Edge Resources Inc. Announces Settlement of Disputed Invoice

CALGARY, ALBERTA -- (Marketwired) -- 02/22/16 -- Edge Resources Inc. ("Edge" or the "Company") (TSX VENTURE: EDE)(AIM: EDG) is pleased to announce that it has settled a disputed invoice with a third party (the "Third Party"), in the amount of $536,000, inclusive of GST. Edge paid no cash to settle the dispute and simultaneously removed approximately $10,000 in associated joint-interest invoices from its accounts payable.

The dispute related to production and volume allocation errors in the Gilby area made by the Third Party over an eighteen month period in 2012 and 2013. The disputed amount has been continuously disclosed as a contingent liability in Edge's quarterly and annual financial statements since March 31, 2014 and Edge has vehemently denied the legitimacy of the invoice since it was received.

The Company settled the entire disputed amount plus additional associated joint-interest invoices through the assignment of five loss-making natural gas wells and abandonment liabilities to the Third Party. The Company incurred no cash costs as part of the settlement.

The result of the assignment of interests was:

1.  Reserves: Virtually no impact on reserves. All the wells, with the
    exception of the one small-working interest well, had not produced for
    two years or more and had no proven reserves assigned;
2.  Production: Edge loses approximately 1.3 boe/day. Only one of the wells,
    in which the Company had a 12.5% working interest, was producing. Net
    production from this single producing wellbore averaged 7.6 mcf/day (1.3
    boe/day) over the last year;
3.  Cash Flow: Improvement to Edge's operating cash flow. The operating fees
    paid to the Third Party operator were higher than the revenues from the
    producing well. Additionally, the ongoing fixed costs (fees to
    landowners, capital taxes, etc.) from the non-producing wells were
    transferred to the Third Party;
4.  Liabilities: Elimination of several abandonment liabilities. The Company
    would have been responsible for the abandonment of two operated, high-
    working interest, non-producing wellbores and associated pipelines.
    Additionally, the Company would have been responsible for its share of
    abandonment costs of three non-operated, low-working interest wellbores
    that were operated by the Third Party. Instead, the entirety of those
    liabilities were transferred completely to the Third Party; and
5.  Liability Management Rating ("LMR"): Improvement to Edge's LMR. The LMR
    is a program governed by the Alberta Energy Regulator that reflects a
    comparison of a Company's deemed assets to their deemed liabilities.
    Through the settlement of this dispute, the Company's deemed liabilities
    improved by more than $137,000 (a 10% improvement) in Gilby.

Brad Nichol, President and CEO of Edge, commented, "The strength of our position was reflected in the exceptionally positive outcome of this settlement. We turned what appears in our financial statements as a large, disputed invoice into a reduction in liabilities and improved cash flow, with an insignificant impact on production and reserves for virtually no cost. This seems like a clear victory for Edge shareholders and allows the management team to finally move on from this nuisance."

Additionally, the Company initially announced in July of 2015 that it was in discussion with a new strategic investor group (the "Investor Group") with intentions of funding several acquisitions. The Company has been working with the Investor Group for the last eight months and now believes that, despite the Investor Group continuing to state its intentions to fund the acquisition strategy, further funding from this group is unlikely. The Company is continuing to look at additional sources of capital for growth but the macro economic environment for oil and gas companies remains incredibly challenging and the Company remains dependent on the support of its bankers in order to continue to operate.

Additional information may also be available at www.edgeres.com or www.sedar.com.

About Edge Resources Inc.

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

1.  Growth through high return on capital employed ("ROCE") projects - good
    growth, not growth for the sake of growth
2.  Very high or 100% working interests and fully operated assets -
    controlling our own destiny
3.  Pools and horizons with exceptionally high recoverable oil in place
    ("ROIP") - pursuit of big prizes

The management team's high success rate is based on the safe, efficient deployment of capital and a proven ability to execute operationally, giving Edge Resources a sustainable competitive advantage.

Terminology

The term "boe" may be misleading, particularly if used in isolation. A boe conversion ratio for natural gas of 6 Mcf: 1 boe has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

The term "bopd" means "barrels of oil per day." The terms "boepd" or "boe/day" means "barrels of oil equivalent per day."

Unaudited Financial Information

Certain financial and operating information included in this press release for the year ended March 31, 2015, such as capital expenditures, production, F&D costs and FD&A costs are based on unaudited financial results, and are subject to the same limitations as discussed under "Forward-Looking Information." These estimated amounts may change upon the completion of audited financial statements for the year-ended March 31, 2015 and changes could be material.

Forward-Looking Statements

This news release includes certain information, with management's assessment of Edge's future plans and operations, and contains forward-looking statements which may include some or all of the following: (i) anticipated production rates; (ii) expected results of capital programs; (iii) expected timelines for production optimization; (iv) net debt levels; (v) anticipated operating costs; and (vi) expected capital projects and associated spending; which are provided to allow investors to better understand the Company's business. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Edge's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, changes in environmental tax and royalty legislation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, and other risks and uncertainties described under the heading 'Risk Factors' and elsewhere in the Company's Management Discussion and Analysis and other documents filed with Canadian provincial securities authorities and are available to the public at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The principal assumptions Edge has made include security of land interests; drilling cost stability; finance and debt markets continuing to be receptive to financing the Company, the ability of the Company to monetize non-core assets and industry standard rates of geologic and operational success. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Edge disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Trading in the securities of Edge Resources Inc. should be considered highly speculative. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Edge Resources Inc.
Brad Nichol
President & CEO
Phone: +1 (403) 767 9905

Sanlam Securities UK Limited (Joint Broker and NOMAD)
Simon Clements / James Thomas
Phone: +44 (0)20 7628 2200

SP Angel Corporate Finance LLP (Joint Broker)
John MacKay / Richard Hail / Stuart Gledhill
Phone: +44 (0)20 3463 2260

Source: Edge Resources Inc.

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