Desert Control AS

Share Issue/Capital Change • Aug 1, 2023

Desert Control Completes Private Placement and Publishes FAQ Document on Transition to Licensed Operator Model for the Middle East

Desert Control Completes Private Placement and Publishes FAQ Document on Transition to Licensed Operator Model for the Middle East

Sandnes, Norway, 1 August 2023 – Desert Control (DSRT) (the "Company") completes the private placement announced on 3 July 2023, securing an investment of NOK 10 million from Holistic Earth Advanced Regeneration Technologies SA (H-EART). The private placement is conducted through the issuance of 1 million new DSRT shares at NOK 10 per share. The investment by H-EART marks a strategic anchoring of the partnership where H-EART enters as a licensed operator for the production, sales, and delivery of Liquid Natural Clay (LNC) in the Kingdom of Saudi Arabia (KSA).

Related to the transition to the licensed operator model for the Middle East, Desert Control further publishes a Frequently Asked Questions (FAQ) document providing detailed insights into Desert Control's strategic initiative and objectives of the new business model. The FAQ document is attached to this message and is published on the Company's website.

For further inquiries, please contact:

Ole Kristian Sivertsen

President and Group CEO, Desert Control

Email: oks@desertcontrol.com

About Desert Control:

Desert Control specializes in climate-smart AgTech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay (LNC) restores and enhances soil ecosystems to reduce water usage and improve the efficiency of fertilizers and natural resources for agriculture, forests, and green landscapes. LNC enables sandy and arid soil to retain water and nutrients, thus increasing crop yields, plant health, and ecosystem resilience while preserving water and natural resources by up to 50%.

For more about Desert Control, visit https://www.desertcontrol.com

Important notice:

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Following the private placement and issuance of shares to H HEART, Desert Control's share capital will be NOK 126,980.367 divided into 42,326,789 shares, each share having a par value of NOK 0.003 and carrying one vote in the Company's general meeting.

The directed share issue towards H-EART represents a deviation from the shareholders' pre-emptive right to subscribe for shares in the Company. The directed share issue is carried out as a private placement to secure H-EART as a long-term strategic shareholder in Desert Control and to facilitate the opportunity to raise capital without a discount. On this basis, the Board has considered the transaction structure and the investment to be in the common interest of the Company and its shareholders.

Disclaimer related to forward-looking statements:

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "strategy", "intends", "estimate", "will", "may", "continue", "should" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond their control. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in public sector investment levels, changes in the general economic, political and market conditions in the markets in which the Company operates, the Company's ability to attract, retain and motivate qualified personnel, changes in the Company's ability to engage in commercially acceptable acquisitions and strategic investments, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not make any guarantee that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this announcement.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.

This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities of the Company.