Mr. James Riddell reports

PARAMOUNT RESOURCES LTD. ANNOUNCES PRODUCTION UPDATE, RENEWAL OF NORMAL COURSE ISSUER BID AND JULY DIVIDEND

Paramount Resources Ltd. has successfully restored all but approximately 2,500 barrels of oil equivalent per day of the production that had been curtailed as a result of the Alberta wildfires. The company now expects first half 2023 average sales volumes to be approximately 92,500 barrels of oil equivalent per day, compared with previous guidance of 96,000 to 101,000 barrels of oil equivalent per day. Paramount is working to restore the last of the curtailed production and continues to assess the residual impact of the wildfires arising from interruptions to maintenance and development activities.

The Toronto Stock Exchange has accepted the company's notice to renew its normal course issuer bid for its Class A common shares. The renewal of the NCIB provides the company with the continued flexibility to increase shareholder returns through the repurchase of common shares at times when management believes that the market price of the common shares does not reflect their underlying value.

The NCIB will commence on July 6, 2023, and is due to expire on July 5, 2024. Paramount may purchase up to 7,661,980 common shares under the NCIB, representing 10 per cent of the public float of 76,619,800 common shares as of June 23, 2023. Under TSX rules, a maximum of 80,918 common shares may be purchased under the NCIB in any one day, representing 25 per cent of the average daily trading volume of the common shares on the TSX for the six months ended May 31, 2023, of 323,672 common shares. Paramount may also make one block purchase per calendar week that exceeds the daily purchase restriction, subject to the rules of the TSX. The actual number of common shares that will be purchased under the NCIB and the timing of any such purchases will be subject to market conditions and Paramount's free cash flow allocation priorities. Purchases of common shares under the NCIB will be made through the facilities of the TSX or alternative Canadian trading systems at the market price at the time of purchase. Any common shares acquired under the NCIB will be cancelled.

The company was authorized to purchase up to 7,626,260 common shares under its previous NCIB, which expired on June 29, 2023. Paramount did not purchase any common shares under the previous NCIB.

In addition, the company's board of directors has declared a cash dividend of 12.5 cents per common share that will be payable on July 31, 2023, to shareholders of record on July 17, 2023. The dividend will be designated as an eligible dividend for Canadian income tax purposes.

About Paramount Resources Ltd.

Paramount is an independent, publicly traded, liquids rich, natural-gas-focused Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas, including longer-term strategic exploration and predevelopment plays, and holds a portfolio of investments in other entities. The company's principal properties are located in Alberta and British Columbia. Paramount's common shares are listed on the TSX under the symbol POU.

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