Mr. Donald Benson reports

AVILA ENERGY CORPORATION ANNOUNCES THE SUCCESSFUL COMPLETION OF THE RIGHTS OFFERING

Avila Energy Corp.'s previously announced rights offering, which ended on May 22, 2026, has been oversubscribed. The overallotment subscriptions are currently being calculated and the formal detailed announcement will follow.

Proceeds from the offering will be used for general corporate purposes, to complete the workover of two oil wells and complete the work started in the last number of months, and to restart 16 natural gas wells in the Donalda field, located southwest of Edmonton.