Paramount Resources Ltd. Announces Increase to Previously Announced Flow-Through Share Offerings to $125 Million

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES.


Paramount Resources Ltd. (TSX:POU) ("Paramount" or the "Company") has announced
today that, due to strong demand, Paramount has increased the size of its
previously announced public offering of Class A Common Shares ("Common Shares")
to be issued on a "flow-through" basis in respect of Canadian exploration
expenses ("CEE") to 1,936,000 Common Shares at a price of $31.00 per share for
gross proceeds of $60,016,000. In addition, the Company is also issuing 356,000
Common Shares to be issued on a "flow-through" basis in respect of Canadian
development expenses ("CDE") at a price of $28.15 per share, for gross proceeds
of $10,021,400. The offering is being led by BMO Capital Markets. The Common
Shares will be offered for sale to the public in the provinces of British
Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia by way of a
short-form prospectus. Closing of the offering is expected to occur on or about
October 2, 2012.


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, 646,000 Common Shares to be
issued on a "flow-through" basis in respect of CEE and 1,244,000 Common Shares
to be issued on a "flow-through" basis in respect of CDE, at the same prices as
the public offering, for aggregate gross proceeds of $55,044,600. Closing of the
private placement is expected to occur on or before the closing date of the
public offering.


The gross proceeds from the offerings will be used by Paramount to incur
eligible CEE and CDE. 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 Common
Shares are listed on the Toronto Stock Exchange under the symbol "POU".


Advisory Regarding Forward-Looking Statements

Certain statements in this news release constitute forward-looking information
under applicable securities legislation. Forward-looking information typically
contain statements with words such as "anticipate", "believe", "expect", "plan",
"intend", "continue", "estimate", "propose", "budget", "forecast", "outlook",
"may", "will", "could", "potential", "target" or similar words suggesting future
outcomes or statements regarding an outlook. In particular, this news release
contains, without limitation, forward-looking statements pertaining to the
timing and receipt of necessary approvals and the anticipated completion of the
offerings and the use of proceeds therefrom; the outcome of diligence reviews
and negotiations concerning the expansion of the Company's credit facility
including the size, timing and terms thereof; the timing of the construction and
expansion of the Company's Kaybob deep cut natural gas processing facilities;
the negotiation and completion of arrangements concerning the sale and/or export
of Paramount's NGL. Forward-looking statements include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although Paramount believes that the
expectations reflected in such forward looking information are reasonable, undue
reliance should not be placed on them as Paramount cannot give any assurance
that such expectations will prove to be correct. Forward-looking information is
based on current expectations, estimates and projections that involve a number
of risks and uncertainties which could cause actual results to differ materially
from those anticipated by Paramount. Information regarding factors that affect
Paramount's future results are set forth in documents filed by Paramount with
the Canadian securities regulatory authorities and available on www.sedar.com.
The forward-looking information in this news release is made as of the date
hereof and, except as required by applicable securities law, Paramount
undertakes no obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events or otherwise.