Kelso (The "Company" or "Kelso")(TSX VENTURE:KLS)(OTCQX:KEOSF) reports that its
new JS330 external constant-force spring pressure relief valve (EPRV) for
"Pressure Tank Cars" has been successfully pressure and flow tested and
confirmed by an independent, AAR-approved engineering test facility in Nunn,
Colorado as required by the railroad industry.


Our JS330 is a derivative of our existing EPRV patent and meets the performance
specifications and regulatory requirements for pressure tank cars. It is
designed for demanding applications in the transport of pressurized commodities
such as propane and anhydrous ammonia. A patent application is in process.


Kelso has applied to the Association of American Railroads for an application
number and service trial approval. We anticipate that the service trial will
commence in late 2013 and be completed in two years.


The JS330 will be offered in 225PSI, 247PSI, 280PSI and 330PSI ratings. It is
suitable for applications in both the new tank car and retrofit/repair markets.
We anticipate that we can service an additional 1,500 to 2,500 tank cars
annually. 


Competition

Competitive products exist and new designs may be forthcoming in the future, but
these will likely have to undergo lengthy service trials and applications to
gain regulatory approvals from the AAR. This process could take two to three
years to achieve, giving Kelso a significant competitive advantage.  


Kelso also holds patent rights to the external constant-force spring valve
design. Any infringements on our patents will be defended vigorously.


Outlook

Our new JS330 represents our new entry into the high-pressure and performance
products strategy that benefits our stakeholders with the same reliable,
effective and economic benefits that our JS75XL/5 and JS75XH/27 have provided
our customers. 


Over the past three years we have gained the confidence and approval of OEM
customers. We have proven we can handle their large volume requirements to
deliver high-quality EPRV products on time. Our current EPRV production
facilities in Bonham, TX have been built and verified as modern and
state-of-the-art with the ability to handle approximately $40,000,000 of EPRV
business annually. 


Our new 40,000 square foot facility is scheduled to commence construction in
November 2013 and be completed in June 2014. Based on customer inputs and demand
for products it is custom designed to produce high volumes of our EPRV, Kelso
Klincher(R) manways (KKM), bottom outlet valves and several new products that
are being developed. The new facility will be able to produce $50 million to
$100 million in annual revenue once constructed. 


We anticipate consistent revenue growth as our new products come to market.
Adoption of Kelso products is being fueled by demanding regulatory developments
and the confidence gained through the independent verification that Kelso can
deliver reliable "best available" technology solutions with proven economics,
reliability and qualitative advantages over our competition. 


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 the
service trial of JS330 will commence in late 2013 and be completed in two years;
that that we can service an additional 1,500 to 2,500 tank cars annually with
the JS330; that the new facility is to commence construction in November 2013
and be completed in June 2014; that the new facility will be able to produce $50
million to $100 million in annual revenue once constructed; we anticipate
consistent revenue growth as our new products come to market; adoption of Kelso
products is being fueled by demanding regulatory developments; and the
confidence gained through the independent verification that Kelso can deliver
reliable "best available" technology solutions with proven economics,
reliability and qualitative advantages over our competition; that our revenue
opportunities will improve and we will experience sales growth; that we have
time and qualitative advantages over our competition; that we can defend our
patents; that we can produce large volumes of products as required by our
customers; and that from the commercial sales of our EPRV and KKM 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 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.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. 


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


Richard Lee, Chief Financial Officer
604-590-1525
lee@kelsotech.com


Corporate Address:
7773 - 118A Street
North Delta, BC, V4C 6V1
www.kelsotech.com

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