Desert Control AS - Update on strategic review

ISSUER

DESERT CONTROL AS

Sandnes, Norway, 13 June 2023

Desert Control AS (DSRT) ("Company") has appointed Arctic Securities and Pareto
Securities to explore strategic options available to the Company as announced on
27 April 2023. The review aims to explore a broad range of strategic
alternatives, including financing, structural and business development
opportunities, aiming to optimize shareholder value and to support funding of
the Company's long-term strategies.

The strategic review is making progress on exploring options for Desert
Control's intentions to change its go-to-market and business model for the
Middle East region by transitioning to a potential royalty-based licensed
operator structure. The strategic review process has generated incoming interest
from multiple parties. The Company has entered non-binding letters of intent
with selected parties with whom it is anticipated to reach final agreements by
around mid-year.

The change of business model aims to unlock cash and reduce operating costs for
Desert Control. The pivot towards a licensing model will leverage the capacity
and reach of local operators in the Middle East while allowing Desert Control to
dedicate additional resources to drive commercialization in the United States
and other markets.

The Company confirms that arrangements have been made for an event, with final
location to be determined, as published by the Greater Yuma Economic Development
Corporation on LinkedIn on 12 June 2023. The arrangements have been made for
extending networks with the Middle East and arranging contacts with leading
research organisations within the field of desert agriculture in Yuma, Arizona.
The event is also aimed at facilitating a potential signing of agreements
further to the non-binding letters of intent already entered into, as described
above.

Although practical arrangements have been made, Desert Control emphasizes that
discussions are still ongoing, and that no assurances can be given as to the
outcome or timing of the review process or the signing of any definite
agreements. Desert Control does not intend to make any further public comment
regarding the review until it has been completed or the Company determines that
disclosure is required or appropriate.

The Board is pleased with the progress of the strategic review, and will
continue the review process as previously announced, aiming to optimize
shareholder value and to support funding of the Company's long-term strategies.


For further inquiries, please contact:
Ole Kristian Sivertsen
President and Group CEO, Desert Control
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 information

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 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Marianne Vika Bøe, Chief
Financial Officer of Desert Control AS on date and time set out above.

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.