Kelso Technologies Inc.
TSX VENTURE : KLS
OTCQX : KEOSF
PINKSHEETS : KEOSF

Kelso Technologies Inc.

January 25, 2012 09:00 ET

Kelso Products Specified on 2012 Rail Tank Car Builds

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2012) - Keslo Technologies Inc. (TSX VENTURE:KLS)(OTCQX:KEOSF)(PINKSHEETS:KEOSF) (the "Company" or "Kelso") -

Kelso reports that its external pressure relief valves ("EPRV") and Kelso Klincher™ manway system ("KKS") have been specified by several HAZMAT customers for installation on new rail tank cars scheduled to be built in 2012. These transactions have a value of approximately US$3,000,000.

The Company continues to build the capability of its production operations to supply growing demand. Numerous customers that transport hazardous commodities such as crude oil, ethanol, petrochemicals and other toxic chemicals are conducting engineering assessments of our EPRV and KKS. Kelso continues to work on product adoption issues and installation schedules for 2012 and 2013 with manufacturers of railroad tank cars in order to meet customer requirements. Additional specifications of our products for new tank car builds are expected and will be announced when received.

Neil Gambow, President and CEO of Kelso Technologies (USA) comments that, "The strengths of our products are being recognized by the railroad industry and HAZMAT customers. They are validating the value of our products by their choice of our EPRV and KKS for new tank car production. Marketing and engineering initiatives with customers continue to gain business momentum for our products. We are very encouraged by the willingness by stakeholders to commence adoption of technologies."

About Kelso Technologies

Kelso is an emerging railroad equipment supplier that produces and distributes innovative technologies for the safe containment of all liquid materials including hazardous materials ("HAZMAT") during transport. All EPRV and KKS products are patented designs that reduce the risk of environmental harm due to non-accidental release events in the transport of HAZMAT and improve employee safety.

Our new KKS provides a revolutionary change in the handling dynamics and infrastructure of the HAZMAT industry. It is a major industry innovation and addresses stringent environmental sensitivities and worker safety. Our KKS program is being well supported by regulators, railroads, customers, industry workers and emergency response organizations.

Our main challenge to market penetration is that the railroad industry is very slow to design or adopt new technologies. In many cases designs have not changed in decades even though environmental and engineering problems challenge the industry. This circumstance provides Kelso with a strong business opportunity to deliver technology solutions that improve performance, provide cost benefits and improve longevity. Our technology goal is to have our EPRV and KKS become the "best available technology" standard on all applications that are specified by rail tank car manufacturers, retrofitters and repair shops. The focus is to build a successful multi-million business on behalf of the shareholders of Kelso Technologies.

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 Hazmat customer installations have a value of approximately $3,000,000; that the Company continues to build the capacity of its production operations; that customers are conducting engineering assessments of our products; that we are now working on product specifications and adoption schedules for 2012 and 2013 with manufacturers of railroad tank cars; that additional specifications of our products for new tank car builds are expected; and that Kelso can build a successful multi-million business on behalf of the shareholders of Kelso Technologies. 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; product may not perform as well as expected; markets may not develop as quickly as anticipated or at all; or that the construction or other plans for plants 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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