Kelso Technologies Inc.: Private Placement Closes in the Amount of $1,000,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 26, 2011) - Kelso Technologies Inc. (TSX VENTURE:KLS) -

The Company is pleased to report that it has closed its non-brokered private placement previously announced on July 11, 2011 in the amount of $1,000,000.

The Company issued 2,000,000 units of the Company at a price of $0.50 per unit. Each unit consists of one common share and one-half of one share purchase warrant. One whole warrant will entitle the holder to purchase one additional common share of the Company exercisable at a price of $0.70 until July 25, 2013. All the securities issued in connection with this private placement are subject to a four-month hold period expiring November 26, 2011. The Company paid 8% finder's fees in accordance with TSX Venture Exchange policies and guidelines in connection with the private placement.

Proceeds from the private placement have been allocated to build production capacity for its new "Klincher™" Manway Securement System ("MSS") in Bonham, Texas; listing the Company on the OTCQX exchange in the United States and general working capital.

The Company also announces that it has granted an aggregate 420,000 stock options to directors, officers and employees of the Company. Each option is exercisable at $0.58 per common share and is exercisable at any time until July 22, 2016. The options vest immediately.

About Kelso Technologies

Kelso is dedicated to becoming the dominant leader in the design and supply of new innovative technologies aimed at the safe containment of hazardous materials in transportation systems with the primary goal of generating above average benefits for the environment, society, customers, industry work forces and our stakeholders worldwide.

The Company designs, engineers, markets, sells, produces and distributes a series of industrial products based on our patented technologies including constant force pressure relief valves and a new unique MSS that are designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities via railroad tank cars in North America.

Kelso is focused on the full scale commercial marketing and distribution of its proprietary technologies. With the economic recovery in North America, the enforcement of US and Canadian environmental regulations for shippers of chemical commodities and the adverse effects of wear and tear on existing railroad fleets management expects that the railroad industry will rebound significantly. Management is confident that its corporate reorganization in 2010 laid the foundation from which to pursue a meaningful revenue stream from a market made up of over 700 new tank-car builders, major chemical shippers, repair shops and retrofitters. The Company will update, by way of news releases, progress reports in the future.

For a more complete business and financial profile of the Company, management encourages interested parties to 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 we will use proceeds to build facilities, listing the Company on the OTCQX exchange in the United States and general working capital; that the railroad market will rebound significantly and that a market of over 700 potential customers exists. 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; 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; or that the productive capacity of Kelso may not be large enough to handle market demand. 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. Lastly, investors who have agreed to participate in our proposed private placement may decide not to do so, and we may be unable to complete all or any part of the expected financing. 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.