1st Quarter Results

Edge Resources Inc. Announces Results for the Three Month Period ended June 30, 2015

Edge Resources Inc. ("Edge" or the "Company"), is pleased to announce its audited results for the three month period ended 30 June 2015 ("Q1"), highlights of which are set out below.

Highlights for the period:

· Sales volumes were 446 boe/d compared to 612 boe/d in the fourth quarter of fiscal 2015 and 613 boe/d in the first quarter of fiscal 2015; the decrease from the prior quarter is due primarily to operational issues experienced during the quarter in Eye Hill, most of which have been remedied subsequent to period end.

· Due to continued low commodity prices and lower production volumes, cash flows continued to decline.

· Average achieved oil prices increased 35% to $46.21 for the three months to 30 June 2015 and average achieved natural gas prices increased from $2.51/mcf to $2.64 for the equivalent periods.

Brad Nichol, President and CEO of Edge, commented, "There is no denying it has been a difficult year for all oil and gas operators, big and small. Within the context of a tumultuous industry dynamic, Edge has acted very conservatively with respect to capital expenditures and cost management, and will continue to do so while commodity prices remain low and/or unstable. Notwithstanding the above, we are eager to work with our new capital partner to take advantage of this industry downturn through what is expected to be a favorable and active acquisition market." Nichol added, "In the midst of falling WTI oil prices, Edge's received heavy oil price has had some reprieve, as the "heavy oil discount" to WTI has dramatically improved during the same period. Additionally, the Canadian dollar has weakened versus the US dollar during this time resulting in a lower oil pricing impact for Canadian producers. Both of these factors have lessened the impact of falling light oil prices on Canadian heavy oil producers."

SUMMARY OF THE QUARTERLY RESULTS:

Detailed operating and financial results are presented in Edge's financial statements and related Management Discussion & Analysis ("MD&A"), which can be accessed on the Company's website (www.edgeres.com) and on SEDAR (www.sedar.com).

For more information, visit the company website: www.edgeres.com or contact:

Brad Nichol, President and CEO Phone: +1 403 767 9905

Sanlam Securities UK Limited (Joint Broker and NOMAD) Phone: +44 20 7628 2200

Simon Clements / James Thomas / Max Bascombe

SP Angel Corporate Finance LLP (Joint Broker) Phone: +44 20 3463 2260

John MacKay / Richard Hail

About Edge Resources Inc.

Edge Resources is focused on developing a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. Management has consistently focused on:

1. Shallow, vertical, conventional programs with reduced capital, operational and geological risks

2. Very high or 100% working interests and fully operated assets

3. Pools and horizons with exceptionally high reserves in place

The management team's very high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, which gives Edge Resources a sustainable, low-cost, competitive advantage.

Edge Resources Inc.

Condensed Interim Balance Sheet

(amounts in Canadian dollars)

Condensed Interim Statement of Income (Loss) and Comprehensive Income (Loss)

(amounts in Canadian dollars)

Edge Resources Inc.

Condensed Interim Statement of Changes in Shareholders' Equity

(amounts in Canadian dollars)

(unaudited)

Condensed Interim Statement of Cash Flows

(amounts in Canadian dollars)

Notes to the Condensed Interim Financial Statements

Three ended June 30, 2015

1. General business description

Edge Resources Inc. ("Edge" or the "Company") is engaged in the acquisition of, exploration for, development of and production of oil and natural gas. Edge is a publicly traded company on the TSX Venture Exchange under the symbol "EDE" and the Alternative Investment Market London Stock Exchange under the symbol "EDG", incorporated and domiciled in Canada. The address of business of the Company is Suite 1400, 717 - 7th Avenue SW, Calgary, Alberta, Canada, T2P 0Z3. These financial statements were approved and authorized for issuance by the Board of Directors on August 31, 2015.

These condensed interim financial statements have been prepared on a going concern basis which presumes that the Company will be able to discharge its obligations and realize its assets in the normal course of business. The Company had a loss and comprehensive loss of $0.8 million for the three month period ended June 30, 2015. As at June 30, 2015, the Company had a working capital deficiency of $8.0 million (March 31, 2015 - $7.7 million) that includes $7.3 million (March 31, 2015 - $6.4 million) in bank debt (excluding derivative assets/liabilities if any).

As per note 5, the Company has a revolving credit facility with a $17.0 million limit, and as of June 30, 2015, there was $9.7 million available for use. However, given the amount available for use under the facility is also limited by the "senior debt to cash flow" ratio, the actual limit will vary on a period by period basis. The calculations of the applicable ratios as of June 30, 2015 are presented in note 16 and the senior debt to cash flow ratio was not met at June 30, 2015. The breach has been communicated to the bank however because the Company is currently in the process of completing its regular annual review of the facilities no waiver will be sought for this breach. As a result of significantly weaker future commodity price forecasts, Management expects the lending limit on the revolving facility to be reduced although the amount of the reduction cannot be predicted at this time. As part of the regular annual review, management is also in discussion with the bank as to appropriate future financial covenants including the senior debt to cash flow covenant. Management actively forecasts applicable cash flows and will conduct an appropriate capital program based on estimated future credit facility availability. Management believes, despite the current significant decrease in world oil prices and its effect on Company cash flows, that with its current expected credit facility, equity raised subsequent to period end, and its near-term future equity-raising plans, that the Company will generate sufficient cash flows to meet its foreseeable obligations in the normal course of operations. Management has significantly delayed the Company's capital programs until the pricing environment further improves and has and continues to work on strategies to reduce general and administrative and operating costs subsequent to June 30, 2015.

Management has been and continues to be active in seeking alternative sources of funding to help accelerate its planned capital expenditure program, and to ultimately reduce its total debt. The Company cannot provide any assurance that sufficient cash flows will be generated from operating activities to reduce its working capital deficiency and to carry out its planned capital expenditure program.

The above-noted factors describe matters and conditions that indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to attain profitable operations, generate sufficient funds to continue its exploration and development activities, to repay its debts as they come due, and continue to obtain sufficient capital from investors or other sources of financing to meet its current and future obligations.

Management considers the Company is a going concern and has prepared the financial statements on a going concern basis.

2. Basis of preparation

(a) Statement of compliance

These condensed interim financial statements are unaudited and have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Certain information and disclosures normally included in the annual financial statements prepared in accordance with IFRS have been condensed or omitted.

The condensed interim financial statements should be read in conjunction with the Company's audited annual financial statements as at and for the year ended March 31, 2015 and the notes thereto. All accounting policies and methods of computation followed in the preparation of these condensed interim financial statements are consistent with those of the previous financial year.

3. Accounts receivable

4. Property, plant and equipment

5. Bank debt

As at June 30, 2015, the Company had lending facilities with a Canadian chartered bank, consisting of a $17 million revolving demand operating credit facility of which $7.3 million was drawn ($0.1 million on the prime-based facility and $7.2 million drawn under guaranteed notes). The revolving facility is a borrowing base facility that is determined based on, among other things, the Company's current reserve report, the results of operations, current and forecasted commodity prices and the current economic environment. The revolving credit facility contains standard commercial covenants for facilities of this nature. The Company also has available a risk management facility which allows the Company to conduct certain financial risk management options. The interest rate on the facility is bank prime plus 1.75% per annum. Guaranteed notes are subject to a 2.75% acceptance fee plus an applicable market interest rate. The facilities are secured by a general security agreement covering all assets of the Company including a subordination agreement with the lender in note 6, and repayments are interest only, subject to the bank's right of demand. The revolving credit facility provides that advances may be made by way of direct advances, guaranteed notes, or standby letters of credit/guarantee.

The revolving facility has the following financial covenant requirements (calculations are presented in note 16):

· The working capital ratio must be maintained above 1.0 to 1. The working capital ratio is defined as current assets (excluding derivative assets if any) plus the undrawn availability of the revolving facility to current liabilities (excluding the current portion of bank debt and derivative liabilities if any).

· The senior debt to cash flow ratio must not exceed 3.0 to 1. The senior debt to cash flow ratio is defined as the amount drawn under the bank facility to net income for the trailing one year period from the balance sheet date adjusted for non-cash items, and less dividends declared and repayments of shareholder loans.

As per note 16, the senior debt to cash flow ratio was not met at June 30, 2015. The breach has been communicated to the bank however because the Company is currently in the process of completing its regular annual review of the facilities no waiver will be sought for this breach. As a result of significantly weaker future commodity price forecasts, Management expects the lending limit on the revolving facility to be reduced although the amount of the reduction cannot be predicted at this time. As part of the regular annual review, management is also in discussion with the bank as to appropriate future financial covenants including the senior debt to cash flow covenant.

In addition, the Company may not enter into any risk management agreements with a term greater than two years or for a volume greater than 60% of its forecasted production from proved producing reserves.

6. Loans payable

As at June 30, 2015, the Company has a loan payable with a principal amount of $8 million, which bears interest at 10% per annum, is secured against all the assets of the Company as a second charge to the Company's lending facility (note 5), and is due January 31, 2017. Any interest and principal repayments for this loan are subject to the bank's prior approval. The loan payable is due to a company that is also a shareholder of the Company, and is repayable early at any time without penalty.

The following table summarizes changes in the loans payable:

7. Share capital

(a) Authorized

Unlimited number of voting common shares without par value

Unlimited number of preferred shares issuable in series

(b) Issued and outstanding