| 1. | We have evaluated the Company’s reserves data as at March 31, 2010. The reserves data are estimates of proved reserves and probable reserves and related future net revenue as at March 31, 2010, estimated using forecast prices and costs. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The reserves data are the responsibility of the Company’s management. Our responsibility is to express an opinion on the reserves data based on our evaluation. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Those standards require that we plan and perform an evaluation to obtain reasonable assurance as to whether the reserves data are free of material misstatement. An evaluation also includes assessing whether the reserves data are in accordance with principles and definitions presented in the COGE Handbook. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The following table sets forth the estimated future net revenue (before deduction of income taxes) attributed to proved plus probable reserves, estimated using forecast prices and costs and calculated using a discount rate of 10 percent, included in the reserves data of the Company evaluated by us for the year end March 31, 2010 and identifies the respective portions thereof that we have evaluated and reported on to the Company’s management/Board of Directors: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Independent                         |   |                             |   |                           |   | Net Present Value of Future Net Revenue      |   |
|-------------------------------------|--------|----------------------------------|--------|--------------------------------|--------|----------------------------------------------------------------------------|--------|
| Qualified                           |   |                             |   |                           |   |                                                                       |   |
| Reserves                            |   | Edge Resources Inc.    |   | Location of Reserves |   | ($M, before income taxes, 10% discount rate) |   |
| Evaluator or                   |   | Reserve Estimation and |   | (Country or Foreign  |   |                                                                       |   |
| Auditor                             |   | Economic Evaluation         |   | Geographic Area)          |   | Audited                                                                    |   |   | Evaluated |   |   | Reviewed |   |   | Total |   |
|                                |   |                             |   |                           |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| AJM Petroleum Consultants |   | June 9, 2010                     |   | Canada                         |   |                                                                       | -      |   |   | $ | 16,465.2 |   |   |   | - |   |   |   | 16,465.2 |   |

| 5. | In our opinion, the reserves data respectively evaluated by us have, in all material respects, been determined and are in accordance with the COGE Handbook. We express no opinion on the reserves data that we reviewed but did not audit or evaluate. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | We have no responsibility to update our reports referred to in paragraph 4 for events and circumstances occurring after their respective preparation dates. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Because the reserves data are based on judgments regarding future events, actual events will vary and the variations may be material. However, any variation should be consistent with the fact that reserves are categorized according to the probability of their recovery. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Executed as to our report referred to above: |                                                |
|----------------------------------------------|-----------------------------------------------------|
|                                         |                                                |
| AJM Petroleum Consultants                    |                                                |
| Fifth Avenue Place, East Tower               |                                                |
| 6th Floor, 425 – 1st Street S.W.       | Original signed by: “Douglas S. Ashton” |
| Calgary, Alberta                             | Douglas S. Ashton, P. Eng.                          |
| T2P 3P8                                      | Execution date: June 9, 2010                        |
|                                         | Vice President Engineering                          |

----

| PART 1  | DATE OF STATEMENT |
|-------------------|-------------------|

| Item 1.1  | Relevant Dates |
|---------------------|----------------|

|   | 1. | This statement is dated June 24, 2010. |
|--------|----|----------------------------------------|

|   | 2. | The effective date of the financial and reserves information provided is March 31, 2010. |
|--------|----|------------------------------------------------------------------------------------------|

|   | 3. | The information was supplied by an independent reserves evaluator in a report to the Company’s Board of Directors dated June 9, 2010. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------|

| PART 2  | DISCLOSURE OF RESERVES DATA |
|-------------------|-----------------------------|

| Item 2.1  | Reserves Data (Forecast Prices and Costs) |
|---------------------|-------------------------------------------|

| Summary of Oil and Gas ReservesAJM March 31, 2010 Forecast PricingUnrisked |
|----------------------------------------------------------------------------|
|                                                                       |   | Natural Gas |   |   | Natural Gas Liquids |   |
| Reserves Category                                                     |   | Gross(mmcf) |   |   | Net(mmcf) |   |   | Gross(mstb) |   |   | Net(mstb) |   |
| Proved Developed Producing                                                 |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Proved Developed Non-producing                                             |   |   | 479.4 |   |   |   | 479.4 |   |   |   | 1.0 |   |   |   | 1.0 |   |
| Proved Undeveloped                                                         |   |   | 3594.7 |   |   |   | 2623.1 |   |   |   | 7.2 |   |   |   | 5.2 |   |
| Total Proved                                                               |   |   | 4074.1 |   |   |   | 3102.5 |   |   |   | 8.1 |   |   |   | 6.2 |   |
| Probable Additional                                                        |   |   | 6135.5 |   |   |   | 4776.4 |   |   |   | 12.3 |   |   |   | 9.6 |   |
| Total Proved plus Probable Additional                                      |   |   | 10209.6 |   |   |   | 7878.8 |   |   |   | 20.4 |   |   |   | 15.8 |   |

----

| Summary of Net Present Values of Future Net RevenueAJM March 31, 2010 Forecast Pricing |
|----------------------------------------------------------------------------------------|
|                                                                                   |   | BEFORE Income Taxes |   |
| Reserves Category                                                                      |   | 0%($M) |   |   | 5%($M) |   |   | 10%($M) |   |   | 15%($M) |   |   | 20%($M) |   |
| Proved Developed Producing                                                             |   |   | -151.2 |   |   |   | -90.4 |   |   |   | -56.5 |   |   |   | -36.6 |   |   |   | -24.4 |   |
| Proved Developed Non-producing                                                         |   |   | 1977.8 |   |   |   | 1710.4 |   |   |   | 1504.2 |   |   |   | 1341.5 |   |   |   | 1210.5 |   |
| Proved Undeveloped                                                                     |   |   | 5909.8 |   |   |   | 4492.4 |   |   |   | 3417.0 |   |   |   | 2583.4 |   |   |   | 1925.3 |   |
| Total Proved                                                                           |   |   | 7736.4 |   |   |   | 6112.3 |   |   |   | 4864.7 |   |   |   | 3888.4 |   |   |   | 3111.4 |   |
| Probable Additional                                                                    |   |   | 19367.0 |   |   |   | 14762.3 |   |   |   | 11600.5 |   |   |   | 9345.3 |   |   |   | 7684.0 |   |
| Total Proved plus Probable Additional                                                  |   |   | 27103.4 |   |   |   | 20874.6 |   |   |   | 16465.2 |   |   |   | 13233.6 |   |   |   | 10795.4 |   |

| Summary of Net Present Values of Future Net RevenueAJM March 31, 2010 Forecast Pricing |
|----------------------------------------------------------------------------------------|
|                                                                                   |   | AFTER Income Taxes |   |
| Reserves Category                                                                      |   | 0%($M) |   |   | 5%($M) |   |   | 10%($M) |   |   | 15%($M) |   |   | 20%($M) |   |
| Proved Developed Producing                                                             |   |   | -151.2 |   |   |   | -90.4 |   |   |   | -56.5 |   |   |   | -36.6 |   |   |   | -24.4 |   |
| Proved Developed Non-producing                                                         |   |   | 1977.8 |   |   |   | 1710.4 |   |   |   | 1504.2 |   |   |   | 1341.5 |   |   |   | 1210.5 |   |
| Proved Undeveloped                                                                     |   |   | 5578.8 |   |   |   | 4234.8 |   |   |   | 3213.9 |   |   |   | 2421.3 |   |   |   | 1794.5 |   |
| Total Proved                                                                           |   |   | 7405.4 |   |   |   | 5854.8 |   |   |   | 4661.6 |   |   |   | 3726.3 |   |   |   | 2980.6 |   |
| Probable Additional                                                                    |   |   | 14747.3 |   |   |   | 11160.0 |   |   |   | 8718.0 |   |   |   | 6988.5 |   |   |   | 5722.2 |   |
| Total Proved plus Probable Additional                                                  |   |   | 22152.7 |   |   |   | 17014.8 |   |   |   | 13379.6 |   |   |   | 10714.8 |   |   |   | 8702.7 |   |

----

| Total Future Net Revenue (UNDISCOUNTED)AJM March 31, 2010 Forecast Pricing |
|----------------------------------------------------------------------------|
|                                                                       |   | Revenue |   |   | Royalties |   |   | OperatingCosts |   |   | DevelopmentCosts |   |   | WellAbandonmentCosts |   |   | FutureNetRevenueBeforeIncomeTaxes |   |   | IncomeTaxes |   |   | FutureNetRevenueAfterIncomeTaxes |   |
| ReserveCategory                                                            |   | $M |   |   | $M |   |   | $M |   |   | $M |   |   | $M |   |   | $M |   |   | $M |   |   | $M |   |
| Proved Developed Producing                                                 |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 151.2 |   |   |   | -151.2 |   |   |   | 0 |   |   |   | -151.2 |   |
| Proved Developed Non-producing                                             |   |   | 3116.2 |   |   |   | 732.4 |   |   |   | 406.0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 1977.8 |   |   |   | 0 |   |   |   | 1977.8 |   |
| Proved Undeveloped                                                         |   |   | 17406.6 |   |   |   | 3807.2 |   |   |   | 2385.0 |   |   |   | 5266.3 |   |   |   | 38.4 |   |   |   | 5909.8 |   |   |   | 331.0 |   |   |   | 5578.8 |   |
| Total Proved                                                               |   |   | 20522.9 |   |   |   | 4539.6 |   |   |   | 2791.0 |   |   |   | 5266.3 |   |   |   | 189.6 |   |   |   | 7736.4 |   |   |   | 331.0 |   |   |   | 7405.4 |   |
| Probable Additional                                                        |   |   | 35046.4 |   |   |   | 8266.9 |   |   |   | 4458.7 |   |   |   | 2839.8 |   |   |   | 114.1 |   |   |   | 19367.0 |   |   |   | 4619.7 |   |   |   | 14747.3 |   |
| Total Proved plusProbable Additional                                       |   |   | 55569.3 |   |   |   | 12806.5 |   |   |   | 7249.7 |   |   |   | 8106.1 |   |   |   | 303.6 |   |   |   | 27103.4 |   |   |   | 4950.7 |   |   |   | 22152.7 |   |

| Net Present Value of Future Net Revenue by Production Group                  |
|------------------------------------------------------------------------------|
| Associated and Non-Associated Gas (includingby-products) |   | Future Net RevenueBefore Income Taxes(Discounted at 10%) $M |   |   | Future Net RevenueBefore Income Taxes(Discounted at 10%) $/mcf |   |
| Proved                                                                       |   |   | 4864.7 |   |   |   | 1.57 |   |
| Proved Plus ProbableAdditional                                               |   |   | 16465.2 |   |   |   | 2.09 |   |

----

| PART 3  | PRICING ASSUMPTIONS |
|-------------------|---------------------|

| Item 3.2  | Forecast Prices Used in Estimates |
|---------------------|-----------------------------------|

|      |   | Proved DevelopedProducing |   |   | Total Proved |   |   | Total Proved plusProbable |   |
|-----------|--------|---------------------------|--------|--------|--------------|--------|--------|---------------------------|--------|
| YEAR      |   | Sales Gas                 |   |   | NGL          |   |   | Sales Gas                 |   |   | NGL |   |   | Sales Gas |   |   | NGL |   |
|      |   | $/mcf                     |   |   | $/bbl        |   |   | $/mcf                     |   |   | $/bbl |   |   | $/mcf |   |   | $/bbl |   |
| 2010      |   |                      | 4.74   |   |         |   | 68.90  |                      |   |   | 4.74 |   |   |   | 68.90 |   |   |   | 4.74 |   |   |   | 68.90 |   |
| 2011      |   |                      | 5.66   |   |         |   | 74.45  |                      |   |   | 5.66 |   |   |   | 74.45 |   |   |   | 5.66 |   |   |   | 74.45 |   |
| 2012      |   |                      | 6.53   |   |         |   | 79.95  |                      |   |   | 6.53 |   |   |   | 79.95 |   |   |   | 6.53 |   |   |   | 79.95 |   |
| 2013      |   |                      | 6.78   |   |         |   | 84.85  |                      |   |   | 6.78 |   |   |   | 84.85 |   |   |   | 6.78 |   |   |   | 84.85 |   |
| 2014      |   |                      | 7.04   |   |         |   | 89.80  |                      |   |   | 7.04 |   |   |   | 89.80 |   |   |   | 7.04 |   |   |   | 89.80 |   |
| 2015      |   |                      | 7.29   |   |         |   | 97.95  |                      |   |   | 7.29 |   |   |   | 97.95 |   |   |   | 7.29 |   |   |   | 97.95 |   |
| 2016      |   |                      | 7.60   |   |         |   | 106.55 |                      |   |   | 7.60 |   |   |   | 106.55 |   |   |   | 7.60 |   |   |   | 106.55 |   |
| 2017      |   |                      | 7.85   |   |         |   | 109.00 |                      |   |   | 7.85 |   |   |   | 109.00 |   |   |   | 7.85 |   |   |   | 109.00 |   |
| 2018      |   |                      | 8.21   |   |         |   | 111.45 |                      |   |   | 8.21 |   |   |   | 111.45 |   |   |   | 8.21 |   |   |   | 111.45 |   |
| 2019      |   |                      | 8.62   |   |         |   | 114.05 |                      |   |   | 8.62 |   |   |   | 114.05 |   |   |   | 8.62 |   |   |   | 114.05 |   |
| Remainder |   |                      | 9.30   |   |         |   | 118.34 |                      |   |   | 9.30 |   |   |   | 118.34 |   |   |   | 9.45 |   |   |   | 120.51 |   |

| 2. | The above forecast for natural gas is based on constant dollar AECO gas prices of $4.80/mcf for 2010, $5.60/mcf for 2011, $6.30 for 2012, $6.40/mcf for 2013, $6.50/mcf for 2014, $6.60/mcf for 2015, $6.75/mcf for 2016, $6.85/mcf for 2017, $7.00/mcf for 2018, $7.20/mcf for 2019, and $7.50/mcf for 2020. After 2020, the forecast reflects only inflationary growth. Gas prices are determined independently from oil prices. Adjustments are made for each property to account for heat content and transportation. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The above forecast and accompanying assumptions were provided by AJM Petroleum Consultants, the independent qualified reserves evaluator for the Company. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| PART 4  | RECONCILIATION OF CHANGES IN RESERVES |
|-------------------|---------------------------------------|

| Item 4.1  | Reserves Reconciliation |
|---------------------|-------------------------|

|            |   | Total Proved |   |   | Probable |   |   | Total Proved Plus Probable |   |
|-----------------|--------|--------------|--------|--------|----------|--------|--------|----------------------------|--------|
| Natural Gas     |   | mmcf         |   |   | mmcf     |   |   | mmcf                       |   |
| Opening Balance |   |         | 0      |   |     |   | 0      |                       |   |   | 0 |   |
| Production      |   |         | 0      |   |     |   | 0      |                       |   |   | 0 |   |
| Discovery       |   |         | 0      |   |     |   | 0      |                       |   |   | 0 |   |
| Extension       |   |         | 707.8  |   |     |   | 774.5  |                       |   |   | 1482.3 |   |
| Revision        |   |         | 0      |   |     |   | 0      |                       |   |   | 0 |   |
| Acquisition     |   |         | 2394.6 |   |     |   | 4001.9 |                       |   |   | 6396.5 |   |
| Closing         |   |         | 3102.5 |   |     |   | 4776.4 |                       |   |   | 7878.8 |   |

| PART5  | ADDITIONAL INFORMATION RELATING TO RESERVES DATA |
|-------------|--------------------------------------------------|

| Item 5.1  | Undeveloped Reserves |
|---------------------|----------------------|

|             |   | Proved Undeveloped |   |   | Probable Undeveloped            |   |
|------------------|--------|--------------------|--------|--------|---------------------------------|--------|
|  NaturalGas |   | FirstAttributed    |   |   | Cumulative at YearEnd |   |   | FirstAttributed |   |   | Cumulative at YearEnd |   |
|             |   | mmcf               |   |   | mmcf                            |   |   | mmcf |   |   | mmcf |   |
| 2009             |   |               | 2623.1 |   |                            |   | 2623.1 |   |   |   | 1218.3 |   |   |   | 1218.3 |   |
| 2008             |   |               | 0      |   |                            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| 2007             |   |               | 0      |   |                            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| 2006             |   |               | 0      |   |                            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| PriorYears  |   |               | 0      |   |                            |   | 0 |   |   |   | 0 |   |   |   | 0 |   |

----

| Item 5.2 | Significant Factors or Uncertainties |
|----------|--------------------------------------|

| Item 5.3  | Future Development Costs |
|---------------------|--------------------------|

| Development Costs Attributed to Reserve Categories |
|----------------------------------------------------|
| YEAR                                               |   | Total Proved(M$) |   |   | Proved PlusProbable Additional(M$) |   |
| 2010                                               |   |   | 4315.4 |   |   |   | 4742.9 |   |
| 2011                                               |   |   | 950.9 |   |   |   | 3363.2 |   |
| 2012                                               |   |   | 0 |   |   |   | 0 |   |
| 2013                                               |   |   | 0 |   |   |   | 0 |   |
| 2014                                               |   |   | 0 |   |   |   | 0 |   |
| TOTAL(undiscounted)                                |   |   | 5266.3 |   |   |   | 8106.1 |   |

----

| PART 6  | OTHER OIL AND GAS INFORMATION |
|-------------------|-------------------------------|

| Item 6.1  | Oil and Gas Properties and Wells |
|---------------------|----------------------------------|

| SUMMARY OF WELLS |
|------------------|
| Gross Well Count |   | Net Well Count |   |
| GasProducing     |   | GasNon- Producing |   | GasProducing |   | GasNon- Producing |   |
| 0                |   | 11 |   | 0 |   | 8.1 |   |

| Item 6.4  | Additional Information Concerning Abandonment and Reclamation Costs |
|---------------------|---------------------------------------------------------------------|

| Item 6.5  | Tax Horizon |
|---------------------|-------------|

----

| Item 6.6  | Costs Incurred |
|---------------------|----------------|

| Item 6.7  | Exploration and Development Activities |
|---------------------|----------------------------------------|

| Item 6.8  | Production Estimates |
|---------------------|----------------------|

| Company Gross Production Estimatedfor Financial Year Ending March 31, 2011 |
|----------------------------------------------------------------------------|
| Gross Proved Reserves                                                      |   | Gross Probable Reserves |
| GAS (mmcf)                                                                 |   | NGL (bbl) |   | GAS (mmcf) |   | NGL (bbl) |
| 314.4                                                                      |   | 628.8 |   | 120.2 |   | 240.4 |

| Company Gross Production Estimatedfor Financial Year Ending March 31, 2011Willesden Green Field |
|-------------------------------------------------------------------------------------------------|
| Gross Proved Reserves                                                                           |   | Gross Probable Reserves |
| GAS (mmcf)                                                                                      |   | NGL (bbl) |   | GAS (mmcf) |   | NGL (bbl) |
| 314.4                                                                                           |   | 628.8 |   | 120.2 |   | 240.4 |

| Item 6.9  | Production History |
|---------------------|--------------------|

----

| (a) | reviewed the Company’s procedures for providing information to the independent qualified reserves evaluator; |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (b) | met with the independent qualified reserves evaluator to determine whether any restrictions affected the ability of the independent qualified reserves evaluator to report without reservation; and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | reviewed the reserves data with management and the independent qualified reserves evaluator. |
|-----|----------------------------------------------------------------------------------------------|

| (a) | the content and filing with securities regulatory authorities of Form 51-101 F1 containing reserves data and other oil and gas information; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | the filing of Form 51-101 F2 which is the report of the independent qualified reserves evaluator on the reserves data; and |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (c) | the content and filing of this report. |
|-----|----------------------------------------|

----

----