VANCOUVER, BRITISH COLUMBIA and BONHAM, TEXAS--(Marketwired - Nov. 15, 2016) - Kelso Technologies Inc.
(TSX:KLS)(NYSE MKT:KIQ) ("Kelso" or the "Company") is pleased to report that it has entered an exclusive Technology Development
Agreement ("Agreement") with G & J Technologies Inc. ("G & J"), a private company incorporated in the Province of British
Columbia.
The Agreement focuses on the development, commercialization and production of proprietary products used in heavy-duty,
high-performance extreme terrain vehicles (ETVS). The Agreement gives Kelso the worldwide, perpetual, exclusive rights to
develop with G & J a new generation of patented technologies that enhance the capabilities of ETVS. The Agreement gives
Kelso the right to patent, market, manufacture, distribute and license all specialized technologies covered under the
Agreement. Kelso plans to utilize these technologies to create ETVS components that can generate multi-million dollar
revenue streams.
G&J represents a highly skilled inventor and expert with 30 years of experience developing new technologies for extreme
terrain motor vehicles. Due to competitive sensitivities, the Company will not release details of the inventor or the eight
technology areas covered by the Agreement until patent applications are filed. The Company will control all resulting
patents used in commercial products.
Prototype vehicles featuring the technologies have been conceived, built and tested by members of G & J in extreme
environments for the past decade. Production planning has commenced at the Company's production facilities in Bonham, Texas
and sales are expected to commence in 2017. New revenues are expected to be derived from customers requiring heavy duty ETVS
performance technologies in applications in the military; railroad; police & border patrol; first responders; mining, forestry,
oil, gas and electric transmission; and recreational applications.
In consideration for the Agreement Kelso will pay G & J a fee of US$100,000 and 1,000,000 common shares of the Company that is
scheduled to be released over four key milestones under the Agreement. In addition Kelso will pay US$10,000 per month to G &
J and a 2.5% royalty on a pre-approved sales formula. All required capital, development and production resources for the
near term are already in place and the Company will not have to raise any additional capital at this time.
James R. Bond, CEO of the Company comments that: "Kelso is very pleased to join G & J in the development of its ETVS
technologies. This Agreement allows Kelso to expand its business model by initiating engineering design strategies in new
specialized transportation markets. The Agreement with G & J provides Kelso the unique opportunity to participate in a
multi-billion dollar marketplace with cutting edge technologies. These new markets will diversify Kelso's business model and
reduce the cyclical risks of railroad supply. Management expects its expanded revenue model to lead to a more stable and
reliable growth of financial performance on behalf of its shareholders in the future."
About Kelso Technologies
Kelso focuses on engineering specialized product solutions for a wide range of industries in transportation markets. Our
railway and trucking operation designs, produces and sells proprietary equipment used in the safe handling and containment of
hazardous materials during transport. Products are specifically designed to provide economic and safe operational advantages
while reducing the potential effects of human error and environmental harm during the transport of hazardous materials. The
Company is recognized as a reliable supplier of AAR approved railway equipment that addresses the regulatory 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 under the Company's profile on www.sedar.com in Canada and on EDGAR at www.sec.gov in the United States.
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 ETVS component business can generate
multi-million dollar revenue streams; that under the Agreement with G&J new patents can be secured; that these new
technologies allow Kelso to expand its business in specialized transportation markets; that Kelso can participate in a
multi-billion dollar marketplace; that sales are expected to commence in 2017; that sales can be generated in new markets and
diversify Kelso's business model into a broader technology platform to reduce the cyclical risks of railroad supply; and that
management expects its new revenue model to lead to a more stable and reliable growth of financial performance in the
future. Although Kelso believes its anticipated future results, performance or achievements expressed or implied by the
forward-looking statements 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 as such
statements 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. Such risks and uncertainties include, without limitation, the risk that the Company's products
may not work as well as expected; we may not be able to break into new markets, because such markets are served by strong
and embedded competitors or because of long term supply contracts; We may not be able to grow and sustain anticipated revenue
streams. We may have underestimated the cost of product development and the time it takes to bring products to market; we may not
be able to finance our intended product development. Our products may not sell as well as expected, and competitors may offer
better or cheaper alternatives to our products. Our technology may not be patentable, and if patents are granted, may not protect
our investment in intellectual property patents are challenged. Our intended technology 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.