Kelso (the "Company" or "Kelso") (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that it
has increased its non-brokered private placement announced on August 30, 2012
from 1,500,000 units to up to 2,000,000 units for gross proceeds in the amount
of up to US$1,200,000.


The Company will issue up to 2,000,000 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 for
a period of two years. All the securities issued in connection with this private
placement are subject to a four-month and a day hold period from the closing
date of the private placement. 


Proceeds from the private placement will add additional working capital to
finance ongoing product engineering and the growth of production supply chains
for the recent increase in sales.


The Company will pay 8% finder's fees in accordance with TSX Venture Exchange
policies and guidelines in connection with the private placement.


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

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