Mr. Donald Benson reports

AVILA ENERGY CORPORATION ANNOUNCES FILING OF 2024 FINANCIALS REVOCATION OF CEASE TRADE ORDER

Avila Energy Corp. has filed its annual audited financial statements, annual management's discussion and analysis, and chief executive officer and chief financial officer certifications of the annual filings for the year ended Dec. 31, 2024. In addition, the company filed its first quarter financial statements, management's discussion and analysis, and CEO and CFO certifications for the period ended March 31, 2025. The annual statements have been filed within 90 days of the issuance of the failure-to-file cease trade order, which was issued by the Alberta Securities Commission on May 7, 2025; therefore, there is no requirement to file an application to revoke same.

On June 26, 2025, the company 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's discussion and analysis, and CEO and CFO certifications.

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 company's creditors, the proposal was accepted. On May 23, 2025, the Court of Kings Bench issued an order directing the company to convene a second creditor 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.

The company believes that it will receive the revocation of the Nov. 22, 2024, compliance cease trade order on or about June 30, 2025, and, accordingly, the company intends to commence a private placement and seek the resumption of trading in the shares of the company on the CSE.

The company notes that, due to weak natural gas prices, the reservoir engineer found that some of the company's wells were unproductive. Therefore, the auditor wrote down the assets by $11-million. The company and the reservoir engineer are of the belief that as natural gas futures are increasing dramatically starting in November, 2025, this year-end, the company will be able to write up the value of the assets again.