1st Quarter Results

FOR IMMEDIATE RELEASE

TSX Venture Exchange Symbol: EDE

AIM Exchange Symbol: EDG September 1, 2014

EDGE RESOURCES INC. Calgary, Alberta

Edge Resources Inc. Announces Results for the Three Month Period Ended June 30, 2014

Edge Resources Inc. ("Edge" or the "Company") is pleased to announce its unaudited first quarter results for the three month period ended June 30, 2014 ("Q1 2014"), which represents another record quarter for the Company. Based on record revenues and excellent netbacks, Edge also achieved a record net profit.

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

· Highlights for the period

Ø Production in the quarter averaged 613 boepd (versus 618 boepd in the previous quarter and 577 boepd in Q1 2013)

Ø Sales of C$3.5 million for the three months ended June 30, 2014 (Q2 2013: C$2.3 million)

Ø The Company generated C$1.1 million in cash from operations for the 3 months ending June 30, 2014. Of the cash generated, C$360,000 was reinvested in capital programs and $750,000 was used to pay down bank debt

Ø Quarterly oil netbacks improved 37% compared to the previous quarter to $C49.14 per bbl

Ø The Company secured a new debt facility of up to C$17 million with ATB Corporate Financial Services, replacing the previous facility of C$8 million at a significantly reduced interest rate (currently 4.75% per annum). This has drastically reduced the Company's cost of capital and provides a larger pool of funds for future projects

Ø The Company's Competent Person's Report ("CPR") was prepared in May 2014 and effective March 31, 2014. It showed a major (44%) increase in year-on-year Proved+Probable ("P+P") reserve value to C$129.0 million. P+P reserves increased to 7.6 million boe

Ø The Proved reserve replacement ratio (Proved reserves added/reserves produced during the year) was 458% with a total finding, developing and acquisition ("FD&A") cost of $3.89 per Proved boe

Brad Nichol, President and CEO of Edge commented, "We are very pleased to have generated another record-breaking quarter. More revenue, more profit, more reserves and more cash - it couldn't have been better. Our focus now is on implementation of our capital programme, which we expect will be conservative and balanced between acquisitions and drilling on our existing property." Nichol added, "These quarterly results demonstrate that we have set ourselves a very high bar in terms of cash generation, capital payback and return on capital; thus, any new projects we undertake must meet those very high hurdles in order to make our short-list. It's a fantastic problem to have and we look forward to implementing a capital programme in the near future."

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's website or contact:

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

Sanlam Securities UK Limited, Nominated Adviser & Joint Broker Phone +44 (0) 207 628 2200

Simon Clements / James Thomas / Max Bascombe

SP Angel Corporate Finance LLP, Joint Broker Phone +44 (0) 203 463 2260

John MacKay / Richard Hail / Stuart Gledhill / Zac Phillips (Research)

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 focused consistently 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 high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, giving Edge Resources a sustainable, low-cost, competitive advantage.

Competent Person's Statement

The preparation of the technical information contained herein was supervised by Brad Nichol, President and CEO of Edge Resources, who is recognized as a Qualified Person for the purposes of National Instrument 51-101, and who has reviewed and approved the findings in this press release.

Condensed Interim Balance Sheets

(amounts in Canadian dollars)

(unaudited)

Condensed Interim Statements of Net and Comprehensive Income (Loss)

(amounts in Canadian dollars)

(unaudited)

Condensed Interim Statements of Changes in Shareholders' Equity

(amounts in Canadian dollars)

(unaudited)

Condensed Interim Statement of Cash Flows

(amounts in Canadian dollars)

(unaudited)

Certain non-cash transaction have been excluded from the statements of cash flows

Notes to the Condensed Interim Financial Statements

Three months ended June 30, 2014

(amounts in Canadian dollars)

(unaudited)

1. Going Concern

These condensed 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. As at June 30, 2014, the Company had a working capital deficiency of $6.2 million (March 31, 2014 - $6.9 million) that includes $5.8 million (March 31, 2014 - $6.6 million) in bank debt (excluding derivative assets/liabilities). The Company had an unused credit line of $2.2 million on its revolving credit facility at June 30, 2014. At June 30, 2014, the Company was compliant with its lender's covenants. Despite the Company achieving $0.3 million of income for the three month period ended June 30, 2014, subsequent commodity price decreases and ordinary production declines will impact the Company's ability to generate similar future financial results in the near term.

The Company changed its senior debt lender in July 2014 (note 4]), which resulted in an increased revolving operating demand facility and thus increased liquidity to complete planned capital expenditures. However, the Company is now subject to an additional financial covenant as part of the new credit facility, defined as 'senior debt to cash flow' covenant, and therefore in future periods, the amount of the operating loan facility available for use may be significantly lower than the maximum appropriate capital program based on estimated future credit facility availability. Management believes with the increased credit facility, positive expected cash flows in the near future, and its planned capital program, that the Company will generate sufficient cash flows to meet its foreseeable obligations in the normal course of operations. 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 doubts 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 condensed interim 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, 2014 and the notes thereto.

3. Property, plant and equipment

(1) On May 15, 2013, the Company completed an asset swap transaction with an unrelated third party such that $200,000 of oil and natural gas interests were swapped for $200,000 of undeveloped lands. The carrying amount of the oil and natural gas interests was $15,000, including a decommissioning provision of $40,000, resulting in a gain on sale of $185,000 for the three month period ended June 30, 2013.

4. Bank Debt

As at June 30, 2014, the Company had lending facilities with a Canadian chartered bank, consisting of an $8 million revolving demand credit facility of which $5.8 million ($5.7 million under bankers' acceptances and $0.1 million under prime-based lending) was drawn. The revolving facility is a borrowing base facility that is determined based on, among other things, the Company's current reserve report, results of operations, current and forecasted commodity prices and the current economic environment. The revolving credit facility contains standard commercial covenants for the 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 3.00% per annum. Bankers' acceptances are subject to a 4.25% acceptance fee plus an applicable market interest rate. The facilities are secured by a $50.0 million demand debenture and a general security agreement covering all assets of the Company. The revolving credit facility provides that advances may be made by way of direct advances, bankers' acceptances, or standby letters of credit/guarantee. Repayments for the revolving facility are interest only, subject to the banks right of demand.

The only financial covenant on the revolving facility is a requirement for the Company to maintain a current ratio (as defined in the credit agreement) of not less than 1.0:1.0, and such ratio is to be tested at the end of each financial quarter. A condition of the risk management facility is the Company must not hedge greater than 50% of its estimated forward production on a commodity by commodity basis, on a fixed price basis. The Company was in compliance with its credit facility covenants as at June 30, 2014.

In July 2014, the Company replaced its bank debt lender with another Canadian chartered bank. The new lending facilities consist of a $17 million revolving demand operating loan credit facility and a risk management facility. The revolving facility borrowing limit is primarily based on the Company's current reserve report, results of operations, current and forecasted commodity prices and the current economic environment. The revolving facility contains standard commercial covenants for facilities of this nature. The interest rate on the revolving facility is bank prime plus 1.75%. The facilities are secured by a general security agreement covering all assets of the Company including a subordination agreement with the lender in note 5, and repayments are interest only, subject to the bank's right of demand. At August 28, 2014, the maximum available under the new revolving facility was $17 million.

The new revolving facility has the following financial covenant requirements:

· The working capital ratio must be maintained above 1.0:1. 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 3.0:1. The senior debt to cash flow ratio is defined as amounts owing to the bank to net income for the trailing one year period from the balance sheet date plus non-cash changes less dividends declared and repayments of shareholder loans. This covenant will first be applicable for the quarter ending September 30, 2014.

In addition, the Company may not enter into any risk management agreements with a term greater than two year or for a volume greater than 60% of its forecasted currently producing volumes.

The new facilities may be reviewed at any time; however the next review date is scheduled for July 31, 2015. In conjunction with this change the Company's previous bank debt lender was repaid in full with all amounts extinguished and the lending facilities cancelled.

5. Loan payable

As at June 30, 2014, the Company loan payable with a principal amount of $8 million, which bears interest at 10% per annum, is secured against the assets of the Company as a second charge to the Company's lending facility (note 4), 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:

6. Availability of the Financial Statements and MD&A

Copies of all the Company's Financial Statements and MD&A's will be available on the Company's website (www.edgeres.com) and on SEDAR (www.sedar.com).