Mr. Donald Benson reports

AVILA ENERGY CORPORATION ANNOUNCES PLANT SHUT DOWN

Avila Energy Corp.'s Bear Hills processing plant has been shut in.

On April 3, 2025, Avila had its Bear Hills processing plant shut in for failure to meet the dew point standards of Atco/TC Energy. On April 2, Atco/TC Energy made its monthly inspection to gauge the dew point, which establishes the temperature of the natural gas being exported from the company's plant. The temperature exceeded the minus 10 C threshold by several degrees. The company shut in some of the production; however, upon the return the next day, the temperature did not conform to requirements. The company finds that baffling as, during the prior months with similar ambient temperatures, the company passed the test.

The company engaged the services of a Calgary-based consulting engineering firm which ran simulation models which determined that the facility was more than capable of handling the volume and richness of the gas being processed. Accordingly, it was determined that the company service its heat exchanger, which is expected to solve the dew point problem. The company expects the matter to be rectified shortly.

In other news, the company reports that it attended the Court of King's Bench on April 28, seeking an order approving the creditors' approval of the creditor proposal voted on March 21, 2025. The order also sought an amendment to the proposal extending the time for the cease trade order to be lifted until Sept. 30, 2025, to recommence trading on the Canadian Securities Exchange.

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.