<SEC-DOCUMENT>0001144204-14-055457.txt : 20140911
<SEC-HEADER>0001144204-14-055457.hdr.sgml : 20140911
<ACCEPTANCE-DATETIME>20140911160613
ACCESSION NUMBER:		0001144204-14-055457
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20140905
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140911
DATE AS OF CHANGE:		20140911

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIGMA LABS, INC.
		CENTRAL INDEX KEY:			0000788611
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS REPAIR SERVICES [7600]
		IRS NUMBER:				820404220
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	033-02783-S
		FILM NUMBER:		141098257

	BUSINESS ADDRESS:	
		STREET 1:		100 CIENEGA STREET, SUITE C
		CITY:			SANTE FE
		STATE:			NM
		ZIP:			87501
		BUSINESS PHONE:		(505) 438-2576

	MAIL ADDRESS:	
		STREET 1:		100 CIENEGA STREET, SUITE C
		CITY:			SANTE FE
		STATE:			NM
		ZIP:			87501

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FRAMEWAVES INC
		DATE OF NAME CHANGE:	20010130

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MESSIDOR LTD
		DATE OF NAME CHANGE:	20010122
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v388959_8-k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">_________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(D) OF THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date of report (Date of earliest event
reported): September 5, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>SIGMA
LABS, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; border-bottom: Black 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: center">Nevada</TD>
    <TD STYLE="width: 2%; padding-right: 5.75pt; padding-left: 5.75pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: Black 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: center">33-2783-S</TD>
    <TD STYLE="width: 2%; padding-right: 5.75pt; padding-left: 5.75pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: Black 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: center">82-0404220</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center"><FONT STYLE="font-size: 10pt">(State or other jurisdiction of<BR>
 incorporation or organization)</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center"><FONT STYLE="font-size: 10pt">(Commission File Number)</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; text-align: center"><FONT STYLE="font-size: 10pt">(I.R.S. Employer </FONT><BR>
<FONT STYLE="font-size: 10pt">Identification No.)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">100 Cienega Street, Suite C</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Santa Fe, New Mexico 87501</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">_________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)
(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant&rsquo;s telephone number, including
area code: (505) 438-2576</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Former name or former address, if changed
since last report</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">o</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 1in; padding-right: 0; padding-bottom: 0; padding-left: 0"><B>Item 8.01</B></TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0"><B>Other Events.</B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Annual Meeting of stockholders of Sigma
Labs, Inc. (the &ldquo;Company&rdquo;) will be held on Thursday, October 9, 2014, at 10:00 A.M., local time, at 3900 Paseo del
Sol, Santa Fe, New Mexico 87507. Stockholders of record at the close of business on August 25, 2014 will be entitled to vote at
the Annual Meeting. A copy of the Company's proxy statement relating to the Annual Meeting, which was mailed to the Company's stockholders
beginning on September 5, 2014, is filed with this Current Report on Form 8-K as Exhibit 99. 1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in; padding-right: 0; padding-bottom: 0; padding-left: 0"><B>Item 9.01</B></TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0"><B>Financial Statements and Exhibits.</B></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in; text-align: left">(d)</TD><TD STYLE="text-align: justify">Exhibits.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; padding-top: 0; padding-right: 0; padding-left: 0">Exhibit Number</TD>
    <TD STYLE="width: 2%; padding-top: 0; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="width: 83%; padding-top: 0; padding-right: 0; padding-left: 0">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0">99.1</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0">&nbsp;</TD>
    <TD STYLE="padding-top: 0; padding-right: 0; padding-left: 0">Proxy Statement of Sigma Labs, Inc.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="1" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in"><B>SIGMA LABS, INC.</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; width: 35%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; width: 5%">&nbsp;</TD>
    <TD STYLE="width: 42%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date:</TD>
    <TD STYLE="padding-bottom: 1pt">September 11, 2014</TD>
    <TD>&nbsp;</TD>
    <TD>By:</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">/s/ Mark Cola</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name:</TD>
    <TD>Mark Cola</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD>President and Chief Executive &nbsp;Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>v388959_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 99.1</B></P>



<P STYLE="margin: 0"></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt">SIGMA
LABS, INC.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>100 Cienega Street, Suite C</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Santa Fe, New Mexico 87501</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">October 9, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Stockholder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">You are cordially invited
to attend the 2014 Annual Meeting of Stockholders of Sigma Labs, Inc. The meeting will be held at 3900 Paseo del Sol, Santa Fe,
New Mexico 87507, beginning at 10:00 A.M., local time, on Thursday, October 9, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Notice of Meeting
and the Proxy Statement on the following pages cover the formal business of the meeting, which includes three items to be voted
on by the stockholders. At the Annual Meeting, I will also report on Sigma Labs Inc.'s current operations and will be available
to respond to questions from stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Whether or not you
plan to attend the meeting, it is important that your shares be represented and voted at the meeting. You are urged, therefore,
to complete, sign, date and return the enclosed proxy card, even if you plan to attend the meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">I hope you will join
us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

<TABLE CELLSPACING="1" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 35%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 40%; padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">Sincerely,</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">/s/ Mark Cola</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Mark Cola</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>President and Chief Executive Officer</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt">SIGMA
LABS, INC.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>100 Cienega Street, Suite C&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Santa Fe, New Mexico 87501</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">NOTICE OF ANNUAL MEETING OF STOCKHOLDERS<BR>
to be held on October 9, 2014</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Notice is hereby given
to the holders of common stock, $0.001 par value per share, of Sigma Labs, Inc. (&ldquo;<B>Sigma</B>&rdquo; or the &ldquo;<B>Company</B>&rdquo;)
that the Annual Meeting of Stockholders (the &ldquo;<B>Annual Meeting</B>&rdquo;) will be held on Thursday, October 9, 2014 at
3900 Paseo del Sol, Santa Fe, New Mexico 87507, beginning at 10:00 A.M., local time, for the following purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">To elect three directors to serve until the 2014 Annual Meeting of Stockholders;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">To approve the form of indemnification agreement between the Company and its directors and officers;
<B> </B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">To ratify the selection of Pritchett, Siler &amp; Hardy, P.C. as the Company&rsquo;s independent
registered public accounting firm for the fiscal year ending December 31, 2014; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(4)</TD><TD STYLE="text-align: justify">To transact such other business as may properly come before the Annual Meeting or any adjournment
or postponement of the Annual Meeting.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Only those stockholders
of record at the close of business on August 25, 2014 are entitled to notice of and to vote at the Annual Meeting or any adjournment
or postponement of the Annual Meeting. A complete list of stockholders entitled to vote at the Annual Meeting will be available
at the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<TABLE CELLSPACING="1" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 35%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 40%; padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">By Order of the Board of Directors</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">September 3, 2014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">/s/ Michael Thacker</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Michael Thacker</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Secretary</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHETHER OR NOT YOU EXPECT TO ATTEND THE ANNUAL MEETING, PLEASE
COMPLETE, SIGN, DATE, AND RETURN THE ENCLOSED PROXY PROMPTLY IN THE ENCLOSED BUSINESS REPLY ENVELOPE. IF YOU ATTEND THE ANNUAL
MEETING YOU MAY, IF YOU WISH, REVOKE YOUR PROXY AND VOTE IN PERSON.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">Table
of Contents</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 90%; padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="width: 10%; padding-right: 0; padding-bottom: 0; padding-left: 0; text-decoration: underline; text-indent: 0in; text-align: right; border-bottom: Black 1pt solid"><U STYLE="text-decoration: none">Page</U></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">INFORMATION ABOUT THE ANNUAL MEETING</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">PROPOSAL&nbsp;I -- ELECTION OF DIRECTORS</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">PROPOSAL&nbsp;II &ndash; <FONT STYLE="text-transform: uppercase">ApprovAL OF form of indemnification agreement</FONT></TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">8</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">PROPOSAL&nbsp;III &ndash; RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">OTHER MATTERS</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in">ANNEX A</TD>
    <TD STYLE="padding-right: 0; padding-bottom: 0; padding-left: 0; text-indent: 0in; text-align: right">A-1</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGMA LABS, INC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>100 Cienega Street, Suite C&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Santa Fe, New Mexico 87501</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Annual Meeting of Stockholders to be
Held October 9, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PROXY STATEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Proxy Statement
is furnished to holders of the common stock, $0.001 par value per share, of Sigma Labs, Inc., a Nevada corporation, in connection
with the solicitation of proxies by our Board of Directors for use at our 2014 Annual Meeting of Stockholders to be held at 3900
Paseo del Sol, Santa Fe, New Mexico 87507, beginning at 10:00 A.M., local time, on Thursday, October 9, 2014, and at any adjournment
or postponement of the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Proxy Statement
and the accompanying proxy card are first being mailed to our stockholders on or about September 8, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">What
is the purpose of the Annual Meeting?</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the Annual Meeting,
stockholders will act upon the matters outlined in the attached Notice of Meeting and described in detail in this Proxy Statement,
which are (1) the election of directors, (2) the approval of the form of indemnification agreement between the Company and its
directors and officers, and (3) the ratification of our appointment of the Company&rsquo;s independent registered public accounting
firm. In addition, management will report on our performance during fiscal 2013 and respond to questions from stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">Who
is entitled to vote at the Annual Meeting?</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Only stockholders of
record at the close of business on August 25, 2014 will be entitled to notice of, and to vote at, the Annual Meeting or any adjournment
or postponement of the Annual Meeting. On August 25, 2014, there were 618,241,061 shares of our common stock issued and outstanding.
<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">What
are the voting rights of the holders of our common stock?</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Holders of our common
stock are entitled to one vote per share with respect to each of the matters to be presented at the Annual Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With regard to the
election of directors, the three nominees receiving the greatest number of votes cast will be elected provided a quorum is present.&nbsp;&nbsp;On
each matter properly presented and submitted to a vote at the Annual Meeting, each share will have one vote for shares represented
at the Annual Meeting (in person or by proxy) and entitled to vote. Shares represented by proxies that reflect abstentions or broker
non-votes (that is, shares held by a broker or nominee which are represented at the meeting, but with respect to which such broker
or nominee is not empowered to vote on a particular proposal) will be counted as shares that are present and entitled to vote for
purposes of determining the presence of a quorum. For purposes of determining the outcome of a proposal, shares represented by
such proxies will not be treated as affirmative votes. If the enclosed proxy is properly executed and returned to, and received
by, the Company prior to voting at the Annual Meeting, the shares represented thereby will be voted in accordance with the instructions
marked thereon. In the absence of specific voting instructions, the shares will be voted in accordance with the recommendations
of the Board (i.e., &ldquo;FOR&rdquo; (i) the nominees of the Board of Directors in the election of the three directors whose terms
of office will extend until the 2015 Annual Meeting of Stockholders and until their respective successors are duly elected and
qualified, (ii) the approval of the form of indemnification agreement between the Company and its directors and officers, and (iii)
the ratification of the re-appointment of Pritchett, Siler &amp; Hardy, P.C. as the Company&rsquo;s independent registered public
accounting firm for the fiscal year ending December 31, 2014). To approve the form of indemnification agreement, the affirmative
vote of a majority of our outstanding shares of common stock will be required. Assuming that a quorum is present, the affirmative
vote of a majority of the shares of common stock present or represented by proxy at the Annual Meeting and entitled to vote will
be required to ratify the appointment of the independent registered public accounting firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">What
are the Board&rsquo;s recommendations? </FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unless you give other
instructions on your proxy card, the person named as proxy holder on the proxy card will vote in accordance with the recommendations
of our Board of Directors. The recommendations of our Board of Directors are set forth together with the description of each proposal
in this Proxy Statement. In summary, our Board of Directors recommends a vote:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 37.45pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">&ldquo;FOR&rdquo; election of the directors named in this Proxy Statement (Proposal&nbsp;I); and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 37.45pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">&ldquo;FOR&rdquo; approval of the form of indemnification agreement between the Company and its
directors and officers (Proposal&nbsp;II).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 72pt"></TD><TD STYLE="width: 37.45pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">&ldquo;FOR&rdquo; ratification of the appointment of Pritchett, Siler &amp; Hardy, P.C. as our
independent registered public accounting firm for fiscal year 2014 (Proposal&nbsp;III).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">How
will the enclosed proxy card be voted, and may I revoke my voting instructions?</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the enclosed proxy
card is executed, returned in time and not revoked, the shares represented by the proxy card will be voted at the Annual Meeting
and at any adjournment or postponement of the Annual Meeting in accordance with the directions indicated on the proxy card. If
no directions are indicated, proxies will be voted (1) &ldquo;FOR&rdquo; election of the three directors named in this Proxy Statement
(Proposal&nbsp;I), (2) &quot;FOR&quot; approval of the form of indemnification agreement (Proposal&nbsp;II), and (3) &ldquo;FOR&rdquo;
ratification of the appointment of Pritchett, Siler &amp; Hardy, P.C. as our independent registered public accounting firm for
fiscal year 2014 (Proposal&nbsp;III). As to any other matters properly brought before the Annual Meeting or any adjournment or
postponement of the Annual Meeting, such proxies will be voted in the sole discretion of the proxy holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A stockholder who returns
a proxy card may revoke it at any time prior to its exercise at the Annual Meeting by (1)&nbsp;giving written notice of revocation
to our Corporate Secretary, (2)&nbsp;properly submitting to our Corporate Secretary a duly executed proxy bearing a later date,
or (3)&nbsp;appearing at the Annual Meeting and voting in person. All written notices of revocation of proxies should be addressed
as follows: Sigma Labs, Inc., 100 Cienega Street, Suite C, Santa Fe, New Mexico 87501, Attention: Corporate Secretary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">How
may I request multiple sets of proxy materials if two or more stockholders reside in my household?</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To minimize our expenses,
one Proxy Statement and 2013 Form 10-K Report may be delivered to two or more stockholders who share an address unless we have
received contrary instructions from one or more of the stockholders. We will deliver promptly upon written or oral request a separate
copy of the Proxy Statement and Form 10-K Report to a stockholder at a shared address to which a single copy of the Proxy Statement
and Form 10-K Report was delivered. Requests for additional copies of the Proxy Statement and Form 10-K Report, and requests that
in the future separate documents be sent to stockholders who share an address, should be directed by writing to Sigma Labs, Inc.,
100 Cienega Street, Suite C, Santa Fe, New Mexico 87501, Attention: Corporate Secretary, or by either calling Michael Thacker at
(505) 438-2576 or e-mailing the Company at info@sigmalabsinc.com.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">How
may I request a single set of proxy materials for my household?</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If you share an address
with another stockholder and have received multiple copies of our proxy materials, you may write, call or e-mail us at the contact
information set forth in the preceding paragraph to request delivery of a single copy of these materials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-style: normal">Important
Notice Regarding the Internet Availability of Proxy Materials for the Stockholders Meeting to be Held on October 9, 2014</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Proxy Statement, the accompanying
proxy card and our 2013 Form 10-K Report are also available on our website at <FONT STYLE="color: blue"><U>www.sigmalabsinc.com</U></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">PROPOSAL
I</FONT><BR>
<BR>
ELECTION OF DIRECTORS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is information
concerning the nominees for election as directors. We believe that each nominee will be able to serve as a director. In the event
that a nominee is unable to serve, the proxy holder will vote the proxies for such other nominee as he may determine. Each nominee
currently serves as a director of the Company. The term of office of each director will expire at next year&rsquo;s annual meeting
of stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nominees</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Mark Cola</I>, age
54, was appointed as Chief Executive Officer of the Company on September 20, 2012 and President, Chief Operating Officer and a
director of the Company in September 2010<I>.</I> From June 2006 through April 2010, Mr. Cola served as Director of Operations
for the Beyond6 Sigma Division of TMC Corporation.&nbsp; In addition, Mr. Cola has over 30 years of experience in the aerospace
and nuclear industries, including with Rockwell International, SPECO Division of Kelsey-Hayes Co., Westinghouse in the Naval Nuclear
Reactors Program, Houston Lighting &amp; Power, and within the NNSA Weapons Complex at Los Alamos National Laboratory at which
he held various technical and managerial positions including team leader and group leader of the welding and joining section as
well as an advanced manufacturing technology group, respectively. He has also worked as a Research Engineer at Edison Welding Institute
and for Thermadyne&rsquo;s Stoody Division, a leading manufacturer of wear-resistant materials.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At Beyond6 Sigma, Mr. Cola worked with a
wide range of clients ranging from aerospace to defense systems.&nbsp;&nbsp;His expertise is in manufacturing process development,
friction welding, light alloys such as titanium and aluminum, mechanical, physical and welding metallurgy, and nickel-based super-alloys
for harsh environments. Mr. Cola served as the Technical Co-Chairman for the inaugural National Nuclear Security Administration
Future Technologies Conference held in May 2004, and he is a principal reviewer for the American Welding Society&rsquo;s Welding
Journal. Mr. Cola earned a B.S. in Metallurgical Engineering and an M.S. in Welding Engineering from The Ohio State University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our board of directors believes that Mr.
Cola is qualified to serve as a member of the board because of Mr. Cola's extensive prior experience as a manager of a number of
engineering companies and his scientific and academic qualifications as well as his expertise in matters pertaining to the operation
of manufacturing and technology companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Tom O'Mara</I>, age 77, was appointed
as a director of Sigma Labs on October 31, 2013. Mr. O'Mara has over 45 years of financial and management experience. He has served
as President and as a director of many nationally prominent companies, such as Bell &amp; Howell, a provider of document processing,
microfilmers, scanners, and financial services, of which he held from 1976 until 1985 a number of positions, including Group President,
and he was responsible for the company's global audio-visual businesses and Optics Division. Mr. O&rsquo;Mara also held a position
at Bridge Products, Inc. where he served as President and COO from 1985 to 1987. Mr. O'Mara also is the founder and owner since
1992 of O'Mara Partners, a general management consulting company specializing in creating operational strategies to deal with change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. O'Mara' significant experience in management
and finance has led to the conclusion that he should serve as a director of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Michael Thacker,</I><B> </B>age 77,<B>
</B>was appointed as a director of Sigma Labs on May 4, 2012 and as Secretary on September 20, 2012. Mr. Thacker also serves as
a director and Secretary for Sumner Associates, a wholly-owned subsidiary of Sigma Labs. Mr. Thacker has over 40 years of experience
in marketing, sales, management, computer and earth science technology. Mr. Thacker&rsquo;s career includes employment by IBM,
the A.C. Nielson Co., and Dun and Bradstreet. Mr. Thacker graduated from Stanford, the Colorado School of Mines, and served as
a reserve officer in the U.S. Army/Artillery.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our board of directors
believes that Mr. Thacker is qualified to serve as a member of the board because of Mr. Thacker's extensive prior experience as
a director of technology companies and his scientific and academic qualifications.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Board of Directors
recommends that stockholders vote &quot;FOR&quot; the three nominees listed above for election as directors of the Company.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Meetings of the Board of Directors</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Board of Directors</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The property, affairs
and business of Sigma Labs, Inc. are conducted under the supervision and management of our Board of Directors, as called for under
the laws of Nevada and our Bylaws. Pursuant to our Bylaws, our Board of Directors may establish committees of one or more directors
from time-to-time, as it deems appropriate. Our common stock is quoted on the OTCQB under the symbol &ldquo;SGLB.&rdquo; The OTCQB
does not maintain any standards requiring us to establish or maintain an audit, nominating or compensation committee. As of September
3, 2014, our Board of Directors does not maintain any audit, nominating or compensation committee. However, our Board of Directors
has a standing finance committee, as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The OTCQB electronic
trading platform does not maintain any standards regarding the &ldquo;independence&rdquo; of the directors on the Company&rsquo;s
Board of Directors, and we are not otherwise subject to the requirements of any national securities exchange or an inter-dealer
quotation system with respect to the need to have a majority of our directors be independent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the absence of such
requirements, we have elected to use the definition for &ldquo;director independence&rdquo; under the NASDAQ stock market&rsquo;s
listing standards, which defines an &ldquo;independent director&rdquo; as &ldquo;a person other than an executive officer or employee
of us or our subsidiaries or any other individual having a relationship which, in the opinion of the Company's board of directors,
would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.&quot; The definition
further provides that, among others, employment of a director by us (or any parent or subsidiary of ours) at any time during the
past three years is considered a bar to independence regardless of the determination of our Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Board of Directors
has determined that, with the exception of Mr. Cola, an employee-director, all of our directors are &ldquo;independent&rdquo; under
the NASDAQ Stock Market&rsquo;s listing standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board of Directors
held six meetings during the 2013 fiscal year. Each director attended at least 75% of the aggregate of the total meetings of the
Board that were held during the portion of the 2013 fiscal year in which he served as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Finance Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 31, 2013, the Company established
a Finance Committee to advise and consult with our Board of Directors and management from time to time regarding prospective strategic
transactions, including financing transactions. The following individuals are members of the Finance Committee: Mark Cola and Tom
O'Mara (Chairman of the Finance Committee).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stockholder Communication with Board
Members</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Stockholders who wish
to communicate with our Board members may contact us at our principal executive office at 100 Cienega Street, Suite C, Santa Fe,
New Mexico 87501. Written communications specifically marked as a communication for our Board of Directors, or a particular director,
except those that are clearly marketing or soliciting materials, will be forwarded unopened to the Chairman of our Board, or to
the particular director to whom they are addressed, or presented to the full Board or the particular director at the next regularly
scheduled Board meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Board Members&rsquo; Attendance at
Annual Meetings</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each director is expected
to be present at the Annual Meeting of Stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beneficial Owners of More Than Five
Percent of Sigma Labs, Inc.'s Common Stock; Shares Held by Directors and Executive Officers</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table
sets forth certain information regarding the beneficial ownership of our common stock as of September 3, 2014 by (1)&nbsp;each
person who is known by us to own beneficially more than five percent of our outstanding common stock, (2)&nbsp;our named executive
officer and each of our directors, and (3)&nbsp;all current executive officers and directors of the Company as a group. As of September
3, 2014, there were<B> </B>618,241,061<B> </B>shares of our common stock issued and outstanding. An asterisk (*)&nbsp;denotes beneficial
ownership of less than 1%.<FONT STYLE="font-size: 10pt"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 59%; border-bottom: Black 1pt solid; padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Name and Address of Beneficial Owner (1)</FONT></TD>
    <TD STYLE="width: 2%; padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid; padding-right: 0; padding-left: 0; text-align: center"><FONT STYLE="font-size: 10pt">Shares Beneficially Owned (2)</FONT></TD>
    <TD STYLE="width: 2%; padding-right: 0; padding-left: 0; text-align: center; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 12%; border-bottom: Black 1pt solid; padding-right: 0; padding-left: 0; text-align: center"><FONT STYLE="font-size: 10pt">Percent </FONT><BR>
<FONT STYLE="font-size: 10pt">of Class</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; font-weight: bold; text-indent: 0"><FONT STYLE="font-size: 10pt">Directors/Named Executive Officers:</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Mark Cola</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center"><FONT STYLE="font-size: 10pt">34,016,000(3)</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center"><FONT STYLE="font-size: 10pt">5.50%</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-weight: normal">Tom O'Mara </FONT></P></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">500,000(4)</P></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">*</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">Michael Thacker</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">4,862,500</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">*</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><B>All Executive Officers and Directors as a group (4 persons)</B></FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center"><FONT STYLE="font-size: 10pt">39,628,500</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center"><FONT STYLE="font-size: 10pt">6.41%</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0"><B>5% or greater owners:</B></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0"><B>&nbsp;</B></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B> </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mark Cola</P></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><FONT STYLE="background-color: yellow"></FONT>34,016,000(3)</P></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;5.50%</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Rockville Asset Management Ltd.(5)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center">58,009,259<FONT STYLE="font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: center"><FONT STYLE="font-size: 10pt">9.38%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1) Unless otherwise indicated, the address of each person listed
is c/o Sigma Labs, Inc., 100 Cienega Street, Suite C, Santa Fe, New Mexico 87501.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2) For purposes of this table, shares are considered beneficially
owned if the person directly or indirectly has the sole or shared power to vote or direct the voting of the securities or the sole
or shared power to dispose of or direct the disposition of the securities. Shares are also considered beneficially owned if a person
has the right to acquire beneficial ownership of the shares within 60 days of September 3, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3) Shares shown are owned of record by The Mark &amp; Amanda
Cola Revocable Trust, U/A August 31, 2012. Of the shares shown, 2,000,000 are held by Mr. Cola's spouse.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4) Of the shares shown, 100,000 are currently unvested.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(5) The address of Rockville Asset Management Ltd. is RM 6A,
Unit K, Yihong Xuan, Zhujiang Di Jing, Yizhou Road in Guangzhou City, China, 510300.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(6) Of the shares shown, 14,259,259 represent shares underlying
an eighteen-month warrant issued by the Company on January 10, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Executive and Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the discretion of our Board of Directors,
each non-employee director may be paid such fees for his services as a director and be reimbursed for his reasonable expenses incurred
in the performance of his duties as director as our Board of Directors determines from time to time. Mark Cola, our President and
Chief Executive Officer, has entered into an &quot;at will&quot; unwritten employment arrangement with the Company. The Company
has no compensatory plans or arrangements whereby any executive officer would receive payments from the Company or a third party
upon his resignation, retirement or termination of employment, or from a change in control of the Company or a change in the officer&rsquo;s
responsibilities following a change in control. See further discussion of compensation to executive officers and directors under
Item 11 (&ldquo;Executive Compensation&rdquo;), Part III of our Annual Report on Form 10-K for the year ended December 31, 2013.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Equity Compensation Plan</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 9, 2011, the
Company's Board of Directors approved the Company's 2011 Equity Incentive Plan, which was approved on March 31, 2011 by holders
of at least a majority of the issued and outstanding shares of common stock of the Company.&nbsp; Pursuant to the 2011 Equity Incentive
Plan, the Company is authorized to grant options, grant or sell common stock subject to restrictions or without restrictions, and
grant stock appreciation rights to purchase up to 31,000,000 shares of common stock to its employees, officers, directors, consultants
and advisers. As of September 3, 2014, an aggregate of<B> </B>30,850,000 shares of the Company's common stock are issued and outstanding
pursuant to the 2011 Equity Incentive Plan.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 15, 2013,
the Company&rsquo;s Board of Directors approved the Company&rsquo;s 2013 Equity Incentive Plan. The 2013 Equity Inventive Plan
was approved by holders of at least a majority of the issued and outstanding shares of common stock of the Company on October 10,
2013. Pursuant to the Equity Plan, the Company is authorized to grant options, restricted stock and stock appreciation rights to
purchase up to 30,000,000 shares of common stock to its employees, officers, directors, consultants and advisors. As of September
3, 2014, an aggregate of 6,000,000 shares of the Company's common stock are issued and outstanding pursuant to the 2013 Equity
Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Code of Ethics</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Board of Directors
has adopted a code of ethics that applies to our officers, directors and employees (&ldquo;<B>Code of Ethics</B>&rdquo;). A copy
of our Code of Ethics will be furnished without charge to any person upon written request. Requests should be sent to: Secretary,
Sigma Labs, Inc., 100 Cienega Street, Suite C, Santa Fe, New Mexico 87501.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">PROPOSAL
II</FONT>&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">APPROVAL OF THE FORM
OF INDEMNIFICATION AGREEMENT<BR>
FOR THE COMPANY&rsquo;S DIRECTORS AND OFFICERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">General</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 29, 2014, the Board of Directors
approved a form of indemnification agreement to be entered into by the Company and its directors and officers, subject to stockholder
approval, and recommending the Company&rsquo;s stockholders approve such form of agreement. The Company&rsquo;s Bylaws, as amended,
provide that the Board of Directors may authorize the Company to enter into a contract with any person who is or was a director,
officer, employee or agent of the Company providing for indemnification rights equivalent to or greater than those provided for
in the Bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As permitted by the Bylaws, the form of
indemnification agreement provides certain mandatory indemnification rights to the director or officer party thereto to the fullest
extent permitted by the Nevada Revised Statutes, or the &ldquo;NRS.&rdquo; If approved, the Company intends to enter into the form
of indemnification agreement with each of its directors and officers, to provide for indemnification, and where appropriate, the
advancement of expenses to the directors, officers, employees or agents of the Company in the event they are made party to a proceeding
by virtue of their services for the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Reasons for the Form of Indemnification Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The increasing frequency of claims and litigation
directed against directors and officers of corporations has greatly expanded the risks facing the directors and officers of the
Company. The vagaries of public policy and the interpretation of ambiguous statutes, regulations and court opinions related to
such provisions are too uncertain to provide the Company&rsquo;s directors and officers with adequate or reliable advance knowledge
or guidance with respect to the legal risks and potential liabilities to which they may become personally exposed as a result of
performing their duties in good faith for the Company. The cost to a director or officer of defending against lawsuits resulting
from the performance of his or her duties in good faith for the Company, whether or not meritorious, is typically beyond their
financial resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The legal risks and potential liabilities,
and the very threat thereof, associated with lawsuits filed against the officers and directors of the Company, and the resultant
substantial time, expense, harassment and anxiety spent and endured in defending against such lawsuits, bears no reasonable or
logical relationship to the amount of compensation received by the Company&rsquo;s officers and directors, and thus poses a significant
deterrent to and results in increased reluctance on the part of experienced and capable individuals to serve as a director or officer
of the Company. The Company cannot determine whether or not its ability to attract suitable candidate has been adversely affected
by the risk of liability to such persons. Nonetheless, the board of directors believes that the form of indemnification agreement
will serve the best interests of the Company and its stockholders by strengthening the Company&rsquo;s ability to attract and retain
over time the services of knowledgeable and experienced persons to serve as directors and officer who, through their efforts and
expertise, can make a significant contribution to the success of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The form of indemnification agreement will
broaden the circumstances under which an indemnitee will be entitled to indemnification and will provide assurance to each indemnitee
that, as long as his or her actions meet the requirements of the indemnification agreement, he or she will be contractually entitled
to the indemnification. Otherwise, in many cases, the indemnitee would be entitled to indemnification only if the indemnification
was approved by the Board of Directors, the stockholders, independent legal counsel retained by the Company or a court in which
a proceeding is or was pending, action at its own discretion, at the time of indemnification is requested by the indemnitee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Possible Disadvantages</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the form of indemnification agreement
is adopted and entered into by the Company with its directors and officers, the stockholders will be surrendering certain significant
rights. Except for certain enumerated circumstances specified by the form of indemnification agreement (and discussed in greater
detail below under &ldquo;Exceptions&rdquo;), the Company will not be entitled to recover monetary damages from a director officer
as a result of negligence or breach of fiduciary duties. Additionally, the form of indemnification agreement could require the
Company to undertake considerable expense in meeting its obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This means, to the extent that the Company
is required to indemnify a director or officer against a judgment rendered in a derivative suit, the Company will not benefit from
such judgment. To the extent that the Company is required to indemnify a director or officer against judgment rendered in a third-party
claim, the Company will be required to pay damage awards for which a director or officer has been held personally liable. Additionally,
the Company would be required under the form of indemnification agreement to advance all reasonable expenses of a director or officer
incurred in connection with a legal proceeding, and would not be entitled to recover such advances unless it is ultimately determined
that the director or officer was not entitled to be indemnified for such expenses pursuant to the indemnification agreement. Any
amounts paid to indemnify a director or officer, if not covered by insurance, would come directly form the assets of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Because of uncertainties regarding the monetary
liability or entitlement to indemnity of the director or officer with respect to a given claim, the form of indemnification agreement
may reduce the likelihood of stockholders or management bringing a lawsuit against directors or officers on behalf of the Company
for breach of their duties to the Company and the stockholders, even though such an action, if successful, would benefit the Company
and the stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other Protections</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Directors and officers of the Company are
presently entitled to indemnification as expressly authorized under NRS Section 78.7502. NRS Section 78.7502 provides a detailed
statutory framework covering indemnification of an agent of a corporation who is threatened to be made a party to any legal proceeding
by reason of his or her actions on behalf of the corporation. The Company&rsquo;s Bylaws further broaden these rights by empowering
the Company to provide indemnification rights to its directors and officers, beyond those permissible in the statute. However,
the rights provided to a director by NRS Section 78.7502, or the Bylaws, are not as broad as would be provided by in the form of
indemnification agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Principal Terms of Form of Indemnification Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The form of indemnification agreement attempts
to provide the maximum indemnification allowed under Nevada law. The form of indemnification agreement will make mandatory indemnification
which is permitted by Nevada law in situations in which the indemnitee would otherwise be entitled to indemnification only if the
Board of Directors, the stockholders, independent legal counsel retained by the Company or a court in which an action was or is
pending makes a discretionary determination in a specific case to award such indemnification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following discussion summarizes the
material terms of the form of indemnification agreement and is qualified in its entirety by reference to the form of indemnification
agreement attached to this Proxy Statement as <I>Annex A</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The form of indemnification agreement provides
that the Company will be obligated to indemnify an indemnitee in the following circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Indemnification.</I> Under the form of
indemnification agreement, the Company agrees to hold harmless and indemnify indemnitee to the fullest extent authorized or permitted
by the provisions of Nevada law and the Bylaws, and otherwise hold harmless and indemnify indemnitee in connection with any threatened,
pending or completed action or proceeding (including an action by or in the right of the Company) to which indemnitee is made a
party as a result of the fact that the indemnitee was a director, officer, employee or agent of the Company. Indemnification would
include expenses (including attorney&rsquo;s fees), judgments, fines and amounts paid in settlement actually and reasonably incurred
by the indemnitee. The form of indemnification agreement however does go on to limit such indemnification in certain circumstances,
as discussed below under &ldquo;Exceptions.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Absent an agreement or success on the merits
of the case, an indemnitee would be entitled to indemnification only if it is determined in a specific case by the Board of Directors,
the stockholders, independent legal counsel retained by the Company, or a court in which an action is or was pending that the indemnitee
had met the applicable standard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Mandatory Payment of Expenses. </I>To
the extent the indemnitee has been successful on the merits or otherwise in defense of any action, NRS Section 78.7502 provides
that the indemnitee will be entitled to indemnification against expenses (including attorneys&rsquo; fees) actually and reasonably
incurred in connection with the matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Advancement of Expenses.</I> The form
of indemnification agreement provides that the Company must advance all reasonable expenses incurred by an indemnitee in connection
with any proceeding (but not any amounts actually paid in settlement of any proceeding). The indemnitee undertakes to repay the
amounts advanced only if, and to the extent that, it is ultimately determined that the indemnitee is not entitled to be indemnified
for those expense pursuant to the indemnification agreement. Absent an agreement, the Company would not be required, but would
be allowed to advance expenses upon receipt of such an undertaking by indemnitee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Procedure for Enforcement of Rights.
</I>The form of indemnification agreement provides, if an indemnitee is not paid any indemnification or advance, the indemnitee
may bring an action to recover the payments, and the Company shall advance indemnitee all of indemnitee&rsquo;s reasonable fees
and expenses in bringing and pursuing such action. Indemnitee is responsible for reimbursement to the Company of such advance in
the event that indemnitee is not successful in such action. To the extent allowed by law, the question of whether an indemnittee
is entitled to indemnification will be determined by a court, and not by the Company, the board of directors, independent legal
counsel or the stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Future Changes in Law.</I> The indemnification
agreement automatically incorporates future changes in the law that increase the protection available to the indemnitee. These
changes apply to the Company without future stockholder approval and, in the absence of liability insurance, may further impair
stockholders&rsquo; rights or subject the Company&rsquo;s assets to risk of loss in the event of large indemnification claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Exceptions. </I>The indemnification agreement
provides that the Company will not be obligated to (a) indemnify the indemnitee for expenses or liabilities of any type whatsoever
which have been paid directly to indemnitee by an insurance carrier under a policy of officers&rsquo; and directors&rsquo; liability
insurance, or otherwise by the Company other than pursuant to the indemnification agreement, (b) indemnify the indemnitee for expenses
and the payment of profits arising from the purchase and sale of the indemnities securities in violation of Section 16(b) of the
Securities Exchange Act of 1934, as amended, or any successor statute, (c) indemnify the indemnitee if final judgment is rendered
against indemnitee for the payment of dividends or other distributions to stockholders of the Company in violation of the provisions
of Subsection 2 of NRS Section 78.300, as amended, or (d) indemnify the indemnitee if indemnitee&rsquo;s conduct giving rise to
the claim for indemnification is finally adjudged by a court of competent jurisdiction to have been a breach of fiduciary duty
which involved intentional misconduct, fraud or a knowing violation of the law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indemnification of Liabilities under Federal Securities
Laws</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Insofar as indemnification
for liabilities for damages arising under the Securities Act of 1933, as amended, may be permitted to our directors, officers,
and controlling persons pursuant to the foregoing provision, or otherwise, the Company has been advised that in the opinion of
the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is,
therefore, unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Voting</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 78.140 of the NRS provides that
a contract between a corporation and one or more of its directors or officers is not void or voidable solely because of such relationship
if the fact of the director&rsquo;s or officer&rsquo;s interest in the transaction is known to stockholders and they approve the
contract in good faith by a majority vote of stockholders holding a majority of the voting power. The votes of the interested directors
or officers must be counted in any such vote of stockholders. Accordingly, the Company is seeking stockholder approval of the form
of indemnification agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If the form of indemnification agreement
is approved by the stockholders, it will not be void or voidable and the stockholders may not later assert a claim that the indemnification
agreements are invalid due to improper authorization; however, the stockholders may challenge the validity of the indemnification
agreement on other grounds. If the form of indemnification agreement is not approved by the stockholders, the Board of Directors
will reconsider the implementation of the indemnification agreements. If the indemnification agreements were implemented in the
absence of stockholders approval, the invalidity of the indemnification agreements could be asserted by the stockholders in such
any instance, the person asserting the validity of the indemnification agreement would bear the burden of proving that the indemnifications
agreement was just and reasonable to the Company at the time it was authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board of Directors Recommendation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">It should be noticed that the current directors
of the Company have a direct personal interest in the approval of the form of indemnification agreement and that there is therefore
an inherent conflict of interest in recommending that the stockholders approve the form of indemnification agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company&rsquo;s Board of Directors unanimously
approved the form of indemnification agreement and recommends that stockholders approve the form of indemnification agreement,
in the form attached hereto as <I>Annex A</I>, to provide for the indemnification of the Company&rsquo;s directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">PROPOSAL
III</FONT>I</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RATIFICATION OF APPOINTMENT OF INDEPENDENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">REGISTERED PUBLIC ACCOUNTING FIRM</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Accounting Fees</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Aggregate fees billed to us by Pritchett,
Siler &amp; Hardy, P.C. with respect to our 2013 and 2013 fiscal years were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2013</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2012</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt; text-align: left">Audit Fees &#9;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">40,291</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">74,681</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Audit-Related Fees&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Tax Fees&#9;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">--</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">All Other Fees&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">--</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">Total&#9;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">40,291</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">74,681</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the above table,
in accordance with the SEC&rsquo;s definitions and rules, &ldquo;audit fees&rdquo; are fees that Sigma Labs, Inc. paid for professional
services for the audit of our consolidated financial statements included in our Form&nbsp;10-K and for services that are normally
provided by the registered public accounting firm in connection with statutory and regulatory filings or engagements; &ldquo;audit-related
fees&rdquo; are fees for assurance and related services that are reasonably related to the performance of the audit or review of
our financial statements; and &ldquo;tax fees&rdquo; are fees for tax compliance, tax advice and tax planning.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stockholder Ratification of the Appointment
of Pritchett, Siler &amp; Hardy, P.C.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Board of Directors
has approved Pritchett, Siler &amp; Hardy, P.C. to continue as our independent registered public accounting firm to audit our consolidated
financial statements for the fiscal year ending December&nbsp;31, 2014. We are not required to seek stockholder approval for the
appointment of our independent registered public accounting firm. However, the Board of Directors believes it to be sound corporate
practice to seek such approval. If the appointment is not ratified, the Board of Directors will investigate the reasons for stockholder
rejection and will re-consider the appointment. Even if the selection is ratified, the Board of Directors in its discretion may
direct the appointment of a different independent registered public accounting firm at any time during the year if it determines
that such a change would be in the best interests of the Company and its stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board of Directors recommends that
stockholders vote &quot;FOR&quot; ratification of the appointment of Pritchett, Siler &amp; Hardy, P.C. as the Company&rsquo;s
independent registered public accounting firm for the fiscal year ending December 31, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">OTHER MATTERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Expenses of Solicitation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Sigma Labs, Inc. will
bear the cost of soliciting proxies in the accompanying form. In addition to the use of the mails, proxies may be solicited by
our directors, officers and other employees, personally or by telephone, facsimile or email. Such persons will not be compensated
separately for these solicitation activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Miscellaneous</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our management does
not intend to present any other items of business and is not aware of any matters other than those set forth in this Proxy Statement
that will be presented for action at the Annual Meeting. However, if any other matters properly come before the Annual Meeting,
the person named in the enclosed proxy intends to vote the shares of our common stock that they represent in accordance with their
best judgment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Annual Report</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A copy of our Annual
Report on Form&nbsp;10-K, without exhibits, for the year ended December 31, 2013 that we filed with the Securities and Exchange
Commission accompanies this Proxy Statement. Copies of the Form&nbsp;10-K exhibits are available without charge. Stockholders who
would like such copies should direct their requests in writing to: Sigma Labs, Inc., 100 Cienega Street, Suite C, Santa Fe, New
Mexico 87501, Attention: Corporate Secretary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="1" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 35%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 40%; padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">By Order of the Board of Directors</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">September 3, 2014</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">/s/ Mark Cola</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Mark Cola</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>President and Chief Executive Officer</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">ANNEX A</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><BR>
<B>Indemnification Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">THIS
INDEMNIFICATION AGREEMENT</FONT> (this &ldquo;<U>Agreement</U>&rdquo;) is made this ____ day of ______, 20__, between Sigma Labs,
Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo;), and _______________, an individual (&ldquo;<U>Indemnitee</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RECITALS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">WHEREAS</FONT>,
Indemnitee is either a member of the board of directors (&ldquo;<U>Board</U>&rdquo; or &ldquo;<U>Board of Directors</U>&rdquo;),
an officer, an employee or an agent of the Company, or more than one of such positions, or is serving at the request of the Company
as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, and in
such capacity or capacities is performing a valuable service for the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">WHEREAS</FONT>,
the Corporation has adopted bylaws (&ldquo;<U>Bylaws</U>&rdquo;) providing for the indemnification of the officers, directors,
employees and agents of the Company or individuals serving at the request of the Company as directors, officers, employees or agents
of another corporation, partnership, joint venture, trust or other enterprise (&ldquo;<U>Covered Persons</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">WHEREAS</FONT>,
the Bylaws and Nevada Revised Statute (&ldquo;<U>NRS</U>&rdquo;) Sections 78.751 and 78.7502 (the &ldquo;<U>State Statutes</U>&rdquo;)
specifically provide that they are not exclusive, and thereby contemplate that agreements may be entered into between the Company
and a Covered Person with respect to indemnification of such Covered Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">WHEREAS</FONT>,
Indemnitee is willing to serve, to continue to serve, and to take on additional service for and on behalf of the Company on the
condition that Indemnitee is indemnified as set forth in this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">WHEREAS</FONT>,
it is intended that Indemnitee shall be paid promptly by the Company all amounts necessary to effectuate in full the indemnity
provided in this Agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, to induce Indemnitee to continue
to serve as a director, officer, employee or agent, the Company has determined and agreed to enter into this Agreement with Indemnitee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-variant: small-caps">NOW,
THEREFORE</FONT>, in consideration of Indemnitee&rsquo;s continued service as a director or officer of the Company after the date
hereof, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company
and Indemnitee hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&#9;</FONT><B>Indemnification
of Indemnitee</B>. The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest extent authorized or permitted
by the provisions of the State Statutes, or any successor statute or amendment thereof, or any other statutory provisions authorizing
or permitting such indemnification that is adopted after the date of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&#9;</FONT><B>Additional
Indemnity</B>. Subject only to the exclusions set forth in Section 3 of this Agreement, the Company hereby further agrees to hold
harmless, indemnify and defend Indemnitee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.1&#9;</FONT>Against
any and all expenses (including fees for attorneys, accountants, private investigators, court and transcript costs, fees and expenses
of witnesses, travel expenses and all other like disbursements or expenses reasonably incurred by or for Indemnitee), judgments,
damages, fines, penalties and amounts paid in settlement (including all interest assessments and other charges paid or payable
in connection with or in respect of such judgment, fines, penalties, or amounts paid in settlement) actually and reasonably incurred
by or for Indemnitee in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (including an action by or in the right of the Company) (a &ldquo;<U>Covered Action</U>&rdquo;)
to which Indemnitee is made a party as a result of the fact that at the time of the act or omission which is the subject matter
of such Covered Action the Indemnitee was a director, officer, employee or agent of the Company, and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.2&#9;</FONT>Otherwise
to the fullest extent as may be provided to Indemnitee by the Company under the non-exclusivity provisions of Article VII of the
Bylaws of the Company and the State Statutes. The provisions of this Agreement are in addition to, and not in limitation of, the
provisions of such Article VII and the State Statutes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&#9;</FONT><B>Limitations
on Additional Indemnity</B>. No indemnity pursuant to Sections 1 and 2 of this Agreement shall be paid by the Company to the extent
that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.1&#9;</FONT>Payment
therefor is actually made to Indemnitee under a valid and collectible insurance policy or policies, except with respect to any
excess amount due to Indemnitee beyond the amount of payment to Indemnitee under such insurance policy or policies. Notwithstanding
the availability of such insurance policy or policies, Indemnitee also may claim indemnification from the Company pursuant to this
Agreement by assigning to the Company in writing any claims of Indemnitee under such insurance policy or policies to the extent
of the amount Indemnitee is paid by the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.2&#9;</FONT>Indemnitee
is indemnified by the Company otherwise than pursuant to this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.3&#9;</FONT>Final
judgment is rendered against Indemnitee for the payment of dividends or other distributions to stockholders of the Company in violation
of the provisions of Subsection 2 of Nevada Revised Statutes &sect; 78.300, as amended;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.4&#9;</FONT>Final
judgment is rendered against Indemnitee for an accounting of profits made from the purchase or sale by Indemnitee of securities
of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended (the &ldquo;<U>Act</U>&rdquo;),
or other similar provisions of any federal, state or local statutory law;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.5&#9;</FONT>Indemnitee&rsquo;s
conduct giving rise to the claim for indemnification is finally adjudged by a court of competent jurisdiction to have been a breach
of fiduciary duty which involved intentional misconduct, fraud or a knowing violation of the law; and/or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.6&#9;</FONT>Except
as otherwise provided in this Agreement, in connection with all or any part of a suit or other proceeding which is initiated or
maintained by or on behalf of Indemnitee, or any suit or other proceeding by Indemnitee against the Company or its directors, officers,
employees or other agents, unless (a) such indemnification is expressly required by Nevada law; (b) the suit or other proceeding
was expressly authorized by an official act of the Board of Directors of the Company or (c) such indemnification is provided by
the Company, in its sole discretion, pursuant to the powers vested in the Company under Nevada law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&#9;</FONT><B>Continuation
of Indemnity</B>. All agreements and obligations of the Company contained in this Agreement shall continue during the period Indemnitee
is a Covered Person, and shall continue thereafter for so long as Indemnitee shall be subject to any possible claim or threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact
that Indemnitee was a Covered Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&#9;</FONT><B>Advancement
of Expenses</B>. In the event Indemnitee incurs costs or expenses in connection with the defense of any such civil, criminal, administrative
or investigative action, suit or proceeding (including any costs or expenses incurred for any appeal therefor), the Company agrees
to pay such costs or expenses as they are incurred and in advance of the final disposition of the action, suit or proceeding within
30 calendar days of submission of bills or vouchers for such costs or expenses, <I>provided that</I> Indemnitee delivers to Company
prior to such payment a written undertaking by or on behalf of Indemnitee to repay the amount paid by the Company if it is ultimately
determined by a court of competent jurisdiction that Indemnitee is not entitled to be indemnified by the Company. By such undertaking,
Indemnitee agrees to reimburse the Company for all amounts paid by the Company in defending such civil, criminal, administrative
or investigative action, suit or proceeding against Indemnitee, including amounts paid in settlement, in the event and only to
the extent that it is ultimately determined by a court of competent jurisdiction that Indemnitee is not entitled to be indemnified
by the Company for such expenses under the provisions of the State Statute, Bylaws, this Agreement or otherwise. However, in the
case of an action brought against Indemnitee by the Company pursuant to the provisions of Section 16(b) of the Act, or other similar
provisions of any federal, state or local statutory law for an accounting of profits made from the purchase or sale by Indemnitee
of securities of the Company, Indemnitee&rsquo;s costs and expenses will not be advanced unless such advancement is approved by
the Board of Directors by a majority vote of a quorum consisting of directors who are not parties to the action, suit or proceeding,
or, if such a quorum cannot be obtained, by independent legal counsel in a written opinion that such indemnification is proper
in the circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&#9;</FONT><B>Presumptions
and Effect on Certain Proceedings</B>. Upon making a request for indemnification, Indemnitee shall be presumed to be entitled to
indemnification under this Agreement. The termination of any action, suit or proceeding by judgment, order, settlement, arbitration
award, conviction or by a plea of nolo contendere or its equivalent shall not affect this presumption except as may be provided
in Section 3 of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.&#9;</FONT><B>Notification
and Defense of Claim</B>. Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or proceeding,
if a request with respect thereto is to be made against the Company under this Agreement, Indemnitee shall notify the Company of
the commencement thereof; but the failure by Indemnitee to notify the Company will not relieve the Company of any liability which
it may have to Indemnitee under this Agreement or otherwise. With respect to any such action, suit or proceeding as to which Indemnitee
notifies the Company as required herein:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.1&#9;</FONT>The
Company shall be entitled to participate therein at its own expense; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.2&#9;</FONT>Except
as otherwise provided below, to the extent that it may wish, the Company, jointly with any other indemnifying party similarly notified,
shall be entitled to assume the defense of Indemnitee with counsel reasonably satisfactory to Indemnitee. After notice from the
Company to Indemnitee of its election to assume the defense of Indemnitee in the action, suit or proceeding, the Company will not
be liable to Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection
with the defense thereof, other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the
right to employ its own counsel in such action, suit or proceeding, but the fees and expenses of such counsel incurred after notice
from the Company of its assumption of the defense shall be at the sole expense of Indemnitee unless (a) the employment of counsel
by Indemnitee at the Company&rsquo;s expense has been authorized in writing by the Company; (b) Indemnitee shall have reasonably
concluded, upon advice of counsel experienced in such matters, that there may be a conflict of interest between the Company and
Indemnitee in the conduct of the defense of such action; or (c) the Company shall not in fact have employed counsel to assume the
defense of such action, suit or proceeding. In each such instance set forth in (a) through (c) of this Section 7.2, the reasonable
cost of Indemnitee&rsquo;s counsel shall be borne by the Company. Notwithstanding the foregoing, the Company shall not be entitled
to assume the defense of any action, suit or proceeding brought against Indemnitee by or on behalf of the Company or as to which
Indemnitee shall have reasonably made the conclusion provided in (b) above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.3&#9;</FONT>The
Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim
effected without the Company&rsquo;s prior written consent. The Company shall not settle any action or claim in any manner that
would impose any penalty or limitation on Indemnitee without Indemnitee&rsquo;s prior written consent. Neither the Company nor
Indemnitee will unreasonably withhold consent to any proposed settlement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.&#9;</FONT><B>Enforcement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.1&#9;</FONT>The
Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on the Company
hereby in order to induce Indemnitee to continue as a Covered Person, and acknowledges that Indemnitee is relying on this Agreement
in continuing in such capacity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.2&#9;</FONT>In
the event Indemnitee is required to bring any action to enforce his or her rights or to collect moneys due under this Agreement,
the Company shall advance Indemnitee all of Indemnitee&rsquo;s reasonable fees and expenses in bringing and pursuing such action.
Indemnitee shall be responsible for reimbursement to the Company of such advance in the event that Indemnitee is not successful
in such action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.&#9;</FONT><B>No
Employment Rights</B>. Nothing in this Agreement is intended to confer on Indemnitee any right to continue in the employ of the
Company for any period of time or to interfere with or otherwise restrict in any way the rights of the Company or of Indemnitee,
which rights are hereby expressly reserved by each, to terminate Indemnitee&rsquo;s service at any time and for any reason, with
or without cause, except as may be provided otherwise in an agreement, if any, between the Company and Indemnitee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.&#9;</FONT><B>Severability</B>.
Each of the provisions of this Agreement are separate and distinct and independent of one another, so that if any provision of
this Agreement shall be held by a court of competent jurisdiction to be invalid or unenforceable for any reason, such invalidity
or unenforceability shall not effect the validity or enforceability of the other provisions of this Agreement. If any provision
of this Agreement is so held to be invalid or unenforceable, the parties agree that the court making such determination shall have
the power to amend such provision or to delete specific words or phrases so that such provision shall then be enforceable to the
fullest extent permitted by law unless such change is contrary to the intent of the parties hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.&#9;</FONT><B>Subrogation</B>.
In the event of payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of the amount of such
payment to all rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary
or reasonable to secure such rights, including, without limitation, the execution of such documents necessary or reasonable to
enable the Company to effectively bring suit to enforce such rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&#9;</FONT><B>Governing
Law</B>. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada without resort
to conflict of laws principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&#9;</FONT><B>Binding
Effect; Amendment</B>. This Agreement shall be binding on the parties, their heirs, personal representatives, successors and assigns,
and shall inure to the benefit of Indemnitee, his or her heirs, personal representatives and assigns, and to the benefit of the
Company, its successors and assigns. No amendment, modification, termination or cancellation of this Agreement shall be effective
unless in a writing signed by both parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&#9;</FONT><B>Notices</B>.
All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
(a) when delivered by hand and receipted for by the party to whom said communication shall have been directed or (b), if mailed
by certified or registered mail with postage prepaid, on the third business day after the date on which said communication is
so mailed and addressed to the appropriate party at the following address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="1" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 30%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><I>If to Indemnitee:</I></FONT></TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 40%; padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">&nbsp;&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><I>If to the Company:</I></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Sigma Labs, Inc.</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">100 Cienega Street, Suite C</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Santa Fe, NM 87501</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Attention:&nbsp;&nbsp;President and Chief Executive Office</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A party may change its address by delivering
notice of such change in the manner set forth in this Section 14.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the parties hereto have
executed this Indemnification Agreement as of the date first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="1" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">&ldquo;Indemnitee&rdquo;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 10pt">&ldquo;Company&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 40%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 5%; padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in">&nbsp;</TD>
    <TD STYLE="width: 42%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.5in; text-indent: -0.5in"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

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