Kelso Technologies Inc.: Sales to Grow to US$225,000 Per Week

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - Aug. 28, 2012) - Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that it has received purchase orders and commitment agreements from the railroad tank car manufacturers and retrofit/repair customers that will push Kelso's average sales volume to approximately US$225,000 per week commencing in the second week of October 2012.

During the third quarter ending May 31, 2012 average sales volume ran at approximately US$40,000 per week. Since June 1, 2012 average sales volume grew rapidly to approximately US$100,000 per week and is expected to run at that rate until the end of September 2012 when it will increase to approximately US$225,000 per week.

The sales gains in 2012 confirm that Kelso has been successful in addressing railroad clients' needs by engineering high-performance commercial grade external pressure relief valves (EPRV) based on its patented EPRV technology.

All EPRV products must go through many levels of regulatory scrutiny and approvals. Regulation issues have been very demanding on Kelso's resources in terms of time and money but are now qualified for most HAZMAT applications. Our new EPRV products have proven their commercial viability through independent verification of their high-performance capability in addition to proving better reliability, increased longevity and economic benefits to the end user.

Customer interest has grown steadily and their adoption strategies now reflect in the increased sales activity. Management believes sales will continue to advance steadily throughout the upcoming years with an increased customer base combined with the introduction of additional products for railroad and roadway applications in both domestic and international markets.

About Kelso Technologies

Kelso is a railroad equipment supplier that designs, produces and sells a new generation of innovative products designed to improve the safe containment and pressure management of hazardous materials ("HAZMAT") during rail or road transport. Products include a series of external constant force spring pressure relief valves and a revolutionary new manway securement system trademarked as the "Kelso Klincher™".

These products are initially designed for use on applications on railroad tank cars but are currently being modified for use in new markets that include roadway trucking. All products are patent protected. Their primary design function is to reduce human errors and injuries and minimize environmental harm due to non-accidental release events that may occur during the transport of HAZMAT.

Kelso's ultimate goal is to have all products become "gold standard" products on most HAZMAT and non-hazardous applications and capture a large share of the market for our products. We are confident that we have created a solid foundation on which to build a successful multi-million dollar business on behalf of the shareholders of Kelso 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 sales will grow to $225,000 per week and will continue to grow throughout the upcoming years; that we have time and qualitative advantages over our competition; that we can defend our patents; that we can produce large volumes of products as required by our customers; and that from the commercial sales of our EPRV and KKS products Kelso can build a successful multi-million dollar business. 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 from our expectations 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; regulations may change or not change as expected; and competitors may produce better or cheaper products sooner than we expect. 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.