Edge Resources Inc.
TSX VENTURE : EDE
AIM : EDG

Edge Resources Inc.

November 18, 2013 08:45 ET

Edge Resources Inc. Closes $3.5 million Oversubscribed Financing with Key Capital Partners, Announces Commencement of Drilling Program and Appointment of Joint Broker

CALGARY, ALBERTA--(Marketwired - Nov. 18, 2013) - Edge Resources Inc. (TSX VENTURE:EDE)(AIM:EDG) ("Edge" or the "Company") is very pleased to announce that it has closed a financing that has raised CDN$3.5 million (the "Placing") through the issuance of 35,000,006 common shares (the "Placing Shares") with new and existing institutional investors at a price of 6p (CDN$0.10) per share for gross proceeds of £2.1 million.

The oversubscribed Placing was completed at a 14% discount to the most recent AIM trading price, was supported by sector specialists and major new - and existing institutional - investors (including Henderson Global Investors, Edge's largest capital partner).

No warrants (including broker warrants) were issued as part of the Placing and the company paid total commissions of £75,285.02, or 3.6%, of the gross proceeds. The Placing was arranged by Sanlam Securities UK Limited ("Sanlam") and SP Angel Corporate Finance LLP ("SP Angel"), who has been appointed as joint broker to the Company with immediate effect.

The proceeds will be used to further develop the Company's shallow, conventional oil prospects in Eye Hill, Saskatchewan, the location of Edge's most productive assets, which Scotiabank has recently ranked as the 5th best oil play in North America in terms of the profit-to-investment ratio. Edge expects to spud the first well of its multi-well drilling program before the end of 2013.

In addition to the near term drilling program, Edge has identified a large number of additional locations in Eye Hill East, and plans to reinvest the cash flow from its existing and new wells into funding the future drilling program.

Given the exceptional results achieved to date in Eye Hill, the Company expects this financing to be highly accretive on a post-financing, fully diluted basis in the near-to-medium term. The Company plans to be self- funding in 2014 by combining the cash flow expected to be generated from this multi-well drilling program with the Company's existing positive cash flow.

Brad Nichol, President & CEO of Edge, commented: "It is fantastic to see such overwhelming institutional and sector specialist support for our company. As one of the rare junior oil and gas companies able to raise money in these very difficult capital markets, we are clearly enjoying the benefits of our AIM listing and hugely supportive capital partnerships. We are not just raising money when few others are able to, we're doing it at a much lower cost than most other Canadian companies could imagine. That critical competitive advantage should directly translate into more value for our shareholders, especially in a capital-constrained market like we're experiencing today." Nichol added, "Even though our share price has been impacted by the general junior E&P market havoc, Edge's fundamentals remain solid and this capital injection should be highly accretive for shareholders - especially as we expect to become self-funding on the basis of a successful multi-well drilling program."

Application has been made to the London Stock Exchange for admission of the Placing Shares to AIM and to the TSX-V, with admission expected to become effective on November 21, 2013. When issued, the Placing Shares will rank pari passu in all respects with the existing common shares. The Placing Shares will represent 21.4% of the Company's issued share capital following admission, when the Company will have 163,802,246 common shares in issue.

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

About Edge Resources Inc.

Edge Resources is focused on developing its heavy oil properties within 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.

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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