Mr. Donald Benson reports

AVILA ENERGY CORPORATION ANNOUNCES CORPORATE UPDATE

Donald Benson, president of Avila Energy Corp., has instructed the company's lawyer to cancel the court date scheduled for Aug. 7, 2026.

Information has surfaced, which leads the company to believe that it has additional assets of a material amount, which the company had previously been unaware of. The company intends to firstly secure the assets and then determine whether or not it is obliged to provide the creditors of the company with a new proposal. The new court date will be set upon the company advancing the process including having a further creditor's meeting if required.

We seek Safe Harbor.