Spectral Capital Corporation, (FCCN.QB) (F3SN: SG, BE):

Dear Shareholders,

As announced last week, we have signed a definitive agreement with Noot, Inc, and I would like to take this opportunity to explain a little more about 'noot,' the product that is currently being developed by this team. Noot, which is in private beta, is a next generation search app that makes it fun and easy for consumers to continuously discover new content.

Noot takes search to a new level for the smart phone user and is the type of disruptive technology that the market is missing and poised to capture. Noot's approach to smartphone search is based upon extensive research of how people use their smart phone versus their other devices and presents information to the user accordingly.

The noot search experience differs from other search platforms by being both personalized and continuous as it searches, filters and presents content that the consumer has an ongoing interest in, versus a one time interest. Most search engines are based upon 'ad hoc' needs or one time interests, so when one is searching for a term, the results will provide basically the same information each time. Another form of search is 'discovery' where one discovers what is on TV by changing the channels or goes to a news site and discovers breaking news. Noot offers users continuous search, which provides them with information they are interested in without them having to actively search. Noot never stops working, even when not activated, and continuously gathers relevant information so each time users open noot, they find new information according to their personal interests.

Noot's search technology is also a learning technology and thus provides highly personalized, tailor-made results. It learns what type of information users like and in what format they prefer. This allows noot to present results users want and to filter out what they don't want, all while sharing fresh content each time. Some people prefer video clips, some prefer a combination of twitter posts, facebook posts and photos, while others may like any content that falls into their area of interest. Others may wish to filter out negative information and only be presented with positive information. Noot will learn the interests of its user and become a sort of personal assistant to provide them with information they want so they no longer have to actively seek this out.

Noot is expected to launch in the second quarter of this year. We expect to have a lot more information to share soon and look forward to keeping you updated. For more information, please visit www.noot.com.

Sincerely yours,
Jenifer Osterwalder
President and CEO

ABOUT SPECTRAL:

Spectral acquires and partners with early stage technology companies that have the ability to grow into independent public companies. We focus on identifying markets in which a start up has the opportunity to greatly enhance or become a complete game changer. We look for technology that is patentable. Through our knowledge and vast network of professionals from around the world, as well as our experience as entrepreneurs, we provide support and encouragement for our portfolio teams and their visions. Spectral's portfolio teams are consumed and innately passionate about the development of their ideas.