Mr. James Bond reports

KELSO TECHNOLOGIES INC. KIQ X INDUSTRIES TO ESTABLISH PHASE-ONE PRODUCTION FACILITY

Kelso Technologies Inc.'s wholly owned subsidiary, KIQ X Industries (KIQX), is establishing an initial phase 1 production facility with additional leased space at its current research and development (R&D) facility in West Kelowna, B.C., Canada. This phase 1 production facility is being designed and tooled to convert different classes of heavy-duty host vehicles with the company's patent-pending proprietary automated traction optimization method for vehicle suspension systems. These vehicles are targeted to be sold to customers operating in extreme terrain environments that have specified their custom user case requirements utilizing the company's method technologies.

As previously reported by the company, the method is the first successful specialized fully automated advanced driver assistance system (ADAS) software system purpose built for heavy-duty commercial wilderness applications. The patent-pending method forms the company's intellectual property foundation for its automotive technologies portfolio, which offers additional protectable property opportunities for the ADAS marketplace. The method is now compliant for sales to commercial wilderness operations, including existing forestry roads. The KXI Wildertec equipped vehicle is compliant for operation on all resource and private roads through an all-terrain vehicle insurance policy.

The phase 1 facility does not require new equity or debt capital at this time. The low capital investment reflects the ease of conversion of the host vehicle to the method system in order to minimize the costs of the final saleable vehicle. Management is currently developing longer-term scheduling logistics, supply chain procurement systems, optimal inventory levels, labour and staffing needs and product design enhancements, continuing R&D (research and development) needs, advancing engineering quality controls, and general risk management controls.

Once completed, the phase 1 facility is expected to have a production capacity potential to facilitate approximately $25-million of annual revenue commencing in late 2024. With the assistance of the landlord, the current facility can be scaled to meet long-term production volumes to service in excess of $100-million per year at the same location. The facility will house R&D, phase 1 production and an on-site test track.

The company will concentrate its KIQX production resources on delivering safety-enhancing technology solutions for customers in, but not limited to, wilderness fire fighting, mobile medical treatment, evacuation and emergency response, mining and exploration, energy transmission, civil engineering projects, telecommunications, and geographic/environmental data systems.

About Kelso Technologies Inc.

Kelso is a diverse engineering company that specializes in the creation, production, sales and distribution of proprietary products used in rail and automotive transportation. The company's rail engineering business has been developed as a designer and reliable domestic supplier of unique high-quality rail tank car valves that provide for the safe handling and containment of hazardous and non-hazardous commodities during rail transport. The automotive division of the company has created the first field-tested, automated, suspension-based advanced driver assistance system for commercial wilderness and mission-critical operations. All Kelso products are specifically designed to address the challenging issues of public safety, worker well-being and environmental harm while providing effective and efficient operational advantages to customers. Kelso's innovation objectives are to create products that diminish the potential dangerous effects of human and technology error through the use of the company's portfolio of proprietary engineered solutions.

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