KLS Kelso Technologies Inc.

Kelso Technologies Inc. (the "Company" or "Kelso") (TSX
VENTURE:KLS)(OTCQX:KEOSF) reports that it has completed its fiscal year change
to December 31. The Company, as part of the year end change requirements, has
released its audited financial statements covering the four month period from
September 1, 2012 to December 31, 2012.


FINANCIAL HIGHLIGHTS FOR THE FOUR MONTHS ENDED DECEMBER 31, 2012



--  Revenue for the four months ended December 31, 2012 reached $2,830,778
    compared to the year ended August 31, 2012 of $2,233,807. 
    
--  Positive cash flow derived from operations was $194,159 for the four
    months ended December 31, 2012. 
    
--  Reported net income for the four months ended December 31, 2012 was
    $10,988 compared to a loss of $1,276,827 for the year ended August 31,
    2012. 
    
--  Reported net income of $10,988 included items not involving cash for
    amortization of $15,515 and recognition of share based payments (Black
    Sholes option pricing model) in the amount of $167,656 which estimates
    the dilutive effect of incentive stock options granted during the period
    and vesting from the prior year. 
    
--  Gross profit on sales improved to 31.55% at December 31, 2012 up from
    25% at August 31, 2012. 
    
--  Cash on deposit at December 31, 2012 was $1,421,053. 
    
--  Working capital at December 31, 2012 remained healthy at $3,470,762. 
    
--  Private placement (net of costs) and exercise of warrants added new
    capital of $1,932,223. 
    
--  Company remained free of interest-bearing long-term debt commitments. 
    
--  Shareholders' equity grew to $4,036,440 at December 31, 2012. 
    
--  Total assets at December 31, 2012 grew to $4,319,482 (net tangible
    assets - $4,036,440). 



LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2012 the Company had cash on deposit in the amount of
$1,421,053; accounts receivable of $1,016,129; HST receivable of $39,649;
prepaid expenses of $88,506 and inventory of $1,188,467 compared to cash on
deposit in the amount of $2,582; accounts receivable of $877,526; HST receivable
of $26,577; prepaid expenses of $82,999; and inventory of $1,196,465 at August
31, 2012.


The working capital position of the Company at December 31, 2012 was $3,470,762
which includes $12,247 due to related parties compared to a working capital
position of $1,422,376 which includes $16,362 due to related parties at August
31, 2012. 


OUTLOOK

Considerable progress has been made on our business development plans that were
first introduced in April 2010. We are pleased to report that under this
strategic plan we have reached our first milestone of profitability from
operations over the four month period ended December 31, 2012.


Over the past two years Kelso has become a reliable railroad equipment supplier
successfully gaining the confidence and approval of our many stakeholders. Net
income and EBITDA reflect the positive financial impact of our OEM customers'
willingness to adopt our products in much larger numbers. Our priority is to
continue to build the momentum of our business and the quality of our brand. Our
sales growth will be based on our continuing ability to create and deliver a
wide range of "best available technology" products that address the demanding
design criteria that our HAZMAT customers require. 


Although we are still a small enterprise and have many challenges ahead we are
extremely optimistic about the prospects of our many business opportunities.
Management remains dedicated to the growth of the business so that Kelso can
achieve enhanced profitability; improved liquidity; dividend potential; and the
growth of corporate value on behalf of the shareholders of Kelso.


About Kelso Technologies

Kelso is a railroad equipment supplier that produces and sells proprietary tank
car equipment used in the safe loading, unloading and containment of hazardous
materials during transport. Products are specifically designed to provide
economic and operational advantages while reducing the potential effects of
human error and environmental harm during the transport of hazardous materials.


For a more complete business and financial profile of the Company, the
financials statements and management discussion and analysis can be viewed in
their entirety on the Company's website at www.kelsotech.com or 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 we are
very confident that we have gained the confidence, approval and willingness of
our customers to adopt our products and this sales growth trend will continue in
2013 and beyond leading to enhanced profitability; improved liquidity; dividend
potential; and the growth of corporate value. 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; delivery of orders may be rescheduled; product may
not perform as well as expected; markets may not develop as quickly as
anticipated or at all; and operations may 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Kelso Technologies Inc.
James R. Bond
CEO and President
250-764-3618
bond@kelsotech.com


Kelso Technologies Inc.
Richard Lee
Chief Financial Officer
604-590-1525
lee@kelsotech.com
www.kelsotech.com

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