Transport Canada-New Requirements for TC/DOT 111 Tank Cars

Kelso Technologies Inc. (TSX:KLS)(OTCQX:KEOSF) - The Company reports that
Transport Canada has put forth on July 2nd 2014, new requirements for TC/DOT-111
tank cars used in the transport of dangerous goods by rail by incorporating by
reference the technical standard TP14877, Containers for the Transport of
Dangerous Goods by Rail (CPC 1232). These requirements establish a minimum
threshold for rail cars transporting dangerous goods, including petroleum crude
oil and ethanol. This proposed amendment is provided for informal comment which
means that it has not yet been published in the Canada Gazette.


Transport Canada is currently considering the development of specifications for
an even more robust class of tank cars (known as the "Class TC-140 tank car")
based on industry and the Association of American Railroad Tank Car Committee
proposals as well as through technical discussions with the U.S. Pipeline and
Hazardous Material Safety Administration (PHMSA). 


This regulatory proposal also presents the proposed requirements for this new
class of tank cars that would be used for the transport of flammable liquids
including petroleum crude oil and ethanol by rail.


Transport Canada expects industry to manufacture any new rail tank car coming
into flammable liquid service to meet the new Class TC-140 requirements, once it
is in force. Further, Transport Canada also expects that once the standard is
adopted in the TDG Regulations, that industry will retrofit all TC/DOT-111 tank
cars that transport flammable liquids within the timeframes outlined by these
proposed regulations.


Stakeholders are requested to provide their comments on the new proposed Class
TC-140 tank car to Transport Canada within 45 days. Following review of comments
submitted during this consultation, Transport Canada will move expeditiously
with the pre-publication of these new requirements in Part I of the Canada
Gazette I later in the fall of 2014.


Additional requirements under Section 5.14.4 for Class 111 tank cars for
petroleum crude oil and ethanol require that after May 1st, 2017, a person must
not handle, offer for transport or transport petroleum crude oil, synthetic
crude oil, diluted bitumen or diluted synthetic crude oil, ethanol, denatured
ethanol or mixtures of ethanol and gasoline offered for transport under UN
number UN1267, UN1268, UN1993, UN3494, UN1170, UN1987 or UN3475 included in
Class 3, Packing Group I, II, or III unless the tank car complies with the new
design requirements.


Relevant to Kelso is that the tank car must be equipped with one or more
reclosing high-flow pressure relief devices (PRD) with a start-to-discharge
pressure of equal to or greater than 517 kPa (75 psi). The total relieving
capacity and start-to-discharge pressure must be optimized to insure the
structural integrity of the tank in a 100 minutes pool fire and 30 minutes jet
fire while minimizing the amount of dangerous good that is released by the
pressure relief device and if the tank car is equipped with a bottom outlet
valve, the valve must be of a type and be arranged in such a way that the valve
remains closed during railway incidents, including derailments.


As previously announced Kelso has filed a patent application for a new
externally mounted dual-rated high-flow pressure relief valve ("DR5010") design
for use on new rail tank cars and retrofits of existing rail tank cars as
proposed by Transport Canada. 


Kelso initiated its DR5010 design strategy based on regulatory concerns and as a
result we have created a new DR5010 that based on mechanical engineering
innovations that provide safety benefits in both accident and non-accident
environments. In general terms in an accident involving fire the DR5010 will
significantly lower its operating pressure rating to a level that will keep the
valve open in order to evacuate the tank car in less than 100 minutes as
required by the Transport Canada recommendations. This is a dramatic change to
current technology capability. The DR5010 will enter Association of American
Railroads (AAR) approval process shortly after the prototypes complete testing.
The Company will announce AAR approvals by press release when they are received.


In addition Kelso has a patent application pending for a new bottom outlet valve
(BOV) design for use on new rail tank cars and retrofits of existing rail tank
cars. The new BOV involves detailed proprietary and engineering knowledge based
on specific customer specifications and adoption criteria. Our new BOV design
features several materials and mechanical engineering innovations that are
intended to meet all new regulations being proposed by regulators in both Canada
and the United States.


The Railway Supply Institute on Friday July 18, 2014 its railcar industry order,
delivery and backlog statistics for the second quarter of 2014 showing strong
growth thought to be attributable to ongoing crude-by-rail developments.
Industry orders for tank cars totaled 10,628 in the second quarter compared to
4,769 tank cars in the first quarter reflecting a significant increase in demand
for tank cars able to meet the demand, new regulations and concerns related to
crude-by-rail shipments.


Kelso believes that tank car orders in coming quarters could remain very strong
as the initial drafts of regulatory changes are incorporated into regulations
later this year.


About Kelso Technologies

Kelso is a railroad equipment supplier that designs, produces and sells
proprietary tank car service equipment used in the safe loading, unloading and
containment of hazardous materials during transport. Products are specifically
designed to provide economic and operational advantages while reducing the
potential effects of human error and environmental harm during the transport of
hazardous materials. The Company is experiencing rapid multi-million dollar
revenue growth based on its expanding commercial product catalogue and increased
concerns about railroad safety in North America.


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 the new
proposed Transport Canada regulations are advantageous to the future business of
Kelso; our new DR5010 and BOV will meet new regulations and are a dramatic
change to current technology capability; we will receive patents for our patent
applications; tank car orders in coming quarters could remain very strong as the
initial drafts of regulatory changes are incorporated into regulations later
this year; and the Company is experiencing rapid multi-million dollar revenue
growth based on its expanding commercial product catalogue. Although Kelso
believes its anticipated future results, performance or achievements expressed
or implied by the forward-looking statements and information are based upon
reasonable assumptions and expectations, they can give no assurance that such
expectations will prove to be correct. The reader should not place undue
reliance on forward-looking statements and information as such statements and
information involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of Kelso to
differ materially from anticipated future results, performance or achievement
expressed or implied by such forward-looking statements and information,
including without limitation the risk that the Company's products may not
provide the intended economic or operational advantages; or reduce the potential
effects of human error and environmental harm during the transport of hazardous
materials; or grow and sustain anticipated revenue streams. We may not be
granted patents for our products and we may be unable to protect our
intellectual property; in addition, we may infringe on the intellectual property
of other parties. Except as required by law, the Company does not intend to
update the forward-looking information and forward-looking statements contained
in this news release. 


Neither the Toronto Stock 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: 
Kelso Technologies Inc.
James R. Bond
CEO and President
250-764-3618
[e-mail]


Kelso Technologies Inc.
Richard Lee
Chief Financial Officer
604-590-1525
[e-mail]
www.kelsotech.com