Railroads to Assist Kelso Klincherâ„¢

Tuesday, November 1, 2011

Vancouver, British Columbia and Lisle, Illinois, – Kelso reports that The Firefighters Education and Training Foundation, the largest railroad training company in the world, has purchased a total of 4 Kelso Klincher™ (“KKS”) manway units for installation on their training railcars to be used specifically for initial industry training purposes. These resources are used by the Class 1 railroads including Union Pacific and CSX for on-location training of shippers, railroad employees and HAZMAT personnel. This is an unprecedented development as the railroads do not usually provide this service for new technology entries.

John R. O'Neill, President of The Firefighters Education and Training Foundation (www.thesafetytrain.org) comments that “Kelso has taken the initiative to design a superior tank car manway securement system, something that has been needed for a long time. The Kelso Klincher™ is safer for workers to use, faster to open and close and addresses the non-accidental release problems experienced with the old eye-bolt manway securement systems. I predict this will become a very popular product very quickly once the industry sees just how efficient it is. We are proud to have the Kelso Klincher™ on our training cars being used on CSX, Union Pacific and other railroads. Last year our Safety Trains were used to teach over five thousand emergency responders along the Nation's railroads.”

Manway technology has not changed in decades. The KKS gives Kelso a unique patented product offering and a significant business opportunity to develop in the transportation industry. Current technology is dated, slow, expensive, unpredictable and at times dangerous to its users. Kelso’s new innovative KKS is easier, faster, safer to use and priced competitively. It is designed to address modern environmental sensitivities, government regulations and improve worker safety while providing economic rewards to its users.

Over the past months the railroads, transportation stakeholders and government agencies have performed considerable due diligence on the KKS. One of the key challenges in the overall adoption strategy by railroads is that the industry will have to adjust current thinking and operational procedures in order to use the KKS.

The participating railroads understand the resistance to change but also recognize and understand the significant potential of the KKS. The qualitative and economic benefits the KKS offers to its stakeholders should outweigh any resistance to adoption issues over time. It is their intention to educate, train and promote the adoption of the KKS to hazardous material shippers as a viable and economically rewarding replacement for the outdated manway technology being used today.

About Kelso Technologies

Kelso supplies innovative technologies aimed at the safe containment of hazardous materials during transport. Our primary goal is to have our technologies improve the safety of industry workers and the environment while providing substantial returns on investment to our customers and investors worldwide.

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

Kelso is focused on the full scale commercial business development of its proprietary technologies. With the eventual economic recovery in North America, the enforcement of more stringent United States and Canadian environmental regulations and the adverse effects of wear and tear on existing railroad fleets management expect that the railroad industry will rebound significantly. Management is confident that it can pursue a meaningful and profitable revenue stream from a market made up of 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 this adoption decision by an industry leader is expected to be a full adoption strategy over time and will be followed closely by petroleum and ethanol stakeholders who are also assessing our technologies for use in similar transport applications; and that the qualitative and economic benefits that the KKS and EPRV offers are considerable and should eventually outweigh any industry resistance to adoption over time and; that Kelso can pursue a meaningful and profitable revenue stream from a market made up of new tank-car builders, major chemical shippers, repair shops and retrofitters. 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; 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; or that the construction or other plans for plants run into permit, labor or other problems. 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

James R. Bond, CEO and President
Telephone: 250-764-3618
Email: bond@kelsotech.com

Richard Lee, Chief Financial Officer
Telephone: 604-590-1525
Email: lee@kelsotech.com

Cameron Donahue, Partner
Hayden IR
Telephone: 651-653-1854
Email: cameron@haydenir.com

Corporate Address:
7773 – 118A Street
North Delta, BC, V4C 6V1