Kelso Technologies Inc.: EPRV High Performance Claims Confirmed

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - June 13, 2012) - Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that the high performance attributes of a new extension of our external pressure relief valve (EPRV) product line, the JS75XL, has been successfully verified by an independent engineering test lab in Columbus, Ohio as required by the railroad industry.

The JS75XL is one of a number of new high performance EPRV products that Kelso is creating to distinguish the enhanced performance capacity of our EPRV products above all other competitive products. The next product in this series, the JS75XH, will be independently tested in July 2012 and is designed to meet new performance standards in development by regulators.

Test Results

The JS75XL was designed to address a new industry requirement being implemented by the Association of American Railroads (AAR), tank car owners and shippers of hazardous and non-hazardous materials. The design goals are to have an external pressure relief valve that flows at a much higher rate than current valves at a pressure relief setting of 75 PSI that is suitable for both retrofit and new tank car application and, most importantly, require no changes to current mounting configuration. Tests conducted by the independent lab on the JS75XL verified that the performance of the JS75XL will allow tank car owners and shippers to meet the new regulation expected to be announced shortly. Management believes that this test clearly establishes the new external JS75XL as the "best available technology" in the market today for its intended HAZMAT and non-HAZMAT applications.

New Regulations

The AAR is developing new guidelines and specifications for pressure relief valves that recognize the changing environments in which railroad tank cars operate. Kelso is an active member on the committees involved in finding innovative solutions to establish improved technology solutions for pressure relief management. The first significant regulation referenced above is due to be announced shortly. The Company will announce the details of this regulation change when it occurs.

Competition

Kelso believes that the JS75XL is a "first to market" product based on new regulatory changes.

Competitive products may be forthcoming in the future but could be conditional based on their designs and could have to undergo lengthy service trials and applications to gain regulatory approvals from the AAR. This process could take two to three years to achieve giving Kelso a significant competitive advantage.

Kelso also holds patent rights to the constant-force spring valve design. Any infringements on our patents would be defended vigorously.

Outlook

Our experienced executive management team has focused on the business relationships required to execute commercial business plans for multi-million dollar sales of our unique EPRV products. Industry skepticism regarding Kelso's business capabilities and EPRV has diminished considerably. The railroad industry appears eager to assess and validate the value proposition that our products offer. Our new JS75XL represents our "first to market" high performance product strategy that undeniably benefits all stakeholders in the HAZMAT industry.

OEM and retrofit customers have recently confirmed by audit our ability to produce our EPRV products at the capacity rates that they require. We are now working on adoption and delivery schedules for 2012 and 2013 with key tank car builders, owners and shippers who transport hazardous commodities such as crude oil, ethanol, petrochemicals and other hazardous and non-hazardous chemicals.

To date Kelso has received new product orders and commitments for over $4,000,000 for delivery in 2012. We anticipate consistent business growth due, in part, to our new JS75XL and the ability to produce the large quantities of our entire EPRV line as required by OEM customers. This is being fueled by regulatory developments and customer confidence gained through independent verification that Kelso can deliver reliable "best available technology" solutions with proven economic, reliability and qualitative advantages over our competition.

Our main challenge to market penetration and business growth is that the railroad industry is very cautious about new technologies and demands extensive testing hence they are slow to adopt new technologies. Budgets and testing requirements are time consuming, and contrary to profit goals. Therefore, in many cases industrial designs have not changed in decades even though modern environmental sensitivities and engineering problems haunt and perplex the industry. This is the circumstance that fuels Kelso with an advantageous product and business position from which to create, develop and distribute innovative high performance products that provide solutions for customers in terms of improved performance, reliability, cost benefits and longevity.

Our ultimate goal is to have our EPRV to become "gold standard" products on most HAZMAT applications as well as non-hazardous applications. We are confident that we can build a successful multi-million dollar business on behalf of the shareholders of Kelso Technologies based on our patented 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 that the JS75XL is a "first to market" product based on new regulatory changes; that the independent test clearly establishes the new external JS75XL as the best available technology in the market today for its HAZMAT application; that revenue opportunities will improve with new customer confidence that Kelso can deliver reliable "best available technology" solutions with proven economic and qualitative advantages over our competition; that from the commercial sales of our EPRV and KKS products Kelso can build a successful multi-million dollar 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.