Kelso Technologies Inc.
TSX VENTURE : KLS
OTCQX : KEOSF
PINK SHEETS : KEOSF

Kelso Technologies Inc.

October 06, 2011 09:00 ET

Kelso Technologies Inc.: Key Project Order Received

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - Oct. 6, 2011) - Kelso Technologies Inc. (The "Company" or "Kelso") (TSX VENTURE:KLS)(OTCQX:KEOSF)(PINK SHEETS:KEOSF) -

Kelso reports that its wholly owned subsidiary Kelso Technologies (USA) Inc. has received a key project order for our AAR-approved 75PSI constant force spring pressure relief valve and a new 165PSI constant force spring pressure relief valve from one of the largest petroleum companies in the world. The project order is for a retrofit program for existing tank cars. The order is valued at approximately US$275,000 and is scheduled to be delivered over the next 15 months with shipments beginning immediately from our Bonham, Texas facility. This marks the initial implementation of the client's adoption strategies for Kelso's innovative products.

Kelso is currently marketing its external constant force pressure relief valves ("valves") and the new Kelso Klincher™ ("KKS") manway securement system (available in January 2012) to companies involved in the transport of hazardous materials such as asphalt, ethanol, propane, crude oil, oil shale, oil sand, sulfur, and liquid fertilizers. Discussions on specific engineering design criteria, testing requirements, retrofit strategies, production schedules and adoption strategies are ongoing with many customers at this time. This is a complex and time consuming process but an essential prerequisite to customers' future adoption plans.

Due diligence reviews by prospective customers are confirming that the numerous benefits offered by Kelso's products are attainable and sustainable in terms of regulatory compliance, environmental sensitivities, worker safety, reliability, longevity, efficiency and economic rewards.

This key purchase order is considered to be a milestone and confirmation that our marketing initiatives are making progress in the well-established and very conservative railroad industry. The Company will provide updates on sales growth in future news releases.

About Kelso Technologies

Kelso supplies innovative technologies aimed at the safe containment of hazardous materials during transport. Our primary goal is to have our technologies improve the safety industry workers and the environment while providing substantial returns on investment to our customers and investors worldwide.

The Company designs, engineers, markets, sells, produces and distributes a series of industrial products based on patented technologies including external constant force pressure relief valves and a new unique manway product. Both are designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities in North America.

Kelso is focused on the full scale commercial business development of its proprietary technologies. With the eventual economic recovery in North America, the enforcement of more stringent United States and Canadian environmental regulations and the adverse effects of wear and tear on existing railroad fleets management expect that the railroad industry will rebound significantly. Management is confident that it can pursue a meaningful and profitable revenue stream from a market made up of new tank-car builders, major chemical shippers, repair shops and retrofitters. The Company will update, by way of news releases, progress reports in the future.

For a more complete business and financial profile of the Company, management encourages interested parties to 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 purchase order marks the commencement of the client's early adoption strategies for Kelso's complete line of innovative products; the KKS manway system will be available in January 2012, customers and prospective adopters are beginning to understand the relevance and potential value of our technologies in their operational environments; confirmation that our marketing initiatives are making progress in the well established and very conservative railroad industry; that the railroad market will rebound significantly and that a large market of potential customers exists. 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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