ANN ARBOdsc_3168R, Mich., -October 3, 2016- Kraig Biocraft Laboratories, Inc. (OTCQB:KBLB)(“Company”), the leading developer of spider silk based fibers, today announced that the Company has successfully launched production at its new Indiana production facility with the hatching of more than 40,000 silkworms. With this beginning, the Company is on schedule to produce all of the recombinant spider silk necessary to fulfill its contract with the US Government on time and on budget. The Company has a large inventory of silkworm eggs ready to hatch and, over the coming weeks, plans to ramp up the hatch rate. The Company expects the need to hire and train additional staff to keep up with the expanding production volumes.“Bringing this facility online is a major milestone for Kraig Labs and a significant step forward for spider silk manufacturing”, said COO Jon Rice. “These first 40,000 silkworms are just the beginning of our aggressive plans to scale domestic production. With this facility, we now have the capability to rapidly respond to the numerous request we receive for our record setting Dragon SilkTM. I would like to congratulate our team, whom have been working tirelessly to meet our production schedule and to see this goal realized.”Over the coming months the Company will be increasing the throughput of this facility and preparing for an expanded U.S. operation which will include the planting of thousands of mulberry trees.In addition to its new domestic plant, the Company continues to make progress toward the establishment of two separate international production facilities.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.For more information about Spider Silk, check it out atwww.kraiglabs.com/spider-silk.

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 InformationStatements 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.Ben Hansel, Hansel Capital, LLC(720) 288-8495ir@KraigLabs.com