Avila Energy Corporation announces the signing of a Term Sheet for a secured Two-Year Loan of CDN $3,000,000 and provides Update on MTT

CALGARY, AB / ACCESSWIRE / July 5, 2023 / Avila Energy Corporation ("Avila" or the "Company" or "Avila Energy"), trading symbol "CSE:VIK", "OTCM:PTRVF", "FRA:6HG0", is pleased to announce the signing of a term sheet on July 5, 2023, with a private Canadian investments company for a secured two (2) year term loan of CDN $3,000,000 and provides an update on MTT.

The $3,000,000 loan is to be funded after the execution of all necessary documentation and registration of the associated securities instruments as would be contemplated with a loan of this nature, including a registered General Security Agreement over all the assets of the Company. Funding is anticipated to occur in approximately 2 to 3 business days.

The terms of the financing are interest only paid monthly, at an annualized rate of 12% plus the accrual of an additional annual administration fee of 10%, payable at the time of repayment of the term loan. In addition to the General Security Agreement being provided by the Company, the President & CEO of the Company, Mr. Leonard B. Van Betuw has agreed to provide a personal guarantee for the amount CDN$3,000,000 for which he shall be compensated for providing this guarantee by the Company an amount of 0.25% per month calculated monthly on the amount outstanding at the end of each month.

The Company has also negotiated its ability, at the Company's sole election monthly, to make additional payments on the principle amount outstanding on the term loan, or as funding becomes available from future financings underway, the full repayment of the principle and accrued administrative fees outstanding at anytime without penalty prior to the end of the 2-year term.

"The Company is pleased to have come to agreement on the Term Loan of $3,000,000 which in combination with its on going equity funding efforts positions the Company to accelerate the advancement its business as outlined in its Corporate Presentation available on the Company's website". said Leonard B. Van Betuw, President & CEO of Avila Energy Corporation.

Furthermore, the use of proceeds will result in the release of the License for the Sales and manufacturing of the Ener Twin in Canada and the United States upon the payment all amounts outstanding as negotiated to Micro Turbine Technology's (MTT) and announced on June 26, 2023. The remaining balance of approximately $1.5 million shall be additional working capital for the Company to be used as deemed necessary. Initially as stated previously, the Company's plan is to remain conservative and continue to strengthen and grow our upstreaming production in combination with the measured launch of pre-sales of Avila's Vertically Integrated Energy Business in the 3^rd quarter of 2023, with initial installations to take place in the 4^th quarter of 2023 ramping and ramping up into 2024.