PureSafe Water Systems, Inc. 2017 Letter to Shareholders

NEW YORK, Jan. 19, 2017

TO OUR SHAREHOLDERS:

The year, 2016, was a year of significant progress for the company, in spite of the tremendous financial difficulties that we faced on a daily basis. We executed on several initiatives and continued to make great strides in delivering on the strategic initiatives that we have been working on for more than a year to improve our product and delivery of our technology in new and exciting business sectors. Overall, the company's competitive posture, future promise and foundation for growth are all stronger today than a year ago.

• We have rebranded our technology from the PureSafe First Response Water System (FRWS) to the PureSafe Water Purification Unit (WPU). This rebranding was significant as it positioned our technology as a viable product to penetrate multiple new target markets globally.

• We have redesigned and manufactured our Next Generation Water Purification Unit (WPU) which increased the WPU's efficiency, scalability, mobility, versatility and adaptable to an array of new target markets. We believe that the Next Generation WPU is poised to make a dramatic impact on any application that requires varying degrees of water purification.

• We have revamped our Leasing & Rental Programs with a higher level of flexibility to attract clients based on their immediate needs and timeframes.

• We have shifted our business model to penetrate multiple new target markets globally. This strategic initiative have identified clients, Earlier Adopters / Visionaries and collectively, we have analyzed the costs associated with their wastewater management requirements and offer an innovative way to cost effectively streamline their wastewater management practices.

• We have formalized a relationship with an equipment financing company to eliminate any objections in the initial purchase of our WPU.

As a result of these executed initiatives, we secured a rental opportunity with a highly visible industrial application; we closed a sale with our Next Generation WPU in the newly targeted Agribusiness market; we are forging a strategic relationship to penetrate the newly targeted Laundry Services market and our WPU is being considered to solve an array of water purification problems in Latin America.

The outlook for 2017 is good! With the success of the targeted markets that we have penetrated, we are building demand and have requests for several product demonstrations, which are scheduled for the first quarter of this year. Moreover, we believe that we can replicate this initial success as we penetrate additional new target markets. Despite the financial difficulties that we faced in 2016 we will, nonetheless, continue to meet each and every challenge with the same vigor, focus and relentless drive to ensure continue success. I truly couldn't be more excited and optimistic!

As always, thank you for your support,

Leslie J. Kessler
Chairman & Chief Executive Officer