Kraig Biocraft Laboratories’ New R&D Facility Extends Its Competitive Advantages and Prepares for Large Scale Production

New larger Hybrid Cocoons provide production excitement

ANN ARBOR, Mich.–(BUSINESS WIRE)–Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) (“Company”), the leading
developer of spider silk based fibers, announces follow up to its
recently introduced new Hybrid Spider Silk Silkworm Cocoons, which were
produced at the Company’s new research and development facility.

Development for the new hybrid was completed in-house, at Kraig Labs R&D
facility using its Dragon Silk colony silkworms and a commercial mundane
silkworm strain, which resulted in an estimated 100% increase in cocoon
weight, compared to the cocoons that the Company was producing just four
months ago in Indiana.

The Company understood that silkworms have been producing mundane silk
for thousands of years and, that by employing the existing sericulture
infrastructure, as well as expertise and traditions, it can cost
effectively scale-up its transgenic spider silk silkworm production.
According to Kraig Labs’ data, the Company should be able to
commercialize some of the toughest natural fibers for almost the same
cost as normal everyday silk.

Eight countries produce the majority of world’s silk today, all of which
have the resources and expertise to bring the Company’s fibers to market
through mass production. These countries have the potential to play a
part in expanding Kraig Labs’ production footprint.

The Company believes that the new hybrid cocoons, along with its first
recombinant spider silk producing silkworms and the development of
Dragon Silk, are among the biggest sericulture breakthroughs in modern
history. As such, it’s important that the host countries respect
Intellectual Property. This is one of the reasons that Kraig Labs is
looking at the potential of launching production in Vietnam.

“When I originally set out on the journey to mass produce spider silk, I
knew that there were multiple production platform options. Each of the
obvious production platforms had serious shortcomings, including most
importantly, an inability to produce spider silk at an acceptable price
point. I focused on inserting silkworms with the relevant gene sequence
because silkworms have proven to be economically efficient and
commercially viable natural silk producers. In my opinion, silkworm
remains the only economically viable platform,” stated Kim Thompson,
Kraig Labs’ CEO and Founder. “Kraig Labs’ R&D facility is a powerful
tool to help us achieve optimum fiber and business performance,”
Thompson concluded.

The activity in our industry has recently increased dramatically; most
notably, multiple companies reportedly having raised over $300 million
in combined funding to produce synthetic silks, which require chemicals
and other steps to create their product. While these companies have
interesting technological approaches, we believe, they lack the cost
effectiveness of our silkworm-based technology. In our opinion, those
approaches have no real way to commercialize spider silk in a way that
takes advantage of the properties that make spider silk special, or at
price points that are competitive with mundane silk.

“Our production optimization initiatives are vital steps in the drive
towards cost structure optimization and our new cocoons have shown us
that even the most efficient fiber making process that exists in the
world today, can be improved. A 100% increase in cocoon size from our
existing products without any increased labor is a substantial win for
our shareholders,” said Jon Rice, Kraig Labs’ COO.

We have posted our cost analysis on the existing market, and believe it
confirms our ability to lead in this space, and why our excitement is
growing to begin our first large scale production. For further details
concerning Kraig Labs’ cost advantages and comparative analysis, please
go to www.kraiglabs.com/comparison.

The Company is updating production plans and will update the
shareholders and other interested parties when appropriate.

To view the most recent edition of Kraig’s Spider Sense quarterly
newsletter and/or to sign up for Company alerts, please go to www.KraigLabs.com/newsletter.

About Kraig Biocraft Laboratories, Inc.

Kraig Biocraft Laboratories, Inc. (www.KraigLabs.com),
a fully reporting biotechnology company is the leading developer of
genetically engineered spider silk based fiber technologies.

The Company has achieved a series of scientific breakthroughs in the
area of spider silk technology with implications for the global textile
industry.

Cautionary Statement Regarding Forward Looking Information

Statements in this press release about the Company’s future and
expectations other than historical facts are “forward-looking
statements.” These statements are made on the basis of management’s
current views and assumptions. As a result, there can be no assurance
that management’s expectations will necessarily come to pass. These
forward-looking statements generally can be identified by phrases such
as “believes,” “plans,” “expects,” “anticipates,” “foresees,”
“estimated,” “hopes,” “if,” “develops,” “researching,” “research,”
“pilot,” “potential,” “could” or other words or phrases of similar
import. Forward-looking statements include descriptions of the Company’s
business strategy, outlook, objectives, plans, intentions and goals. All
such forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those in forward-looking statements. This press release does not
constitute an offer to sell or the solicitation of an offer to buy any
security.

Contacts

for Kraig Biocraft Laboratories, Inc.
Hansel Capital, LLC
Ben
Hansel, 720-288-8495
[email protected]