Desert Control AS

Share Issue/Capital Change • Mar 1, 2023

Desert Control AS - Exercise of employee share options and share capital increase

Desert Control AS - Exercise of employee share options and share capital increase

Sandnes, Norway, 1 March 2023: Participants in Desert Control AS' ("Desert Control" or the "Company") share option incentive program have on 1 March 2023 exercised a total of 350,000 options at a strike price of NOK 0.003. Each option gives a right to subscribe one share in the Company. The Company has resolved to settle 110,000 options with cash consideration to allow the beneficiaries to settle taxes. After the tax settlement, the Company shall deliver a total of 240,000 shares to the option holders.

In connection with a termination of employment the Company holds 12,890 shares pursuant to exercise a claw-back right for the Company. The Company has resolved to use the 12,890 shares to deliver parts of the shares to be delivered in connection with the option exercise. After delivery of the 12,890 shares, the Company will not own any own shares. The remaining 227,110 options exercised will be settled by issuance of new shares in the Company.

Following the exercise, the Board of Directors, pursuant to the authorization granted by the Company's Annual General Meeting, has decided to increase the Company’s share capital by NOK 681.33 by issuing 227,110 new shares of par value NOK 0.003. Subsequent to the transaction, Desert Control's share capital will be NOK 123,980.367 divided into 41,326,789 shares, each share having a par value of NOK 0.003 and carrying one vote in the Company’s general meeting.

200,000 options are exercised by primary insider of the Company Ole Kristian Sivertsen, CEO, whereby 80,000 options are replaced by a cash bonus in order to settle tax as a result of the options exercise. After the tax settlement, 120,000 shares are subscribed by primary insider of the Company Ole Kristian Sivertsen, CEO. Primary insider notifications pursuant to the market abuse regulation article 19 are attached.

For further information, please contact:

Marianne Vika Bøe, Chief Financial Officer

+ 47 406 36 356

marianne.boe@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

This information is subject to the disclosure requirements pursuant to the market abuse regulation article 19 and 5-12 of the Norwegian Securities Trading Act.