An anonymous director reports

PARAMOUNT RESOURCES LTD. ACQUIRES ADDITIONAL SECURITIES OF CANADIAN PREMIUM SAND INC.

Paramount Resources Ltd. has acquired $275,000 in principal amount of 12.0 per cent secured convertible debentures of Canadian Premium Sand Inc. The acquisition was made as part of a private placement completed by Canadian Premium Sand on April 9, 2026.

The 2026 convertible debentures mature on Feb. 26, 2027. The principal amount of the 2026 convertible debentures may be converted at the option of the holder into common shares of Canadian Premium Sand at any time prior to maturity at a conversion price of 15 cents per common share. Concurrently with the completion of the private placement, Canadian Premium Sand amended the terms of its outstanding 12.0 per cent secured convertible debentures previously issued in February, 2020, to reduce the conversion price thereof from 75 cents per common share to 15 cents per common share. Accrued interest on the 2020 convertible debentures and the 2026 convertible debentures may, subject to the approval of the TSX Venture Exchange, be converted at the option of the holder into common shares at a price equal to the greater of 15 cents per common share and the market price of the common shares at the time of conversion.

Prior to the private placement and the conversion price adjustment, Paramount had direct ownership and control of 17,946,964 common shares, representing approximately 19.38 per cent of the 92,627,156 common shares issued and outstanding, and $900,000 in principal amount of 2020 convertible debentures. If Paramount would have converted the 2020 convertible debentures, excluding accrued interest thereon, held by it prior to the private placement and the conversion price adjustment, it would have acquired an additional 1.2 million common shares, representing 1.28 per cent of the common shares that would have been issued and outstanding following such conversion. Accordingly, Paramount would have held a total of 19,146,964 common shares, representing 20.41 per cent of the common shares that would have been issued and outstanding following such conversion.

Following the private placement and the conversion price adjustment, Paramount has direct ownership and control of 17,946,964 common shares, representing approximately 19.38 per cent of the 92,627,156 common shares issued and outstanding, $900,000 in principal amount of 2020 convertible debentures and $275,000 in principal amount of 2026 convertible debentures. If Paramount were to convert all of the 2020 convertible debentures and all of the 2026 convertible debentures held by it, excluding accrued interest thereon, it would acquire an additional 7,833,333 common shares, representing 7.80 per cent of the common shares that would be issued and outstanding following such conversion. Accordingly, Paramount would hold a total of 25,780,297 common shares, representing 25.66 per cent of the common shares that would be issued and outstanding following such conversion

The 2026 convertible debentures were acquired for investment purposes. Depending on the evolution of Canadian Premium Sand's business, financial condition, the market, if any, for Canadian Premium Sand's securities, general economic conditions and other factors, Paramount may acquire additional Canadian Premium Sand securities, or sell Canadian Premium Sand securities it owns, controls or directs, in the open market, by private agreement or otherwise, subject to market conditions and other relevant factors.