Kelso Technologies Inc. ("Kelso" or the "Company"), (TSX:KLS), (NYSE:KIQ) reports that its wholly owned subsidiary KIQ X Industries ("KIQX") is establishing an initial Phase-One production facility with additional leased space at its current research and development ("R&D") facility in West Kelowna, BC, Canada. This Phase-One production facility is being designed and tooled to convert different classes of heavy duty "host" vehicles with the Company's patents pending proprietary Automated Traction Optimization Method for Vehicle Suspension Systems (the "Method"). These vehicles are targeted to be sold to customers operating in extreme terrain environments who have specified their custom user case requirements utilizing the Company's Method technologies.

As previously reported by the Company, the Method is the first successful specialized fully automated Advanced Driver-Assistance System ("ADAS") software system purpose-built for heavy-duty commercial wilderness applications. The patents pending Method forms the Company's intellectual property foundation for its automotive technologies portfolio which offers additional protectable property opportunities for the ADAS marketplace. The Method is now compliant for sales to commercial wilderness operations including existing forestry roads. The KXI Wildertec equipped vehicle is compliant for operation on all resource and private roads through an all-terrain vehicle insurance policy.

The Phase-One facility does not require new equity or debt capital at this time. The low capital investment reflects the ease of conversion of the "host" vehicle to the Method system in order to minimize the costs of the final salable vehicle. Management is currently developing longer-term scheduling logistics, supply chain procurement systems, optimal inventory levels, labor and staffing needs and product design enhancements, continuing R&D needs, advancing engineering quality controls and general risk management controls.

Once completed the Phase-One facility is expected to have a production capacity potential to facilitate approximately $25 million of annual revenue commencing in late 2024. With the assistance of the landlord, the current facility can be scaled to meet long term production volumes to service in excess of $100 million per year at the same location. The facility will house R&D, Phase-One production and an on-site test track.

The Company will concentrate its KIQX production resources on delivering safety enhancing technology solutions for customers in, but not limited to, wilderness fire fighting, mobile medical treatment, evacuation and emergency response, mining and exploration, energy transmission, civil engineering projects, telecommunications and geographic/environmental data systems.

The Company invites interested parties to view the Company's video presentations at which more visually describes the features of the Company's proprietary ADAS Method.