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AVILA ENERGY CORPORATION ANNOUNCES SHARE CONSOLIDATION

February 23, 2026 Calgary, Alberta- Avila Energy Corporation (CSE: VIK, OTCM: PTRVF and FRA: 6HG0)) ("Avila" or the "Company") announces it intends to proceed with a consolidation of its common shares (each, a "Share") on the basis of four (4) pre-consolidation Shares for one (1) post-consolidation Share (the "Consolidation"). The Board of Directors approved the consolidation ratio at a meeting held on February 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 four (4) to one (1), with the result that each consolidated option and warrant will entitle the holder to acquire one Share at an exercise price of four (4) 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 Corporation

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 201-2759 Third Ave NE, Calgary, Alberta, T2A 2L5, Canada, 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.

Cautionary Statement Regarding Forward-Looking Information

Statements in this press release regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such forward-looking information can be generally identified by terms such as "may", "expect", "estimate", "anticipate", "intend", "believe", and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future, and readers are cautioned that such forward-looking statements may not be appropriate for other purposes. By its nature, this forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions may not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities may not be achieved. These risks and uncertainties include but are not limited to those identified and reported under the Company's disclosure documents available on its SEDAR+ profile at www.sedarplus.com.

Contact Information

For further information please contact:

Donald Benson, CEO

Avila Energy Corporation

Phone: (204) 955-5042

E-mail: donaldbensonsr39@gmail.com

Neither the CSE nor its Regulation Services Provider (as that term is defined in policies of the CSE) accepts responsibility for the adequacy or accuracy of this press release.