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Desert Control Agreement to Facilitate Climate-Friendly Agriculture and Sustainable Forestry

 Technology Today Bureau

Desert Control AS has reached a Memorandum of Understanding with Mawarid Holding Investment and its subsidiaries, including Barari Natural Resources ("Mawarid").

The MOU is the first deal of this kind for Desert Control and further proves the company's ability to generate revenue from its products and services. The deal's first stage is a pilot, where the parties will use Desert Control's Liquid Natural Clay ("LNC") on several Mawarid managed forests and agricultural properties in the United Arab Emirates.

"Today, by signing this agreement between Mawarid Holding Investment and Desert Control AS, represents the foundation for a long-term partnership. The partnership aligns with our goals to maintain the legacy of HH, the late Sheikh Zayed 'May God have mercy on his pure soul' and the vision of our president H.H. Sheikh Khalifa Bin Zayed Al Nahyan and his crown Prince H.H. Sheikh Mohamed Bin Zayed Al Nahyan by greening the desert and securing our Food Security resources," says the Chairman of Mawarid, H.E. Abdul Jaleel Al-Blouki. "With this new initiative, we are reducing the water demand, increasing resource efficiency, protecting our resources, and safeguarding the biodiversity of our ecosystems while improving our national 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 consisting of reversing soil degradation and reducing water consumption within agriculture, forestry, and nature conservation and will be completed by mid-October 2021. The project has an initial contract value for the Company of USD 375 000.

"We, at Mawarid Holding, are driven to create value by learning about innovations in sustainable practices and adopting them to reduce any negative impacts on the environment while driving profitable growth," says Mawarid Holding CEO Ayman El Gayar." The 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, we will have a tremendous environmental impact in UAE and a lot of countries in the 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 the development of further projects and deployment of Liquid Natural Clay in large-scale operations in the UAE. It is contemplated that the Company will continue the development and production of Liquid Natural Clay. At the same time, 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. Under the MOU and subject to the final terms, the partnership will have exclusive rights for the 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, landscaping, and other agriculture business in the UAE and across the Middle East and North Africa. Mawarid is further charged with managing 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, strengthen the sustainability of forestry and agriculture in the UAE, and 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 enable sustainable agriculture in the UAE desert environment and reduce the amount of water required to maintain and cultivate trees, forests, and natural landscapes. Further, it aims to enable sustainable reforestation alongside elevating national food security.

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.

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