Edge Resources Announces Oil-Focused Acquisition

Acquired 100% WI in 19 sections of Crown land plus 2 sections of land with gross ORRI in west-central SK,gaining 350 BOE/d.

Edge Resources Inc. is pleased to announce that it has completed the acquisition of certain oil and gas assets located in West Central Saskatchewan from an Alberta-based public oil and gas producer for aggregate consideration of $8.8 million.

The acquisition consists of:

-- Current production of approximately 350 boe/day (65% oil)
-- 100% working interest in 19 sections of Crown land plus 2 sections of land upon which the Company has acquired Gross Overriding Royalty ("GOR") interests
-- More than 25 sections of proprietary 3D seismic
-- More than 125km of proprietary 2D seismic lines
-- 30km of natural gas pipeline and associated infrastructure

Brad Nichol, President & CEO of Edge commented, "We have acquired an amazing asset in a highly sought-after area, which can act as an immediate platform for near-term growth. We can utilize our existing operational expertise to hit the ground running."

Highlights of the acquisition:

-- Acquisition price of $25,142 per flowing boe/day versus 2011 averages of $42,171 and $114,448 for heavy and light oil-weighted transactions, respectively
-- The acquired properties produced net cash flow of approximately $3.1million in 2011 and the Company anticipates a similar level of net cash flow in 2012, excluding the drilling of any additional wells
-- The identification of several promising drilling locations, based on review of the proprietary 3D seismic
-- Near-term opportunities to work-over existing wellbores and increase production
-- Opportunities to improve recoverable reserves, which the Company estimates to currently be only a small percentage of original oil in place, through field optimization and secondary recovery methods
-- Multizone exploration and development potential from several horizons

Nichol added, "The acquisition brings our total current production to over 900 boe/day and increases our oil weighting and immediate cash flow. We are very pleased to have taken 100% ownership of this asset, as controlling our own destiny has always been important to controlling our own success. We look forward to developing this asset and the multiple promising horizons it encompasses, to its fullest potential, which we feel can be largely accomplished through relatively shallow, conventional, vertical, low-cost wells."

The acquisition was financed 100% though debt and no new equity was issued to close this transaction. To finance a portion of the acquisition, the Company entered into a secured loan facility in the amount of $7.5 million with the remaining $1.3 million of the consideration from the Company's operating line. The secured loan was provided by non-insider, Alberta resident shareholders of the company.