Paramount Resources obtains $250-million loan

Mr. Jim Riddell reports PARAMOUNT RESOURCES ANNOUNCES TERM LOAN FACILITY, CREDIT FACILITY EXTENSION, SALE OF ITS REMAINING INVESTMENT IN NUVISTA ENERGY AND OPERATIONS UPDATE Paramount Resources Ltd. has obtained a $250-million delayed draw term loan facility with Export Development Canada (the term loan facility) and has extended the maturity date of its $500-million senior secured revolving bank credit facility. The company is also pleased to announce that it has sold its remaining investment in the shares of NuVista Energy Ltd., increasing its cash and cash equivalents to approximately $800-million at Nov. 30, 2025. With its cash position and undrawn credit facilities totalling $750-million, the company is in a strong financial position to advance its Willesden Green and Sinclair developments, which are expected to more than double sales volumes to over 100,000 Boe/d (barrels of oil equivalent per day) (35 per cent liquids) by the end of 2027. Paramount is also providing an operations update highlighting fourth quarter production to date averaging above 45,000 Boe/d and expected 2025 capital expenditures at the low end of guidance. Term loan facility and credit facility extension The term loan facility has a five-year term and enables Paramount to make multiple drawdowns of up to an aggregate of $250-million at any time prior to Dec. 16, 2027, to finance capital expenditures related to the company's Willesden Green Duvernay and Sinclair Montney developments (excluding the Sinclair plant). The term loan facility is prepayable without penalty, non-revolving, non-amortizing, matures on Dec. 15, 2030, and is secured by a second charge over substantially all of the assets of the company and its subsidiaries. Paramount has also extended the maturity date of the syndicated credit facility to Dec. 15, 2029. The syndicated credit facility continues to have an accordion feature, which enables the capacity of the facility to be increased to up to $750-million, subject to obtaining incremental lender commitments and the company achieving average quarterly production of at least 55,000 Boe/d for two consecutive fiscal quarters. The syndicated credit facility is financial covenant based and secured by a first charge over substantially all of the assets of the company and its subsidiaries. Operations update Sales volumes for October and November averaged approximately 45,700 Boe/d (52 per cent liquids). December production to date has remained strong and Paramount expects average annual 2025 sales volumes to be at the high end of its guidance range of 41,000 Boe/d to 42,000 Boe/d (47 per cent liquids). In addition, the company expects annual 2025 capital expenditures to be at the lower end of its guidance range of $795-million to $825-million. Sales volumes at Willesden Green in October and November averaged approximately 23,900 Boe/d (62 per cent liquids), more than 10,000 Boe/d higher than average third quarter sales volumes. Runtime at Paramount's new wholly owned and operated Alhambra plant continues to be above forecast. The company brought onstream four (4.0 net) wells into the plant in October and an additional one (1.0 net) well in November. A final one (1.0 net) well was recently brought onstream in December. Three (3.0 net) wells were brought onstream into the company's Leafland plant in late November. At Sinclair, the extended flow test of the first two (2.0 net) Montney appraisal wells into regional infrastructure was concluded in the fourth quarter. In addition, the company recently finished the drilling of the second pilot pad consisting of two (2.0 net) Montney appraisal wells. completion and short-term testing activities are scheduled to occur in the second quarter of 2026. The company is in the process of finalizing the design of its planned wholly owned and operated Sinclair plant, which will be capable of handling up to 400 MMcf/d of raw gas production. Paramount has contracted 335 MMcf/d of firm service sales egress commencing in the fourth quarter of 2027 to coincide with the planned start-up of the Sinclair plant. About Paramount Resources Ltd. Paramount is an independent, publicly traded Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas, including longer-term strategic exploration and predevelopment plays. The company's principal properties are located in Alberta and British Columbia. Paramount's Class A common shares are listed on the Toronto Stock Exchange under the symbol POU. We seek Safe Harbor.