Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION ANNOUNCES THE SIGNING OF A TERM SHEET FOR A SECURED TWO-YEAR LOAN OF CDN $3,000,000 AND PROVIDES UPDATE ON MTT

Avila Energy Corp. signed a term sheet on July 5, 2023, with a private Canadian investments company for a secured two-year term loan of $3-million and provides an update on MTT.

The $3-million loan is to be financed after the execution of all necessary documentation and registration of the associated securities instruments as would be contemplated with a loan of this nature, including a registered general security agreement over all the assets of the company. Financing is anticipated to occur in approximately two to three business days.

The terms of the financing are interest-only paid monthly, at an annualized rate of 12 per cent plus the accrual of an additional annual administration fee of 10 per cent, payable at the time of repayment of the term loan. In addition to the general security agreement being provided by the company, the president and chief executive officer of the company, Leonard B. Van Betuw, has agreed to provide a personal guarantee for the amount $3-million for which he shall be compensated for providing this guarantee by the company an amount of 0.25 per cent per month calculated monthly on the amount outstanding at the end of each month.

The company has also negotiated its ability, at the company's sole election monthly, to make additional payments on the principle amount outstanding on the term loan, or as financing becomes available from future financings under way, the full repayment of the principle and accrued administrative fees outstanding at any time without penalty prior to the end of the two-year term.

"The company is pleased to have come to agreement on the term loan of $3-million which in combination with its ongoing equity funding efforts positions the company to accelerate the advancement its business as outlined in its corporate presentation available on the company's website," said Mr. Van Betuw.

Furthermore, the use of proceeds will result in the release of the licence for the sales and manufacturing of the Ener Twin in Canada and the United States upon the payment all amounts outstanding as negotiated to Micro Turbine Technology (MTT) and announced on June 26, 2023. The remaining balance of approximately $1.5-million shall be additional working capital for the company to be used as deemed necessary. Initially as stated previously, the company's plan is to remain conservative and continue to strengthen and grow its upstreaming production in combination with the measured launch of presales of Avila's vertically integrated energy business in the third quarter of 2023, with initial installations to take place in the fourth quarter of 2023 and ramping up into 2024.

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.

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