Mr. Leonard Van Betuw reports

AVILA ENERGY CORPORATION TO CLOSE FURTHER TRANCHES OF ITS PRIVATE PLACEMENT OFFERING OF UP TO $3,000,000

Avila Energy Corp. intends to close further tranches of its non-brokered private placement previously announced on Sept. 20, 2023.

The company intends to close further tranches of a non-brokered private placement consisting of the issuance of up to 60 million units at a price of five cents per unit for gross proceeds of up to $3-million. Each unit comprises one common share in the share capital of the company and one-half common share purchase warrant. Each full warrant entitles its holder to purchase one additional common share at a price of 12 cents for a period of 24 months following the closing.

The company closed the first tranche on Oct. 31, 2023, by way of the issuance of 20.66 million units for aggregate gross proceeds of $1,033,000. The company expects that a second tranche closing will occur on or about March 28, 2024.

The company may proceed to close further tranches of the private placement. The corporation may pay finders' fees on a portion of the private placement, subject to compliance with the policies of the Canadian Securities Exchange and applicable securities legislation.

Certain insiders of the corporation may acquire 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. This includes participation by Leonard Van Betuw, president and chief executive officer of the company, for 2.5 million units for total proceeds of $125,000. However, the corporation expects such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the units subscribed for by the insiders, nor the consideration for the units paid by such insiders, would exceed 25 per cent of the corporation's market capitalization.

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.

The securities being referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the U.S. or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 the company 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 with the delivery of direct-to-consumer energy sales to both residential and commercial consumers.

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