Desert Control AS

Interim / Quarterly Report • Sep 3, 2021

DSRT: H1 2021 Report and Financial Results | Desert Control AS

DSRT: H1 2021 Report and Financial Results | Desert Control AS

DSRT: H1 2021 Report and Financial Results | Desert Control AS

Stavanger, Norway, 3 September 2021 – Desert Control AS (DSRT) today announced its H1 Report and Financial Results for the fiscal first half of 2021, ending 30 June 2021.

Desert Control is a company specialized in climate-smart agri-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay (LNC) restores and protects soil, reducing water usage for agriculture, forests, and green landscapes.

Desert Control continued focused execution to build the foundation for operational scale-up in the first half of 2021, achieving several milestones, including:

- Raised NOK 200M and completed successful IPO

- Was awarded first commercial contract valued at NOK 3.4M

- Entered MoU for strategic partnership with Abu Dhabi, UAE based agriculture and nature conservation giant Mawarid Holding and Barari Natural Resources

- Exceeded water-saving KPI’s for pilot projects

- Established subsidiary in Abu Dhabi, UAE

- Won global award for green innovation

- Increased LNC production capacity by ≈15,000 l/h (launch of 2nd generation prototype)

- Was awarded R&D grant of NOK 11.9M by Innovation Norway

- Achieved traction to increase LNC production capacity in 2H by anticipated ≈150,000 l/h, reaching total capacity of ≈180,000 l/h by end of 2021

- Accelerated front-loading of organizational resources for the second half of 2021 to build operational capability to deliver projects and utilize the growing LNC production capacity

- Planning US subsidiary in H2 2021 for activities in California, Arizona, and Nevada

- Desert Control maintains a solid net cash position of NOK 204M as of 30 June 2021, and EBITDA was NOK -8.2M, primarily reflecting the increased activity level compared to 2020

Financial Highlights per 30 June 2021

(30 June 2020 in brackets)

- Net proceeds from capital injection: NOK 190M

- Total cash balance: NOK 204M

- Equity: NOK 221M (equity ratio 96% as of 30 June 2021)

- EBITDA: NOK -8.2M [NOK -2.6M]

- Net Income: NOK -8M [NOK -2.6M]

- Gross R&D Investments: NOK 7.5M [NOK 1.6M]

Webcast presentation for Desert Control H1 2021 Report and Financial Results is hosted on 3 September 2021 at 10.00 AM, Central European Time (CET).

Registration for webcast: https://us06web.zoom.us/webinar/register/WN_5vS6HEhaQbiCjl9L63ZGcw

After the presentation, there will be a moderated question and answers session.

Questions for Q&A can be submitted in advance to erling.rasmussen@desertcontrol.com

About Desert Control

Desert Control is a company specialized in climate-smart Agri-tech solutions to combat desertification, soil degradation, and water scarcity. Its patented Liquid Natural Clay restores and protects soil, reducing water usage for agriculture, forests, and green landscapes. Liquid Natural Clay (LNC) enables sand and degraded soil to retain water and nutrients. LNC increases crop yields while reducing water and fertilizer consumption by up to 50%.

Inquiries

For more information, please contact:

Ole Kristian Sivertsen

Chief Executive Officer

Email: oks@desertcontrol.com

Mobile: +47 957 77 777

UAE: +971 52 521 7049

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 forward-looking statements are based on current expectations, estimates and projections, reflect current views with respect to future events, and are subject to risks, uncertainties, and assumptions, 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 materially from 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 will come to pass or that any forecasted performance, capacities, or results will be achieved, and you are cautioned not to place any undue reliance on any forward-looking statements.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Erling Rasmussen, CFO at Desert Control AS, on 3 September 2021 at 08:00 CEST.