Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION ANNOUNCES INSIGHT ACQUISITION CORP.'S DECISION TO TERMINATE THE BUSINESS COMBINATION AND PROVIDES A CORPORATE UPDATE

Insight Acquisition Corp. has sent a notice of default to Avila Energy Corp. and intends to terminate the business combination agreement dated April 3, 2023, if such alleged default is not cured by July 26, 2023. Avila also provides a corporate update.

Despite the successful negotiation and settlement executed and announced on June 26, 2023, between Avila Energy and MTT, Insight Acquisition has provided notice that it is not satisfied that Avila has cured its concerns and has chosen to put Avila on notice that it intends to terminate the business combination agreement with Avila Energy.

"Avila acknowledges receipt of the e-mail, with Insight Acquisition Corp. providing notice of its intent to terminate the business combination agreement made April 3, 2023 (BCA). Avila strongly disagrees with Insight's characterization of various events described by Insight with its notice of default and Insight's position that Avila has breached the BCA," said Leonard B. Van Betuw president and chief executive officer. "Despite many challenges that are associated with a transaction of this nature, Avila has kept Insight informed as it worked through them over the past few weeks and has now fundamentally dealt with the issues raised in the notice of default. Avila is confident any outstanding issues Insight has raised can be satisfactorily resolved by the cure date of July 26, 2023."

The decision taken by Insight is disappointing. Avila Energy after careful deliberation has had internal discussions and feels that Insight's decision is short sighted and does not change the company's focus its business plan and core businesses, which are no different than what were presented to Insight at the time of the execution of the BCA:

1. The development of low-cost convention oil and natural gas production in Alberta;
2. The long-term development of its carbon capture and sequestration in west-central Alberta;
3. Direct-to-consumer sales through its vertically integrated energy business with the EnerTwin.

About Avila Energy Corp.

The company is an emerging Canadian Securities Exchange-listed corporation 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.