Kelso Technologies Inc.: Non-Brokered Private Placement of Up to CDN$900,000

VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS--(Marketwire - Aug. 30, 2012) - Kelso (TSX VENTURE:KLS)(OTCQX:KEOSF) announces that it has arranged a non-brokered private placement, subject to the approval of the TSX Venture Exchange (the "TSXV"). The private placement consists of up to 1,500,000 units at a price of CDN$ 0.60 per unit for gross proceeds of up to CDN$ 900,000.

Each Unit is comprised of one common share and one-half of one non-transferable common share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company exercisable for a period of 24 months (the "Expiry Date") from the Closing Date (as defined herein) at a price per share of CDN$0.80.

Finders' fees of 8% of the gross proceeds secured in the Unit Offering will be payable in cash.

The Unit Offering is anticipated to close on or about September 14, 2012 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals including approval of the TSXV. The common shares and warrants comprising the Units issued under the Unit Offering will be subject to a four-month and one day hold period commencing on the Closing Date.

Proceeds from the Unit Offering have been allocated to finance production supply chains for the rapid sales growth that is expected to reach US$225,000 per week in October 2012 and continue to grow as announced by press release on August 28, 2012.

About Kelso Technologies

Kelso is a railroad equipment supplier that designs, produces and sells a new generation of innovative products designed to improve the safe containment and pressure management of hazardous materials ("HAZMAT") during rail or road transport. Products include a series of external constant force spring pressure relief valves and a revolutionary new manway securement system trademarked as the "Kelso Klincher™".

These products are initially designed for use on applications on railroad tank cars but are currently being modified for use in new markets that include roadway trucking. All products are patent protected. Their primary design function is to reduce human errors and injuries and minimize environmental harm due to non-accidental release events that may occur during the transport of HAZMAT.

Kelso's ultimate goal is to have all products become "gold standard" products on most HAZMAT and non-hazardous applications and capture a large share of the market for our products. We are confident that we have created a solid foundation on which to build a successful multi-million dollar business on behalf of the shareholders of Kelso Technologies.

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 we will close a private placement; that our sales will grow to $225,000 per week and will continue to grow; that we can produce large volumes of products as required by our customers; and that from the commercial sales of our EPRV and KKS 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 change or 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.