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(TM)".  


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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