Kraig Biocraft Laboratories Inc (KBLB)

[TRUISM]

Spider Sense Supplemental - January 2018




Dear Friends,

There have been a number of request for a supplement to the last issue of spider sense regarding our progress towards obtaining an enterprise registration certificate, or equivalent in Vietnam. The Enterprise Registration Certificate (ERC) is effectively our business license to conduct our operations in Vietnam.

It’s an important subject, as Vietnam is one of the countries with the existing infrastructure to support mass production of our spider silk. Existing silkworm infrastructure should translate into superior quality and great cost reductions, compared to building out from scratch at shareholder expense. For these reasons we view our discussions with officials in silk producing countries, including those in Vietnam, as being critical for our commercialization efforts.

That being said, negotiations with high level government offices are often challenging, with multiple competing interests vying for influence. These challenges exist in any bureaucracy. Over the last twelve months, the Company, and its consultants in Vietnam, held a series of successful meetings with top officials within central government and provincial offices.

Each of these meetings moved our project forward. This forward progress was not without contention from some individuals within the bureaucracy. That, as you can appreciate, is how governmental systems work. These meetings have brought us closer to our goal.

We have assembled the right team of people in Vietnam working within the provinces and at the central government level to see this process to successfully completion. In parallel with working to secure our ERC, or equivalent authorization, we are working with provincial officials and our consultants in Vietnam to identify local staff and facilities.

Recent questions surrounding news stories, translated from the original Vietnamese sources, highlight the challenges of working across languages and with large government agencies. Different offices within the bureaucracy have different priorities and this leads to the contentious nature of some of these meetings.

Those article have described some of the more touchy elements of those meetings, while excluding key portions and conclusions. The Company has made significant progress over the last six months. We believe that we are on track for international production and that the process in Vietnam in particular is coming to ahead.

While operations in a major silk producing country remain a key element of the Company’s growth plan, it is not our only approach. In 2017, we made two major moves to expand our domestic operations. In the first quarter, we leased 15 acres of land in Texas and planted our first 2,000 mulberry trees.

In the fourth quarter, we opened a new production and research headquarters in Michigan, more than tripling our floor plan and capacity. Combined, these two domestic facilities represent a significant increase in our domestic capacity.

Our approach to developing and producing spider silk leverages nature’s silk factory, the silkworm. This approach is driven by; molecular biology, process simplicity, cost benefits, and competitive advantage.

The infrastructure, tools, and skills, to produce high quality silk, already exist. We are certain that our cost effective approach, combined with leveraging existing infrastructure, are key to seeing this market grow into the thriving disruptive technology it has the potential to become.

As a side note

We have received an increasing number of comments from vendors and consultants who notified us that they are getting repetitive inquiries from people identifying themselves as Kraig Labs’ shareholders.

While we appreciate the passion that these shareholders have for the Company and our efforts, these calls are disruptive to our business relationships and, in one case, led to a valuable consultant terminating his relationship with us.

On more than one occasion, this has made us reluctant to reveal the names of business contacts, knowing that it may subject them to numerous inquiries. We understand and value your enthusiasm, but please understand that our vendors, consultants, and business contacts are not set up to handle Kraig Labs’ investor relations calls. They have expressed their frustration to us over these calls.

All of our consultants, vendors, and business contacts who have knowledge about some aspect of our business have signed non-disclosure agreements which legally prevent them from sharing information. Most of them have never received calls and emails of this nature before. We ask that our shareholders please respect the strain this placed on the Company’s business relationships. We would ask you to refrain from contacting persons with whom we have current or prospective relationships.

We do believe that we have the greats and most enthusiastic group of shareholders that any company could ask for and we thank all of you for your continued support and even for your occasional criticism. You are appreciated.


Thank you,

Kim Thompson Jon Rice
CEO COO

Kraig Biocraft Laboratories, Inc.




Blessings to All

TRUTH