Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION IS PLEASED TO ANNOUNCE THE COMPLETION OF ALL TERMS OF SETTLEMENT WITH MTT AND THE ISSUANCE OF THE LICENSED RIGHTS FOR THE MANUFACTURING, SALE, SUPPLY AND SERVICING OF MTT'S ENERTWIN IN CANADA AND THE UNITED STATES OF AMERICA

Avila Energy Corp. has completed all terms of settlement with MTT and has noted the issuance of the licensed rights for the manufacturing, sale, supply and servicing of MTT's EnerTwin in Canada and the United States.

Avila Energy is pleased to confirm that all financial obligations have been paid in full to MTT and that as of July 25, 2023, Avila's investments to date of 4.16 million euros have resulted in the following:

1. Avila Energy and MTT confirms that Avila's licence, as agreed on June 26, 2023, to manufacture, sell and service the EnerTwin in Canada and the United States is now in effect as of July 25, 2023, and has been released from escrow by MTT. The up-front licence fee paid being 1.5 million euros, or approximately $2,205,000.**
2. Avila Energy is to receive 12,328 non-voting shares of MTT, at this moment representing 15 per cent of the issued share capital of MTT at a price of 202.80 euros per share, the total investment being 2.5 million euros, or approximately $3,675,000.** The shares are subject to the provisions that in the event Avila does not sell 5,000 EnerTwin units on or before July 1, 2026, MTT retains the right to repurchase the shares for cancellation at a cost of one euro.
3. Initiation of CSA and UL certification at a cost of 135,350.40 euros and interest expense totalling 26,649.60 euros.

** Assumes an exchange rate of one euro:$1.47 (Canadian).

"MTT is pleased that the issues between companies now have been fully resolved. In accordance with the licence agreement, MTT looks forward to start working on phase 2, of the adaptations required to acquire CSA/UL certification for the EnerTwin and to continue to support Avila with the introduction of the EnerTwin to the Canadian and North American markets," said Willy Ahout, chief executive officer of MTT.

"Avila is also pleased to have reached this milestone and looks forward to collaborating with MTT on the technical transfer and ramp up sales in North America," said Leonard B. Van Betuw, president and CEO. "The company anticipates that it will be commencing the acceptance of orders by late August of 2023, that will be conditional on their application and/or the timing of the CSA/UL certification."

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.

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