James H. T. Riddell Acquires Senior Unsecured Convertible Debentures of Paramount Resources Ltd.

This press release is being issued pursuant to section 5.2 of National Instrument 62-104 -Take-Over Bids and Issuer Bids.

CALGARY, Jan. 25, 2021 /CNW/ - James H. T. Riddell ("J. Riddell"), Chairman and President and Chief Executive Officer of Paramount Resources Ltd. ("Paramount"), acquired $25 million of senior unsecured convertible debentures (the "Debentures") from Paramount on a private placement basis on January 22, 2021.  The Debentures were acquired through Treherne Resources Ltd., a company over which J. Riddell exercises voting control or direction.  An additional $10 million of Debentures were issued to other investors. 

The Debentures mature on January 31, 2024, bear interest at 7.50% per annum payable monthly in arrears and are convertible by the holder into class A common shares of Paramount ("Common Shares") at any time prior to maturity at a conversion price of $6.72 per Common Share prior to January 31, 2022, $7.33 per Common Share on or after January 31, 2022 and prior to January 31, 2023 and $7.94 per Common Share on or after January 31, 2023.

134,198,717 Common Shares are currently outstanding.  Prior to the acquisition of the Debentures, J. Riddell owned, or controlled or directed, 33,977,511 Common Shares and 190,965 vested options to acquire Common Shares, representing approximately 25.42% of the issued and outstanding Common Shares assuming the exercise of such options.  If all of the Debentures acquired by J. Riddell were converted at the conversion price of $6.72 per Common Share, J. Riddell would acquire an additional 3,720,238 Common Shares, representing approximately 2.7% of the outstanding Common Shares after giving effect to such conversion.  Following such a conversion, J. Riddell would own, or control or direct, 37,697,749 Common Shares and 190,965 vested options, representing approximately 27.43% of the issued and outstanding Common Shares assuming the exercise of such options.   

The Debentures were acquired for investment purposes. Depending on the evolution of Paramount's business, financial condition, the market, if any, for Paramount's securities, general economic conditions and other factors, J. Riddell may acquire additional Paramount securities, or sell Paramount securities he owns, controls or directs, in the open market, by private agreement or otherwise, subject to market conditions and other relevant factors.  J. Riddell intends to effect a disposition in the near term of approximately 2,000,000 Common Shares to a corporation owned and controlled by a family member.

SOURCE James H. T. Riddell

For inquiries or a copy of the related early warning report in respect of Paramount, a copy of which is filed on www.sedar.com, please contact: James H. T. Riddell, c/o Paramount Resources Ltd., Suite 2800, 421 - 7th Avenue S.W., Calgary, Alberta T2P 4K9