Avila Energy Corporation announced the closing of the transaction with a private Canadian investments company at arm's length for a secured two (2) year term loan of $3,000,000 previously announced on July 5, 2023. The parties have executed all the necessary documents and a general security has been registered on all Avila's assets in the appropriate registries in favor of the Lender. The terms of the Loan include monthly interest payments during the Term, at an annualized rate of 12% plus the accrual of an additional annual administration fee of 10%, payable on the maturity date of the Term.

In addition to the general security being provided by the Company, the President & CEO of the Company, Mr. Leonard B. Van Betuw provided a personal guarantee for the amount $3,000,000 for which he shall be compensated for such by the Company at 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 principal amount outstanding on the Loan, or as funding becomes available from future financings underway, the full repayment of the principal and accrued administrative fees outstanding at any time without penalty prior to the end of the Term. The maturity date of the Term is two (2) years from the date of the disbursement of funds.

$1,472,560 of the loan proceeds were allocated to payments to Micro Turbine Technology's for the licensing of the EnerTwin as per the terms of the Settlement Agreement signed on June 26, 2023, and the balance was advanced to the Company for general working capital purposes.