Mr. Jim Riddell reports

PARAMOUNT RESOURCES LTD. ANNOUNCES COMMON SHARE OFFERING AND INCREASE TO 2013 CAPITAL EXPENDITURE PROGRAM

Paramount Resources Ltd. has entered into an agreement to sell to a syndicate of underwriters led by BMO Capital Markets, on a bought-deal basis, 3.5 million Class A common shares to be issued at a price of $37.50 per share for gross proceeds of $131.25-million. In addition, the underwriters will also have an overallotment option for 15 per cent of the offering exercisable at any time until 30 days following the closing. The shares will be offered for sale by the underwriters in all provinces of Canada (excluding Quebec) by way of a prospectus supplement. Closing of this offering is expected to occur on or about May 22, 2013.

The net proceeds of the offering will be used to finance Paramount's 2013 capital expenditure program and for general corporate purposes. The completion of the offering is subject to Paramount receiving all necessary regulatory approvals.

As a result of continued drilling success in Paramount's Deep basin lands and higher-than-expected liquids yields from Montney formation wells, Paramount is increasing its 2013 total capital program to approximately $650-million to, among other things, accelerate the pace of drilling and expand condensate stabilization facilities at Musreau.

We seek Safe Harbor.