Edge Resources Inc.
TSX VENTURE : EDE
PINK SHEETS : EDGXF

Edge Resources Inc.

October 14, 2009 09:00 ET

Edge Resources Closes Non-Brokered Common Share Offering and Announces Brokered Financing

CALGARY, ALBERTA--(Marketwire - Oct. 14, 2009) - EDGE RESOURCES INC., ("Edge" or the "Company") (TSX VENTURE:EDE)(PINK SHEETS:EDGXF) listed on the TSX Venture Exchange Inc. under the trading symbol "EDE" is pleased to announce that it has closed a non-brokered financing consisting of the issuance of 2,000,000 common shares to arm's length Alberta residents at an issue price of $0.28 per share. The financing is subject to a commission payable to Union Securities Ltd. of $39,200 and the issuance of 140,000 broker warrants, with each broker warrant being exercisable into one common share upon payment of $0.28 per share for 12 months following closing. The securities issued are subject to a hold period until February 15, 2009 and are subject to the final approval of the TSX Venture Exchange.

The net proceeds from the private placement are expected to be used for general working capital purposes.

Edge is also pleased to announce the engagement of a syndicate consisting of Versant Partners Inc. and Jennings Capital Inc. as co-lead agents and Haywood Securities Inc. and Union Securities Ltd. as co-agents, with respect to a brokered financing to eligible subscribers resident in Canada and the United States. The offering shall consist of units, with each unit consisting of one common share and one half of one common share purchase warrant. Pricing of the offered securities will be determined in the context of the market prior to closing.

The proceeds of the brokered financing will be used to finance the Corporation's 2009-2010 capital expenditure program and for general working capital purposes. The issued securities will have a hold period of four months and one day from closing and will be subject to the prior approval of the TSX Venture Exchange.

About Edge Resources Inc.

Edge Resources is focused on the development of natural gas from the Edmonton Sands group of formations, a conventional, shallow gas group of reservoirs located in Central Alberta, Canada. The Management Team's very high success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow gas, specifically the Edmonton Sands, which gives Edge Resources a sustainable, low-cost, competitive advantage.

The Alberta Government estimates that there is 44 trillion cubic feet ("TCF") of non-producing, shallow natural gas in Alberta. Edge Resources' Management Team has evaluated over 20,000 sections of land and has identified over 200 "five-star" sections. The Company's development program focuses primarily on pursuing these highly prospective opportunities.

Visit the company website for more information: www.edgeres.com.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. 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.

Contact Information

  • Edge Resources Inc.
    Brad Nichol
    President & Director
    403 532 2411
    www.edgeres.com