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Press release from Marketwire

Paramount Resources Ltd. Announces Flow-Through Share Offerings Totalling $52.7 Million

Wednesday, September 28, 2011

Paramount Resources Ltd. Announces Flow-Through Share Offerings Totalling $52.7 Million08:06 EDT Wednesday, September 28, 2011CALGARY, ALBERTA--(Marketwire - Sept. 28, 2011) -NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.Paramount Resources Ltd. (TSX:POU) ("Paramount") has entered into an agreement to sell, through a syndicate of underwriters led by BMO Capital Markets, on a guaranteed agency basis 1,200,000 Class A Common Shares to be issued on a "flow-through" basis in respect of Canadian exploration expenses at a price of $40.50 per share for gross proceeds of $48,600,000. The shares will be offered for sale in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia by way of a short-form prospectus. Closing of this offering is expected to occur on or about October 20, 2011. In conjunction with this offering, Paramount also intends to issue to Clayton H. Riddell or companies controlled by Mr. Riddell, Paramount's Chairman and Chief Executive Officer, by way of private placement, 100,000 Class A Common Shares on a flow-through basis in respect of Canadian exploration expenses at the same price per share for gross proceeds of $4,050,000. This offering is expected to occur on or before the closing date of the public offering. Mr. Riddell currently beneficially owns or controls, directly or indirectly, approximately 50% of the outstanding Paramount shares. The gross proceeds from the offerings will be used by Paramount to incur eligible Canadian exploration expenses. The completion of the 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 StatementsThis 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 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.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)