QPRC Letter to Shareholders 2022

Quest Patent Research Corporation (OTCQB: QPRC) ("Quest" or "Company"), an intellectual property asset monetization company, today issued an open letter to shareholders providing an overview on the Company's operational achievements in 2021 and outlook for 2022.

Dear Shareholders,

I hope this letter finds you safe and healthy. The world certainly feels different than it did at the time of our last update. Perhaps fittingly, so does Quest.

We here at the – improved - Quest believe it’s easy to find positives in the past twelve months for Quest, its accomplishments in 2021 and prospects for the future.

Restructure & Capital Facility

Certainly, the $27 million Capital Facility took the Gold Medal for developments in 2021. In case you missed it or have only recently found your way to Quest, February 2021 saw the Company close a capital facility of up to $27.0 million in acquisition and operating funds.

Pulling down the Silver Medal coming in at a close second place was the simultaneous extinguishment of the Company’s legacy secured convertible notes.

Last but not least, the Bronze Medal goes to the appointment of an independent director to the Board of Directors and formal engagement of a team of seasoned advisors to assist with ongoing strategic, growth and corporate finance initiatives. A sequence of events that can only be described as transformational.

As detailed below, beginning with regaining our listing on the OTCQB Venture Market, we quickly got busy putting the Capital Facility to work on several acquisitions and ramped up licensing efforts on the existing portfolio.

Acquisitions in 2021

On the asset acquisition front, as described in our most recent Form 10-Q filed in November, by September 30, the Company had deployed more than $1 million of the capital facility, acquiring the Peregrin, Taasera, Mulitmodal and Soundstreak patent portfolios.

Additionally, the existing Taasera portfolio was supplemented by a portfolio of 22 United States patents and 2 foreign patents acquired from Daedalus Blue LLC.

Peregrin Licensing LLC

Acquired in February 2021 and assigned to our wholly owned subsidiary Peregrin Licensing LLC, this portfolio consists of eight issued United States patents which generally relate to systems and methods for processing inbound and outbound communications. An example being determining the location of a caller and routing the inbound communication to an entity in the caller’s location.

The product of the innovative efforts of Michael Morency, President and CEO of Peregrin Services Corp, and his co-inventors, the patented technology has applications in, among others, the financial services, credit counseling and healthcare industries.

Initial licensing programs were launched in July 2021 with Bank of America, Wells Fargo, Discover Financial and US Bank. We were pleased to announce that the matters were resolved shortly after launch.

Taasera Licensing LLC

In May 2021, our wholly owned subsidiary Taasera Licensing acquired the initial portfolio of seven issued United Stated patents. In September, Taasera acquired an additional 22 United States patents and 2 foreign patents from Daedalus Blue LLC. The original assignees of the portfolio include IBM, Internet Security Systems, Inc. and Fiberlink Communications Corporation.

An initial licensing program was launched with Trend Micro in November 2021. The case is Taasera Licensing LLC v. Trend Micro Incorporated EDTX-2-21-cv-00441.

Multimodal Media LLC

Acquired in October 2021, the Multimodal Media portfolio consists of ten issued United States patents and one pending application which generally relate to systems and methods of recording and sending interactive messages and voice messages using mobile devices, as well as completing a communication after an incomplete call.

The Multimodal portfolio was originally developed by Kirusa, Inc., a communications software development company founded in 2001 by Inderpal Mumick together with a handful of technocrats from AT&T Bell Labs with a dream of connecting people through the power of voice.

Initial licensing programs were launched in December with Guangdong OPPO Mobile Telecommunications Corp., Ltd. (EDTX 2-21-cv-00436) and ZTE Corporation (EDTX 2-21-cv-00437).

Soundstreak Texas LLC

In August we secured the Soundstreak portfolio via an acquisition of all of the issued and outstanding equity interests of Soundstreak Texas, LLC from Soundstreak, LLC. The Soundstreak portfolio consists of three issued United States patents and one pending application which generally relate to streaming data (including audio or video) while also storing higher quality versions of the same data locally.

These pioneering patents were invented by David Coleman, who formerly held management positions at CBS and NBC, and Daniel Caligor, entrepreneur and CEO of Soundstreak and have applications in the professional recording industry, digital audio/video industries, the drone/remote capture industry, the teleconferencing industry, and more.

Soundstreak launched initial licensing programs in September 2021 with Panasonic Corporation, Nikon Corporation, Olympus Corporation, Sony Group Corporation and Yamaha Corporation et. Al.

We were pleased that in January 2022, the Panasonic, Nikon, Olympus and Sony matters were resolved. The Yamaha action is currently stayed pending settlement.

Licensing Program Highlights

In addition to the licensing campaigns launched in the newly acquired portfolios, Quest resumed its monetization efforts on the existing portfolios.

Audio Messaging Inc. (AMI)

The Audio Messaging portfolio consists of five issued United States patents and one pending application which generally relate to systems and methods for associating an audio clip with an object.

In October 2021, licensing programs were launched with ZTE Corporation (EDTX 2-21-cv-00379), Guangdong OPPO Mobile Telecommunications Corp., Ltd. (EDTX 2-21-cv-00380) and Beijing Xiaomi Mobile Software Co., Ltd. (EDTX-2-21-cv-00381).

CXT Systems Inc.

CXT initiated five licensing programs in March 2021 with The Sherwin-Williams Company, Advanced Auto Parts, Inc., Costco Wholesale Corporation, IKEA North America Services, LLC and VF Corporation.

These actions were resolved via licensing agreement with the defendants’ vendor, HCL Technologies Limited and HCL America.

MRED Inc.

MRED initiated eight licensing programs in 2021. Actions with Nintendo Co., Ltd., ASRock Inc., Mitsubishi Electric Corporation, Micro-Star International Co. Ltd., Giga-Byte Technology Co., Ltd. and Biostar Microtech International Corp. have been resolved.

Cases against Xiaomi Corporation et al (EDTX 2-21-cv-00077) and OnePlus Technology Shenshen Co., Ltd. remain pending (EDTX 2-21-cv-00297) remain pending.

Quest’s Strategic Plan

Our strategy remains deeply rooted in our philosophy that intellectual property is an esoteric, mispriced and inefficient asset class which is uncorrelated to the broader market and represents a compelling opportunity for companies and their shareholders.

With a proven ability to identify valuable assets and a stable of best-in-class counsel and experts to engage, we think Quest is well positioned for the opportunities ahead.

Our focus continues to be delivering long-term shareholder value. As one of the largest shareholders, I strongly believe value results from building a large, diversified asset base, and engaging those assets in strategically structured licensing programs.

Long-term shareholder value is not dependent on any one portfolio, patent, case or defendant. Rather than binary results of singular litigation opportunities, consistent engagement across a robust, diversified and growing portfolio of assets is the fundamental objective we must continue to pursue.

I am confident that Quest is well positioned to leverage the unique opportunities before us and are excited for the year ahead.

Sincerely,

Jon Scahill

President & CEO

Statements made in this post include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

QPRC Letter to Shareholders

Dear Shareholders,

I hope this letter finds you safe, healthy and abiding by the recommendations of our brave healthcare professionals to help mitigate the spread of the COVID-19 virus. The world certainly feels dramatically different than it did at the time of our last update. However, amidst the upheaval, our team has remained focused on executing our strategy. Our accomplishments in 2019 have laid the foundation for a very busy remainder of 2020.

Our strategy is deeply rooted in our philosophy that patents remain a mispriced asset class which is uncorrelated to the broader market and represent a compelling opportunity for companies with expertise such as ours. With a proven ability to identify valuable assets and a stable of best in class counsel and experts to engage them with; we believe Quest is conditioned with regard to the fundamental opportunities ahead.

2019 Operational Highlights:

• 14 matters resolved, generating more than $4 million dollars in revenue.

• 9 of the 16 matters active as of December 31, 2019 were either dismissed or stayed pending final settlement agreement as of the end of Q1.

• 7 active matters with 5 trials docketed for 2020 with additional programs staged for launch.

• 68 patent assets added to the portfolio via the M-Red acquisition.

• Uplist to the OTCQB Venture Market in an effort to provide additional transparency, value and liquidity to shareholders.

Our focus continues to be delivering long-term shareholder value. As one of the largest shareholders, I strongly believe value results from building a large, diversified asset base, and engaging those assets in strategically structured licensing programs. Long-term shareholder value is not dependent on any one portfolio, patent, case or defendant. We are building a quality portfolio of assets that can provide a consistent revenue stream, as opposed to singular litigation opportunities. We intend to accomplish that by seeking the best assets, partners, structures and strategies. A defendant in a patent infringement litigation has 27 patent defenses, fail in overcoming any one of them, and its game over. We believe the antidote to that type of systematic risk is diligence, diversification and dispassionate decision-making.

Strategic Growth Plan:

• Evaluate every opportunity to expand and further diversify our portfolio;

• Trust our analytically driven diligence process to identify targets for addition to a diversified portfolio of high quality assets;

• Continue to explore strategic partnerships and management additions to augment our sourcing, acquisition and investor communication capabilities;

• Engage best in class counsel and experts in a manner that shares risk and align interests while maximizing our economics – note that full contingency does not make sense for every firm or every case, especially complex technology which bring substantial out of pocket cost;

• Scale our operations through the launch of multiple structured licensing programs across multiple portfolios, resulting in a broadly diversified portfolio of licensing investments and programs;

• Maintain our commitment to a data driven, analytic, dispassionate and commercially minded approach to strategic licensing program management.

Management strives to communicate as much information as possible. However, aside from the publicly available information filed with the Court, significant aspects of the litigation process are strictly confidential. Furthermore, much of what is available and important can be difficult to identify and interpret. The result is that, what may appear to be a binary outcome driven business, is really a business driven by our ability to anticipate, assimilate and adapt to the ever shifting landscape of each litigation.

Ultimately, we work with counsel to ensure compliance, be as transparent as possible and not undermine our monetization strategy. We welcome shareholder feedback as we continue to seek to strike the appropriate balance.

I am confident that we are well positioned to leverage the unique opportunities before us and are excited for the year ahead.

Sincerely,

Jon Scahill

President & CEO

Statements made in this post include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.