Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION IS PLEASED TO ANNOUNCE THE SUCCESSFUL NEGOTIATION AND SETTLEMENT OF ALL OUTSTANDING ISSUES WITH MTT AND CORRECTLY CONFIRMS THAT ALL PATENTS HELD BY MTT ARE CURRENT AND IN GOOD STANDING

Avila Energy Corp. has successfully negotiated and settled all outstanding issues with Micro Turbine Technology (MTT), and correctly confirms that all patents held by MTT are current and in good standing. The previous notice of default by Avila was based on a wrong assumption and should have not been issued.

In accordance with the settlement, Avila Energy and MTT confirm that all contractual disputes between them have been resolved, and Avila Energy agreed to compensate MTT over time in a final settlement.

Upon compensation:

1. Avila Energy and MTT confirm that the licence to manufacture and sell the EnerTwin in Canada and the United States will be effective, which has been issued to Avila Energy as of the date hereof.
2. Avila Energy shall be a 15-per-cent non-voting shareholder of MTT with the provision that in the event that Avila Energy does not sell a minimum of 5,000 EnerTwins on or before July 31, 2026, MTT has the right to repurchase the shares for one euro.
3. The parties have agreed to additional provisions to avoid any disputes in the future.

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, and 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.

We seek Safe Harbor.