Mr. Jesse Crews reports

KELSO TECHNOLOGIES INC ANNOUNCES APPROVAL OF THE ANGLE VALVE - NEW PRESSURE CAR COMPONENT COMPLETES KELSO'S COMPLETE PRESSURE CAR KIT PORTFOLIO

Kelso Technologies Inc. has received full production approval from the Association of American Railroads for its new two-inch angle valve. The valve has completed the required AAR field service trial, and is approved for commercial manufacturing and sales across North America.

The K2AV, a two-inch angle valve engineered for loading and unloading pressure tank cars carrying liquefied compressed gases such as propane, butane, propylene and anhydrous ammonia, completes the Kelso pressure car kit. The KPCK now offers customers a comprehensive one-stop solution that includes a pressure relief valve, excess flow check valve, thermometer well, needle sampling valve, magnetic gauging device and three K2AV units per tank car.

Product features and market opportunity

The K2AV is intended to address documented customer demand for improved performance over existing market alternatives. Available in two configurations -- a single-piece fabricated stainless steel design and a United States-sourced investment casting -- the valve incorporates several performance advantages: no wetted or outlet O-rings requiring replacement, a self-draining and self-cleaning seat, low operating torque for ease of use, an adjustable packing gland, and full serviceability. All K2AV units are manufactured in the United States with AAR-standard mounting, ensuring interchangeability with other two-inch angle valves.

With approximately 80,000 pressure tank cars currently in service, future demand for the KPCK is expected to be sustained by new car production, requalifications, and fleet maintenance and repairs. Management believes this approval should positively impact the company's revenue beginning in fiscal 2027 as the K2AV completes the KPCK, enabling Kelso to pursue a greater share of the pressure car market.

Executive commentary

"This approval marks an important achievement for Kelso and validates years of engineering, testing and collaboration with industry partners," said Jesse Crews, chief executive officer. "The K2AV expands our product portfolio, strengthens our competitive position and creates meaningful revenue growth opportunities as we execute our long-term strategy."

Amanda Smith, chief operating officer, added: "Our objective has always been to develop products that solve real-world challenges for our customers. The response to the K2AV from industry stakeholders involved in the final design specifications has been very encouraging. With production approval now secured, we are focused on ramping up manufacturing, supporting customer qualification programs and bringing this innovative product to market."

Next steps

Commercial deliveries are expected to commence soon, with customer engagement and production planning already under way. The approval strengthens Kelso's position within the North American rail tank car industry and its reputation for innovation and engineering excellence.

About Kelso Technologies Inc.

Kelso is a diverse transportation equipment company that specializes in the creation, production, sales and distribution of proprietary products used in rail and automotive transportation. The company's rail equipment business has been developed as a designer and reliable domestic supplier of unique high-quality rail tank car valves that provide for the safe handling and containment of commodities during rail transport. Kelso products are specifically designed to address the challenging issues of public safety, worker well-being and potential environmental harm while providing effective and efficient operational advantages to customers. Kelso's innovation objectives are to create products that diminish the potentially dangerous effects of human and technology error through the use of the company's portfolio of proprietary products.

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