Sandnes, Norway 23 April 2023

Desert Control today published its Annual Report and Consolidated Financial Statements. The complete Annual Report 2023 is available in the attachment and
via the Company's website: https://www.desertcontrol.com/investors.

Strategic Shift and Pilot Expansion:

Transitioned to a licensed operator model in the Middle East, significantly reducing annual operating costs and streamlining operations. Maintained consistent pilot acquisition in the United States with commitments for five new technical pilot projects secured per quarter.

Operational and Technological Advancements:

Demonstrated a substantial increase in the efficiency and scalability of LNC production and application. Achieved

more than a 2X increase in production capacity for all existing LNC production units and significantly improved the

scalability of LNC application.

Research and Development:

The ongoing 5-year validation program with the University of Arizona is nearing its mid-term report. The growing pipeline of technical pilot projects deepens understanding of LNC's efficacy and application potential across various soil conditions, crops, and use-case scenarios.

Financial Milestones:

Added over NOK 100M of liquidity throughout the year. Closed 2023 with a cash and financial asset balance of NOK 120M, extending the company's financial runway into H2-2025.

United States Achievements:

Secured the first commercial LNC rollout with Limoneira for 60 acres at the Yuma ranch, demonstrating LNC's

commercial viability and scalability. Received OMRI (Organic Material Review Institute) certification for LNC

in compliance with the USDA National Organic Program.

Middle East Momentum:

Finalized strategic partnership agreements, expanding the operational footprint with partners in the UAE and Saudi Arabia. Received regulatory approvals for sales and use of LNC across all sectors in the UAE and secured the first partner-driven commercial project, signaling positive momentum in the region.

Global Recognition:

LNC received awards and global recognition for innovation in sustainability. Official product approvals and certifications in the UAE and the U.S. strengthen the foundation for early-stage commercialization efforts.

KEY FINANCIAL FIGURES 2023

[2022 in brackets]

Total cash balance 31.12.23 (incl. other current financial assets): NOK 119.6M [NOK 78.2M]

Equity 31.12.2023: NOK 129M (equity ratio: 96,7 %) [NOK 107M (equity ratio: 89.7 %)]

Revenue: NOK 18.1M [NOK 4.2M]

EBITDA: NOK -60.0M [NOK -90.2]

Loss for the year: NOK -65.3M [NOK -90.5]

Grants NOK 0.5M [NOK 2.3M]