Paramount Resources Ltd. Financial and Operating Results for the Year Ended December 31, 2008

Paramount Resources Ltd. (TSX:POU) ("Paramount" or the "Company") announces its
financial and operating results for the year ended December 31, 2008.




Financial and Operating Highlights (1)
($ millions, except   Three months ended Dec 31      Year ended December 31
 as noted)                2008     2007       %      2008     2007        %
----------------------------------------------------------------------------
Financial
Petroleum and natural
 gas sales                54.7     61.8     (11)    318.1    283.4       12
Funds flow from
 operations               68.2   22.9(2)    197     179.6    100.5       79
 Per share - diluted
  ($/share)               1.01     0.33     206      2.65     1.42       87
Net earnings (loss)     (150.5)  (156.5)      4    (116.6)   416.2     (128)
 Per share - diluted
  ($/share)              (2.23)   (2.29)      3     (1.72)    5.89     (129)
Exploration and
 development capital      63.1     69.8     (10)    170.8    266.8      (36)
Investments(3)                                      249.9    322.1      (22)
Total assets                                      1,117.3  1,299.8      (14)
Net debt (4)                                         97.5    (15.5)     729
Common shares outstanding
 (thousands)                                       66,741   67,681       (1)
----------------------------------------------------------------------------
Operating
 Natural gas sales
  (MMcf/d)                53.4     67.6     (21)     61.0     78.8      (23)
 Oil and NGLs sales
  (Bbl/d)                3,298    2,984      11     3,594    3,536        2
 Total (Boe/d)          12,202   14,248     (14)   13,764   16,669      (17)
 Gas weighting              73%      79%               74%      79%

Average realized price
 Natural gas ($/Mcf)      7.43     6.43      16      8.64     6.77       28
 Oil and NGLs ($/Bbl)    60.04    79.77     (25)    95.12    68.74       38

----------------------------------------------------------------------------
Reserves
Proved plus probable (5)
 Natural gas (Bcf)                                  163.9    192.8      (15)
 Crude oil and NGLs (MBbl)                          9,062    9,135       (1)
 Total (MBoe)                                      36,379   41,270      (12)

Estimated net present
 value before tax @
 Proved                                             445.7    477.3       (7)
 Proved plus probable                               659.7    679.5       (3)
Net undeveloped land
 (thousands of acres)                               1,221    1,287       (5)
Total wells drilled (gross) 17       15      13        71      159      (55)
----------------------------------------------------------------------------
(1) Readers are referred to the advisories concerning non-GAAP measures and
    oil and gas measures and definitions under the heading "Advisories" in
    this document.
(2) Includes reclassification of foreign exchange collar to conform to
    current year's presentation.
(3) Based on the period-end closing prices of publicly traded enterprises
    and book value of the remaining investments.
(4) Net debt, a non-GAAP measure, excludes risk management assets and
    liabilities and stock-based compensation liabilities.
(5) Working interest reserves before royalty deductions, using forecast
    prices and costs.



2008 Overview

- Funds flow from operations in 2008 increased by 79 percent to $179.6 million
from the prior year due to higher realized commodity prices, lower interest,
operating, and general and administrative expenses, partially offset by lower
natural gas production and higher royalties.


- Net loss of $116.6 million in 2008 compared to net earnings of $416.2 million
in 2007. The current year includes $96.9 million of Strategic Investment
write-downs and $54.9 million of property and goodwill write-downs, partially
offset by higher gains on financial commodity contracts and petroleum and
natural gas sales. Prior year net earnings included $799.4 million of Strategic
Investment disposition gains partially offset by $273.9 million of property and
goodwill write-downs.


Principal Properties

- Netback increased to $182.5 million in 2008 from $141.5 million in 2007,
largely due to higher annual average commodity prices and lower operating
expenses, partially offset by lower sales volumes and higher royalties.


- Exploration and development capital spending decreased to $170.8 million from
$266.8 million in 2007.


- Grande Prairie received regulatory approval for waterflood at Crooked Creek
with initial production of 150 Boe/d in December 2008 increasing to
approximately 500 Boe/d by the end of February.


- Kaybob received regulatory approval for downspacing to four wells per section
in 62 sections of land, and drilled its first two wells from a common lease
including one horizontal well.


- Drilled 16 (12.7 net) wells in the United States, as part of Southern's light
oil program.


- Continued to dispose of non-core assets, recognizing net gains of $9.1 million.

Strategic Investments

- Increased ownership in Trilogy to 23.3 percent at December 31, 2008 from 18.8
percent at December 31, 2007 through unit purchases, continued participation in
Trilogy Energy Trust's distribution reinvestment plan and, indirectly, as a
result of Trilogy's normal course issuer bid ("NCIB") unit purchases.


- Independent resource evaluation for Hoole oil sands properties was completed
with a "best estimate" of approximately 458 million barrels of "contingent
resources" as of August 1, 2008; seven delineation wells were drilled in the
first quarter of 2009.


- Invested $12.3 million in 22.4 million shares of MGM Energy Corp. pursuant to
MGM Energy's July public offering, maintaining a 16.7 percent equity interest.


- Invested $6.0 million in 6.1 million Class A common shares of NuLoch Resources
Inc., a TSX Venture Exchange listed company with properties in Alberta and
Southeast Saskatchewan.


- Purchased 3.5 million common shares of Paxton Corporation, a private company
involved in greenhouse gas technology, for $4.8 million.


- Commenced construction of a third drilling rig, expected to be in service in 2009.

Corporate

- Purchased 1.0 million Paramount shares for $7.3 million in 2008 under the
Company's NCIBs.


- Interest and financing charges decreased to $9.9 million in 2008 from $32.1
million in 2007.


- Reduced Corporate general and administrative expenses to $24.7 million from
$28.9 million in 2007.




Review of Operations

Sales Volumes

Year ended
December 31          2008                 2007                Change
----------------------------------------------------------------------------
                      Oil                  Oil                  Oil
            Natural   and        Natural   and        Natural   and
                Gas  NGLs  Total     Gas  NGLs  Total     Gas  NGLs   Total
           -----------------------------------------------------------------
             MMcf/d Bbl/d  Boe/d  MMcf/d Bbl/d  Boe/d  MMcf/d Bbl/d   Boe/d

Kaybob         18.2   576  3,606    22.3   533  4,245    (4.1)   43    (639)
Grande Prairie  9.7   628  2,241    11.2   765  2,640    (1.5) (137)   (399)
Northern       18.2   768  3,796    25.7   865  5,151    (7.5)  (97) (1,355)
Southern       14.1 1,619  3,969    18.1 1,369  4,389    (4.0)  250    (420)
Other           0.8     3    152     1.5     4    244    (0.7)   (1)    (92)
----------------------------------------------------------------------------
Total          61.0 3,594 13,764    78.8 3,536 16,669   (17.8)   58  (2,905)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Kaybob

The Kaybob Corporate Operating Unit produces natural gas, natural gas liquids
("NGLs"), and crude oil in West Central Alberta. The core natural gas producing
areas in Kaybob include Musreau, Resthaven, and Smoky and the primary crude oil
producing area is Kakwa. The horizons being pursued are in the Deep Basin, which
are high pressure, liquids rich, tight gas formations with large reservoir
potential.


Total sales for Kaybob averaged 3,606 Boe/d in 2008, comprised of 18.2 MMcf/d of
natural gas and 576 Bbl/d of crude oil and NGLs. Sales volumes decreased in 2008
by 15 percent from 2007, primarily as a result of natural declines and a reduced
capital program.


Capital expenditures in Kaybob for 2008 totaled $50 million, excluding land, and
were focused on drilling new wells and completing, equipping and tying in both
new wells and those drilled in late 2007. During 2008, 21 (9.7 net) gas wells
were drilled in Kaybob.


As part of the initiative to reduce per-well drilling, completion, equipping and
tie-in costs, Paramount applied for and received regulatory approval to drill up
to four wells per section ("downspacing") in 62 sections of land in Musreau,
Resthaven and Smoky. Late in the year applications were submitted to allow
downspacing on an additional 40 sections of which approval has been received for
22 sections and the remaining approvals are anticipated in the first half of
2009. Cost savings from downspacing are expected to be realized through pad
drilling by reducing equipment mobilization costs, and sharing production
facilities and pipelines. During the fourth quarter, the first two wells of what
will ultimately be a four well pad were drilled in Resthaven. One of the wells
was Paramount's first horizontal well in the area. These wells will be completed
and tied-in during the first quarter of 2009. In December 2008, Paramount
commenced drilling a second well on a lease with an existing well in the Smoky
area. The drilling was completed and the well was cased in January, with an
expected tie in during the first quarter of 2009 utilizing shared facilities and
pipeline. Based on the savings associated with these projects, Paramount
anticipates drilling additional pad and horizontal wells in the future.


To reduce operating costs in Resthaven, Kaybob has redirected gas from a more
expensive non-operated facility to the lower cost 100 MMcf/d Smoky plant in
which Paramount owns a 10 percent working interest. In December 2008, to reduce
anticipated future processing costs in the Musreau area, Paramount reduced its
firm processing commitment at a third party gas plant.


The Deep Basin continues to be the core area for Kaybob, and as project
economics improve, is expected to be a significant growth platform for the
Company over the next five to ten years. In 2009, Paramount plans to drill 11
(6.9 net) wells and complete and tie-in 14 (7.5 net) wells that were drilled in
prior years. The majority of the 2009 capital investment will be focused in the
Musreau, Resthaven, and Smoky areas and will continue to target multiple
Cretaceous formations.


Grande Prairie

The Grande Prairie Corporate Operating Unit produces natural gas, NGLs, and
crude oil in Central Alberta. The core natural gas producing areas in Grande
Prairie include properties at Mirage and Ante Creek. Grande Prairie's primary
crude oil producing property is in the deep, light sweet oil trend at Crooked
Creek. Grande Prairie is also starting a long-term Deep Basin development plan
for liquids rich tight gas in the Karr region.


Total sales for Grande Prairie averaged 2,241 Boe/d in 2008, comprised of 9.7
MMcf/d of natural gas and 628 Bbl/d of crude oil and NGLs. Sales volumes
decreased in 2008 by 15 percent from 2007 primarily due to normal production
declines throughout the region and production curtailment at Crooked Creek
pending regulatory approval of waterflood.


At Crooked Creek, Good Production Practice ("GPP") waterflood was brought on in
late December 2008 after an extended regulatory approval process, with initial
production of 150 Boe/d increasing to approximately 500 Boe/d by the end of
February 2009.


Capital expenditures in Grande Prairie for 2008 totaled $30.0 million, excluding
land, the majority of which was focused on Crooked Creek and Karr. Drilling
activity in 2008 at Crooked Creek consisted of four (1.9 net) oil wells. In
Karr, two (2.0 net) successful horizontal wells into the lower Montney reservoir
were drilled and tied in. Grande Prairie also drilled and tied in six (1.7 net)
wells in Mirage in 2008. Grande Prairie acquired 24,000 net acres of undeveloped
land positions at Crooked Creek and in the adjacent and surrounding Karr area.


Due to current low crude oil prices and less favourable crude royalties, in 2009
Grande Prairie will shift its focus from the oil producing Crooked Creek area to
liquids rich deep gas in the Karr region. The majority of the 2009 capital
budget will be focused on exploring and drilling undeveloped land and drilling
critical pool defining wells in the Karr area.


Northern

The Northern Corporate Operating Unit includes properties in Northwest Alberta,
Northeast British Columbia, and extends into the Cameron Hills and Fort Liard
areas of the Northwest Territories. Northern's primary focus remains at Cameron
Hills in the Northwest Territories, where this property accounts for a
significant portion of Northern's total natural gas, crude oil and NGLs
production. Other significant natural gas producing properties within Northern
are located at Bistcho and Haro in Northwest Alberta and Clarke Lake in
Northeast British Columbia.


The zones targeted by Northern include Pleistocene-aged sands and gravels at
depths of 30 meters through Cretaceous-aged Bluesky/Gething sands, Mississippian
carbonates, and end with middle Devonian carbonates at depths of 1,600 meters in
Alberta and the Cameron Hills area.


Total sales for Northern averaged 3,796 Boe/d in 2008, comprised of 18.2 MMcf/d
of natural gas and 768 Bbl/d of crude oil and NGLs. Sales volumes decreased in
2008 by 26 percent from 2007 primarily due to the shut-in of the Maxhamish and
West Liard facility in late 2007 and early 2008, and the impact of property
sales as well as natural declines across most properties in Northern. Paramount
is awaiting regulatory and community approvals to resume its drilling program in
Cameron Hills.


The West Liard facility was shut-in as a result of declining gas volumes, low
prices and high operating costs and the Tattoo property was divested of for
similar reasons. The combined production from West Liard when shut in and Tattoo
properties when sold was approximately 250 Boe/d.


Northern's capital expenditures for 2008 totaled $8.5 million, excluding land.
During 2008, Northern drilled 6 (3.5 net) wells, of which one (0.5 net) well was
dry and abandoned. The majority of Northern's field activities occurred in the
first quarter of 2008 because of restricted seasonal access.


In 2009, Paramount anticipates drilling four (3.5 net) operated gas wells in
Bistcho with follow-up completions and tie-ins all to be performed in the first
quarter of 2009.


Southern

The Southern Corporate Operating Unit produces crude oil and natural gas in
Southern Alberta, Montana and North Dakota. Southern's core areas comprise the
gas producing Chain / Craigmyle field near Drumheller, Alberta and the oil
producing area near Medora, North Dakota.


Southern produced 3,969 Boe/d in 2008 comprised of 14.1 MMcf/d of gas and 1,619
Bbl/d of oil and NGLs, a decrease of 420 Boe/d from 2007 due to declines and
property sales in Alberta partially offset by oil production increases in the
United States. Capital expenditures for the year were $67.5 million on drilling
and completions in the United States, and $12 million in Canada. Capital
spending in the United States was primarily for drilling and constructing
facilities in North Dakota.


Southern divested two properties producing approximately 350 Boe/d in 2008, as
part of Paramount's objective to focus on strategic assets and lower operating
costs.


In the Chain region, Southern significantly reduced capital spending from
previous years with moderate declines in production.


In the United States, Paramount operates as Summit Resources Inc ("Summit"), a
wholly owned subsidiary. In North Dakota, Summit drilled 14 (12.2 net) wells
focused on growing production from the Bakken, Birdbear and Red River
formations. This program was not without its challenges, including an escalation
of all aspects of drilling program costs, a scarcity of goods and services, and
lower than expected reserves per well. The results achieved in the Red River and
Bakken program were the strongest, where three of the six completed wells have
achieved expected production rates. Commodity price reductions have caused
Summit to delay the 2009 drilling program as current realized prices are
approximately $13.00 below the West Texas Intermediate index price.


The Company is continuing to assess the results of the 2008 US drilling program,
with the objective of identifying areas where improvements and cost reductions
can be made, including completion techniques. Paramount continues to believe its
North Dakota properties can be a significant growth platform for the Company
despite the current realized price and the lower than expected reserve
additions.


In Montana, Summit has been participating in the development of the Outlook
Field, where two (0.5 net) crude wells were drilled in 2008. At present only one
of the Outlook wells is producing due to the recent low crude prices.




Fourth Quarter Review

Netback

Three months ended December 31                               2008      2007
----------------------------------------------------------------------------
($ millions)
Revenue                                                      54.7      61.8
Royalties                                                    (7.0)     (5.2)
Operating expenses and production tax                       (18.5)    (21.6)
Transportation expenses                                      (4.0)     (3.4)
----------------------------------------------------------------------------
Netback                                                      25.2      31.6
Settlements of financial commodity contracts                 42.4      (4.2)
----------------------------------------------------------------------------
Netback including settlements of financial commodity
 contracts                                                   67.6      27.4
----------------------------------------------------------------------------
Netback per Boe                                             60.22     20.92
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Funds Flow from Operations

Three months ended December 31                               2008      2007
----------------------------------------------------------------------------
($ millions)
Cash flow from operating activities                          71.6      42.2
Change in non-cash working capital                           (3.4)    (19.3)
----------------------------------------------------------------------------
Funds flow from operations                                   68.2    22.9(1)
----------------------------------------------------------------------------
Funds flow from operations per Boe                          60.73     20.40
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Includes the impact of intra-quarter reclassification of foreign
    exchange collar settlement.



Paramount's fourth quarter sales volumes of 12,202 Boe/d consisted of 53.4
MMcf/d of natural gas and 3,298 Bbl/d of oil and NGLs, generating revenue of
$54.7 million, a decrease of $7.1 million from the prior year comparable quarter
due to lower natural gas sales volumes and oil and NGLs prices.


Fourth quarter royalties increased to $7.0 million in 2008 compared to $5.2
million in 2007, primarily as a result of higher royalty rates in Northern in
2008. Operating expenses continued to decrease in the fourth quarter of 2008,
primarily related to Northern, which included the impact of property sales and
decommissioning of facilities in the fourth quarter of 2007 and first quarter of
2008, provisions for additional plant equalizations and the beginning of the
Northern winter maintenance program.


Funds flow from operations increased by $45.3 million to $68.2 million and
includes the impact of $42.4 million of financial commodity contract settlements
related to 2008 and 2009.


Fourth quarter exploration and development expenditures of $63.1 million were
primarily related to Southern's North Dakota oil program and drilling and
infrastructure in Kaybob.


Reserves Information

Paramount's reserves for the year ended December 31, 2008 were evaluated by
McDaniel & Associates Consultants Ltd. ("McDaniel") and prepared in accordance
with the National Instrument 51-101 definitions, standards and procedures.


Paramount's working interest reserves and before tax net present value of future
net revenues for the year ended December 31, 2008 using forecast prices and
costs are as follows:




                         Gross Proved and Probable   Before Tax Net Present
                                 Reserves (1)              Value (1)
                      ------------------------------------------------------
                              Light &                   ($ millions)
                               Medium Natural
                       Natural  Crude     Gas
                           Gas    Oil Liquids  Total     Discount Rate
                      ------------------------------------------------------
Reserves Category         (Bcf) (MBbl)  (MBbl) (MBoe)      0%     10%    15%
----------------------------------------------------------------------------
Canada
Proved
 Developed Producing      73.1  2,251     770 15,198   447.8   334.7  298.0
 Developed Non-producing  18.2    185     269  3,488    69.9    40.4   32.6
 Undeveloped               3.9     10       -    662    12.3     4.5    2.2
----------------------------------------------------------------------------
Total Proved              95.2  2,446   1,038 19,348   530.0   379.6  332.8
Total Probable            67.9  1,332     523 13,168   346.3   195.8  155.8
----------------------------------------------------------------------------
Total Proved plus Probable
 Canada                  163.1  3,777   1,561 32,516   876.3   575.4  488.5
----------------------------------------------------------------------------

United States
Proved
 Developed Producing       0.6  2,720      67  2,887   100.1    66.3   57.1
 Developed Non-producing     -      7       -      8    (0.3)   (0.2)  (0.2)
----------------------------------------------------------------------------
Total Proved               0.6  2,726      67  2,895    99.8    66.1   56.9
Total Probable             0.2    910      21    968    40.7    18.2   13.8
----------------------------------------------------------------------------
Total Proved plus Probable
 USA                       0.8  3,636      88  3,863   140.5    84.3   70.7
----------------------------------------------------------------------------

Total Company
Total Proved              95.8  5,172   1,106 22,243   629.8   445.7  389.7
Total Probable            68.1  2,241     543 14,136   387.0   214.0  169.6
----------------------------------------------------------------------------
Total Proved plus
 Probable                163.9  7,413   1,649 36,379 1,016.8   659.7  559.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Columns may not add due to rounding



Reserves Reconciliation

The following table sets forth the reconciliation of Paramount's working
interest reserves for the year ended December 31, 2008 using forecast prices and
costs:




                                                             Proved &
             Proved Reserves    Probable Reserves       Probable Reserves
                     Oil                  Oil                  Oil
          Natural    and        Natural   and       Natural    and
              Gas   NGLs   Boe(4)   Gas  NGLs  Boe(4)   Gas   NGLs    Boe(4)

              Bcf   MBbl    MBoe    Bcf  MBbl   MBoe    Bcf   MBbl     MBoe
----------------------------------------------------------------------------
January 1,
 2008       119.3  6,181  26,064   73.5 2,954 15,204  192.8  9,135   41,268
Extensions
 and         10.5    967   2,723    6.4   446  1,502   16.9  1,413    4,225
Technical
 revisions  (10.8)   434  (1,366) (10.2) (611)(2,312) (21.0)  (177)  (3,678)
Dispositions
 (1)         (1.4)    (1)   (243)  (0.7)    -   (105)  (2.1)    (1)    (348)
Production
 (2)        (21.8)(1,303) (4,936)  (0.9)   (3)  (153) (22.7)(1,306)  (5,089)
----------------------------------------------------------------------------
December 31,
 2008(3)     95.8  6,278  22,243   68.1 2,784 14,136  163.9  9,062   36,379
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Paramount estimates.
(2) Excludes production from royalty interests.
(3) Columns and rows may not add due to rounding.
(4) Please refer to the oil and gas measures and definitions under the
    heading "Advisories" at the end of this document.



Technical reserve revisions are positive or negative changes to reserves that
were booked in prior periods. In 2008, negative technical revisions totaled 3.7
MMBoe, primarily related to land ownership matters in Northern, well performance
issues in Southern, and development plan changes in Grande Prairie.


Finding and Development Costs

Finding and development costs associated with the 2008 exploration and
development program were as follows:




2008 Finding and Development Costs
----------------------------------------------------------------------------
                                                                Proved Plus
($ millions, except as noted)                         Proved       Probable
----------------------------------------------------------------------------
Geological and geophysical                          $    7.1     $      7.1
Drilling and completions                               137.1          137.1
Production equipment and facilities                     26.6           26.6
----------------------------------------------------------------------------
Exploration and development expenditures               170.8          170.8
Land                                                    17.6           17.6
Change in future capital                                 4.6           12.3
----------------------------------------------------------------------------
Total finding and development capital (1)           $  193.0     $    200.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net additions to reserves (MBoe) (2)                   1,357            547
Finding and development costs ($/Boe)             $   142.03     $   366.31
----------------------------------------------------------------------------

(1) The aggregate of the exploration and development costs incurred in the
    most recent financial year and the change during that year in estimated
    future development costs generally will not reflect total finding and
    development costs related to reserves additions for that year.
(2) Please refer to the oil and gas measures and definitions under the
    heading "Advisories" at the end of this document.


Finding and Development Costs
($/Boe)                                                              3 Year
                                         2008      2007      2006   Average
----------------------------------------------------------------------------
Proved                               $ 142.03  $ 120.86   $ 46.94  $ 103.34
Proved plus Probable(1)              $ 366.31  $    N/A   $ 41.24  $ 205.43
----------------------------------------------------------------------------
(1) 2007 proved and probable finding and development costs not applicable
    due to negative technical revisions.



Reserves Disclosure

The tables as presented in this press release set forth information relating to
Paramount's working interest share of reserves and present values as at December
31, 2008. The reserves are reported using forecast prices and costs. The
reserves information presented herein is based on an independent reserve
evaluation report prepared by McDaniel dated February 23, 2009 with an effective
date of December 31, 2008, and has been prepared in accordance with National
Instrument 51-101 (using McDaniel forecast prices and costs). Complete NI 51-101
reserves disclosure including after-tax reserve values, reserves by major
property and abandonment costs will be included in the Company's Annual
Information Form ("AIF").


Outlook

Paramount's 2009 exploration and development budget is $90 million, excluding
land purchases. The 2009 budget will focus on the development of deep gas
opportunities in the Kaybob area, and exploration and facility development in
Grande Prairie. The exploration and development budget also includes an
allocation to maintain coal bed methane production at Chain. In addition to the
exploration and development budget, the Company has budgeted $2.0 million for
further oil sands delineation wells in the Hoole area and $8.0 million for the
completion of the third drilling rig. The Company has flexibility within its
current capital plan to increase or decrease spending, depending upon future
economic conditions.


Based on current production levels, market conditions, and the current
exploration and development budget, annual average production is expected to be
approximately 12,500 Boe/d.


Subsequent Events

- Received a payment of $12.2 million on the settlement of the remaining US$60.0
million notional foreign exchange collar.


- Cancelled 3.0 million Paramount Options on surrender by their holders.

- All stock appreciation rights that were issued in November 2008 were
surrendered and cancelled in exchange for the same number of Paramount Options
with the same exercise price and vesting terms.


ADDITIONAL INFORMATION

A copy of Paramount's Consolidated Financial Statements for the year December
31, 2008 can be obtained at
http://media3.marketwire.com/docs/306pou_financials.pdf.


A copy of Paramount's Management's Discussion and Analysis for the year ended
December 31, 2008 can be obtained at
http://media3.marketwire.com/docs/306pou_mda1.pdf.


Paramount will file its Annual Information Form ("AIF") for the year ended
December 31, 2008, which includes the disclosure and reports relating to
reserves data and other oil and gas information required pursuant to National
Instrument 51-101 of the Canadian Securities Administrators shortly. Paramount
also will file its Form 40-F with the Securities and Exchange Commission on the
Electronic Data Gathering, Analysis and Retrieval ("EDGAR") system in the United
States shortly. An electronic copy of Paramount's 40-F may be obtained on
Paramount's profile at http://www.sec.gov/edgar.shtml.


The year end documents, including Management's Discussion and Analysis,
Consolidated Financial Statements and the AIF, will also be made available
through Paramount's website at www.paramountres.com and SEDAR at www.sedar.com.


ABOUT PARAMOUNT

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".


ADVISORIES

Forward-looking Statements

Certain statements included in this document constitute forward-looking
statements or information under applicable securities legislation.
Forward-looking statements or information typically contain statements with
words such as "anticipate", "believe", "expect", "plan", "intend", "estimate",
"propose", or similar words suggesting future outcomes or statements regarding
an outlook and include an assessment of the fair value and impairment charges of
investments. Forward-looking statements or information in this document include,
but are not limited to: business strategies and objectives, capital
expenditures, reserve and resource quantities and the undiscounted and
discounted present value of future net revenues from such reserves and
resources, anticipated tax liabilities, future production levels, exploration
and development plans and the timing thereof, abandonment and reclamation plans
and costs, acquisition and disposition plans, operating and other costs and
royalty rates.


Such forward-looking statements or information are based on a number of
assumptions which may prove to be incorrect. The following assumptions have been
made, in addition to any other assumptions identified in this document:


- future oil and gas prices and general economic and business conditions;

- the ability of Paramount to obtain required capital to finance its
exploration, development and operations;


- the ability of Paramount to obtain equipment, services, supplies and personnel
in a timely manner to carry out its activities;


- the ability of Paramount to market its oil and natural gas successfully to
current and new customers;


- the ability of Paramount to secure adequate product transportation and storage;

- the ability of Paramount and its industry partners to obtain drilling success
consistent with expectations;


- the timely receipt of required regulatory approvals; and

- currency, exchange and interest rates.

Although Paramount believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance should
not be placed on such forward-looking statements or information as Paramount can
give no assurance that such expectations will prove to be correct.
Forward-looking statements or information are 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 and described in the forward-looking statements or information. These
risks and uncertainties include, but are not limited to:


- fluctuations in oil and gas prices, foreign currency exchange rates and
interest rates;


- general economic and business conditions;

- loss of the services of any of Paramount's executive officers or key employees;

- the ability of Paramount's management to execute its business plan;

- the risks of the oil and gas industry, such as operational risks in exploring
for, developing and producing crude oil and natural gas and market demand for
oil and gas;


- the ability of Paramount to obtain required capital to finance its
exploration, development and operations and the adequacy and costs of such
capital;


- risks and uncertainties involving the geology of oil and gas deposits;

- the uncertainty of reserves estimates and reserves life;

- the uncertainty of resource estimates and resource life;

- the ability of Paramount to add production and reserves through development
and exploration activities;


- the impact of market competition;

- the uncertainty of estimates and projections relating to exploration and
development costs and expenses;


- the uncertainty of estimates and projections relating to future production and
the results of exploration, development and drilling;


- potential delays or changes in plans with respect to exploration or
development projects or capital expenditures;


- the availability of future growth prospects and Paramount's expected financial
requirements;


- risks inherent in Paramount's marketing operations, including counterparty
credit risk;


- Paramount's ability to obtain equipment, services, supplies and personnel in a
timely manner to carry out its activities;


- Paramount's ability to enter into or continue leases;

- Paramount's ability to secure adequate product transportation and storage;

- imprecision in estimates of product sales and the anticipated revenues from
such sales;


- weather conditions;

- the ability to obtain necessary regulatory approvals;

- the possibility that government laws, regulations or policies may change or
governmental approvals may be delayed or withheld;


- uncertainty in amounts and timing of royalty payments and changes to royalty
regimes and government regulations regarding royalty payments;


- changes in taxation laws and regulations and the interpretation thereof;

- health, safety and environmental risks;

- changes in environmental laws and regulations and the interpretation thereof;

- the value and liquidity of Paramount's investments in other entities and the
returns on such investments;


- the cost of future abandonment activities and site restoration;

- risks associated with existing and potential future law suits and regulatory
actions against Paramount;


- uncertainty regarding aboriginal land claims and co-existing with local
populations;


- occurrence of a significant event against which the Company is not fully
insured; and


- other risks and uncertainties described elsewhere in this document or in
Paramount's other filings with Canadian securities authorities and the United
States Securities and Exchange Commission.


The forward-looking statements or information contained in this document are
made as of the date hereof and, except as required by law, Paramount undertakes
no obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or otherwise.


Non-GAAP Measures

"Funds flow from operations" and "Netback" are used to assist management in
measuring the Company's ability to finance capital programs and meet financial
obligations. Funds flow from operations refers to cash flows from operating
activities before net changes in operating working capital. "Netback" equals
petroleum and natural gas sales less royalties, operating costs, production
taxes and transportation costs. Refer to the calculation of "Net debt" in the
liquidity and capital resources section of the Management Discussion and
Analysis. Non-GAAP measures should not be considered in isolation or construed
as alternatives to their most directly comparable measure calculated in
accordance with GAAP, or other measures of financial performance calculated in
accordance with GAAP.


Oil and Gas Measures and Definitions

This document contains disclosure expressed as "Boe" and "Boe/d". All oil and
natural gas equivalency volumes have been derived using the ratio of six
thousand cubic feet of natural gas to one barrel of oil. Equivalency measures
may be misleading, particularly if used in isolation. A conversion ratio of six
thousand cubic feet of natural gas to one barrel of oil is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the well head.


Contingent Resources - Those quantities of bitumen estimated, as of a given
date, to be potentially recoverable from known accumulations using established
technology or technology under development, but are classified as a resource
rather than a reserve due to one or more contingencies, such as the absence of
regulatory approvals, detailed design estimates or near term development plans.


Best Estimate - There may be significant risk that Contingent Resources will not
achieve commercial production, however a range of potentially recoverable
quantities is presented independent of such risk. A low estimate indicates a
conservative estimate. It is likely that the actual remaining quantities
recovered will exceed the low estimate. A best estimate indicates a most likely
estimate. It is equally likely that the actual remaining quantities recovered
will be greater or less than the best estimate. A high estimate indicates an
optimistic estimate. It is unlikely that the actual remaining quantities
recovered will exceed the high estimate.