WHISTLEBLOWER POLICY

Paramount's Whistleblower Policy (the "Policy") has been reproduced on a separate, stand alone website (the "Whistleblower website") which may be accessed through the link found at the bottom of this page. While the full text of the Policy should always be consulted, the basics of the Policy and mechanics of the whistleblower program may be summarized as follows:

If you believe that you have witnessed operating, accounting or auditing practices that you feel are inappropriate or wrong and which are material you should report your concerns in sufficient detail to enable the recipient of the complaint to investigate. When reporting your concerns you may identify yourself or, if you prefer, report anonymously. Paramount has secured a post office box for the sole purpose of receiving correspondence under this Policy. Your letter should be marked "Personal and Confidential" and addressed as follows:

Paramount Resources
Bankers Hall
PO Box 22045
Calgary, Alberta
T2P 4J1

Attention: (Name of Person you wish to open your letter)

The mail received will only be opened by the person to whom it is addressed and, if no person is identified, by the General Counsel or a member of the Audit Committee.

Additionally, the Whistleblower website allows you to anonymously report your concerns to any member of the Audit Committee. This website consists of three pages: the first requires you to accept a disclaimer, the second sets out the Whistleblower Policy which must be accepted to proceed to the third page, which permits you to address and email your concerns anonymously to any one of the four Audit Committee members. To ensure complete anonymity, emails should not be sent from any Paramount computer, except as specifically provided in the Policy.

Anonymous emails may also be sent from venues such as "internet cafes" to the extent that the internet provider does not require the sender to identify him or herself.

All concerns that are reported must provide sufficient details to ensure that the Audit Committee can assess whether or not there exists reasonable grounds to initiate a review.

Upon receiving a complaint, the recipient or the General Counsel will report to and forward your complaint to the Chairman of the Audit Committee. The Chairman of the Audit Committee will review your concerns and oversee and provide direction on the investigation of your concerns and resolution of the matter. Depending on the nature of your concerns, the Chairman may conduct the investigation utilizing internal management and staff or may choose to obtain external assistance. At the conclusion of the investigation, if the Audit Committee determines that a violation of the Policy has occurred, appropriate corrective measures will be taken to address the violation with the accused party commensurate with the severity of the offence. Steps will also be taken to prevent further violations of the Policy. The Company may also report the matter to the appropriate outside agency, to ensure compliance with all laws and regulations.

Paramount is committed to achieving and maintaining the highest standards of corporate governance. The Policy may be amended from time to time to ensure compliance with changing and developing laws and to incorporate improvements to the whistleblower program as we learn from our own experience and the experience of others.

Link to Whistleblower website:
http://www.whistlebloweronline.com/paramount/