Kelso Technologies Inc.: Manway Production Accelerated

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - March 7, 2012) - Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that the Company has accelerated its production schedule for its Kelso Klincher™ ("KKS") manway system through the lease of 14,000 sq. ft. of an existing 22,000 sq ft facility in Bonham, Texas. The new location will come into use on or before April 1, 2012. Expansion into an additional 8,000 sq ft has been pre-arranged with the landlord if required.

With the addition of this new production area, we will utilize a combined total of 20,000 sq. ft. of warehouse, assembly and distribution space dedicated to the production of 100 to 200 KKS units per week (5,000 to 10,000 units per year). This moves the KKS production strategy forward by 5 months in order to meet earlier than expected demand from OEM and retrofit/repair customers.

Neil Gambow, President and CEO of Kelso Technologies (USA) Inc. comments, "The market support for our KKS has grown rapidly especially in HAZMAT segments such as crude oil and ethanol. Adoption strategies by major customers are maturing and indicate that the demand for KKS will be sooner than originally anticipated. Our strategic move to enhance production capability immediately should allow the Company to capitalize on all market opportunities regarding our KKS."

The production facility previously announced to be built may or may not proceed. The Company will announce production updates as they occur.

About Kelso Technologies

Kelso is an emerging railroad equipment supplier of innovative technologies designed for the safe containment of all liquid hazardous materials ("HAZMAT") during transport. All external pressure relief valves ("EPRV") and KKS products are patented designs that improve worker safety and reduce the risk of environmental harm due to non-accidental release events in the transport of HAZMAT.

Our new KKS combined with our EPRV will broaden our product mix available to customers. The new KKS provides a revolutionary change in the handling dynamics and infrastructure of the HAZMAT industry. It is a major innovation and addresses stringent environmental sensitivities and worker safety. Our KKS program is being well supported by regulators, railroads, customers, industry workers and emergency response organizations.

Our ultimate goal is to have our EPRV and KKS become "gold standard" products on all HAZMAT applications that are produced by rail tank car manufacturers, retrofitters and repair shops. 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 our facility is due to open in on or before April 1, 2012; that a production rate of 100-200 KKS units per week can be established; that adoption strategies by major customers are maturing and indicate that the demand for KKS will be sooner than originally anticipated; that our strategic move to enhance production capability immediately should allow the Company to capitalize on all market opportunities regarding our KKS; and 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.