Corporate Presentation April 2015 Future Oriented Information (See - PowerPoint PPT Presentation

Corporate Presentation April 2015

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"), including management's assessment of the Company's future plans and operations, this presentation contains certain forward- looking information and forward-looking statements. • The projections, estimates and beliefs contained in such forward-looking information and statements necessarily involve a number of assumptions and are subject to known and unknown risks and uncertainties which may cause the Company's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. The material assumptions, risks and uncertainties are referred to in the advisories contained in the Advisories Appendix. • 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 within this presentation is expressly forbidden. 2

Corporate Profile Corporate Profile • Founded in 1974; IPO in 1978 • TSX: POU • Market Cap: 104.9 MM shares @ $32.00/share ~ $3.4 Billion • ~50% insider ownership • Net Debt (December 31, 2014): $1.5 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 • Surpass 70,000 Boe/d in 2015 following facilities expansion (1) • Average 55,000 to 65,000 Boe/d for 2015 (1) • Production mix evolving to ~50% liquids Exposure to emerging plays and Strategic Investments • Duvernay • Oil sands • Liard Basin shale gas (1) Production dependent on availability of downstream NGLs transportation and processing capacity 3 (2) Average sales volumes for the fourth quarter of 2014

Deep Basin Resource Paramount Acreage (gross): • 544 Sections Cretaceous Rights • 364 Sections Montney Rights • 249 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 4 (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.

Cretaceous Gas Resource • Hz Dunvegan well at • Hz Falher well at Musreau 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 • Currently producing • Currently producing ~2.0 MMcf/d ~1.1 MMcf/d • Cost: $8.6 MM d/c/t • Cost: $8.3 MM d/c/t (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: 9.0 MMcf/d Natural Gas (raw): 4.9 Bcf Raw Condensate Gas Ratio: 17 Bbl/MMcf C2-C4 NGLs: 61 Bbl/MMcf Deep Cut Facility Economics : $2.75 AECO, US$55.00 WTI (Deep-Cut) NPV 10%: $2.5 MM IRR: 31% Payout (Months): 30 P/I: 1.7 6

Montney Gas Resource  Liquids-rich Montney gas play  Paramount holds ~315 net sections of Montney rights  2011/2012 program included 16 Hz Montney wells: tested 5.5-15.4 MMcf/d (1)  Montney 2013 program: Drilled 15 wells; commenced drilling 25 additional wells off 3 pads in Musreau; participated in 5 non-op Montney wells in Karr  34 Montney wells rig released in 2014 including 23 pad wells at Musreau; participated in 2 non-op Montney wells in Karr  3-20 10-well pad at Musreau completed in Q3 2014 with combined test rates of 108 MMcf/d + NGLs (1)  8-22 10-well pad at Musreau completed in Q4 2014 with combined test rates of 130 MMcf/d + NGLs (1)  Two new 6-well pads at Musreau will rig release in March 2015 (1) Please refer to the heading "Test Results" in the Advisories section of this presentation for further information 7

Montney Economics Assumptions Capital: $10.0 MM horizontal well IP: 5.8 MMcf/d Natural Gas (raw): 3.0 Bcf Raw Condensate Gas Ratio (CGR): 150 Bbl/MMcf (50 Bbl/MMcf - 400 Bbl/MMcf) C2-C4 NGLs: 90 Bbl/MMcf Deep Cut Facility Economics @ $2.75 AECO, US$55.00 WTI (Deep Cut) NPV 10%: $7.7 MM IRR: 56% Payout (Years): 1.8 P/I: 1.8 8

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 9

Musreau 2014 :  Drilled 24 (24 net) horizontal Montney wells  Started drilling 15 (15 net) Montney wells on three pads  Drilled 7 (6.3 net) horizontal Falher/Wilrich wells  Drilled 2 (1.5 net) vertical wells to hold lands 2015:  Drill 19 (19 net) horizontal Montney wells  Drill 5 Cretaceous horizontal/directional wells  Complete Stabilizer expansion: $18 MM  Musreau gathering system expansion: $31 MM 10

Karr • 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 Q1 2016 2014: • Drilled 2 (1.0 net) horizontal Cretaceous wells • Drilled 10 (9.3 net) horizontal Montney wells with test rates of 2 MMcf/d to 12 MMcf/d + NGLs (1) 2015: • Drill 6 (5.5 net) horizontal Montney wells • Gathering System/Facility expansion: $15MM (1) Please refer to the heading "Test Results" in the Advisories section of this presentation for further information 11

Deep Basin Processing Capacity Gross Net POU Potential Raw Gas Raw Gas Sales Capacity Capacity Volumes MMcf/d MMcf/d Boe/d (1) Musreau Deep Cut Facility 200 200 50,000 Musreau Refrig Plant 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 12 (1) Please refer to the heading “Potential Sales Volumes” in the Advisories section for further information.

Deep Basin Processing Capacity (1) (1) Please refer to the heading “Deep Basin Processing Capacity” in the Advisories section for further information. 13

Full Capacity at Musreau Currently limited to 120 MMcf/d; 8,000 Bbl/d C2+ base capacity and stabilization capacity of 8,500 Bbl/d  Liquids transportation  Pembina HVP in-service  LVP in-service Full Capacity at Musreau  De-ethanization capacity  Current 8,000 Bbl/d gross C2+ capacity  Interruptible capacity with other fractionators  Keyera De-ethanizer expansion  Phase 1 by Q1 2015 (13,000 Bbl/d)  Phase 2 mid-2015 (19,000 Bbl/d) Condensate stabilizer expansion to 23,500 Bbl/d  Additional 15,000 Bbl/d   Commission Q1 2015; onstream Q2 2015  Long-term contracts  Firm service with TCPL  10 year liquids transportation with Pembina  10 year de-ethanization and fractionation with Keyera  10 year ethane sales agreement with NOVA Chemicals 14

Musreau 8-13 Complex October 13, 2014 15

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 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 Total: 65,667 Boe/d $2,096,000/day Royalty 5% ($104,800/day) Operating Cost ($3.00/Boe) ($197,000/day) $1,794,200/day 24.0 Total: $655 MM/year MMBoe/year $27.29/Boe 16

Paramount Deep-Cut Montney - Illustrative Project Economics • Paramount’s shallow rights will add substantially to the RLI • Paramount has de-risked a substantial amount of its land base and thus could have the potential to add a series of refrigeration or deep cut plants • Simple Payout from free cash flow after start up is less than two years Resource Needed: 200 MMcf/d x 365 ~ 73 Bcf/year x 10 year RLI = 730 Bcf 70 Bcf/section @ ~ 50% recovery = ~ 20 Sections Cost 60 (5 MMcf/d wells) x $10 MM/well = $600 MM Gas Plant = $250 MM Total: $850 MM Annual Deep - Cut Cash Flow $655 MM/year Annual Capital = 25 (3.0 Bcf) wells x $10 MM/well $250 MM/year Free Cash Flow $405 MM/year 17