KLS Kelso Technologies Inc.

Kelso Technologies Inc. (the "Company" or "Kelso") (TSX
VENTURE:KLS)(OTCQX:KEOSF) reports that it has released its first quarter
financial statements covering the three month period ended March 31, 2013. This
is the first quarter subsequent to the fiscal year end change to December 31. In
accordance with year end transition rules the March 31, 2013 results have been
compared to the three months ended February 29, 2012 where applicable. All
amounts are expressed in United States dollars.


HIGHLIGHTS OF THE THREE MONTHS ENDED MARCH 31, 2013



--  Revenue for the three months ended March 31, 2013 reached $2,014,062
    compared to the three months ended February 29, 2012 of $244,380. 
    
--  Positive cash flow derived from operations was $103,381 for the three
    months ended March 31, 2013. 
    
--  Reported net income for the three months ended March 31, 2013 was
    $79,972 compared to a loss of $290,856 for the three months ended
    February 29, 2012. 
    
--  Reported net income of $79,972 included items not involving cash for
    amortization of $19,153 and recognition of share based payments (Black
    Scholes option pricing model) in the amount of $4,256 which estimates
    the dilutive effect of incentive stock options granted during the period
    and vesting from the prior year. 
    
--  Business development objectives, pre-sales strategic costs and financial
    results are in line with management's budgets and expectations for the
    first quarter. 
    
--  Average gross profit on sales was 33.7% for the three months ended March
    31, 2013. 
    
--  Cash on deposit at March 31, 2013 was $1,676,450. 
    
--  Working capital at March 31, 2013 was $3,637,144. 
    
--  New equity capital of $63,000 was received during the three months ended
    March 31, 2013. 
    
--  Company remains free of interest-bearing long-term debt commitments. 
    
--  Net tangible assets grew to $4,183,668 at March 31, 2013 up from
    $4,036,440 at December 31, 2012. 



LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2013 the Company had cash on deposit in the amount of $1,676,450;
accounts receivable of $791,476; HST receivable of $33,405; prepaid expenses of
$67,733 and inventory of $1,777,048 compared to 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 at December 31, 2012.


The working capital position of the Company at March 31, 2013 was $3,637,144
compared to a working capital position of $3,470,762 which included $12,247 due
to related parties at December 31, 2012.


OUTLOOK

Considerable progress has been made on our business development plans that were
first introduced in April 2010. Under this strategic plan we reached the key
milestone of profitability from operations over the four month period ended
December 31, 2012 and this earnings trend continued during the three months
ended March 31, 2013. Sales momentum continues to build and we expect our
financial performance to improve quarter-over-quarter throughout 2013.


Key to our success is that Kelso has proven to be a reliable high quality
railroad equipment supplier successfully gaining the confidence and approval of
our many stakeholders. Reported net income reflects 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 quality of our brand and sales in
railroad applications and leverage this reputation into other transportation
segments. Our sales growth will be based on our continuing ability to create and
reliably deliver a wide range of "best available technology" products that
address the demanding design criteria that our HAZMAT customers require.


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. 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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