SPECTRAL CAPITAL Corp 10-K cybersecurity disclosure (Item 1C), fiscal 2025

Item

1C. CYBERSECURITY

Spectral

maintains a comprehensive cybersecurity risk management program designed to identify, protect against, detect, respond to, and mitigate

reasonably foreseeable cybersecurity threats to the Company's operations. This program incorporates internal controls and safeguards

aligned with industry standards - including access controls, data encryption, network monitoring, and employee cybersecurity training

- to protect the confidentiality, integrity, and availability of the Company's information assets. We utilize a range of security

tools and procedures to continuously monitor our systems and prevent unauthorized access or data loss. In addition, the Company has implemented

a formal incident response plan that outlines procedures for promptly addressing and containing cybersecurity incidents. This incident

response plan is tested and updated periodically (e.g., through tabletop simulations and third-party penetration testing) to ensure preparedness

and effective remediation of any identified security events.

Oversight

and Governance: Cybersecurity risk management is overseen at the highest levels of the Company's leadership. The Board of Directors,

through its Audit Committee, is responsible for monitoring the Company's cybersecurity risks and related risk management practices.

The Audit Committee receives regular reports from management on cybersecurity matters, including updates on risk assessments, security

improvements, and any relevant threat developments or incidents. Senior management has designated personnel (including information technology

and security officers) to manage day-to-day cybersecurity operations and to implement cybersecurity policies, controls, and procedures.

These personnel regularly brief the Audit Committee and the Board on the status of the Company's cybersecurity posture and risk

mitigation activities. The Company also provides periodic cybersecurity training to all employees to reinforce security awareness and

protocol compliance as part of its internal control framework.

Risk

Management Processes: Spectral conducts regular assessments of cybersecurity vulnerabilities and emerging threats across its systems

and products. Our risk management approach draws on widely accepted frameworks (such as the NIST Cybersecurity Framework) to prioritize

risks and guide the implementation of appropriate security measures. We engage independent security experts to perform evaluations of

our cybersecurity program - including periodic third-party security audits and penetration testing - in order to test the effectiveness

of our safeguards and to identify areas for improvement. Additionally, the Company maintains a third-party risk management program that

assesses and monitors the cybersecurity practices of critical vendors and partners, helping ensure that our service providers uphold

robust data security standards. Findings from these ongoing risk assessments and tests are used to continually enhance our internal controls

and cybersecurity defenses.

As

of the date of this Annual Report, the Company has not experienced any known cybersecurity incidents that had a material effect on our

business, operations, or financial condition. During the reporting period, no cybersecurity breach or attack has been identified that

resulted in significant data loss, financial costs, or operational disruptions for Spectral. Nevertheless, cybersecurity threats continue

to evolve rapidly, and no security program can guarantee absolute protection against all attacks. A significant cybersecurity incident

in the future could potentially cause substantial harm to the Company, including business interruptions, remediation costs, reputational

damage, loss of sensitive information, or legal and regulatory consequences. Spectral remains proactive in updating and strengthening

its cybersecurity measures in light of new threats and technological changes. For further information on the risks associated with cybersecurity

and data protection, refer to the "Risk Factors" section of this Annual Report (Item 1A) which discusses these risks in more

detail.