Kelso Receives Regulatory Approvals From the AAR

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - Oct. 3, 2012) - Kelso Technologies Inc. (TSX VENTURE:KLS)(OTCQX:KEOSF) (the "Company" or "Kelso") - Kelso reports that the Company has received regulatory approval from the Association of American Railroads (AAR) for its new heavy-duty, high performance external pressure relief valve (EPRV) known as the JS75XH/27 that was successfully tested by independent sources in August 2012.

The AAR approval number for the JS75XH/27 is #079004. The JS75XH/27 is now fully qualified to be commercially utilized in numerous heavy duty HAZMAT applications that include the transport of crude oil and ethanol.

The Company has received its Class D (includes Class F) certification for our EPRV and manway production facilities in Bonham, Texas from the AAR. Our AAR Class D Registration covers the manufacture; quality control assurance; testing and certification; and recondition, repair, retest of qualified tank car service equipment.

The Bonham facility is dedicated to the assembly, testing and certification of up to 400 EPRV per week on a single shift basis. Production capacity can be scaled upward when required. The key significance of Bonham, TX is that it is within a 150 mile radius of our largest customers. The first shipments of the JS75XH/27 to OEM customers commences during the week of October 8, 2012.

Mr. Neil Gambow, CEO and President of the Company's wholly owned subsidiary Kelso Technologies (USA) Inc. comments that, "The AAR certification of our JS75XH/27 EPRV and our Bonham production facilities is another of the continuing stream of key milestones in the business development of Kelso. This approval and registration acknowledges that Kelso has a new qualified EPRV product and the reliable quality assurance production systems that meets stringent AAR requirements. This is a major step forward in our industry qualifications and credibility. It allows us to pursue both small and large product sales opportunities from the OEM and retrofit/repair segments of the railroad industry with the full approval of the AAR."

About Kelso Technologies

Kelso is a railroad equipment supplier that designs, produces and sells a new generation of innovative products designed to improve the safe containment and pressure management of hazardous materials ("HAZMAT") during rail or road transport. Products include a series of external constant force spring pressure relief valves and a revolutionary new manway securement system trademarked as the "Kelso Klincher™".

These products are initially designed for use on applications on railroad tank cars but are currently being modified for use in new markets that include roadway trucking. All products are patent protected. Their primary design function is to reduce human errors and injuries and minimize environmental harm due to non-accidental release events that may occur during the transport of HAZMAT.

Kelso's ultimate goal is to have all products become "gold standard" products on most HAZMAT and non-hazardous applications and capture a large share of the market for our products. We are confident that we have created a solid foundation on which to build a successful multi-million dollar 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 we can scale up production of our products in our facilities, that multi-million dollar revenue opportunities exist and can be exploited in the trucking industry; that Kelso can design and deliver reliable "best available technology" KKS products for the trucking industry with proven economic and qualitative advantages over our competition; that from the commercial sales of our KKS products in the trucking industry Kelso can create a successful multi-million dollar business. 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.