescheduled to future periods; product may not perform as well as expected; markets may not develop as quickly as anticipated or at all; and operations may run into permit, labor or other problems. Further, we are reliant on certain key employees who may leave the Company and we may be unable to protect or defend our intellectual property. Investors are cautioned against placing undue reliance on forward-looking statements. We assume no responsibility to update these forward looking statements except to the extent required by law.

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.

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