Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION CLOSES FIRST TRANCHE OF $1,033,000

Avila Energy Corp. has closed its first tranche of $1,033,000 of its non-brokered private placement previously announced on Sept. 20, 2023.

The Company issued 20,660,000 units at a price of $0.05 (the "Units") for gross proceeds of $1,033,000. Each Unit is comprised of one common share (each a "Common Share") in the share capital of the Company and one-half (1/2) common share purchase warrant (each a "Warrant"). Each full Warrant entitles its holder to purchase one additional common share at a price of $0.12 for a period of 24 months following the closing.

The Company may pay finder's fees of 8% in cash and 8% in warrants priced @ $0.12 per share on a portion of the Private Placement, subject to compliance with the policies of the Canadian Securities Exchange (the "CSE") and applicable securities legislation.

Two insiders of the Company, Mr. Leonard Van Betuw, CEO and Director and Mr. Jeffrey Decter, Director purchased an aggregate of 3,600,000 Units in the Private Placement. Any participation by insiders in the Private Placement would constitute a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). However, the participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101as the fair market value of the Units subscribed for by the insiders, nor the consideration for the Units paid by such insiders, exceeded 25% of the Company's market capitalization. The Company did not file a material change report in respect of the related party transaction at least 21 days prior to the closing of the first tranche of the Private Placement, which the Corporation deems reasonable in the circumstances in order to close the first tranche of the Private Placement in an expeditious manner.

The proceeds of the Private Placement will be used for general working capital purposes. All securities issued pursuant to the Private Placement will be subject to a four-month-and-one day statutory hold period in accordance with applicable securities law.

About Avila Energy Corporation

The Company is an emerging CSE listed corporation trading under the symbol ('VIK'), and in combination with an expanding portfolio of 100% 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 towards the material reduction of Tier 1, Tier 2 and Tier 3 emissions and continues to work towards 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 with the delivery of Direct-to Consumer energy sales to both residential and commercial consumers.

We seek Safe Harbor.