Mr. Donald Benson reports

AVILA ENERGY CORPORATION ANNOUNCES SHARE CONSOLIDATION

Avila Energy Corp. intends to proceed with a consolidation of its common shares on the basis of one postconsolidation share for four preconsolidation shares. The board of directors approved the consolidation ratio at a meeting held on Feb. 18, 2026.

The company currently has 229,730,477 shares issued and outstanding. Accordingly, once the consolidation is effective, the company will have 57,432,619 shares issued and outstanding, assuming there are no other changes in the issued capital of the company.

The company intends to also proceed with consolidating its outstanding options and warrants on a ratio of one to four, with the result that each consolidated option and warrant will entitle the holder to acquire one share at an exercise price of four times its original exercise price.

The consolidation is being proposed in order to provide the company with increased flexibility to seek additional financing opportunities and is subject to the approval of the Canadian Securities Exchange. The company will not change its name as part of the consolidation.

About Avila Energy Corp.

The principal business carried on by the company is the acquisition, exploration and development of oil and gas properties. The company will continue to be a producer, explorer and developer of energy in Canada, focused on becoming an integrated energy producer.

The company's head office is located at Suite 201, 2759 Third Ave. NE, Calgary, Alta., T2A 2L5, Canada. The common shares of Avila are currently listed on the CSE and the company is a reporting issuer in the provinces of British Columbia, Alberta and Ontario.

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