Operational Update
Desert Control Group••

Desert Control AS
Desert Control Middle East LLC

Stavanger – Abu Dhabi – DubaiDesert Control Group – Operational Update(non-regulatory corporate release)
Stavanger, Norway, 29 June 2021 – Desert Control AS (DSRT) today announced its operational
update for the second quarter of 2021. Progress is in-line with main objectives presented
during the Oslo Stock Exchange Euronext Growth IPO launch, 14 April 2021. Desert Control isan Agri-Tech company specialized in reclaiming degraded land, turning desert sand into fertile
soil, and reducing water consumption for agriculture and green landscapes.

During the second quarter Desert Control achieved several milestones (described through thefollowing pages) that reflect focused execution including:• First commercial contract signed – delivery expected
to be completed by mid-October 2021
• Signed memorandum of understanding for strategic
partnership with Mawarid Holding Investment LLC
with objective to accelerate operational deployment• Strong performance of other pre-commercial pilots
exceeding KPI’s for water savings• Second-generation LNC mobile factory prototype
expected to perform close to the 15,000 l/h target,
in-line with announced production cluster objectives• Expect manufacturing of additional LNC production units
to start in Q3 2021, to complete first cluster (1 cluster = 4 units)• Strengthening organization to meet the growth ambitions for second half 2021
• Webcast presentation of Operational Update 30.06.2021, 10.00 CET (details on page 6)

An update from the CEO, Ole Kristian Sivertsen: Second Quarter
Our second quarter of 2021 kicked off with the successful IPO on April 14th after having
raised NOK 200 million to fund the company’s growth and development plan. We welcome allshareholders joining our journey and noted 1,149 investors in the DSRT stock by June 15th.
First commercial contract
On June 8th, Desert Control signed its first commercial contract with the Mawarid Group in
Abu Dhabi, United Arab Emirates. The first part of the agreement is a paid implementationof Liquid Natural Clay (LNC) for a variety of areas that furtherwill serve as a pilot initiative for a potential future strategic
partnership to accelerate regional deployment of LNC.
The project includes LNC application for agriculture
initiatives including greenhouses and open-field
cultivation of crops to investigate how LNC may
support national UAE food-security initiatives.
Further, LNC will be deployed within forestry, bothfor validating more sustainable methods for theplanting of trees, and to determine potential watersavings for maintaining existing trees and forests.
First phase of this project is expected to be finalized by
mid-October 2021. The paid implementation of LNC for
this initial stage is valued at USD 375,000 for Desert Control.
Desert Control Operational Update | 2About Mawarid
Mawarid Holding Investment LLC is a reputable holding company with wide experience inmany domains, including but not limited to, agricultural operations and nature conservation in
the United Arab Emirates (UAE) and across the Middle East and North Africa (MENA) region.
Mawarid has dedicated subsidiaries which core business are of agricultural nature such as
Barari Natural Resources, Mawarid Services and Mawarid Nurseries. Mawarid is one of theleaders in the field of agriculture and landscaping, as well as the conservation of nature andbiodiversity in the UAE. Mawarid manage 438 forest and nature reserves in Abu Dhabi
covering more than 200,000 hectares of land, with 13 million forest trees and above 400,000
date palms. Mawarid is an integral partner for executing initiatives to preserve naturalresources, such as water, whilst promoting the national food-security strategy in the UAE.
It’s worth mentioning that Mawarid employs over 11,000 staff dedicated to related industries
and own more than 3,000 vehicles, specialty equipment and machinery for their forestry andagriculture operations, much of which may be directly applicable for LNC deployment.
MOU for Strategic Partnership between Mawarid and Desert Control
The second part of the agreement with Mawarid
is a memorandum of understanding with the intent
to establish a strategic partnership for large scale
operational deployment of LNC in the UAE.
Desert Control will in such a partnership, remain
the owner of its intellectual property and continue
the development and production of LNC, while thepartnership – Desert Control and Mawarid –collectively will develop the go-to-market channel
and establish a shared entity that will specialize inapplication solutions to provide LNC deployment
for agriculture, forestry, ecosystem restoration andnature conservation in the United Arab Emirates.
Desert Control has a global market for LNC, and,
under the MOU and subject to the final terms of
the partnership, Mawarid is granted exclusive rights
for the segments in UAE with a potential to expand
the relationship further, with a priority partnershipfor areas in other jurisdictions across the Middle
East and North Africa (MENA). Any other existingand ongoing Desert Control pilots, commercial
projects, and/or agreements will be honored, andwill not be negatively affected by this partnership.
Based on a successful pilot and the establishmentof partnership with Mawarid, this may accelerate
Desert Control’s business model from a direct B2B(business to business) to an in-direct sales- anddistribution structure where the partner takes on
all responsibility for the last-mile delivery tocustomers. This will enable Desert Control to focus
fully on the production of LNC alongside R&D andstrategic business development. This could, in turn,accelerate LNC deployment in the MENA region andfurther serve as a model for global expansion.
Desert Control Operational Update | 3

Strong Performance of other Pre-Commercial Pilots
Taking all Covid-19 precautions, including hazmat suits
in-spite of the heat, the team successfully completed
LNC treatment for a pilot for a high-end VIP property
in Abu Dhabi. The pilot objective was to demonstrateability to achieve 25% water savings. The results camein with strong performance of above 35% savings.
The pilot was conducted on areas less than 1,000 m2of the more than 200-hectare property. During Q3 theteam aims to continue commercial negotiations for thecontract to deploy LNC for the remaining property.
Other pilots such as the In5 Tech Garden of Tecom Groupand Dubai Holding are also expected to progress onwards
to commercial negotiations and planning during the second half.
R&D Update: Second-Generation LNC Mobile Factory Prototype
As announced in our IPO presentation, the production capacity target for per LNC production
unit (mobile factories) is 15,000 liters/hour (60 cubic/hour for a 4-unit production cluster).
The first-generation prototype achieved some 6,000 liters/hour, and we mentioned expecting
to close the gap with the second-generation unit during June 2021.
Core engineering and build of thesecond-generation prototype iscomplete, and the unit is underfinal stages of testing.
June 27th the unit was operating
at 14,300 liters/hour, and whilst
some more testing, calibration,and quality assurance remains
ahead of final factory acceptancetest (FAT), we remain positive of
the outlook to successfully close
the gap on production capacity
per unit based on these results.
After final FAT and an operational
test period in the field, the next
batch of units will move forward to manufacturing. Based on this progress it is expected tofinalize the first complete production-ready cluster by the 4th quarter as previously announced.
Other R&D Achievements
During Q2-2021 the first prototype for injection of LNC into the ground for green landscapes,
parks, sports fields, and turf areas was completed. The prototype is currently on its way to theUnited Arab Emirates, expected to reach Dubai during July to start initial field testing.
Further, extensive R&D and testing for deployment of LNC through dripirrigation systems have been conducted throughout the quarter. Specificmethodologies and protocols are being developed for various scenariosof application. The results from our in-house lab-environment are positive;
showing consistent distribution of LNC throughout the soil layers down todepths as far as 60 centimeters. During the second half of 2021 testing
will be extended to the field for both landscaping and agriculture use.
Desert Control Operational Update | 4

Organizational growth to meet future ambitions
Recruitment and hiring activities are initiated with the objective to grow the team with 20
new employees. 5 people are expected to join Desert Control AS in Norway, primarily tostrengthen R&D. For Desert Control Middle East LLC in Abu Dhabi and Dubai; 15 people areexpected to join the team during the third quarter, with a mix of technical and operational
resources. The UAE team will continue growing throughout the year. We will add staff for theoperation of a growing number of LNC production units, and team members to supportdeliveries related to the Mawarid agreement and other potential commercial opportunities.
In May we further secured a 1,000 m2
extension of warehouse and offices for
our Abu Dhabi facility to support thegrowing activity in the UAE.
Further, a branch office of Desert
Control Middle East LLC was establishedin Dubai, and we opened an office inArenco Towers, Dubai Media City.
Abu Dhabi is our headquarter for theUAE, operational hub, and center of
excellence for Climate-Smart Agriculture
for the Middle East. Dubai is our maincommercial office and hub for the UAE
landscaping and greenery segment.
Strengthening UAE leadership
We are excited to welcome Moamen M.M. Younis, joining our team as
Director of Operations for Desert Control Middle East LLC.
Moamen is a growth-oriented professional with 18 years ofexperience leading business operations, resource optimization,
project management, procurement, and executive
management in both public and private sector.
With his extensive network across the UAE and demonstrated
expertise from implementing effective strategies to streamline
operational activities to optimize overall profitability, he will be agreat addition to the Desert Control team.
USA: Validation of LNC for American soil
As previously announced, the validation initiatives with universities in Arizona and California
was postponed due to Covid-19 travel restrictions. Once circumstances allow for safely
bringing personnel and equipment from Norway to the US, these activities will resume.
Green Award for Innovation
Desert Control was announced winner of the innovation category of the Green Awards at theGreentech Festival. The recognition is given for the technology innovation LNC and thecompany’s efforts to stop and reverse desertification and soil degradation.
DSRT: Reporting ScheduleFinancial results for the first half of 2021 will be presented September 3rd. Desert Control has
published the financial calendar for 2021 with bi-annual reporting and decided moving toquarterly reporting from Q1-2022. We will therefore also issue an operational update later inthe fourth quarter (Q4 2021).
Desert Control Operational Update | 5

Webcast Presentation 30.06.2021: Desert Control Operational Update Q2 2021
Arctic Securities is hosting an online presentation Wednesday, June 30, 2021, at 10:00(10.00 AM) Central European Time (Oslo). To register contact: events@arctic.com.
After the presentation, there will be a moderated question and answers session. Questions tothe company on the Operational Update can also be submitted to Arctic Events in advance.
Cautionary note(disclaimer related to forward-looking statements)

This release contains forward-looking information and statements relating to the business,
performance, and items that may be interpreted to impact the results of Desert Control
and/or the industry and markets in which Desert Control operates.
Forward-looking statements are statements that are not historical facts and may be identified
by words such as "aims", "anticipates", "believes", "estimates", "expects", "foresees","intends", "plans", "predicts", "projects", "targets", and similar expressions. Such forwardlooking statements are based on current expectations, estimates and projections, reflectcurrent views with respect to future events, and are subject to risks, uncertainties, andassumptions, and may be subject to change without notice.
Forward-looking statements are not guaranteeing any future performance, and risks,
uncertainties and other important factors could cause the actual business, performance,
results or the industry and markets in which Desert Control operates in to differ materiallyfrom the statements expressed or implied in this release by such forward-looking statements.
No representation is made that any of these forward-looking statements or forecasts willcome to pass or that any forecasted performance or results will be achieved, and you are
cautioned not to place any undue reliance on any forward-looking statements.
The update covers certain reports on current status of R&D, field trials, and pilots. Results arepresented to the best of knowledge based on current findings;
Second-generation prototype LNC production unit demonstrated 14,300 liters/hour capacity
during test operations on June 27th, 2021, and although the company is positive to reach the15,000 liter/hour target with this technology platform, it is emphasized that more testingremains including assessment of output quality and running the system in its field operational
environment. Regarding the mentioned precision inject application (PIA) prototype, it isemphasized that this is the first prototype of a novel solution where no comparable
technologies exist in the market. It has proven a more comprehensive R&D undertaking todevelop the prototype, and testing remains. The PIA unit will undergo substantial field trials
once arriving in the UAE. Further the mentioned results related to distribution of LNC throughdrip-irrigation systems shows positive results in internal lab-environment, still it is emphasizedthat results in real-world environment within agriculture and landscaping may differ, and fieldtrials will be required to determine no risk or harm to irrigation systems and final feasibility.
No representation is made that forecasted results and performance will be achieved.
For more information, please contact:
Ole Kristian Sivertsen, Chief Executive Officer
Email: oks@desertcontrol.com
Tel: NO +47 957 77 777
Tel: UAE +971 52 521 7049
Desert Control Operational Update | 6

About Desert Control AS
Agriculture and food production consume more than 70% of all available freshwater. When
topsoil degrades, water consumption increases further as it permeates through sandy soils
like a sieve. Simultaneously, population growth drives the need for more food over the next
40 years than was produced in the last 500 years, putting even more pressure on scarce
resources such as water. This is the problem Desert Control is determined to solve. There aretremendous growth opportunities in a market that is growing rapidly. Annually, 12 million
hectares of fertile land perish to desertification.
Desert Control is a climate technology company specialized in reclaiming degraded soil andturning desert sand into fertile soil. The patented product LNC (Liquid Natural Clay) is a liquidclay compound that enables sand and degraded soil to retain water and nutrients. LNC thusincreases crop yields, while consumption of water and fertilizer decreases by up to 50%.

Operational Update – Desert Control Group

The Board of Directors
Desert Control AS
Sandnes, Norway, 29 June 2021

Desert Control Operational Update | 7

Investors
https://www.desertcontrol.com/investors

Desert Control Group••

Desert Control AS
Desert Control Middle East LLC

Stavanger – Abu Dhabi – Dubai