Mr. Donald Benson reports

AVILA ENERGY CORPORATION ANNOUNCES ALBERTA SECURITIES COMMISSION SETTLEMENT

Avila Energy Corp. has settled its matter of with the Alberta Securities Commission (ASC) for misleading disclosure.

The ASC has concluded a settlement agreement and undertaking with Avila and its former chief executive officer, Leonard Van Betuw, for misleading disclosure in connection with a December, 2022, private placement offering under the listed issuer financing exemption.

In the settlement agreement, Avila and Mr. Van Betuw admitted to misrepresentation in breach of Alberta securities laws by misleading, untrue or incomplete statements in an offering document that was filed with the ASC on Dec. 22, 2022.

Avila and Mr. Van Betuw acknowledged in the settlement agreement that the offering document misrepresented how Avila intended to use $1.5-million of the offering proceeds and that this information would have been expected to have significant effect on the market price of the securities offered by Avila. They further acknowledged breaching the Securities Act (Alberta) by filing a misleading or untrue certificate with the ASC as part of the offering document. A copy of the settlement agreement and undertaking is available on the ASC website.

About Avila Energy Corp.

The company is an emerging CSE-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.

We seek Safe Harbor.