EDG.L Regulatory News (EDG)

TSX Venture Exchange Symbol: EDE

AIM Exchange Symbol: EDG 22 February 2016

Calgary, Alberta

Edge Resources Inc. Announces Settlement of Disputed Invoice

Edge Resources Inc. ("Edge" or the "Company") 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 the 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.

A condition of the settlement agreement requires the identity of the Third Party to remain confidential.

Brad Nichol, President and CEO of Edge, commented, "The strength of our negotiating 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 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 or contact:

Brad Nichol - President & CEO

Phone: +1 (403) 767 9905

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.