Mr. Donald Benson reports

AVILA ENERGY CORPORATION ANNOUNCES REVOCATION OF CEASE TRADE ORDER

Avila Energy Corp. has filed an application for the revocation of the compliance cease trade order issued on Nov. 22, 2024, by the Alberta Securities Commission under Section 164 of the act, generally prohibiting trading in the securities of the applicant in jurisdictions due to the applicant's failure to file its annual audited financial statements in accordance with the legislation for the year ended Dec. 31, 2023, including the related management discussion and analysis, and chief executive officer and chief financial officer certifications. The stated required filings have now been filed.

The company was also issued a failure-to-file cease trade order on May 7, 2025, for not filing on or before the annual financial filing deadline its annual audited financial statements, annual management's discussion and analysis, and certification of the annual filings for the year ended Dec. 31, 2024. The company intends to file the 2024 annual financial filings on or before July 4, 2025.

The company on Sept. 20, 2024, filed a notice of intention to make a proposal to its creditors. On March 21, 2025, at the meeting of the companies creditors, the proposal was accepted. On May 23, 2025, the Court of Kings Bench issued an order directing the company to convene a second creditors meeting to obtain the consent of the creditors to extend the date for the cease trade order to be lifted and to extend the date for the company to recommence trading on the Canadian Securities Exchange. That meeting is currently being called by the trustee and the company is confident that the approval of the amendments to the proposal will be obtained.