Kelso Technologies Inc.: Non-Brokered Private Placement Up to $1,000,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 11, 2011) - Kelso Technologies Inc. (The "Company" or "Kelso") (TSX VENTURE:KLS) -

The Company has arranged a private placement with accredited investors subject to the approval of the TSX Venture Exchange (the "TSXV").

The Unit Offering consists of up to 2,000,000 units at a price of $0.50 per unit for gross proceeds of up to $1,000,000. Each Unit is comprised of one common share and one-half of one non-transferable common share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company exercisable for a period of 24 months (the "Expiry Date") from the Closing Date (as defined herein) at a price per share of $0.70.

Finders' fees of 8% of the gross proceeds secured in the Unit Offering will be payable in cash.

The Unit Offering is anticipated to close on or about July 22, 2010 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals including approval of the TSXV. The common shares and warrants comprising the Units issued under the Unit Offering will be subject to a four-month and one day hold period commencing on the Closing Date.

Proceeds from the Unit Offering have been allocated to build production capacity for its new "Klincher™" Manway Securement System ("MSS") in Bonham, Texas; listing the Company on the OTCQX exchange in the United States and general working capital.

About Kelso Technologies

Kelso is dedicated to becoming the dominate leader in the design and supply of new innovative technologies aimed at the safe containment of hazardous materials in transportation systems with the primary goal of generating above average benefits for the environment, society, customers, industry work forces and our stakeholders worldwide.

The Company designs, engineers; markets, sells, produces and distributes a series of industrial products based on our patented technologies including constant force pressure relief valves and a new unique MSS that are designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities via railroad tank cars in North America.

Kelso is focused on the full scale commercial marketing and distribution of its proprietary technologies. With the economic recovery in North America, the enforcement of US and Canadian environmental regulations for shippers of chemical commodities and the adverse effects of wear and tear on existing railroad fleets management expects that the railroad industry will rebound significantly. Management is confident that its corporate reorganization in 2010 laid the foundation from which to pursue a meaningful revenue stream from a market made up of over 700 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 we will close a private placement, that we will use proceeds to build facilities, that the railroad market will rebound significantly and that a market of over 700 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; 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 productive capacity of Kelso may not be large enough to handle market demand. 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. Lastly, investors who have agreed to participate in our proposed private placement may decide not to do so, and we may be unable to complete all or any part of the expected financing. 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.