Mr. James Riddell reports

PARAMOUNT RESOURCES LTD. PROVIDES DUVERNAY DEVELOPMENT AND FOURTH QUARTER UPDATES

Paramount Resources Ltd. has provided an update on its recent Duvernay development activities and preliminary estimates of its fourth quarter sales volumes and 2023 annual capital expenditures.

DUVERNAY DEVELOPMENT UPDATE

Willesden Green Duvernay

The Company successfully commissioned the liquids handling expansion of its Leafland natural gas processing plant at Willesden Green in December. The expansion was completed on budget and ahead of the originally scheduled January 2024 startup. The plant now has raw handling capacity of approximately 6,000 Bbl/d of liquids and 22 MMcf/d of natural gas.

Paramount completed all four (4.0 net) Duvernay wells at its 4-7N pad in early December and has been flowing two of the four wells in-line since mid-December. Initial results from these two wells have been very strong, with cumulative raw volumes over the first 23 days of production totaling approximately 80,000 Boe (50,000 Bbl of condensate and other NGLs and 180 MMcf of shale gas) for an average of approximately 1,750 Boe/d per well (1,100 Bbl/d of condensate and other NGLs and 3.9 MMcf/d of shale gas).(1) The Company anticipates bringing on the remaining two wells in the coming weeks.

Kaybob North Duvernay

The Company finished drilling and completion operations at its six (6.0 net) Duvernay well 15-7N pad and began flowing two of the wells through testers in late December and a third well through testers in January. Initial results from these wells have been encouraging. Milling operations on the remaining wells are ongoing and the Company anticipates having all six wells tied-in and onstream through permanent facilities by February.

FOURTH QUARTER UPDATE

Based on preliminary field estimates, Paramount expects fourth quarter 2023 average sales volumes to be near the midpoint of the range of its previous guidance of between 100,000 Boe/d and 103,000 Boe/d despite unplanned curtailments of approximately 6,000 Boe/d at Karr that lasted 11 days. This represents a new quarterly sales volume record for the Company.

The Company continues to expect its 2023 annual capital expenditures to be in the range of previous guidance of $725 million to $750 million.

In the fourth quarter, Paramount realized total cash proceeds of approximately $45 million from the termination and close out of all of its 2024 NYMEX WTI swaps (10,000 Bbl/d at C$109.50/Bbl and 5,000 Bbl/d at C$110.05/Bbl (previously disclosed)).

Paramount's $1.0 billion revolving credit facility was undrawn at year end.

ABOUT PARAMOUNT

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 pre-development 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 Toronto Stock Exchange under the symbol "POU".

We seek Safe Harbor.