Kelso Technologies Inc.: Grant of Options

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwired - Aug. 12, 2013) - Kelso Technologies Inc. (the "Company" or "Kelso") (TSX VENTURE:KLS) (OTCQX:KEOSF) reports that it has granted an aggregate of 870,000 stock options to executive officers, independent directors and management of the Company. Each option is exercisable at $1.45 per common share. The options vest immediately and are exercisable at any time until March 31, 2017.

The options have been awarded to eight individuals who comprise the core management team of the Company. They extend current management agreements from March 2014 to March 2017 at existing rates of compensation. The grant of options provides the Company continuity of management with cost certainty for the foreseeable future.

About Kelso Technologies

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.

For a more complete business and financial profile of the Company, the financials statements and management discussion and analysis can be viewed in their entirety on the Company's website at www.kelsotech.com or 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 grant of options provides continuity of management with cost certainty for the foreseeable future. Kelso is reliant on certain key employees who may leave the Company and we may be unable to protect or defend our intellectual property and business model. 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.