Mr. James Bond reports

KELSO TECHNOLOGIES INC.: AAR APPROVES FIELD TRIALS FOR NEW VACUUM RELIEF VALVE

The Association of American Railroads (AAR) has approved Kelso Technologies Inc.'s new vacuum relief valve (VRV) design for commercial field trial testing. The VRV is a low-pressure device specifically designed to protect rail tank cars from the effect of an excessive vacuum preventing the implosion of the tank car.

The development of the company's patent-pending VRV has been driven by customers' demand for a better performing VRV due to high failure rates of current products in use in the market today. Kelso is dedicated to the development of best available safety technologies that deliver long-term reliable high performance. The company's new innovative VRV design features its patented constant force pressure springs and meets the new DOT-117 tank car specifications to be implemented on Oct. 1, 2015.

There has been no shortage of commercial interest in the company's VRV design. Numerous railway stakeholders have agreed to provide the required field trial testing. Testing will commence shortly and may take up to two years to complete. Once final approvals are received from the AAR the VRV represents new revenue streams that will contribute to the growth of the company.

James R. Bond, chief executive officer of the company, comments: "The railway industry is very complex, slow moving and heavily regulated by multiple government and industry agencies, and associations that are currently implementing the new controversial DOT-117 rail tank car specifications. Despite these industry challenges Kelso has become recognized as an emerging growth company in railway equipment that reliably provides the market with high-quality pressure relief valves and a unique Kelso Klincher manway both of which meet the new DOT-117 specifications. We are also innovating new patented products like the VRV that will further improve the safety of rail tank cars and provide the opportunities for Kelso to continue the growth of its market share. We remain committed to our strategic direction and our positive outlook for Kelso over the next five years."

We seek Safe Harbor.