Paramount Resources Ltd. Announces Flow-Through Share Offerings Totaling Approximately $60 Million

CALGARY, ALBERTA--(Marketwired - Oct. 7, 2013) - Paramount Resources Ltd. ("Paramount") (TSX:POU) has entered into an agreement to sell, through a syndicate of underwriters co-led by RBC Capital Markets, BMO Capital Markets and Peters & Co. Limited, on a guaranteed agency basis, 1,115,000 Class A Common Shares of Paramount to be issued on a "flow-through" basis in respect of Canadian exploration expenses ("FTS") at a price of $44.00 per FTS for gross proceeds of $49,060,000. The FTS will be offered for sale in all of the provinces of Canada other than Quebec by a prospectus supplement to Paramount's short form base shelf prospectus dated November 14, 2012. Closing of this offering is expected to occur on or about October 16, 2013.

Paramount also intends to issue, through a non-brokered private placement, FTS at a price of $44.00 per FTS to Clayton H. Riddell and James H. T. Riddell and/or companies controlled by them for gross proceeds of approximately $10 million as well as to certain other directors, officers and employees of Paramount and other persons. Closing of these offerings are expected to occur on or before the closing date of the public offering.

The gross proceeds from the FTS offerings will be used by Paramount to incur eligible Canadian exploration expenses. The completion of the FTS offerings is subject to Paramount receiving all necessary regulatory approvals.

Paramount is a Canadian oil and natural gas exploration, development and production company with operations focused in Western Canada. Paramount's Class A Common Shares are listed on the Toronto Stock Exchange under the symbol "POU".

Advisory Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. This news release contains forward-looking statements with respect to the timing and completion of the equity offerings, the amounts to be raised under the equity offerings and the use of proceeds therefrom. Although Paramount believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on them because Paramount cannot give any assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic, business and market conditions, industry conditions, stock market and commodity price volatility and difficulty in obtaining required regulatory approvals. Paramount undertakes no obligation to update its forward-looking statements except as required by applicable laws.