Mr. Donald Benson reports

AVILA ENERGY CORPORATION PROVIDES CORPORATE UPDATE

Avila Energy Corp. has provided corporate updates.

1. The company held its creditors meeting on March 21, 2025. The creditors voted overwhelmingly in favour of the proposal. Going forward the unsecured creditors will receive shares of the company in exchange for their debt. The secured creditor will have the repayment terms amended and unaffected creditors will be dealt with individually.
2. The company has an April 28, 2025, hearing scheduled in the Court of King's Bench to have the proposal ratified. In addition, the company will be seeking an extension to May 30, 2025, to have the cease trade order lifted and regain trading on the Canadian Securities Exchange. The proposal originally called for the cease trade order to be lifted by April 11, 2025, however difficulty in obtaining accounting information from a previous accounting system has held up the process. The company is working to have the 2024 year-end completed by month-end.
3. Upon having the cease trade order lifted the company intends to commence a private placement to raise the capital necessary to finance the proposal.
4. The company also announces that the Lars Glimhagen has been replaced by director George Mendez as chief financial officer and corporate secretary. Mr. Mendez is a graduate of the London School of Economics.

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

We seek Safe Harbor.