Desert Control AS

Earnings Release • May 23, 2024

Desert Control releases its Q1 2024 Report and Year-to-Date Company Update

Desert Control releases its Q1 2024 Report and Year-to-Date Company Update

Sandnes, Norway, 23 May 2024 - Desert Control AS (DSRT) announces its first

-quarter report and interim financial results for the fiscal period ending 31

March 2024.

Desert Control is off to a strong start in 2024. The company delivered its first

larger-scale commercial deployment for Limoneira Company in Yuma, Arizona,

executed a significant first-phase contract in the Middle East through its

partner, Mawarid, and made solid progress developing and adapting its technology

to expand markets, increase environmental benefits, and reduce the cost of goods

sold.

Financial Highlights

The company closes Q1-24 with a positive cash balance of NOK 105.1 Million and

has no interest-bearing debt.

First Quarter 2024

[first quarter 2023 in brackets]

. Revenue NOK 1.3M [NOK 1,9M]

. EBITDA NOK -14.7M [NOK -23.4M]

. Net Income NOK -7,8 [NOK -19.3M]

. Total cash balance 31.03.24 (incl. other current financial assets) NOK 105,1M

[NOK 56,7M]

. Equity 31.03.2024 NOK 115,4M (equity ratio 96,7%) [NOK 86.0M (89.0%)]

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 concerning

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.

Q1 Report 2024

The information enclosed is subject to the disclosure requirements pursuant to

sections 5-12 in the Norwegian Securities Trading Act.

For more information, please contact:

Ole Kristian Sivertsen

President and Group CEO

Email: oks@desertcontrol.com

Mobile (NOR): +47 957 77 777

Mobile (USA): +1 650 643 6136

Leonard Chaparian

Chief Financial Officer

Email: leonard.chaparian@desertcontrol.com

Mobile (NOR): +47 90 66 55 40

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