About Us

NEWS RELEASE: PARAMOUNT RESOURCES LTD. COMPLETES ACQUISITION OF MGM
ENERGY CORP.


Paramount Resources Ltd. (TSX:POU) and MGM Energy Corp. (TSX:MGX) announced today that
Paramount has completed the acquisition of all of the outstanding common shares of MGM Energy not
owned by it pursuant to an arrangement under the Business Corporations Act (Alberta). Paramount
issued 1,127,790 Class A Common Shares in connection with the transaction. The common shares of
MGM Energy are expected to be delisted from the Toronto Stock Exchange within two or three trading
days.

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) Riddell, President and Chief Operating Officer
B.K. (Bernie) Lee, Chief Financial Officer
Phone: (403) 290-3600
Fax: (403) 262-7994