Sigma Labs Inc (SASI)

[Diogenes of Sinope]

CEO LETTER TO SHAREHOLDERS

January 19, 2018

Dear Shareholders,

In the year-ending week between Christmas and New Year’s Day in a wintery New Mexico, we at Sigma Labs took this interlude to analytically reflect on our company and its markets, our opportunities and challenges, our recent past and our dawning future.

Gearing up as we enter 2018, I assure you that we will diligently strive to win on our announced strategies and initiatives to grow the Company with internally generated product sales and externally developed M&A activities. While there is no assurance that these initiatives will excel, we are certainly committed to them and believe them to be attainable. We are delivering to our shareholders a proxy statement concurrent with sending this letter. The proxy statement seeks shareholder support to amend our Articles of Incorporation to increase the authorized number of shares of Sigma common stock so that the Company has the tools to grow should M&A opportunities be developed and so that prospective companies know that Sigma has the means to deliver on a transaction, were it negotiated. I earnestly request that you support this proposal.

I am also pleased to share with you some of our observations about the transformative year that 2017 was in the 3D metal marketplace as well as in your company. Commencing with a successful public offering and uplift to NASDAQ in February 2017, the velocity of the change(s) we have been reporting to you during the year increased throughout the course of the year.

In the marketplace, Additive Manufacturing (AM) equipment suppliers brought equipment to market that aimed at production line capability rather than prototypes. For example, EOS began delivering multi-laser machines with substantially larger manufacturing chambers. The venerable British firm, Renishaw, introduced its new “M” series of equipment in which M stands for manufacturing and is designed to meet that need. Additive Industries introduced equipment designed for scalable production lines. Meanwhile, aerospace manufacturer GE purchased Concept Laser and Arcam , evidently to ensure that it could obtain the AM equipment required to meet its forecasts of internally produced AM products. Airbus plans to be producing 30 tons per month of metal additive parts by December 2018. Shifting from the macro-market view to the micro, Sigma experienced an increase in PrintRite3D® installations with customers evaluating the product for production deployment.

In the Company, Sigma’s leadership refined business priorities, expanded and specialized the management team, and led Sigma’s transformation from an R&D company culture into a technology commercialization company. We doubled down on our In-Process-Quality-Assurance product development to sustain the agility required to meet rapidly changing AM equipment needs in a rapidly growing market. We combined our Sales with Technology Development into an integrated customer service team. Sigma introduced Version 2.0 of PrintRite3D® in February 2017 and then Version 3.0 at the Formnext Show in November 2017. Doubling down.

Our company and our people step out of 2017 with a collective spirit of confidence, a consensus of intense and shared commitment, and a hungry ‘can’t wait’ enthusiasm. It is 2018 and it is Game On!

With thanks and appreciation for your support and appreciation of Sigma Labs, I remain

John R. Rice, Chairman and Interim CEO


https://ih.advfn.com/p.php?pid=nmona&article=76515047

SGLB—GLTA