Paramount Resources Ltd. Commences Consent Solicitation and Gives Notice of Conditional Redemption in Respect of Its 2019 Notes

CALGARY, ALBERTA - July 13, 2016 /CNW/ -Paramount Resources Ltd. (TSX:POU) ("Paramount" or the "Company") announced today that it has commenced a consent solicitation and given notice of conditional redemption in respect of its senior unsecured notes due 2019 (the "2019 Notes"), as the Company previously indicated it would in its July 6th press release announcing the Company's proposed Musreau/Kakwa asset sale to Seven Generations Energy Ltd. (the "Sale Transaction").

The consent solicitation seeks consent from the holders of the 2019 Notes (the "2019 Noteholders") to waive and amend certain provisions of the indenture for the 2019 Notes such that the Sale Transaction can be completed with consenting holders remaining as holders of their 2019 Notes post-closing. A consent fee of $5.00 per $1,000 principal amount of 2019 Notes is payable to those 2019 Noteholders who provide their consent, conditional on the Sale Transaction closing. The Sale Transaction will be completed regardless of the results of the consent solicitation, as the 2019 Notes of all non-consenting 2019 Noteholders will be redeemed immediately before the closing of the Sale Transaction.

The consent solicitation and notice of conditional redemption and related documents are available on Paramount's website at

About Paramount

Paramount is an independent, publicly traded, Canadian corporation that explores for and develops conventional petroleum and natural gas prospects, pursues longer-term non-conventional exploration and pre-development projects and holds investments in other entities. The Company's properties are primarily located in Alberta, British Columbia and the Northwest Territories. Paramount's class A common shares are listed on the Toronto Stock Exchange under the symbol "POU".

For further information: Paramount Resources Ltd., J.H.T. (Jim) Riddell, President and Chief Executive Officer, (403) 290-3600 / Paramount Resources Ltd., B.K. (Bernie) Lee, Chief Financial Officer, (403) 290-3600,