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Press release from Marketwire

Paramount Resources Ltd. Completes the Acquisition of ProspEx Resources Ltd.

Tuesday, May 31, 2011

Paramount Resources Ltd. Completes the Acquisition of ProspEx Resources Ltd.11:29 EDT Tuesday, May 31, 2011CALGARY, ALBERTA--(Marketwire - May 31, 2011) -Paramount Resources Ltd. (TSX:POU) ("Paramount") has completed the acquisition of ProspEx Resources Ltd. ("ProspEx") pursuant to an arrangement under the Business Corporations Act (Alberta), with 99.9% of the ProspEx shares voted at ProspEx's shareholders meeting in respect of the arrangement being voted in favour of the transaction.As a result of pro-rationing under the arrangement based on the elections received, ProspEx shareholders who elected to receive cash for their ProspEx shares will receive cash consideration for approximately 55% of their ProspEx shares and for the remainder of their ProspEx shares will receive 0.07162 of a Class A Common Share of Paramount for each of such shares.Paramount issued a total of 2,000,000 Class A Common Shares and paid an aggregate of approximately $64.8 millon in cash to acquire the ProspEx shares it did not already own (being approximately 91% of ProspEx's outstanding shares). ProspEx's shares will be delisted from the Toronto Stock Exchange by the end of this week.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".FOR FURTHER INFORMATION PLEASE CONTACT: J.H.T. (Jim) RiddellParamount Resources Ltd.President and Chief Operating Officer(403) 290-3600(403) 262-7994 (FAX)ORB.K. (Bernie) LeeParamount Resources Ltd.Chief Financial Officer(403) 290-3600(403) 262-7994 (FAX)