Mr. James Riddell reports

PARAMOUNT RESOURCES ANNOUNCES THE DISPOSITION OF A PORTION OF ITS INVESTMENT IN THE COMMON SHARES OF NUVISTA ENERGY LTD. AND PROVIDES AN OPERATIONS UPDATE

Paramount Resources Ltd. sold 18.5 million common shares of NuVista Energy Ltd. on Sept. 21, 2025, by means of private agreement, with closing to occur on Oct. 1, 2025. Paramount is receiving $16 per NuVista share pursuant to the transaction for aggregate cash consideration of $296-million. The company is also providing an operations update.

Disposition of shares

The NuVista shares that Paramount is disposing of pursuant to the transaction represent 9.50 per cent of the 194,663,181 NuVista shares reported by the Toronto Stock Exchange to be outstanding as of Sept. 21, 2025. Prior to the transaction, Paramount had direct ownership and control of 31,252,142 NuVista shares, representing 16.05 per cent of the outstanding NuVista shares. Following the transaction, Paramount will have direct ownership and control over 12,752,142 NuVista shares, representing 6.55 per cent of the outstanding NuVista shares.

The purpose of the transaction is to monetize a portion of Paramount's investment in NuVista shares.

Depending on various factors, including, without limitation, NuVista's financial condition, business, operations and prospects, the prevailing market price of the NuVista shares, conditions in the securities markets, general economic and industry conditions, the terms and conditions applicable to any potential transaction, and such other factors that Paramount may deem relevant, Paramount may, subject to applicable laws and regulatory requirements:

1. Acquire NuVista shares or other securities of NuVista from time to time on the open market, in privately negotiated transactions or by other means;
2. Make public or private proposals, whether to NuVista or to the securityholders of NuVista, relating to the acquisition of all or a portion of the outstanding NuVista securities it does not own, including, without limitation, by a corporate transaction such as an amalgamation or plan of arrangement or by a formal or exempt takeover bid;
3. Dispose of any of the NuVista shares or other securities of NuVista it holds from time to time on the open market, in privately negotiated transactions or by other means.

Operations update

Based on preliminary field estimates, Paramount's sales volumes for July and August averaged approximately 33,800 barrels of oil equivalent per day (47 per cent liquids).

Sales volumes at the company's Willesden Green Duvernay property in July and August averaged approximately 11,500 boe/d (57 per cent liquids), based on preliminary field estimates. Runtime at Paramount's new wholly owned and operated Alhambra plant, which commenced operations in late July, has been significantly above forecast as production through the plant ramped up from five (5.0 net) to nine (9.0 net) Duvernay wells. In addition, the construction of third party liquids pipeline egress was completed in August, as planned. The company continues to expect sales volumes through the Alhambra plant to increase throughout September and into the fourth quarter as it concludes completion operations and brings on the remaining seven (7.0 net) 2025 Duvernay wells.

Kaybob region sales volumes in July and August averaged approximately 21,300 boe/d (41 per cent liquids), based on preliminary field estimates. Completion activities at a five-well (5.0 net) Duvernay pad at Kaybob North were concluded and all five wells were brought on stream in the second half of August.

At Sinclair, an extended flow test into regional infrastructure was successfully brought on line in mid-August. Each of the two test wells will be flowed individually at restricted rates for approximately six to eight weeks. The data obtained from these extended flow tests are informing the company's detailed engineering and design work for a potential new dry gas processing plant capable of handling up to 400 million cubic feet per day of raw gas production. Paramount expects to be in a position to make a final investment decision as early as the fourth quarter of 2025.

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 Class A common shares are listed on the TSX under the symbol POU.

Further information

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