Kelso Technologies Inc.: AAR Clears KKM for Full Commercial Use

VANCOUVER, BRITISH COLUMBIA AND LISLE, ILLINOIS--(Marketwired - Oct. 29, 2013) - Kelso Technologies Inc. (the "Company" or "Kelso") (TSX VENTURE:KLS)(OTCQX:KEOSF) -

Kelso reports that the Tank Car Committee (TCC) of the Association of American Railroads (AAR) has cleared the Company's Kelso Klincher® Manway (KKM) for unrestricted commercial use ending the required Field Service Trial (FST) requirements for the KKM.

The TCC encourages innovation and the development of new designs of service equipment that improve tank car safety and reduce the risks of non-accidental releases of hazardous materials. The TCC has favorably recognized the performance of the KKM during the FST and want to see it in service on a broader scale. The TCC will advise all interested parties including shippers, owners and OEMs of rail tank cars that they are able to install as many KKM units as they wish to specify with no restrictions on use.

In co-operation with the TCC, Kelso has agreed to continue to report on those KKM units in the original FST for the next year using the FST format. We will also keep the TCC informed of all commercial KKM installations in terms of number of units and in what service they are being used.

Outlook

Kelso is a railroad equipment supplier that produces and sells proprietary tank car service equipment 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.

Our KKM represents a key addition to our commercial products strategy that will benefit our stakeholders with reliable performance, economic benefits and regulatory compliance.

Over the past three years we have gained the confidence and approval of our customers. We have proven we can handle the industry's large volume requirements to deliver high-quality service equipment products on time. Our current production facilities in Bonham, TX have been built and verified as modern and state-of-the-art with the ability to handle approximately $40,000,000 of business annually.

Our new 40,000 square foot facility is scheduled to commence construction in November 2013 and be completed in June 2014. Based on customer inputs and demand for products it is custom designed to produce high volumes of our EPRV, KKM, bottom outlet valves and several new products that are being developed. The new facility will be able to produce $50 million to $100 million in annual revenue once constructed.

We anticipate consistent revenue growth as more of our new products come to market. Adoption of Kelso products is being fueled by demanding regulatory developments and the confidence gained through the independent verification that Kelso can deliver reliable "best available" technology solutions with proven economics, reliability and qualitative advantages over our competition.

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 our KKM represents a key addition to our commercial products strategy that will benefit our stakeholders with reliable performance, economic benefits and regulatory compliance; that the new facility is to commence construction in November 2013 and be completed in June 2014; that the new facility will be able to produce $50 million to $100 million in annual revenue once constructed; we anticipate consistent revenue growth as our new products come to market; adoption of Kelso products is being fueled by demanding regulatory developments; and the confidence gained through the independent verification that Kelso can deliver reliable "best available" technology solutions with proven economics, reliability and qualitative advantages over our competition; that our revenue opportunities will improve and we will experience sales growth; that we have time and qualitative advantages over our competition; that we can defend our patents; that we can produce large volumes of products as required by our customers; and that from the commercial sales of our EPRV and KKM products Kelso can build 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 from our expectations 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; regulations may not change as expected; and competitors may produce better or cheaper products sooner than we expect. 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.