Desert Control AS — Investor Presentation 2021

Sep 3, 2021

Making Earth Green Again

– to foster the prosperity of life

H1 2021 Report

Financial Results for the First Half (Fiscal half year ended 30 June 2021) Desert Control AS

to foster the prosperity of life

Cultivate and green 1oo Million Hectares of degraded land and desert by 2030

Contribute to sustainable social impact, immense water savings and balanced climate with carbon sequestering

Establish a social impact initiative throughout Sub Sahara by 2025 to reduce poverty and hunger

ABOUT DESERT CONTROL

HIGH-LEVEL COMPANY OVERVIEW | FOCUS AND SOLUTION AREAS

FOCUS

§ Desert Control specializes in climate-smart agriculture technology to combat desertification, soil degradation, and water scarcity

12 million hectares of fertile land perish to desertification and droughts annually

Less than 60 years left for global agriculture if soil degradation continue at current pace

1.8 Billion people will suffer absolute water scarcity by 2025

SOLUTION

§ Liquid Natural Clay (LNC)restores and protectssoil,reduce water usage, and increase yields; for agriculture, forests, and green landscapes

AGENDA | H1 2021

H1 2021 REPORT AND FINANCIAL RESULTS | COMPANY PRESENTATION

Ole Kristian Sivertsen Chief Executive Officer

FINANCIAL RESULTS

Erling Rasmussen Chief Financial Officer

QUESTIONS AND ANSWERS

Moderator Webcast Session

HIGHLIGHTS | H1 2021

FOCUSED EXECUTION TO PREPARE FOR OPERATIONAL SCALE-UP

CORPORATE DEVELOPMENT

• § IPO: Successfully listed on Euronext Growth, Oslo Stock Exchange (Ticker: DSRT)
• § Established subsidiary in Abu Dhabi, United Arab Emirates (Operational HQ)
• § Planning US subsidiary for H2 activities (Focus: California, Arizona, and Nevada)
• § Was awarded Innovation Norway grant
• § Maintain a solid net cash position of NOK 204M as of June 30 2021

TECHNOLOGY AND OPERATION

• § Launched first industrial mobile LNC production prototype in January 2021
• § Increased LNC production capacity by 15,000 litres per hour (l/h) in July 2021 (launch of 2nd prototype)
• § Achieved traction to increase LNC production capacity by 30,000 l/h by Q4, and expecting another 120,000 l/h by EoY
• § Accelerated front-loading of resources for organizational scale-up in H2 2021

COMMERCIAL AND MARKET

• § 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
• § Won award for green innovation at global climate impact event; Greentech Festival
• § Exceeded water-saving KPI's for several pilot projects

MAWARID PILOT

COMMERCIAL CONTRACT WITH AGRICULTURE AND NATURE CONSERVATION GIANT MAWARID HOLDING

PILOT OVERVIEW | PART 1

§ Initiatives for strengthening food-security (local agriculture production) in desert climate conditions

MAWARID PILOT

COMMERCIAL CONTRACT WITH AGRICULTURE AND NATURE CONSERVATION GIANT MAWARID HOLDING

PILOT OVERVIEW | PART 2

§ Initiatives for reducing water and resource requirements for maintaining and planting trees and forests in desert climate conditions

MAWARID PILOT

HIGH-LEVEL PLAN FOR EXPECTED LNC APPLICATION

OTHER PILOTS

EXCEEDED WATER-SAVING KPI'S FOR PRE-COMMERCIAL PILOTS

RESULTS

• § Pilot for ≈1,000 m2 of a 200-hectare VIP property in Abu Dhabi delivered 35% water savings versus 25% KPI target
• § Pilot for agriculture (sweet corn) delivered 35% water savings
• § Pilot for landscaping areas with Tecom Group and Dubai Holding maintained >45% water savings versus 30% KPI target
• § Pilot for improving the sustainability of trees came in at 50% water savings
• § Pilot for testing LNC application through existing drip-irrigation systems proven technically feasible
• § Negotiations and planning ongoing to covert pilots into commercial contracts

COVID-19 | 2021

STILL NEGATIVE IMPACT ON BUSINESS OPERATION IN H1 | SOME IMPACT EXPECTED TO CONTINUE IN H2

§ Negative impact related to travel restrictions

• Especially for travel between Norway and United Arab Emirates
• § Impact on hiring activities
• United Arab Emirates closed boarders for several key workforce countries

§ Some impact on vendors and supply chains

• Vendor for assembly of LNC production units exposed to some delays due to foreign workforce issues (i.e. re-entry to UAE after Ramadan)
• Some delays in delivery of certain parts and components from overseas

§ Expect continued impact from Covid-19 also in H2

• Extensive field-work and increased collaboration with partners and suppliers will expose workforce to related Covid-19 risks
• Covid-19 incidents within internal workforce may cause delays
• Ongoing global sea-freight challenges may impact supply chain

OUTLOOK | FOCUS AND AMBITIONS FOR H2 2021

ACCELERATE OPERATIONAL SCALE-UP | EXECUTE ON PROJECTS AND MARKET ACTIVITIES

CORPORATE DEVELOPMENT

• § Establish US subsidiary to prepare for H2 2021 planned activities focused on California, Arizona, and Nevada (Including preparations for upcoming field study with Arizona University)
• § Prepare for potential establishment of partner company with Mawarid Holding (Partnership for LNC deployment and application projects in UAE/MENA)
• § Develop enhanced ESG and impact measurement reporting framework

TECHNOLOGY AND OPERATION

• § Increase LNC production capacity by ≈150,000 l/h to reach total ≈180,000 l/h
• Additional 2 units (≈30,000 l/h) by Q4
• Additional 2 clusters (≈120,000 l/h) by EoY
• § Scale-up operational capacity to execute critical priorities, operate units, and deliver projects
• § Anticipating to grow the organization with additional ≈40 FTEs during H2 2021 (Majority share: field workforce and operators)

COMMERCIAL AND MARKET

– in partnership to make the desert green again

• § The #1 objective for H2 is the successful pilot execution with Mawarid Holding and Barari Natural Resources in order to move forward with strategic partnership
• § Other objectives:
• Continue work aimed at converting other pilots into commercial contracts
• Exhibit at EXPO 2020
• Build sales pipeline for 2022

MAWARID PARTNERSHIP

STRATEGIC PARTNERSHIP TO SERVE THE ENTIRE UAE MARKET AND WIDER MIDDLE-EAST, NORTH AFRICA REGION

ABOUT MAWARID

• § Manage agriculture, forests, green landscapes and natural resources on large scale
• 11,000 employees
• 3,000 vehicles, specialty equipment, and machinery for their forest management and agriculture operation which includes;
• 200,000 hectares of cultivated land and areas of nature conservation
• 160,000 km of irrigation pipelines
• 438 forests
• 13 million forest trees
• 630,000 date palms
• 80 private farms and 30 organic farms
• A range of nurseries with a combined capacity of 25 million seedlings per year
• § Mawarid is dedicated to strategic initiatives for national food security, climate resilience, and sustainability in the UAE and MENA region

STRATEGIC UPDATE

POTENTIAL CHANGE OF BUSINESS MODEL FOR MIDDLE EAST PENDING SUCCESSFUL MAWARID PILOT

CURRENT BUSINESS MODEL

• § Service based business model (direct to customers)
• Desert Control deliver turnkey projects for LNC treatment
• All aspects of Production and Application of LNC carried out by Desert Control

POTENTIAL BUSINESS MODEL WITH MAWARID

• § Partner based business model (in-direct delivery to customers)
• Desert Control: Production of LNC
• Partnership company: Application of LNC and last-mile delivery

EXPO 2020

DUBAI, UNITED ARAB EMIRATES, 1 OCTOBER 2021 – 31 MARCH 2022

DESERT CONTROL AT EXPO 2020

• § Desert Control is featured at the "Good Place Pavilion" in the Opportunity District
• § The "Plantar Project" is a specific landscaping plot in the "Good Place Pavilion" allocated to Desert Control for LNC application showcasing
• § Demos with LNC kits will feature at the Sustainability Pavilion for the full six months of EXPO 2020
• § Desert Control is one of 140 selected Global Innovators
• § During the Climate and Biodiversity week (October 3-9, 2021) Desert Control is selected along with 16 relevant Global Innovator's for presentations & panel sessions

UNITED STATES

ESTABLISH US SUBSIDIARY TO PREPARE FOR PLANNED ACTIVITIES IN 2H

ACTIVITIES

• § Establish US subsidiary in Q4 2021 to prepare for planned activities focused on California, Arizona, and Nevada
• The subsidiary is likely to be incorporated in the state of Delaware
• Branch office for states of operation to be considered when required
• § Initial FTEs expected to be hired during Q4 2021 to run activities including;
• Preparation for field study with University of Arizona
• Local assembly of mobile LNC production unit suited for pilots and field studies
• Develop capabilities to produce and apply LNC for field studies and other pilots (similar approach as in the UAE from 2018 to 2019)
• § Field study with University of Arizona H1 2022
• Focus for the field study is to validate the transferability of water saving results achieved at International Centre for Biosaline Agriculture in the UAE
• Season for seeding of selected crops is from January
• Project may run 3-6 months
• Other pre-commercial pilots may be initiated during the timeframe

TECHNOLOGY AND OPERATION

SIGNIFICANT INCREASE OF LNC PRODUCTION CAPACITY

DEFINITIONS

• § LNC production unit: mobile factory for in-situ LNC production
• § Cluster: 4 units
• § Capacities:
• 15,000 l/h per unit
• 60,000 l/h per cluster

PRODUCTION CAPACITY FORECAST (EOY)

ORGANIZATIONAL DEVELOPMENT | 2021

FTE DEVELOPMENT

BUILD OPERATIONAL CAPABILITY TO DELIVER PROJECTS AND UTILIZE THE GROWING LNC PRODUCTION CAPACITY

0 10 20 30 40 50 60 2018-Q3 2018-Q4 2019-Q1 2019-Q2 2019-Q3 2019-Q4 2020-Q1 2020-Q2 2020-Q3 2020-Q4 2021-Q1 2021-Q2 2021-Q3 2021-Q4 Estimate EoY UAE - Operations UAE - Technology UAE - Administration Norway - Technology Norway - Administration

AGENDA | H1 2021

H1 2021 REPORT AND FINANCIAL RESULTS | COMPANY PRESENTATION

Ole Kristian Sivertsen Chief Executive Officer FINANCIAL RESULTS

Erling Rasmussen Chief Financial Officer

Moderator Webcast Session

KEY FIGURES | H1 2021

DESERT CONTROL MAINTAINS A SOLID NET CASH POSITION OF NOK 204M AS OF 30 JUNE 2021

FINANCIAL HIGHLIGHTS

(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]

COMMENTS TO H1 RESULTS

• § EBITDA of NOK -8.2M H1 2021 vs NOK -2.6M H1 2020 is primarily reflecting increased activity level compared to a Covid-19 impacted 2020
• § Hiring activities to accelerate front-loading of resources for operational scale-up is expected to be reflected in H2 financials, and are according to plan
• § Booked revenue for initial pilot with Mawarid is at large up-front payment, and revenue will be recognized in line with completion of work packages during H2

* EBITDA, Earnings Before Interest Taxes Depreciations and Amortizations

STATEMENT OF OPERATIONS | H1 2021

INTERIM CONSOLIDATED PROFIT AND LOSS (P&L) STATEMENT

Unaudited NOK (in thousands)
	For the six months ended
	30 June 2021	30 June 2020
Total Revenue		821
Cost of Goods Sold (COGS)	194	4
Gross Margin	(194)	817
Payroll	4 047	2 809
Other Expenses	3 997	635
Operating Expenses	8 044	3 443
EBITDA	(8 238)	(2 626)
Depreciation	126
EBIT	(8 364)	(2 626)
Finance Expenses	(356)	(5)
Net Income	(8 009)	(2 621)

EBITDA: Earnings Before Interest Taxes Depreciations and Amortizations EBIT: Earnings Before Interests and Taxes

STATEMENT OF FINANCIAL POSITION | H1 2021

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unaudited NOK (in thousands)

	For the six months ended
	30 June 2021	30 June 2020
Fixed assets
Research & development	7 566	3 441
Goodwill	6 413	6 562
Total intangible assets	13 979	10 003
Machinery and equipment	1 059	1 188
Equipment and other movables	740	197
Total tangible assets	1 799	1 385
Total fixed assets	15 778	11 388
Current assets
Debtors	-	-
Other short-term receivables	10 383	2 002
Total receivables	10 383	2 002
Fixed income funds	90 000	-
Cash and bank deposits	114 552	28 935
Total current assets	214 934	30 937
Total assets	230 712	42 325
Equity
Share capital (40 626 639 shares at 0.003)	122	70
Other paid-up capital	230 845	40 994
Total paid-up equity	230 967	41 064
Retained earnings	(10 118)	(2 090)
Total equity	220 849	38 974
Liabilities
Current debt
Trade creditors	1 339	838
Public duties payable	(558)	363
Other current debt	9 082	2 151
Total current debt	9 863	3 351
Total liabilities	9 863	3 351
Total assets, equity, and liabilities	230 712	42 325

STATEMENT OF CASH FLOWS | H1 2021

INTERIM CONSOLIDATED CONDENSED CASH FLOWS

Unaudited NOK (in thousands)	For the six months ended
	30 June 2021
Cash flow from operating activities
Profit before taxes	(8 009)
Taxed paid	-
Depreciation and amortization	126
Changes in working capital	(1 869)
Cash used in operating activities	(9 751)
Cash flow from investment activities
Investments in research and development, gross	(7 500)
Soft funding from Innovation Norway / skattefunn	3 375
Investments in research and development, net	(4 125)
Investments in good will	149
Investments in fixed assets	(414)
Investments in fixed income funds	(90 000)
Net cash used in investment activities	(94 389)
Cash flow from financing activities
Net borrowing
Capital injection	189 903
Net cash flow from financing activities	189 903
Net change in cash equivalents	85 763
Net foreign exchange differences	(112)
Cash and cash equivalents at beginning of period	28 935
Cash and cash equivalents at end of period	114 585

SHAREHOLDERS

Top 20 shareholders Share development

No of shares	% Account name	Type	Citizenship
5 900 000	14,52% OLESEN CONSULT HVAC AS		NOR
2 154 715	5,30% JAKOB HATTELAND HOLDING AS		NOR
2 154 715	5,30% MONSUNEN FORVALTNING AS		NOR
1 881 950	4,63% J.P. Morgan Bank Luxembourg S.A.	NOM	SWE
1 750 000	4,30% KONTRARI AS		NOR
1 650 000	4,06% OLE MORTEN OLESEN		DEN
1 543 371	3,79% BEYOND CENTAURI AS		NOR
1 500 000	3,69% JPMorgan Chase Bank, N.A., London	NOM	LUX
1 360 000	3,34% NESSE & CO AS		NOR
1 355 431	3,33% LITHINON AS		NOR
1 283 147	3,15% INVESTORE FINANS AS		NOR
1 283 147	3,15% DnB NOR Bank ASA	BRO	NOR
1 135 843	2,79% ATLE IDLAND		NOR
1 075 000	2,64% KRISTIAN FALNES AS		NOR
1 026 518	2,52% CACEIS Bank	NOM	LUX
855 431	2,10% SOBER AS		NOR
855 431	2,10% LIN AS		NOR
590 000	1,45% URBAN COWBOY AS		NOR
560 000	1,37% OKS CONSULTING AS		NOR
527 715	1,29% SORTUN INVEST AS		NOR
30 442 414	74,93% 20 largest shareholders
10 184 225	25,07%
40 626 639	100,00% Total shares

Origin of shareholders | largest countries

No of shares %	Origin	No of shareholders
34 252 319	84,31% Norway	1308
2 628 544	6,47% Luxembourg	3
1 994 768	4,91% Sweden	13
1 665 692	4,10% Denmark	5
85 316	0,21% Other	26

Total number of shareholders: 1355 from 23 countries

CAUTIONARY NOTE

DISCLAIMER RELATED TO FORWARD-LOOKING STATEMENTS

By reading this company presentation (the "Presentation") or attending any meeting or oral presentation held in relation thereto, you (the "Recipient") agree to be bound by the following terms, conditions and limitations.

The Presentation has been produced by Desert Control AS (the "Company") for information purposes only and does not in itself constitute, and should not be construed as, an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction. The distribution of this Presentation may be restricted by law in certain jurisdictions, and the Recipient should inform itself about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction.

The Recipient acknowledges that it will be solely responsible for its own assessment of the Company, the market and the market position of the Company and that it will conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the Company's business. The Company shall not have any liability whatsoever (in negligence or otherwise) arising directly or indirectly from the use of this Presentation or its contents, including but not limited to any liability for errors, inaccuracies, omissions or misleading statements in this Presentation, or violation of distribution restrictions.

The Presentation will be used during an oral presentation and is therefore not a complete summary of the presentation held. Further, it is not the intention to provide, and the Recipient may not rely on the Presentation as providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects. Several factors could adversely affect the business, legal or financial position of the Company or the value of its securities. Such risks include but are not limited to economic and market conditions in the geographic areas and markets where the Company is or will be operating. For a further description of other relevant risk factors, we refer to the Company's information document dated 13 April 2021 and available on the Company's website.

This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results of the Company and the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts. Any forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts and are subject to risks, uncertainties and other factors that may cause actual results and events to be materially different from those expected or implied by the forward-looking statements. The Company cannot provide any assurance that the assumptions underlying such forwardlooking statements are free from errors nor do any of them accept any responsibility for the future accuracy of opinions expressed in this Presentation or the actual occurrence of forecasted developments.

This Presentation speaks as at the date set out on herein. Neither the delivery of this Presentation nor any further discussions of the Company shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not assume any obligation to update or revise the Presentation or disclose any changes or revisions to the information contained in the Presentation (including in relation to forward-looking statements).

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.

AGENDA | H1 2021

H1 2021 REPORT AND FINANCIAL RESULTS | COMPANY PRESENTATION

HIGHLIGHTS AND OUTLOOK

Ole Kristian Sivertsen Chief Executive Officer

FINANCIAL RESULTS

Erling Rasmussen Chief Financial Officer

APPENDIX H1 2021 REPORT AND FINANCIAL RESULTS

DESERT CONTROL COMPANY PRESENTATION

VISION, MISSION & VALUES

OUR PURPOSE | THE REASON WHY WE EXIST AND OUR VALUES

OUR MISSION

• § Our mission is to combat desertification, land degradation, and water scarcity
• Restore and protect vital topsoil
• Make desert land fertile and arable
• Reduce water consumption
• § To foster climate resilient agriculture, forestry, and green landscapes

Growth-mindset Curious and solution oriented

OUR VISION

• § Our vision is making earth green again
• Desertification, loss of fertile soil, and growing water scarcity are threats to all life on earth, further accelerated by climate change and overexploitation of natural resources
• § What drives us is making earth green again to foster the prosperity of life

Integrity Keep promises|strong relationships

Contribution

Desire to make everything better

Diversity

Inclusive|open-minded|respectful

POPULATION GROWTH DRIVING INCREASED DEMAND FOR FOOD AND WATER

WATER DEMAND EXPECTED TO EXCEED RELIABLE WATER SUPPLY BY 40% IN 2030

By 2025, 1.8 billion people will experience absolute water scarcity, and 2/3 of the world will be living under water-stressed conditions

UNITED NATIONS HAS DECLARED DESERTIFICATION AND LAND DEGRADATION THE GREATEST ENVIRONMENTAL CHALLENGE OF OUR TIME

110

Countries exposed to desertification and land degradation

1.3Bn

People trapped on degrading agricultural land

12m hectares productive land becomes barren every year

20%

Of Earths drylands degraded

Of agricultural land affected by soil degradation

<60 years

Farming left at current degradation rate

\$490Bn

annual cost world-wide

PROBLEM – IMPACT WAY BEYOND THE "TRADITIONAL DESERTS"

2008

70% OF FRESHWATER IN THE WORLD IS USED FOR AGRICULTURE

CURRENT APPROACHES IN AGRICULTURE YIELD LOW WATER EFFICIENCY GAINS

SHARE OF FRESHWATER WITHDRAWLS BY SECTOR (%)

• The shortfall between demand and supply of water is estimated to be 40% by 2030
• Approx. 1/3 of the population will live in areas where the deficit is >50%
• The agriculture industry represents the single largest consumer of water in the world, accounting for ~70% of water withdrawals
• ‒ Water challenges are therefor closely tied to food provisions and trade

DESERT CONTROL'S LNC TREATMENT IS PART OF THE SOLUTION

ENRICHES THE FERTILITY CAPABILITY IN DESERT SAND – LOWER WATER USAGE AND IMPROVED SOIL HEALTH

1. UNIQUE FORMULATION PROCESS Clay is processed into a liquid compound

2. SPRAY ON

Applied directly to sand or arid soil

3. EFFECT

Forms a soil structure that retains water like a sponge

4. RESULT

• - 20-50% water and fertilizer savings
• Increased crop yields and carbon uptake

PATENTED PROCESS BASED ON 12 YEARS RESEARCH

LIQUID NATURAL CLAY («LNC»)

Unique nano-technology reduces the clay consumption from 100 kg to less than 1 kg per m2

UNIQUE PRODUCT OFFERING WITH NO DIRECT COMPETITOR

SUBSTITUTES AND OTHER METHODS FOR SOIL ENHANCEMENT ARE INTRUSIVE, TIME CONSUMING AND COSTLY

DESERT CONTROLS LNC PROCESS IS THE ONLY NON-INTRUSIVE SOIL ENHANCEMENT OPTION

INTRUSIVE (mechanical/manual intervention)

Solid form soil amendment

NON-INTRUSIVE (self-percolating into the soil)

Liquid soil amendment

Intrusive soil enhancement treatments are costly, time consuming and to a large extent less effective

PROVEN, VALIDATED AND PATENTED

MULTI-YEAR FIELD TRIALS

EGYPT - BEFORE AND AFTER APPLICATION OF LNC	SCIENTIFIC ACCREDITATION BY ICBA
UAE, AL AIN AFTER APPLICATION OF LNC

THE RESULTS – UAE DESERT EXAMPLE

ü Less than 1kg of clay per m2 ü Water and fertilizer savings (20-50%) ü Increased crop yields (17-62%) ü Improved soil, biodiversity, and carbon uptake

LNC IDENTIFIED AS A POTENTIAL IMPACT SOLUTION BY THE UNITED NATIONS

THE GREATEST CHALLENGE OF OUR TIME: THE GREAT GREEN WALL

RECEIVED OVER \$14 BILLION IN DONATIONS TO REGREEN THE SAHEL – WORLD BANK AMONG DONORS

RESTORE 100 MILLION HECTARES OF DEGRADED LAND

SEQUESTER 250 MILLION TONNES OF CARBON

CREATE >10 MILLION GREEN JOBS IN RURAL AREAS

LIQUID NATURAL CLAY | ESG AND IMPACT POTENTIAL

EXPECTED TO PLAY A VITAL ROLE IN SUSTAINABLE DEVELOPMENT FROM A FINANCIAL AND AN ESG PERSPECTIVE

Stopping deforestation, restoring forests and improving forestry practices could costeffectively remove 7 billion metric tons of carbon dioxide annually – equivalent to eliminating 1.5 billion cars, more than all of the cars in the world today

ESG AND IMPACT

IMPACT ON EXTERNAL ENVIRONMENT AND SUSTAINABILITY

Liquid Natural Clay (LNC) can reduce water consumption for agriculture, forests, and green landscapes by up to 50%. The amount of water required to produce LNC is recovered within 2-3 weeks (offset by irrigation water savings). Increased crop yields with improved water efficiency contribute significantly to the United Nations Sustainable Development Goals (SDGs), including reducing hunger and securing access to clean water. Arid regions using energy-intensive desalination of seawater can further significantly reduce CO2 and greenhouse gas (GHG) emissions.

LNC enables sandy soil and desert land to retain water and nutrients. Reduction of water consumption further allows for reducing fertilizer usage. Reduced leaching of fertilizers and pesticides through the soil can further minimize the risk of chemical run-off reaching through to natural water systems and oceans. Stopping fertilizer and pesticide leaching can further improve life below the water by reducing ocean acidification and eutrophication.

According to the Intergovernmental Panel on Climate Change (IPCC), restoring degraded soil ecosystems can globally offset 5-6 Gt of CO2 annually. Even degraded soils have degrees of stored carbon. When tilling or mechanically working amendments into the ground, carbon exposed to oxygen may turn into CO2 and escape into the atmosphere. LNC can be applied directly to the surface of the ground without intervention to the soil. LNC percolates into the ground in a non-intrusive way without exposing any carbon to surface air oxygen; safeguarding the carbon storage of soil ecosystems and fostering increased carbon sequestration.

Non-intrusive soil treatment is further gentle to fragile soil-ecosystems, which is the home of 95% of all biological species on earth. Reclaiming and protecting soil is therefore critical to preserve and restore essential biodiversity.

Mining clay and the production of LNC requires energy. Logistics and transportation of material, equipment, and personnel, and manufacturing of equipment also require energy. Desert Control strives to reduce energy consumption in all stages of the process and facilitate the use of renewable energy sources wherever available. These negative impact factors are, by far, surpassed by the sum of positive impact from stopping and reversing desertification and soil degradation, reducing water consumption, and other environmental benefits.

LNC has no adverse impact on any of the 17 United Nations Sustainable Development Goals (SDGs). Further, LNC has a significant direct positive impact on 9 of the SDGs.

Powered by operational data, an updated ESG and impact reporting framework will be under development during Q4 to align with ESG reporting standards for investors and stakeholders.

ABOUT DESERT CONTROL

COMPANY OVERVIEW

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%.

Desert Control's business model is service-based and targets turnkey projects for LNC treatment of land areas, vegetation, crops, plants and trees etc. LNC is produced on-site at customer locations using mobile factories. Further, the LNC is applied across the customer's land areas using existing irrigation systems and techniques. LNC is sprayed or applied directly onto the surface and percolates into the ground forming a soil structure that retains water and nutrient like a sponge. One LNC treatment may last 3-5 years, followed by periodic top-up to maintain the optimal ability to retain water and nutrients. The Company's revenue model is pre-paid project deliveries direct (B2B) to customers within the segments; agriculture, forestry, and landscaping. Project pricing considers size of land, type of vegetation, crops, number of trees, etc. Additional revenue sources may come from (1) periodic maintenance and (2) digital subscription services related to soil health monitoring, water management optimization, and digital farming services for precision agriculture and sustainable land management.

Desert Control AS is a private limited liability company incorporated under the laws of Norway. The Group has active subsidiaries in Abu Dhabi and Dubai, the United Arab Emirates.

United Arab Emirates is Desert Control's first geographic market, to be followed by broader expansion in the Middle East region. In 2022 the Company aims to expand operations to the United States, focusing on California, Arizona, and Nevada. More than 110 countries worldwide suffer accelerating desertification, loss of fertile soil, and water scarcity. Desert Control's ambition is to develop a global business with its vision of making earth green again.