VANCOUVER, BC and BONHAM, TX and LISLE, IL--(Marketwire - Oct. 25, 2011) - Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF)(PINK SHEETS:KEOSF) reports that its External Constant-Force Spring Pressure Relief Valves (EPRV) have been chosen by the world's largest petroleum company (Client) for use in the rail tank car transport of sour crude oil. This is an adoption decision by an industry leader for an innovative technology after considerable due diligence and evaluation of the EPRV. It is expected to be a full adoption strategy and will apply to the Client's tank cars scheduled for retrofit and new tank cars to be built in the future.

This adoption announcement will be followed closely by petroleum and ethanol stakeholders who are also assessing our technologies for use in similar transport applications. In addition to the EPRV the revolutionary aspects of our new Kelso Klincher™ (KKS) manway securement system are also being assessed. Due diligence, evaluation and quantitative analysis on their behalf is ongoing. The KKS will be available for initial commercial distribution in January 2012 as production capability commences. The Company will provide updates in future news releases.

Neil Gambow, President and CEO of our wholly owned Kelso Technologies (USA) Inc., comments that, "This announcement is a milestone in the progress of the business development of Kelso. Kelso is an emerging railroad equipment supplier that offers reliable impact technologies that enhance the safe transport of hazardous materials. The qualitative and economic benefits that Kelso's KKS and EPRV offers to its stakeholders are considerable and should eventually outweigh any industry resistance to adoption over time. Kelso continues to promote the KKS and EPRV to hazardous material shippers as a viable and economically rewarding replacement for the outdated manway and valve technology being used today."

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 of 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 this adoption decision by an industry leader is expected to be a full adoption strategy over time and will be followed closely by petroleum and ethanol stakeholders who are also assessing our technologies for use in similar transport applications; and that the qualitative and economic benefits that the KKS and EPRV offers are considerable and should eventually outweigh any industry resistance to adoption over time and; that Kelso 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'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.