RE:Bonham Activity Kelso Technologies Inc.
Management Discussion and Analysis
Nine months ended September 30, 2013
(Expressed in US Dollars unless otherwise indicated) Page 8 of 18
"The Company is currently in the pre-construction process of building a new 40,000 square foot facility
in Bonham, Texas. It is scheduled to commence construction in early December 2013 and be
completed in June 2014. Based on customer inputs and demand for products it is custom designed to
produce high volumes of our EPRV, KKM, bottom outlet valves and several new products that are
being developed. The new facility is designed to output approximately $50 million to $100 million in
annual revenue once constructed. Should business opportunities expand beyond this target the facility
can be expanded up to 110,000 square feet at the same location."