New JS330 High Pressure Valve Completes Testing

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwired - Sept. 26, 2013) - Kelso (The "Company" or "Kelso")(TSX VENTURE:KLS)(OTCQX:KEOSF) reports that its new JS330 external constant-force spring pressure relief valve (EPRV) for "Pressure Tank Cars" has been successfully pressure and flow tested and confirmed by an independent, AAR-approved engineering test facility in Nunn, Colorado as required by the railroad industry.

Our JS330 is a derivative of our existing EPRV patent and meets the performance specifications and regulatory requirements for pressure tank cars. It is designed for demanding applications in the transport of pressurized commodities such as propane and anhydrous ammonia. A patent application is in process.

Kelso has applied to the Association of American Railroads for an application number and service trial approval. We anticipate that the service trial will commence in late 2013 and be completed in two years.

The JS330 will be offered in 225PSI, 247PSI, 280PSI and 330PSI ratings. It is suitable for applications in both the new tank car and retrofit/repair markets. We anticipate that we can service an additional 1,500 to 2,500 tank cars annually.

Competition

Competitive products exist and new designs may be forthcoming in the future, but these will likely have to undergo lengthy service trials and applications to gain regulatory approvals from the AAR. This process could take two to three years to achieve, giving Kelso a significant competitive advantage.

Kelso also holds patent rights to the external constant-force spring valve design. Any infringements on our patents will be defended vigorously.

Outlook

Our new JS330 represents our new entry into the high-pressure and performance products strategy that benefits our stakeholders with the same reliable, effective and economic benefits that our JS75XL/5 and JS75XH/27 have provided our customers.

Over the past three years we have gained the confidence and approval of OEM customers. We have proven we can handle their large volume requirements to deliver high-quality EPRV products on time. Our current EPRV production facilities in Bonham, TX have been built and verified as modern and state-of-the-art with the ability to handle approximately $40,000,000 of EPRV business annually.

Our new 40,000 square foot facility is scheduled to commence construction in November 2013 and be completed in June 2014. Based on customer inputs and demand for products it is custom designed to produce high volumes of our EPRV, Kelso Klincher® manways (KKM), bottom outlet valves and several new products that are being developed. The new facility will be able to produce $50 million to $100 million in annual revenue once constructed.

We anticipate consistent revenue growth as our new products come to market. Adoption of Kelso products is being fueled by demanding regulatory developments and the confidence gained through the independent verification that Kelso can deliver reliable "best available" technology solutions with proven economics, reliability and qualitative advantages over our competition.

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 the service trial of JS330 will commence in late 2013 and be completed in two years; that that we can service an additional 1,500 to 2,500 tank cars annually with the JS330; that the new facility is to commence construction in November 2013 and be completed in June 2014; that the new facility will be able to produce $50 million to $100 million in annual revenue once constructed; we anticipate consistent revenue growth as our new products come to market; adoption of Kelso products is being fueled by demanding regulatory developments; and the confidence gained through the independent verification that Kelso can deliver reliable "best available" technology solutions with proven economics, reliability and qualitative advantages over our competition; that our revenue opportunities will improve and we will experience sales growth; 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 KKM 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 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.

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.