Edge Resources Inc. Announces Production Increase and Drilling Program Update, Revised Banking Facilities and Resignation of ...

Edge Resources Inc. (TSX VENTURE:EDE)(AIM:EDG) ("Edge" or the "Company"), is
pleased to provide another production update on its vertical Eye Hill East well
and, as a result, the intention to commence a further drilling program. In
addition, the Company has renewed its credit facilities (the "Credit
Facilities") with National Bank of Canada. The Company also announces the
resignation of Vishnu Reddy from the Board.


Production Update:

As previously reported, production from the vertical well in Eye Hill East
("Asset East") had increased from 60 to 90 and then to over 100 barrels of oil
per day ("bopd") with indications that further production increases were
possible, as the well was producing at restricted rates.


Production from this well last month averaged greater than 130 bopd with peak
production of over 150 bopd, still while under restricted rates. The
water-to-oil ratio is very low for this area and has been steadily decreasing to
below 40% today. Additionally, pressure from the well has been steadily
increasing - in fact, the well has seen a 300% pressure increase over the last
month of production compared to the first month of production, indicating
additional deliverability is potentially possible.


Brad Nichol, President and CEO of Edge commented, "We are extremely pleased with
these production results, especially in comparison to other pools in the area
and particularly given the large number of similar drilling locations remaining
on Edge's 100% owned lands. Our operations team has successfully utilized some
new techniques designed to generate low water-to-oil ratios and very high
production rates, while preserving long-term reservoir integrity." Nichol added,
"In the tight capital markets we're experiencing today, projects like the Eye
Hill East discovery that typically generate three to four times the initial
invested capital with a payback of less than six months, are critical to
generating shareholder value. With up to an additional 100 potential wells to
drill at Eye Hill, the company anticipates being able to fund future wells by
recycling the surplus cash generated by newly drilled wells."


All of the Company's three core assets continue to be cash flow positive;
however, the Company is pursuing higher profitability and growth from oil-based
prospects, such as Eye Hill, while its natural gas properties are allowed to
decline naturally. Following the record results reported in the previous
quarter, the Company expects the upcoming financial quarter to show continued
improvement, based on high netbacks and increased cash flow.


Banking Facility:

Under the revised loan agreement, National Bank of Canada has agreed to renew
its main demand revolving facility at $8 million (previously $12 million). The
facility bears interest at the bank's prime rate plus 3.0% per annum (previously
prime rate plus 0.75% per annum). The new facility and interest rate reflects
the current lending environment in Canada, which has resulted in revisions to
Canadian lending models and practices. The Credit Facilities are secured against
the assets of the Company. As of today's date, the Company has drawn $7.0
million on the Credit Facility and, reflecting increasing oil production and
positive cash flow, the Company expects future usage of the Credit Facility to
decrease.


Additionally, the Company has chosen to cancel its $6.5 million Acquisition and
Development Line of Credit ("Acquisition Line"), which will result in an
immediate cost saving.


Nichol commented, "The Acquisition Line was appealing when it was first offered;
however, the practicality of utilizing that type of facility in today's market
is just not justified."


Drilling Program:

Based on the exceptional production results in Eye Hill, the Company is planning
a winter drilling program, having licensed a number of wells to enable a minimum
of two locations to be drilled in Eye Hill prior to the end of the year. With
the production results at Eye Hill considerably exceeding the Company's
expectations, the Company has planned the next wells in close proximity to the
previously drilled wells.


Nichol commented, "Our intent is to minimize typical developmental risks in
order to duplicate the results we've seen in Eye Hill to date. Our 3D seismic
and the previously-drilled wells lead us to believe that future drilling
opportunities in Eye Hill should provide us with similar well results. We
currently have up to 100 additional drilling locations in Eye Hill, which
provides us with a tremendous runway on which to grow significant shareholder
value."


Resignation of Director:

Vishnu Reddy, a director of the Company, has been required to relinquish all
corporate directorships as a condition of accepting a new role and opportunity
at one of the world's leading banks and financial services institutions in
London, England. The Company has enjoyed and benefited from Mr. Reddy's
relatively short time as a director at Edge and wishes him all the best in his
future endeavors. The Company intends to appoint an additional director as and
when a suitable candidate is identified.


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, conventional programs that typically offer 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Brad Nichol - President & CEO
Phone: [phone]


Ward Kondas
Email: [e-mail]
Phone [phone]