Corporate Presentation Future Oriented Information (See additional - PDF document

September 2015 Corporate Presentation

Future Oriented Information (See additional advisories at the end of this document) • In the interest of providing information regarding Paramount Resources Ltd. ("Paramount" or the "Company") and its future plans and operations, this presentation contains certain forward-looking information and forward-looking statements. • The projections, estimates and forecasts contained in such forward-looking information and statements necessarily involve a number of assumptions, and are subject to both known and unknown risks and uncertainties that may cause the Company's actual performance and financial results in future periods to differ materially from these projections, estimates or forecasts. The Advisories Appendix lists some of the material assumptions, risks and uncertainties that these projections, estimates and forecasts are based on and are subject to. • Accordingly, shareholders and potential investors are cautioned that events or circumstances could cause actual results to differ materially from those predicted. • Any use of information contained in this presentation is expressly forbidden. 2

Corporate Profile Corporate Profile • Founded in 1974; IPO in 1978 • TSX: POU • Market Cap: 106.2 MM shares @ $13.00/share ~ $1.4 Billion • ~50% insider ownership • Net Debt (June 30, 2015): $1.7 Billion • 2015 Capital Guidance: $400 MM Low Risk/Repeatable Growth Operations focused on large-scale Deep Basin development • Large contiguous acreage • Multi-zone potential • High condensate/gas ratios • Owned and firm service access to infrastructure Significant near-term growth in production and cash flow • Average 56,000 Boe/d for H2 2015 • Production mix evolving to ~50% liquids Strategic Investments Exposure to emerging plays: • Duvernay • Oil sands • Liard Basin shale gas (1) Average sales volumes for July 2015 3

Deep Basin Resource Paramount Acreage (gross): • 500 Sections Cretaceous Rights • 364 Sections Montney Rights • 209 Sections Duvernay Rights • Deep Basin liquids-rich gas resources in multiple stacked horizons • 40-160 Bcf/section DGIIP (1) • ~5 + Bcf EUR/Hz well (1) • >10 Tcf DGIIP + NGLs net to POU (1) • Liquids-rich Montney gas play • ~70 + Bcf/section DGIIP (1) • ~ 22 Tcf DGIIP + NGLs net to POU (1) • Potential conventional Devonian exploration • Potential Duvernay Shale rock play *Graphic courtesy of www.canadianoilstocks.ca (1) Internal estimates: EUR denotes Estimated Ultimate Recovery, DGIIP denotes Discovered Gas Initially In Place. Please refer to "Oil and Gas Measures and Definitions" in the Advisories section of this presentation for further information. 4

Cretaceous Gas Resource • Hz Falher well at Musreau • Hz Dunvegan well at Resthaven • Tested 16.4 MMcf/d (1) at • Tested 11.3 MMcf/d (1) at 20.8 MPa 6.2 MPa • IP: 12.0 MMcf/d • IP: 8.3 MMcf/d • Cost: $8.6 MM d/c/t in 2010 • Cost: $8.3 MM d/c/t in 2010 (1) Please refer to the heading "Test Results" in the Advisories section of this presentation for further information 5

Cretaceous Economics Assumptions Capital: $7.0 MM horizontal well IP 30 : 9.0 MMcf/d Natural Gas (raw): 4.9 Bcf Raw Condensate Gas Ratio (CGR) (1) : 17 Bbl/MMcf C2-C4 NGLs: 61 Bbl/MMcf Deep Cut Facility Economics (2) @ $2.75 AECO US$45.00 WTI NPV 10% $ 1.6 MM IRR 23% Payout (Years) 2.9 P/I (1) 1.2 (1) Please refer to the heading Well Economics in the Advisories section of this presentation for further information (2) Excludes processing capital fees 6

Montney Gas Resource  Liquids-rich Montney gas play; Paramount holds ~315 net sections of Montney rights Musreau Montney Wells Natural Wellhead Gas (1) Liquids (1) CGR (1) Total MMcf/d Bbl/d Bbl/MMcf Boe/d Wells IP 30 4.3 632 145 1,349 37 IP 90 3.2 426 131 959 28 IP 180 2.5 292 115 709 19 Wells < 30 days onstream and wells in progress 36 Total Musreau Montney Wells 73 Karr Montney Wells Natural Wellhead Gas (1) Liquids (1) CGR (1) Total MMcf/d Bbl/d Bbl/MMcf Boe/d Wells IP 30 2.5 221 90 638 17 IP 90 2.1 174 84 524 12 IP 180 2.2 162 72 529 7 Wells < 30 days onstream and wells in progress 2 Total Karr Montney Wells 19 (1) Please refer to the heading Musreau and Karr CGRs in the Advisories section of this presentation for further information 7

Montney "Rich" Well Economics "Rich" Montney Wells (1) Gas Liquids CGR Total Wells MMcf/d Bbl/d Bbl/MMcf Boe/d IP 30 5.0 627 126 1,460 26 IP 90 3.8 408 108 1,041 17 IP 180 2.8 230 82 697 10 Wells < 30 days onstream and wells in progress 9 Total 35 Assumptions Capital: $9.2 MM horizontal 1-mile lateral well IP 30 : 5.1 MMcf/d Natural Gas (raw): 3.0 Bcf Raw Condensate Gas Ratio (CGR) (1) : 120 Bbl/MMcf (IP) (77 Bbl/MMcf lifetime average) C2-C4 NGLs: 90 Bbl/MMcf through Deep Cut Facility Economics (2) @ $2.75 AECO US$45.00 WTI US$65.00 WTI NPV 10% $ 1.3 MM $5.1 MM IRR 18% 43% Payout (Years) 3.5 2.2 P/I (1) 1.1 1.6 (1) Please refer to the headings Well Economics and Musreau and Karr CGRs in the Advisories section of this presentation for further information (2) Excludes processing capital fees 8

Montney "Ultra Rich" Well Economics "Ultra Rich" Montney Wells (1) Gas Liquids CGR (1) Total Wells MMcf/d Bbl/d Bbl/MMcf Boe/d IP 30 2.2 820 365 1,187 8 IP 90 1.8 576 312 876 8 IP 180 1.7 494 296 777 6 Wells < 30 days onstream and wells in progress 19 Total 27 Assumptions Capital: $9.2 MM horizontal 1-mile lateral well IP 30 : 3.25 MMcf/d Natural Gas (raw): 2.0 Bcf Raw Condensate Gas Ratio (CGR) (1) : 320 Bbl/MMcf (IP) (192 Bbl/MMcf lifetime average) C2-C4 NGLs: 90 Bbl/MMcf through Deep Cut Facility Economics (2) @ $2.75 AECO US$45.00 WTI US$65.00 WTI NPV 10% $ 4.1 MM $9.0 MM IRR 37% 80% Payout (Years) 2.3 1.4 P/I (1) 1.5 2.0 (1) Please refer to the headings Well Economics and Musreau and Karr CGRs in the Advisories section of this presentation for further information (2) Excludes processing capital fees 9

Montney Drilling/Completion Improvements • Pad drilling/pad layout • Bits/muds/motors • Well design: monobores/orientation/reservoir placement • Toe up/toe down: effects on production • Natural gas fueled rigs • Plug and perf/sliding sleeves • Cemented liners/open-hole packers (ECP’s) • Frac sizing/spacing/clusters • Frac fluid selection/fluid handling • Pumping techniques • Frac fluid recycling • Proppants • Flow back/production practices • Working with material and service providers to reduce costs 10

Montney Well Cost Progression Key Points Expected Well Cost ($MM) 1.0 Mile 1.5 Mile ($MM) Lateral Lateral Drill $4.3 $5.1 Complete $3.9 $5.8 Equip/Tie in. $1.0 $1.0 Total $9.2 $11.9 • 1.0 mile well cost reductions from 2014 to 2015: • $0.5 MM in drilling costs due to price reductions • $2.1 MM in completion costs largely due to $1.4 MM reduction in frac oil and additional savings of $0.7 MM from price reductions • Switching to 125T foam water for 1.0 mile completions from 60T oil estimated to save additional $0.4 MM Cost per meter of lateral 1.0 vs. 1.5 mile: 1.0 Mile 1.5 Mile ($M) (1,400 m) (2,200 m) Drill $3,070 $2,320 Complete $2,760 $2,630 11

Musreau 2015 Capex: $250 MM  Drill 19 (19 net) horizontal Montney wells  Drill 5 Cretaceous horizontal/directional wells  Completed amine plant  Completed condensate stabilizer expansion: $18 MM  Musreau gathering system expansion: $31 MM 12

Karr 2015 Capex: $75 MM • Multi-zone potential, including Halfway, Montney sour and Gething, Bluesky, Falher sweet commingled gas • Current plant and gathering systems 40 MMcf/d; expanding by 40 MMcf/d in 2016 2015: • Drill 6 (5.5 net) horizontal Montney wells • Gathering System/Facility expansion: $15MM 13

Deep Basin Processing Capacity Gross Net POU Potential Raw Gas Raw Gas Sales Capacity Capacity Volumes Boe/d (1) MMcf/d MMcf/d Musreau Deep Cut Facility 200 200 50,000 Musreau Refrig Facility 45 45 8,500 Smoky Deep Cut Facility 200 40 10,000 Karr Capacity 40 40 10,000 Other Musreau area capacity 64 18 3,400 Stabilizer Expansion - - 15,000 Subtotal 549 343 96,900 Future Capacity Karr Expansion 40 40 10,000 6-18 Plant 100 100 25,000 3-15 Plant 100 100 25,000 Subtotal 240 240 60,000 Projected Total 789 583 156,900 (1) Please refer to the heading “Potential Sales Volumes” in the Advisories section for further information. 14

Deep Basin Processing Capacity (1) (1) Please refer to the heading “Deep Basin Processing Capacity” in the Advisories section for further information. 15

16 Paramount Production History

Musreau 8-13 Complex October 13, 2014

Illustrative Deep-Cut - Montney Wells 200 MMcf/d x 23% Shrinkage = 154 MMcf/d Sales Gas (25,667 Boe/d) + 22,000 Bbl/d condensate + 18,000 Bbl/d NGLs Price (1) Yield Bbl/MMcf Deep-Cut Sales Gas $2.75/Mcf 154 MMcf/d $423,500 Condensate $65.00/Bbl 22,000 Bbl/d $1,430,000 110 Butane $35.00/Bbl 2,500 Bbl/d $87,500 12.5 Propane $10.00/Bbl 5,000 Bbl/d $50,000 25 Ethane $10.00/Bbl 10,500 Bbl/d $105,000 52.5 65,667 Boe/d Total: $2,096,000/day Royalty 5% ($104,800/day) Operating Cost ($3.00/Boe) ($197,000/day) $1,794,200/day Total: 24.0 MMBoe/year $655 MM/year $27.29/Boe (1) Net of transportation 18