Edge Resources Inc.

TSX VENTURE : EDE
AIM : EDG


Edge Resources Inc.

December 19, 2012 08:45 ET

Edge Resources Inc. Closes $1 Million Canadian-Focused Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2012) - Edge Resources Inc. ("Edge" or the "Company") (TSX VENTURE:EDE)(AIM:EDG) is pleased to announce that, on the heels of its $5 million common share offering in the UK, it has raised a further $1 million from Canadian subscribers (the "Offering") in response to the oversubscribed UK offering.

The majority of the Offering, $1,031,440, represented flow-through subscriptions at a price of $0.32 per share (an 18.5% premium to Monday's closing price), with the remaining $29,500 in common shares at $0.25 per share (a 7.4% discount to Monday's closing price).

Directors, officers, employees and consultants of the Company subscribed for 20%, or $215,000, of the Offering.

The Company paid cash commissions equal to 4% of the gross proceeds of the Offering, with no broker warrants and no warrants attached to the securities.

Brad Nichol, President & CEO of Edge, commented: "This financing represented an opportunity for key members of our team to invest heavily in our future. This, combined with the continued support from our large, blue-chip institutional investors provides the resources to fully engage in the large drilling runway on our existing lands. We are keen to get the drilling program kicked-off and we've already taken the initial steps. We expect to see progress on the drilling program in the new year."

Proceeds from the Offering will be used for continued exploration and development of the Company's lands in western Canada and for general working capital purposes.

The securities issued in the Offering will be subject to a hold period of four months plus one day from closing. The closing is subject to applicable regulatory and TSX Venture and AIM Exchange approvals.

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

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.

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.

Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.

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.

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