VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - Oct. 1, 2012) - Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) (the "Company" or "Kelso") reports that it has closed its non-brokered private placement as announced on August 30, 2012 and amended on September 27, 2012 in the amount of US$1,197,000 on September 28, 2012.

The Company issued 1,995,000 units of the Company at a price of US$0.60 per unit. Each unit consists of one common share and one-half of one share purchase warrant. One whole warrant will entitle the holder to purchase one additional common share of the Company exercisable at a price of US$0.80 until September 28, 2014. All the securities issued in connection with this private placement are subject to a four-month and a day hold period expiring January 29, 2013.

The private placement was increased from 1,500,000 units to 1,995,000 units to add additional working capital to finance ongoing product engineering and the growth of production supply chains for the recent rise in sales volume. Sales growth is expected to reach US$225,000 per week in mid October 2012 as announced by press release on August 28, 2012. Management expects revenue to continue to grow steadily throughout 2013 and beyond due to the increase of commercial adoption of the Company's products by OEM and retrofit operations in the railroad industry.

The Company paid 8% percent finder's fees where applicable in accordance with TSX Venture Exchange policies and guidelines in connection with the private placement.

About Kelso Technologies

Kelso is a railroad equipment supplier that creates, 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 deliver reliable high-performance, longevity, economic rewards to its users, reductions in 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 that our sales will grow to $225,000 per week and will continue to grow; 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.

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