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”). 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. 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.