Mr. James Riddell reports

PARAMOUNT RESOURCES ANNOUNCES SALE OF FOX DRILLING

Paramount Resources Ltd. has entered into a purchase and sale agreement with Akita Drilling Ltd. pursuant to which Akita will acquire all of Paramount's interests in its Fox Drilling subsidiary for 19,264,270 voting common shares of Akita.

The assets of Fox consist of six triple drilling rigs, five of which are high-specification AC walking rigs, that are used to drill company wells and are also available for contracting to third parties. Paramount will enter into an agreement with Akita on closing of the transaction to utilize the Fox rigs or equivalent rigs of Akita for an aggregate of 2,700 days in the three-year period following closing.

Closing of the transaction will be conditional upon Akita amending its articles to convert all of its existing Class A non-voting shares into voting common shares such that it has a single class of voting shares and upon Akita obtaining all necessary shareholder approvals. Closing of the transaction is expected to occur in June, 2026, subject to the satisfaction of these and other customary closing conditions.

Under the agreement, Paramount has agreed to distribute the Akita shares that it receives pursuant to the transaction to its shareholders. The company expects to declare and pay a dividend in kind of such shares as soon as practicable following the closing of the transaction. Based on the current issued and outstanding common shares of Paramount and subject to finalization and rounding, Paramount shareholders would receive approximately 0.1324 of an Akita share per Paramount common share. Following the completion of the transaction and the dividend, Paramount shareholders are expected to collectively hold approximately 33 per cent of the outstanding Akita shares.

Paramount is proud of the high performance drilling company that has been built at Fox, consisting of a top tier fleet of AC triple rigs and an exceptional operating team. The next chapter of combining Fox's operations with the similar operations of Akita will allow Paramount's shareholders to directly participate in incremental value created through a larger platform, providing third party drilling services to the industry in Canada and the United States.

Peters & Co. Ltd. acted as financial adviser to Paramount in connection with the transaction and Norton Rose Fulbright Canada LLP is acting as legal counsel.

About Paramount Resources Ltd.

Paramount is an independent, publicly traded Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas, including longer-term strategic exploration and predevelopment plays. The company's principal properties are located in Alberta and British Columbia. Paramount's Class A common shares are listed on the Toronto Stock Exchange under the symbol POU.

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