Desert Control enters strategic agreement for the Kingdom of Saudi Arabia

ISSUER

DESERT CONTROL AS

Sandnes, Norway, 3 July 2023 – Desert Control AS (DSRT)(the "Company") today
announces that it, pursuant to the strategic review, has entered into an
agreement with Holistic Earth Advanced Regeneration Technologies SA (H-EART) to
become a licensed operator for production, sales, distribution, and
implementation of Liquid Natural Clay (LNC) in the Kingdom of Saudi Arabia
(KSA).

The agreement marks a significant milestone in Desert Control's transition to a
royalty-based licensed operator structure for the Middle East. The change in
business model unlocks cash, reduces operating costs, and allows Desert Control
to leverage the capacity and reach of local partners while dedicating additional
resources to core business activities and accelerating development in the United
States and other markets.

"The strategic partnership with H-EART drives expansion of LNC offerings in KSA
while strengthening the core innovation of the Liquid Natural Clay technology
and enhancing global reach. By leveraging the capabilities of H-EART, we can
grow our impact in the Middle East and accelerate efforts in other key markets,"
said Ole Kristian Sivertsen, President and Group CEO of Desert Control.

H-EART will acquire one LNC production cluster, consisting of 4 LNC production
units, for USD 1 million. In addition, H-EART will anchor the strategic
partnership by becoming a shareholder in Desert Control AS with an investment of
$1 million at NOK 10,- per share in a directed share issue, along with entering
into a non-exclusive agreement for the production, sales, distribution, and
implementation of LNC in KSA.

"We are honored to partner with Desert Control to tackle critical issues in the
Kingdom of Saudi Arabia. The impact of technologies such as LNC is crucial for
KSA as we strive towards achieving strategic national objectives and priorities
outlined in the Saudi Vision 2030 and the Saudi Green Initiative. Emphasizing
food security, water security, and climate action leadership, this agreement
allows us to step up our efforts to tackle desertification and water scarcity,"
said Constandinos Felder, CEO of H-EART.

The strategic partnership with H-EART marks another milestone in Desert
Control's strategy to enhance its business model for the Middle East. The Board
of Directors believes the partnership model will enable Desert Control to
implement its vision more effectively across the Middle East region with the
support of its local partners. Meanwhile, shareholders will benefit from the
value creation generated from royalty-based licensing, revenue from asset
purchases, and equity infusion.

For the initial implementation of the agreement, a total consideration for the
combined transactions of USD 2 million will be payable to Desert Control. During
the license period, Desert Control will receive a customary royalty payment
calculated as a percentage of revenues from the business of H-EART in KSA.
Completion of these agreements is subject to customary terms and conditions.

The Board is pleased to have reached important milestones in the strategic
review.

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 notice:

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock
exchange announcement was published by Marianne Vika Bøe, Chief Financial
Officer of Desert Control AS, at the time and date stated above in this
announcement.

The directed share issue towards H-EART represents a deviation from the
shareholders' pre-emptive right to subscribe for shares in the Company. The
directed share issue will be carried out as a private placement to secure H-EART
as a long-term strategic shareholder in Desert Control and to facilitate the
opportunity to raise capital without a discount. On this basis, the Board has
considered the proposed transaction structure and the investment to be in the
common interest of the Company and its shareholders.

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.