VANCOUVER, BRITISH COLUMBIA and LISLE, ILLINOIS -- (Marketwire) -- 09/27/12 -- Kelso (the "Company" or "Kelso") (TSX VENTURE:KLS)(OTCQX:KEOSF) reports that it has increased its non-brokered private placement announced on August 30, 2012 from 1,500,000 units to up to 2,000,000 units for gross proceeds in the amount of up to US$1,200,000.

The Company will issue up to 2,000,000 units of the Company at a price of US$0.60 per unit. Each unit consists of one common share and one-half of one share purchase warrant. One whole warrant will entitle the holder to purchase one additional common share of the Company exercisable at a price of US$0.80 for a period of two years. All the securities issued in connection with this private placement are subject to a four-month and a day hold period from the closing date of the private placement.

Proceeds from the private placement will add additional working capital to finance ongoing product engineering and the growth of production supply chains for the recent increase in sales.

The Company will pay 8% finder's fees in accordance with TSX Venture Exchange policies and guidelines in connection with the private placement.

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

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.