Mr. James Bond reports

KELSO TECHNOLOGIES INC.: ASSOCIATION OF AMERICAN RAILROADS APPROVES VACUUM RELIEF VALVE

Kelso Technologies Inc.'s new vacuum relief valve (VRV) has successfully completed the required two-year field service trial and the Association of American Railroads (AAR) has approved the VRV for full commercial use. During the past two years of the service trial, customers have shown strong support and expressed bona fide interest in adopting the company's VRV along with their current demand for Kelso's pressure relief valves (PRVs). Shipping of the VRV to customers can commence within two weeks of a customer's order.

The primary function of the VRV is to prevent a tank car from rupturing during loading operations or imploding while pumping its commodity load out of the tank. Without a controlled opening for breathing, a tank can also rupture or implode due to severe thermal changes.

Common problems with similar VRVs in the market today include the VRV's short service life and the other VRVs are typically viewed by customers as a throwaway item. Similar VRVs suffer from problems associated with casting production techniques and the VRV's helical springs get exposed to vapours when venting. Due to suspect quality, many other VRVs seldom get recertified for continued use and users are faced with the unreliable structural integrity associated with using castings.

Kelso's design and engineering goals are that all service equipment must be developed with emphasis on economical and operational advantages to the company's customers while mitigating the impact of human error and environmental release during operations. Kelso's VRV offers the dependability of the company's patented constant force spring technology. The company's VRV is fabricated and does not use casting methods, allowing for recertification for continued use. As well, Kelso's VRV is an all stainless-steel product with a seal-welded stem, closed-spring housing and oversized seal; the design provides a baffle to protect from unwanted debris from operational environments.

James R. Bond, chief executive officer of the company, commented: "A dedicated team of employees and customers have brought the VRV to the milestone of full AAR approval. Kelso's VRV, combined with the company's PRV, provides a high performance pressure management system for tank cars that can provide much-needed reliability and operational advantages to Kelso's customers. The VRV is expected to add an additional $1,000 (U.S.) revenue per tank car. Kelso expects that it can look forward to additional revenue streams from VRV sales and improved financial performance as a result in future periods."

About Kelso Technologies Inc.

Kelso is an engineering development company that specializes in the development, production and distribution of proprietary service equipment used in transportation applications. The company's reputation has been earned as a developer and reliable supplier of unique high performance rail tank car equipment for the handling and containment of hazardous and non-hazardous commodities during transport. The company develops and offers specialized rail tank car equipment, truck tanker equipment, rail wheel cleaning systems, fuel loading systems, military applications, first responder emergency response kits and suspension systems for motor vehicles being used in rugged outback terrains.

We seek Safe Harbor.