Edge Resources Inc. 3rd Quarter Results -2-

      General and administrative                448,248       418,723      1,351,469      1,416,138 
      Depletion and depreciation     3        4,864,400       460,000      5,764,600      1,499,600 
      Finance                                   312,116       359,156      1,012,547        972,561 
      Stock-based compensation                   46,081       142,162        225,988        257,615 
      Exploration and evaluation                      -        13,556              -         13,556 
      Capital taxes                              30,849        21,686         93,519          3,178 
Total expenses                                6,696,897     2,345,354     11,473,235      6,943,069 
---------------------------------  -----  -------------  ------------  -------------  ------------- 
Loss before income taxes                    (4,115,266)     (949,068)    (3,944,777)    (1,194,736) 
Deferred tax recovery                                 -       116,077              -        116,077 
---------------------------------  -----  -------------  ------------  -------------  ------------- 
Loss and comprehensive 
 loss for the period                      $ (4,115,266)   $ (832,991)  $ (3,944,777)  $ (1,078,659) 
---------------------------------  -----  -------------  ------------  -------------  ------------- 
Loss and comprehensive 
 loss per share 
     Basic and diluted                         $ (0.03)      $ (0.01)       $ (0.02)       $ (0.01) 
---------------------------------  -----  -------------  ------------  -------------  ------------- 
 

See accompanying notes to the condensed interim financial statements.

Condensed Interim Statements of Changes in Shareholders' Equity

(amounts in Canadian dollars)

(unaudited)

 
                                     Share Capital   Contributed surplus      Deficit       Total Shareholders' Equity 
Balance at March 31, 2014             $ 36,094,048           $ 2,425,249   $ (24,096,038)                 $ 14,423,259 
Issue common shares on exercise of 
 stock options                              17,000               (6,000)                -                       11,000 
Stock-based compensation                         -               225,988                -                      225,988 
Loss for the period                              -                     -      (3,944,777)                  (3,944,777) 
----------------------------------  --------------  --------------------  ---------------  --------------------------- 
Balance at December 31, 2014          $ 36,111,048           $ 2,645,237   $ (28,040,815)                 $ 10,715,470 
----------------------------------  --------------  --------------------  ---------------  --------------------------- 
Balance at March 31, 2013             $ 32,691,059           $ 2,097,875   $ (22,392,438)                 $ 12,396,496 
Issue of common shares for cash          3,618,294                     -                -                    3,618,294 
Share issue costs, cash paid             (215,305)                     -                -                    (215,305) 
Stock-based compensation                         -               257,615                -                      257,615 
Loss for the period                              -                     -      (1,078,659)                  (1,078,659) 
Balance at December 31, 2013          $ 36,094,048           $ 2,355,490   $ (23,471,097)                 $ 14,978,441 
----------------------------------  --------------  --------------------  ---------------  --------------------------- 
 

See accompanying notes to the condensed interim financial statements.

Condensed Interim Statements of Cash Flows

(amounts in Canadian dollars)

(unaudited)

 
                                                          Three months ended                 Nine months ended 
                                                     December 
                                                        31, 
                                                        2014            December         December         December 
                                                                        31, 2013          31, 2014         31, 2013 
 
Cash flows provided by 
 (used for): 
           Cash flows generated from 
         (used in) operating activities 
     Loss                                             (4,115,266)          (832,991)      (3,944,777)      (1,078,659) 
     Items not affecting cash: 
          Unrealized loss (gain) 
           on financial derivatives                     (451,500)            190,536        (914,706)           23,564 
          Gain on disposition of 
           oil and natural gas interests                        -                  -                -        (185,000) 
          Loss on settlement of decommissioning 
           provision                                       28,379                  -           28,379                - 
          Foreign exchange loss (gain)                          3            (2,688)               14          (3,810) 
          Depletion and depreciation                    4,864,400            460,000        5,764,600        1,499,600 
          Accretion of decommissioning 
           provisions                                      41,000             37,000          126,000          111,000 
          Stock-based compensation                         46,081            142,162          225,988          257,615 
          Deferred tax recovery                                 -          (116,077)                -        (116,077) 
          Exploration and evaluation                            -             13,556                -           13,556 
          Decommissioning expenditures                  (290,379)                  -        (290,379)                - 
          Changes in non-cash items                       441,367            159,771          810,365          379,178 
Net cash generated from 
 operating activities                                     564,085             51,269        1,805,484          900,967 
------------------------------------------------  ---------------  -----------------  ---------------  --------------- 
Cash flows used in investing 
 activities 
     Exploration and evaluation 
      assets expenditures                                       -                  -                -         (38,332) 
     Property, plant and equipment 
      expenditures                                    (1,566,146)        (2,949,281)      (2,119,824)      (3,504,714) 
     Changes in non-cash items                          1,305,563          2,254,616        1,057,065        1,114,997 
------------------------------------------------  ---------------  -----------------  ---------------  --------------- 
Net cash used in investing 
 activities                                             (260,583)          (694,665)      (1,062,759)      (2,428,049) 
------------------------------------------------  ---------------  -----------------  ---------------  --------------- 
Cash flows from (used in) 
 financing activities 
     Proceeds from (repayments 
      of) bank debt, net                                 (40,000)        (2,600,000)          100,000      (1,500,000) 
     Proceeds from issuance 
      of common shares                                          -          3,618,294           11,000        3,618,294 
     Share issuance costs                                       -          (215,305)                -        (215,305) 
Net cash from (used in) 
 financing activities                                    (40,000)            802,989          111,000        1,902,989 
------------------------------------------------  ---------------  -----------------  ---------------  --------------- 
Effect of exchange rates 
 on cash and cash equivalents 
 held in foreign currency                                     (3)              2,688             (14)            3,810 
------------------------------------------------  ---------------  -----------------  ---------------  --------------- 
Net change in cash and 
 cash equivalents (bank 
 overdraft)                                               263,499            162,281          853,711          379,717 
Cash and cash equivalents 
 (bank overdraft), beginning 
 of period                                             $(229,098)         $(187,353)       $(819,310)       $(404,789) 
------------------------------------------------  ---------------  -----------------  ---------------  --------------- 
Cash and cash equivalents 
 (bank overdraft), end of 
 period                                                   $34,401          $(25,072)          $34,401        $(25,072) 
------------------------------------------------  ---------------  -----------------  ---------------  --------------- 
 

Notes to the Condensed Interim Financial Statements

Three and nine months ended December 31, 2013

(amounts in Canadian dollars)

(unaudited)

   1.      General business description 

Edge Resources Inc. ("Edge" or the "Company") is engaged in the acquisition of, exploration for, development of and production of oil and natural gas. Edge is a publicly traded company on the TSX Venture Exchange under the symbol "EDE" and the Alternative Investment Market London Stock Exchange under the symbol "EDG", incorporated and domiciled in Canada. The address of business of the Company is Suite 1400, 717 - 7(th) Avenue SW, Calgary, Alberta, Canada, T2P 0Z3. These financial statements were approved and authorized for issuance by the Board of Directors on February 26, 2015.