News Releases

NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  PARAMOUNT RESOURCES LTD.

TSX SYMBOL:  POU

JANUARY 17, 2005 - 08:46 ET

Paramount Resources Ltd. Updates Status of Exchange 
Offer for Senior Notes

CALGARY, ALBERTA--(CCNMatthews - Jan. 17, 2005) - Paramount Resources 
Ltd. (TSX:POU) announces that its discussions with representatives of 
the committee of noteholders formed to respond to Paramount's exchange 
offer and consent solicitation for its outstanding senior unsecured 
notes are continuing. With today being a holiday in the United States, a 
further announcement on the status of the offer will be made tomorrow.

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".

This press release is neither an offer to sell nor a solicitation of an 
offer to participate in the exchange offer and consent solicitation.

-30-