How did you resize your image?
I resized as follows, it works fine for me. (I'm on Ubuntu 12.04 and trying with raspbian):
root@unknown:~# qemu-img info 2014-09-09-wheezy-raspbian.img
image: 2014-09-09-wheezy-raspbian.img
file format: raw
virtual size: 3.1G (3276800000 bytes)
disk size: 3.1G
root@unknown:~# qemu-img resize 2014-09-09-wheezy-raspbian.img +1G
Image resized.
root@unknown:~# qemu-img info 2014-09-09-wheezy-raspbian.img
image: 2014-09-09-wheezy-raspbian_1.img
file format: raw
virtual size: 4.1G (4350541824 bytes)
disk size: 3.1G
root@unknown:~# qemu-system-arm -kernel kernel-qemu -cpu arm1176 -m 256 -M versatilepb -no-reboot -serial stdio -append "root=/dev/sda2 panic=1 rootfstype=ext4 rw init=/bin/sh" -hda 2014-09-09-wheezy-raspbian.img
In your case, /dev/sda2 is not available. try with /dev/sda/,
qemu-system-arm -kernel kernel-qemu -cpu arm1176 -m 256 -M versatilepb -append "root=/dev/sda panic=1 init=/bin/sh rw" -hda recovery.img -no-reboot
If it doesn't work, you have to verify your img, and make sure proper partitions are present.
Verify the available partition in your img:
root@unknown:~# fdisk -l 2014-09-09-wheezy-raspbian.img
Disk 2014-09-09-wheezy-raspbian.img: 4350 MB, 4350541824 bytes
255 heads, 63 sectors/track, 528 cylinders, total 8497152 sectors
Units = sectors of 1 * 512 = 512 bytes
Sector size (logical/physical): 512 bytes / 512 bytes
I/O size (minimum/optimal): 512 bytes / 512 bytes
Disk identifier: 0x00090806
Device Boot Start End Blocks Id System
2014-09-09-wheezy-raspbian.img1 8192 122879 57344 c W95 FAT32 (LBA)
2014-09-09-wheezy-raspbian.img2 122880 6399999 3138560 83 Linux
Also use -no-reboot flag to avoid continuous reboot, in case any kernel panic.