Eden Innovations Ltd V.EDE

EDE

[ESSET]

FOR IMMEDIATE RELEASE

TSX Venture Exchange Symbol: EDE

AIM Exchange Symbol: EDG November 30, 2012

EDGE RESOURCES INC. Calgary, Alberta

Edge Resources Announces Quarterly and Half Yearly Results

Edge Resources Inc. ("Edge" or the "Company") is pleased to announce its unaudited second quarter results for the three month period ended September 30, 2012 ("Q2 2012") and its unaudited half yearly results for the six month period ended September 30, 2012 ("HY 2012").

For the six months ended September 30, 2012:

Period Highlights

· C$4.5 million investment from Henderson Global Investors in March 2012 to fund the initial phase of drilling oil prospects in both Primate and Grand Forks

· Dual listing on AIM of the London Stock Exchange in July 2012

· Sales volumes increased to 693 boe/d in Q1 2012 (307boe/d Q1 2011) and 716 boe/d in H1 2012 (333 boe/d H1 2011);

· Primate, Saskatchewan:

o Successful drilling and completion of two oil wells ahead of schedule;

o Discovery of new heavy oil pool in the McLaren Pool;

o Subsequent proprietary 3D Seismic programme initiated

· Grand Forks, Alberta:

o Acquired 395 acres of mineral land rights, resulting in total acreage of 3,782 net acres (12% increase)

Brad Nichol, President & CEO of Edge, commented, "We are extremely pleased with Edge's performance since our AIM listing in July, which has broadened our investor base and increased liquidity. Edge has remained true to its strategy of focusing on operating in a conventional, shallow arena with properties that offer exceptional economic returns and low risk profile. As commodity prices have demanded, our near-term focus continues to be on oil and the superior returns this commodity currently offers; and thus, the remainder of the 2013 capital program will concentrate on oil assets. The Company expects to drill a number of these conventional oil wells on its existing lands in the coming months. Edge has secured significant debt facilities with a major Canadian bank, recently closed an equity financing and has initiated a relationship with a major institutional capital partner, all of which will allow continual measured growth."

To view the Company's full Q2 2012 and HY 2012 statements, please go to the company website (www.edgeres.com).

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

Brad Nichol - President,CEO	Tel: [phone]
Merchant Securities Limited (Nominated Advisor and Broker) Lindsay Mair/Scott Mathieson	Tel: [phone]
Buchanan (Financial PR) Tim Thompson/Tom Hufton	Tel: [phone]

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.

Condensed Interim Balance Sheets

(amounts in Canadian dollars)

(unaudited)

			September 30,		September 30,		March 31,
	Note		2012		2011		2012
Assets
Current assets
Cash and cash equivalents			5,178		36,855		64,885
Accounts receivable			1,234,668		878,236		995,747
Deposits and prepaid expenses			175,284		131,472		71,942
Fair value of derivative instruments			120,728		-		95,341
Total current assets			1,535,858		1,046,563		1,227,915
Non-current assets
Fair value of derivative instruments			84,346		-		12,741
Exploration and evaluation assets			374,981		144,926		67,879
Property, plant and equipment	3		35,764,584		21,433,466		34,689,533
Total non-current assets			36,223,911		21,578,392		34,770,153
Total assets			37,759,769		22,624,955		35,998,068
Liabilities
Current liabilities
Accounts payable and accrued liabilities			2,695,509		3,342,785		1,470,423
Bank debt	4		9,076,063		4,476,207		10,669,376
Loans payable	5		1,160,438		1,040,110		1,100,274
Total current liabilities			12,932,010		8,859,102		13,240,073
Loans payable	5		7,466,027		-		7,115,068
Decommissioning provisions			6,437,000		3,590,000		5,495,000
Total liabilities			26,835,037		12,449,102		25,850,141
Shareholders' Equity
Share capital			27,247,163		22,409,494		24,093,398
Warrants			339,232		772,282		386,860
Contributed surplus			1,589,584		928,654		1,358,281
Deficit			(18,251,247)		(13,934,577)		(15,690,612)
Total shareholders' equity			10,924,732		10,175,853		10,147,927
Total liabilities and shareholders' equity			37,759,769		22,624,955		35,998,068

Condensed Interim Statements of Net Loss and Comprehensive Loss

(amounts in Canadian dollars)

(unaudited)

		Six months ended		12 months ended
		September 30,	September 30,	March 31,
	Note	2012	2011	2012
Revenue
Oil and natural gas sales		4,294,681	2,458,586	5,966,278
Royalties		(752,638)	(277,963)	(804,422)
Revenue, net of royalties		3,542,043	2,180,623	5,161856
Other income
Realized gain on financial derivatives		256,648	-	6,869
Unrealized gain (loss) on financial derivatives		96,992	-	108,082
Gain on disposition of oil and natural gas interests		300,000	-	-
Other income		37,349	173,354	223,305
Total income, before expenses		4,233,032	2,353,977	5,500,112
Expenses
Operating		2,381,382	667,415	1,865,323
Transportation		261,296	126,197	306,316
General and administrative		1,424,901	1,061,193	2,808,344
Depletion and depreciation	3	1,787,100	531,800	1,742,800
Finance expense		659,201	248,732	693,472
Stock-based compensation		183,675	116,157	160,362
Capital taxes		96,112	-	-
Total expenses		6,793,667	2,751,494	7,653,664
Loss before income taxes		(2,560,635)	(397,517)	(2,153,552)
Deferred income tax recovery		-	129,363	129,363
Net loss and comprehensive loss for the period		(2,560,635)	(268,154)	(2,024,189)
Net loss and comprehensive loss per share
Basic and diluted		(0.03)	(0.00)	(0.03)

Condensed Interim Statements of Changes in Shareholders' Equity

(amounts in Canadian dollars)

(unaudited)

	Share Capital	Warrants	Contributed surplus	Deficit	Total Equity
Balance at April 1, 2011	18,848,895	385,215	812,497	(13,666,423)	6,380,184
Issue of equity for cash	3,602,049	339,439	-	-	3,941,488
Issue of flow-through shares for cash	498,700	-	-	-	498,700
Share issue costs, cash paid	(363,159)	-	-	-	(363,159)
Share issue costs, non-cash	(47,628)	47,628	-	-	-
Flow-through share premium	(129,363)	-	-	-	(129,363)
Stock-based compensation	-	-	116,157	-	116,157
Net loss for the period	-	-	-	(268,154)	(268,154)
Balance at September 30, 2011	22,409,494	772,282	928,654	(13,934,577)	10,175,853
Issue of equity for cash	1,250,000	-	-	-	1,250,000
Issue of common shares in lieu of services	31,250	-	-	-	31,250
Issue of common shares for repayment of loans payable	500,000	-	-	-	500,000
Share issue costs, cash paid	(66,096)	-	-	-	(66,096)
Share issue costs, non-cash	(31,250)	-	-	-	(31,250)
Non-cash fair value related to warrants expired	-	(385,422)	385,422	-	-
Stock-based compensation	-	-	44,205	-	44,205
Net loss for the period	-	-	-	(1,756,035)	(1,756,035)
Balance at March 31, 2012	24,093,398	386,860	1,358,281	(15,690,612)	10,147,927
Issue of common shares for cash	3,250,000	-	-	-	3,250,000
Issue of common shares in lieu of services	81,250	-	-	-	81,250
Share issue costs, cash paid	(96,235)	-	-	-	(96,235)
Share issue costs, non-cash	(81,250)	-	-	-	(81,250)
Stock-based compensation	-	-	183,675	-	183,675
Non-cash fair value related to warrants expired	-	(47,628)	47,628	-	-
Net loss for the period	-	-	-	(2,560,635)	(2,560,635)
Balance at September 30, 2012	27,247,163	339,232	1,589,584	(18,251,247)	10,924,732

Condensed Interim Statements of Cash Flows

(amounts in Canadian dollars)

(unaudited)

		Six months ended		12 months ended
		September 30,	September 30,	March 31,
	Note	2012	2011	2012
Cash flows provided by (used for):
Cash flows generated from (used in) operating activities
Net loss for the period		(2,560,635)	(268,154)	(2,024,189)
Adjustments for:
Unrealized loss (gain) on financial derivatives		(96,992)	-	(108,082)
Gain on disposition of oil and natural gas interests		(300,000)	-	-
Depletion and depreciation		1,787,100	531,800	1,742,800
Deferred income tax recovery		-	(129,363)	(129,363)
Accretion expense		74,000	37,877	89,877
Stock-based compensation		183,675	116,157	160,362
Exploration and evaluation expenditures		-	-	77,047
Changes in non-cash items		54,414	189,640	283,117
Net cash generated from (used in) operating activities		(858,438)	477,957	91,569
Cash flows used in investing activities
Exploration and evaluation assets expenditures		(516,076)	(25,634)	(26,634)
Property, plant and equipment expenditures		(1,785,177)	(3,023,208)	(5,061,999)
Acquisition of oil and natural gas interests		-	-	(10,575,276)
Proceeds from disposition of oil and natural gas interests		300,000	-	-
Changes in non-cash items		828,409	(1,432,724)	(3,430,044)
Net cash used in investing activities		(1,172,844)	(4,481,566)	(19,092,953)
Cash flows from financing activities
Proceeds from (repayment of) bank debt, net		(1,593,313)	301,207	6,494,376
Proceeds from (repayment of) loans payable, net		-	(600,931)	6,893,863
Proceeds from issuance of equity		3,250,000	4,440,188	5,690,188
Share issuance costs		(96,235)	(363,159)	(429,255)
Changes in non-cash items		411,123	96,692	250,630
Net cash from financing activities		1,971,575	3,873,997	18,899,802
Net change in cash and cash equivalents		(59,707)	(129,612)	(101,582)
Cash and cash equivalents, beginning of period		64,885	166,467	166,467
Cash and cash equivalents, end of period		5,178	36,855	64,885
Cash and cash equivalents is comprised of:
Balances with banks		5,178	36,855	64,885

Notes to the Condensed Interim Financial Statements

Three and six months ended September 30, 2012

(amounts in Canadian dollars)

(unaudited)

1. Going Concern

These condensed interim financial statements have been prepared on a going concern basis which presumes that the Company will be able to discharge its obligations and realize its assets in the normal course of business. The Company had a net loss and comprehensive loss of $2.6 million in the six month period ended September 30, 2012. As at September 30, 2012, the Company had a working capital deficiency of $11.5 million that includes $9.1 million in bank debt and excludes $0.1 million in derivative assets. The Company had unused credit lines of $2.9 million related to its revolving credit facility and $6.5 million related to its development/acquisition facility at September 30, 2012. At September 30, 2012, the Company was compliant with its lender's covenants.

Management has been and continues to be active in seeking alternative sources of funding to help pay current liabilities and to continue with its planned capital expenditure program. The Company plans to fund future exploration and development activities with funds raised during May 2012 and by way of future potential financings if the terms are appropriate.

Management considers the Company is a going concern and has prepared the financial statements on a going concern basis.

2. Basis of preparation

These condensed interim financial statements are unaudited and have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Certain information and disclosures normally included in the annual financial statements prepared in accordance with IFRS have been condensed or omitted.

The condensed interim financial statements should be read in conjunction with the Company's audited annual financial statements as at and for the year ended March 31, 2012 and the notes thereto.

3. Property, plant and equipment

	Oil and natural gas interests	Corporate and other	Total
Cost
Balance at April 1, 2011	17,530,514	29,572	17,560,086
Acquisition of oil and natural gas interests	10,575,276	-	10,575,276
Capital expenditures	5,047,773	14,226	5,061,999
Transfers from exploration and evaluation assets	125,436	-	125,436
Change in decommissioning provisions	3,370,000	-	3,370,000
Balance at March 31, 2012	36,648,999	43,798	36,692,797
Capital expenditures	1,775,902	9,275	1,785,177
Transfers from exploration and evaluation assets (note 4)	208,974	-	208,974
Change in decommissioning provisions (note 8)	868,000	-	868,000
Balance at September 30, 2012	39,501,875	53,073	39,554,948
Accumulated depletion and depreciation and impairment losses
Balance at April 1, 2011	251,000	9,464	260,464
Depletion and depreciation expense	1,734,000	8,800	1,742,800
Balance at March 31, 2012	1,985,000	18,264	2,003,264
Depletion and depreciation expense	1,782,000	5,100	1,787,100
Balance at September 30, 2012	3,767,000	23,364	3,790,364
	Oil and natural gas Interests	Corporate and other	Total
Net carrying value:
At September 30, 2011	21,412,206	21,260	21,433,466
At March 31, 2012	34,663,999	25,534	34,689,533
At September 30, 2012	35,734,875	29,709	35,764,584

4. Bank debt

As at September 30, 2012, the Company had lending facilities with a Canadian chartered bank, consisting of a $12.0 million revolving demand credit facility, and a $6.5 million demand development/acquisition facility, of which $9.1 million ($8.0 million under bankers' acceptances and $1.1 million under the prime-based lending) and $Nil were drawn, respectively. The revolving facility is a borrowing base facility that is determined based on, among other things, the Company's current reserve report, results of operations, current and forecasted commodity prices and the current economic environment. The revolving credit facility contains standard commercial covenants for facilities of this nature. The Company also has available a risk management facility which allows the Company to conduct certain financial risk management options. The interest rates on the facilities are bank prime plus 0.75% per annum and bank prime plus 1.25% per annum, respectively. Bankers' acceptances are subject to a 2% acceptance fee plus an applicable market interest rate. The facilities are secured by a $50 million demand debenture and a general security agreement covering all assets of the Company. The revolving credit facility provides that advances may be made by way of direct advances, bankers' acceptances, or standby letters of credit/guarantee. Advances on the development/acquisition facility are subject to bank approval; however they are generally limited to the lesser of the estimated development/acquisition cost and the bank's internal valuation of associated reserves. Repayments for the revolving facility are interest only, and repayments for the development/acquisition line are determined by the bank based on their evaluation of the specific circumstances, both subject to the bank's right of demand.

The only financial covenant on the revolving facility is a requirement for the Company to maintain a current ratio (as defined in the credit agreement) of not less than 1.0:1.0, and such ratio is to be tested at the end of each fiscal quarter. The Company was in compliance with this financial covenant as at September 30, 2012. A condition of the risk management facility is the Company must not hedge greater than 50% of its oil and natural gas production. At September 30, 2012, the Company has hedged approximately 44% of its production and is in compliance with this covenant.

The regular interim review for the lending facilities is scheduled for January 2013.

5. Loans payable

As at September 30, 2012, the Company has loans payable with principal amounts totalling $8.0 million, which bear's interest as to $7.0 million at 10% per annum and $1.0 million at 12% per annum, and are secured against the assets of the Company as a second charge. Any interest and principal repayments for the loans payable are subject to the bank's prior approval. The loans payable are due to a company that is also a shareholder of the Company.

The following table summarizes changes in the loans payable:

	10% loan	12% loan	Total
	due January 2014	due January 2013
Principal
Balance April 1, 2011	-	1,500,000	1,500,000
Amount loaned	7,500,000	-	7,500,000
Amount repaid in cash	-	(500,000)	(500,000)
Amount repaid with common shares	(500,000)	-	(500,000)
Balance March 31, 2012 and September 30, 2012	7,000,000	1,000,000	8,000,000
Interest
Balance April 1, 2011	-	70,849	70,849
Amount paid in cash	(5,205)	(100,932)	(106,137)
Interest expense	120,273	130,357	250,630
Balance March 31, 2012	115,068	100,274	215,342
Interest expense	350,959	60,164	411,123
Balance, September 30, 2012	466,027	160,438	626,465
Total loan payable at September 30, 2011	-	1,040,110	1,040,110
Total loan payable at March 31, 2012	7,115,068	1,100,274	8,215,342
Total loan payable at September 30, 2012	7,466,027	1,160,438	8,626,465

6. Availability of the Interim Report

Copies of the report will be available from the Company's office and also from the Company's website www.edgeres.com.