Paramount Resources Ltd. (TSX:POU) ("Paramount" or the "Company") has received
an updated evaluation of its 100 percent-owned in-situ oil sands leases covering
approximately 56 contiguous sections in the Hoole area of Alberta, situated
within the western portion of the Athabasca Oil Sands region (the "Hoole Oil
Sands Properties"). This update was undertaken to include the results of
Paramount's 15 well 2010/2011 winter delineation drilling program, which
increased the mapped thickness of the reservoir in some areas, confirmed the
continuous nature of the reservoir and extended the boundaries of the
exploitable reservoir.


To see a map of the location of the Hoole area, click the following link:
http://media3.marketwire.com/docs/hoole_map.pdf


The updated evaluation was conducted by the Company's independent reserves
evaluator, McDaniel & Associates Consultants Ltd. ("McDaniel"), who estimate
that the Hoole Oil Sands Properties contain approximately 763 million barrels of
economic contingent bitumen resources within the Grand Rapids formation (Best
Estimate (P50)), an increase of 20 percent from McDaniel's prior evaluation
effective April 30, 2010. Potentially exploitable bitumen accumulations within
other prospective formations in the Hoole Oil Sands Properties were not included
in McDaniel's evaluation.


The tables below summarize McDaniel's updated evaluation of the estimated
volumes and net present values attributable to Paramount's 100 percent interest
in the economic contingent bitumen resources in the Grand Rapids formation
within the Hoole Oil Sands Properties as of April 30, 2011, and current
estimates of initial and fully developed production from such interests. 




                                                                            
                                                                            
                                   Economic                           Fully 
Category /                       Contingent          Initial      Developed 
 Level of         DEBIP(1)   Resources(2)(3)      Production     Production 
 Certainty (6)   (MBbl)(4)         (MBbl)(4)       (Bbl/d)(5)     (Bbl/d)(5)
----------------------------------------------------------------------------
High Estimate   1,821,614           952,544           27,000        105,000 
Best Estimate   1,631,742           762,661           26,000         80,000 
Low Estimate    1,320,406           552,094           25,000         60,000 



Notes:

(1) DEBIP means Discovered Exploitable Bitumen In-Place. Discovered Exploitable
Bitumen In-Place is the estimated volume of bitumen, as of a given date, which
is contained in a subsurface stratigraphic interval of a known accumulation that
meets or exceeds certain reservoir characteristics, such as minimum continuous
net pay, porosity, and mass bitumen content, considered necessary for the
commercial application of known recovery technologies. There is no certainty
that it will be commercially viable to produce any portion of the resources. 


(2) Represents the Company's share of recoverable volumes before deduction of
royalties. In the assessment of contingent resources within the Hoole Oil Sands
Properties, McDaniel used a minimum net pay cut-off of 10 meters in the best
estimate case.


(3) Refer to the advisories section at the end of this document for further
information concerning contingent resources, including economic contingent
resources.


(4) MBbl means thousands of barrels.

(5) Bbl/d means barrels per day. Initial production means the average daily
production rate during the first year of production. Estimates of production
rates assume that production will commence in 2015 and fully developed
production will be reached in 2016 for the low estimate, 2017 for the best
estimate and 2018 for the high estimate.


(6) Refer to the advisories section at the end of this document for a
description of such categories.




                        NPV(1)of Future Net Revenue                         
                                 ($MM)(2)                                   
                               Discounted At               
                      --------------------------------                      
Category / Level of                                       NPV(1) Discounted
 Certainty (4)              0%      5%      8%     10%     at 10% ($/Bbl)(3)
----------------------------------------------------------------------------
High Estimate          22,884   9,452   5,862   4,336                  4.55 
Best Estimate          16,522   6,549   3,935   2,834                  3.72 
Low Estimate           10,454   4,026   2,321   1,602                  2.90 



Notes:

(1) NPV means net present value and represents the Company's share of future net
revenue, before the deduction of income tax from the economic contingent bitumen
resources in the Grand Rapids formation within the Hoole Oilsands Properties.
The calculation considers such items as revenues, royalties, operating costs,
abandonment costs and capital expenditures. Royalties have been calculated based
on Alberta's Royalty Framework applicable to oil sands projects in Alberta. The
calculation does not consider financing costs and general and administrative
costs. All NPVs are calculated assuming natural gas is used as a fuel for steam
generation. Revenues and expenditures were calculated based on McDaniel's
forecast prices and costs as of April 1, 2011.


(2) $MM means millions of Canadian dollars.

(3) $/Bbl means Canadian dollars per barrel. 

(4) Refer to the advisories section at the end of this document for a
description of such categories.


Economic contingent bitumen resources and the associated net present values were
determined based on exploitation using a conventional Steam-Assisted Gravity
Drainage development scenario.


Over the past seven years, Paramount has drilled 74 oil sands evaluation wells
at the Hoole Oil Sands Properties to evaluate the Wabiskaw and Grand Rapids
formations (including 39 evaluation wells with cores cut in the Grand Rapids
formation). Over 190 other wells, located both on Paramount's acreage and on
third party oil sands acreage analogous to the Hoole Oil Sands Properties, were
also examined by McDaniel to evaluate the reservoir quality and estimated
bitumen recovery from the Hoole Oil Sands Properties.


During the remainder of 2011, the Company expects to finalize its plans for the
initial development of the Hoole Oil Sands Properties and complete the
engineering design and environmental impact analysis for the project with a view
to submitting a regulatory application for commercial development of the
resource by the end of 2011.


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".


Forward-Looking Statements Advisory 

Certain statements in this document constitute forward-looking information under
applicable securities legislation. Forward-looking information in this document
includes references to: estimated resources and the undiscounted and discounted
net present value of future net revenues from such resources (including the
forecast prices and costs and the timing of expected production volumes and
future development capital); development plans for the oil sands leases and the
projected timeline for finalizing such plans; timing of regulatory applications;
and estimated initial and fully developed production from the oil sands leases
and the timing thereof.


Such forward-looking information is 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 crude oil, bitumen and
natural gas prices and general economic and business conditions; the timely
receipt of required regulatory approvals; access to capital markets and other
sources of funding; estimated timelines being met in respect of the development
of the Hoole Oil Sands Properties; and estimates of input and labour costs for
an oil sands project.


Although Paramount believes that the expectations reflected in such forward
looking information is reasonable, undue reliance should not be placed on it as
Paramount can give no assurance that such expectations will prove to be correct.
Forward-looking information is based on 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 information. The material risks and uncertainties
include, but are not limited to: fluctuations in crude oil, bitumen and natural
gas prices, foreign currency exchange rates and interest rates; uncertainty of
resource estimates; uncertainty of estimates and projections relating to future
net revenue, costs and expenses, production and the timing thereof; operational
risks in exploring for, developing and producing crude oil and natural gas, and
the timing thereof; the ability to obtain equipment, services, supplies and
personnel in a timely manner; potential disruption or unexpected technical
difficulties in designing, developing or operating new or existing facilities;
risks and uncertainties involving the geology of oil and gas deposits; the
ability to generate sufficient cash flow from operations and other sources of
financing at an acceptable cost to meet current and future obligations,
including costs of the anticipated project; changes to the status or
interpretation of laws, regulations or policies; the receipt and timing of
governmental or regulatory approvals; changes in general business and economic
conditions; and the effects of weather.


The foregoing list of risks is not exhaustive. Additional information concerning
these and other factors which could impact Paramount are included in Paramount's
most recent Annual Information Form. The forward-looking information contained
in this document 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 statements or information, whether as a result of
new information, future events or otherwise.


Oil and Gas Advisories

The estimated net present values disclosed in this press release do not
represent fair market value. 


Contingent Resources are 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.
There is no certainty that it will be commercially viable to produce any portion
of the contingent resources. For Paramount, contingencies which must be overcome
to enable the reclassification of bitumen contingent resources as reserves
include finalization of plans for the initial development of the Hoole Oil Sands
Properties, regulatory application submission with no major issues raised,
access to capital markets and other sources of funding, and intent to proceed by
Paramount evidenced by a development plan with major capital expenditures.
Economic Contingent Resources are those contingent resources that are currently
economically recoverable based on specific forecasts of commodity prices and
costs. Best Estimate is considered to be the best estimate of the quantity of
resources that will actually be recovered. It is equally likely that the actual
remaining quantities recovered will be greater or less than the best estimate.
Those resources that fall within the best estimate have a 50 percent confidence
level that the actual quantities recovered will equal or exceed the estimate.
Low Estimate is considered to be a conservative estimate of the quantity of
resources that will actually be recovered. It is likely that the actual
remaining quantities recovered will exceed the low estimate. Those resources at
the low end of the estimate range have the highest degree of certainty - a 90
percent confidence level - that the actual quantities recovered will equal or
exceed the estimate. High Estimate is considered to be an optimistic estimate of
the quantity of resources that will actually be recovered. It is unlikely that
the actual remaining quantities of resources recovered will meet or exceed the
high estimate. Those resources at the high end of the estimate range have a
lower degree of certainty - a 10 percent confidence level - that the actual
quantities recovered will equal or exceed the estimate.
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