Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION IS PLEASED TO ANNOUNCE THE COMPANY'S ACCEPTANCE OF AN INITIAL FINANCING COMMITMENT OF U.S. $10 MILLION IN CONVERTIBLE DEBENTURES AND AGREED UPON USE OF PROCEEDS IN 2023

Avila Energy Corp. has accepted an initial financing commitment of $10-million (U.S.) in convertible debentures and agreed upon use of proceeds in 2023.

The company, over the course of the past two months, after completing a series of meetings with qualified parties for the financing of up to $35-million (U.S.) in convertible debentures as part of its refocused plan on the balanced development of its assets in Alberta in 2023, in parallel to the development of its vertically integrated energy business has come to a decision. The results of this initial financing as announced, prior to the completion of the business combination and listing on the Nasdaq as agreed with Insight Acquisition Corp. and announced on April 3, 2023, solidifies its foundation to move forward with the execution of its business plan in parallel to the completion of the listing.

Avila Energy is pleased to disclose that, after numerous presentations, due diligence sessions and budget meetings over the past two months, the company has successfully negotiated and agreed to terms, and accepted an offer of $10-million (U.S.) in convertible debentures to be priced as follows.

The financing is to be completed by way of private placement offering (i) pursuant to Section 4(a)(2) and/or Rule 506(b) of Regulation D under the U.S. Securities Act of 1933, as amended, or (ii) pursuant to Canada's applicable securities laws, including Multinational Instrument 45-106, and any and all applicable state/provincial securities laws.

The units shall consist of (i) one 24-month convertible unit with a stated face value of $1,150 (U.S.) per unit, convertible in the one common share at a conversion price of 50 U.S. cents per share and (ii) a two-year warrant representing the right to purchase one share of the company's common stock for every dollar of the purchase price of the unit at an exercise price of 50 U.S. cents per share.

The financing is anticipated to close promptly after completing all required legal documentation which are customary with a similar type of investment.

"The company is pleased to accept the offer as negotiated, this financing funds takes into consideration all our short-term financing requirements, prior to entering into the business combination agreement in April with Insight Acquisition. Upon completion of the financing, I look forward to unleashing the potential of the business plan in North America, as outlined in the company's presentation that is available on its website," said Leonard B. Van Betuw, president, director and chief executive officer.

The company's operations in Alberta have not been directly affected by the wildfires in Alberta, but the company has taken the position of taking extreme caution in light of the very dry conditions that exist in the area.

Currently, the operation is completing facility turnarounds and budgeting prior to starting the capital programs that will bring the company's production up to 1,000 boe/d (barrels of oil equivalent per day), of which 15 per cent is anticipated to be (150 barrels per day) oil and condensate, with the balance being natural gas and liquids.

About Avila Energy Corp.

The company is an emerging Canadian Securities Exchange-listed corporation trading under the symbol VIK, and in combination with an expanding portfolio of 100-per-cent-owned-and-operated oil and natural gas production, pipelines, and facilities, is a licensed producer, explorer and developer of energy in Canada. The company's long-term vision is to achieve, through the implementation of a closed system of carbon capture and sequestration, an established path toward the material reduction of Tier 1, Tier 2 and Tier 3 emissions. The company continues to work toward becoming a vertically integrated carbon-neutral energy producer. The company's goals are to be achieved by focusing on the application of proven geological, geophysical, engineering and production techniques in combination, and the direct sale of energy to both residential and commercial consumers.

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