DSRT: (Correction) Desert Control reaches MOU with Mawarid Holding Investment in Abu Dhabi

ISSUER

DESERT CONTROL AS

DSRT: Desert Control reaches MOU with Mawarid Holding Investment in Abu Dhabi 

Sandnes/Abu Dhabi, 8 June 2021

Desert Control AS (“Desert Control” or the “Company”) has reached a Memorandum
of Understanding (“MOU”) with Mawarid Holding Investment and its subsidiaries,
including Barari Natural Resources (“Mawarid”).

The MOU is the first deal of this kind for Desert Control. The deal's first
stage is a pilot, where Desert Control's Liquid Natural Clay (“LNC”) will be
used on several Mawarid managed forests and agricultural properties in the
United Arab Emirates (“UAE”).

“Today, by signing this agreement between Mawarid Holding Investment L.L.C and
Desert Control AS, which is the basis for a long term partnership, is important
because it aligns with our goals to maintain the legacy of His Highness the late
Sheikh Zayed "May God have mercy on his pure soul" and the vision of our
president His Highness, Sheikh Khlifa Bin Zayed Al Nehayan and his crown Prince
His Highness Sheikh Mohamed Bin Zeyed Al Nehayan by greening the desert and
securing out own Food security resources,” says Managing Director of Mawarid,
His Excellency Mr. Abdujaleel Ablouki. “With this new initiative we are reducing
the water demand, increasing energy use efficiency, protecting our resources and
safeguarding the biodiversity of our ecosystems and improving our food security
strategy. All of which are bringing us one step closer to achieving the
objective of securing a sustainable future for UAE in general and Abu Dhabi in
particular.”

“The MOU follows only two months after Desert Control’s successful listing on
Euronext Growth Oslo and is a testament to the strategic decisions made by the
Company and a strong recognition of our product,” says CEO Ole Kristian
Sivertsen. “We are proud to be allowed to work together with Mawarid, and with
this agreement we are in an excellent position to elevate and accelerate our
vision of making earth green again.”

The first stage of the MOU is a pilot project that consists of reversing soil
degradation and reducing water consumption within agriculture, forestry and
nature conservation, and will be completed during the period until mid-October
2021. The project has a contract value for the Company of USD 375 000.

“We, at Mawarid Holding, are driven to create value by learning about new
innovations in sustainable practices and adopting them to reduce the bad impacts
on the environment, while driving profitable growth,” says Mawarid Holding CEO
Eng. Ayman El Gayar. ”Liquid Natural Clay (LNC) technology is the latest
addition to our arsenal since it enables us to save water, reduce fertilizers,
improve desert soils, fight desertification, and reduce costs. Furthermore, by
signing the Agreement with Desert Control SA, we will have an excellent
environmental impact in UAE and a lot of countries in GCC and MENA region.”

Subject to the outcome of the pilot project, it is Desert Control and Mawarid’s
intention to establish a partnership for development of further projects and
deployment of Liquid Natural Clay in large scale operations in UAE. It is
contemplated that the Company will continue the development and production of
Liquid Natural Clay, while the partnership – Desert Control and Mawarid
collectively – will develop the go-to-market channel and specialize in
application solutions to provide LNC treatment for agriculture, forestry,
ecosystem restoration and nature conservation. Desert Control has a global
market for Liquid Natural Clay, and, under the MOU and subject to the final
terms of the partnership, Mawarid is granted exclusive rights for UAE and a
potential to expand the relationship with priority partnership for areas in
other jurisdictions across the Middle East and North Africa.

Mawarid and its subsidiaries, including Barari Natural Resources, have vast
experience in many diversified domains, including forest management business,
landscaping, and other agriculture business in the UAE, and across the Middle
East and North Africa. Mawarid is further charged with the management of UAE
nature, wildlife reserves, forests, and food security.

The pilot project is for the parties a joint feasibility initiative that aims to
prove the potential for reducing water consumption and thereby strengthen the
sustainability of forestry and agriculture in the UAE, and to serve as a
sustainability reference for the harsh Middle East climatic conditions. 
 
Desert Control has already proven this in several validation programs by
independent research organizations in the UAE. However, this project aims to
expand this further and build a platform for accelerated scalability through a
powerful partnership.
 
The initial joint project between the parties will focus on enabling sustainable
agriculture in the UAE desert environment and reducing the amount of water
required to maintain and cultivate trees, forests and natural landscapes.
Further it aims to enable sustainable reforestation with planting of new trees.
 
Based upon the successful development of this initiative, the parties wish to
commit to accelerating industrialization and mass-scale deployment of Desert
Control's LNC in the UAE and potentially for the wider MENA region.

For more information, please contact:

Ole Kristian Sivertsen, Chief Executive Officer
Email: oks@desertcontrol.com
Tel: +47 957 77 777

About Desert Control AS
 
Agriculture and food production consume more than 70% of all available
freshwater. When topsoil degrades, water consumption increases further as it
permeates through sandy soils like a sieve. Simultaneously, population growth
drives the need for more food over the next 40 years than was produced in the
last 500 years, putting even more pressure on scarce resources such as water.
This is the problem Desert Control is determined to solve. There are tremendous
growth opportunities in a market that is growing rapidly. Annually, 12 million
hectares of fertile land perish to desertification.
 
Desert Control is a climate technology company specialized in reclaiming
degraded soil and turning desert sand into fertile soil. The patented product
LNC (Liquid Natural Clay) is a liquid clay compound that enables sand and
degraded soil to retain water and nutrients. LNC thus increases crop yields,
while consumption of water and fertilizer decreases by up to 50%.

About Mawarid Investment Holding L.L.C

Mawarid Investment Holding L.L.C is a reputable holding company that has wide
experience, through its subsidiaries, in many diversified domains including but
not limited to Agricultural, Industrial, Services, Hospitality and other related
business in the United Arab of Emirates and in the region.

Furthermore, Mawarid is specialized in identifying, creating, and managing
services in accordance with the highest international standards. Within its
current portfolio of diversified group of companies, Mawarid has certain
subsidiaries which core business are of an agricultural nature, including Barari
Natural Resources, Mawarid Services and Mawarid Nurseries, thus it is worth to
mention that Mawarid, through its subsidiaries, is one of the leaders in
landscaping field as well as the conservation with management of 438 forest and
reservations in the Emirates of Abu Dhabi covering over 200,000 Hectares
comprising of 13 million forestry trees and 400,000 date palm trees.

It worth mentioning that MHI employees over 11,000 personnel working within
different industries across the UAE and outside. 

Important Notice:

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 Erling Rasmussen, Chief
Financial Officer of Desert Control AS on 8 June 2021 at 2000 CEST.

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 believes 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.
Except as required by applicable laws and regulations, 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.