Hoole Oil Sands' Resources Estimated at 458MM Barrels

Paramount Resources Ltd.

Paramount Resources has received the results from an initial evaluation of its 100 percent-owned in-situ oil sands leases covering approximately 48 contiguous sections (30,680 acres) in the Hoole area of Alberta (the "Oil Sands Properties"), situated within the western portion of the Athabasca Oil Sands region.

The initial evaluation was conducted by the Company's independent reserves evaluator, McDaniel & Associates Consultants Ltd., who estimates that the Oil Sands Properties contain approximately 458 million barrels of contingent bitumen resources within the Grand Rapids formation (Best Estimate (P50)). Potentially exploitable bitumen accumulations with Contingent bitumen resources and the associated net present value were determined based on exploitation using a conventional Steam-Assisted Gravity Drainage development scenario. The evaluation by McDaniel is as of August 1, 2008 and the evaluation is subject to Paramount board review and approval.

Paramount has drilled seven oil sands evaluation wells at Hoole over the past five years to evaluate the Wabiskaw and Grand Rapids formations. In connection with the evaluation, over 190 other wells, located on Paramount's acreage and third party oil sands acreage analogous to the Oil Sands Properties, were examined by McDaniel to evaluate the reservoir formation and bitumen recovery. Paramount plans to drill an additional 15 oil sands evaluation wells during the first half of 2009 to further delineate the reservoir and contingent bitumen resources in the Grand Rapids formation. The Company anticipates the additional drilling will result in material increases to contingent bitumen resource estimates.

In addition to the Hoole area, Paramount owns another 224 sections (143,360 acres) of oil sands leases within the Athabasca Oil Sands region, the majority of which are prospective for bitumen from the Grosmont formation in the Carbonate Bitumen Trend. These leases have not been independently evaluated.