Paramount Energy Trust Provides Updated Investor Presentation and Announces Cardium Horizontal Well Development Inventory

CALGARY, Canada, January 21 - Paramount Energy Trust ("PET" or the "Trust") advises that an updated
investor presentation has been added to its website. The presentation, which
can be found at www.paramountenergy.com , includes updated hedging
information and details of the Trust's 2010 capital expenditure program,
prospect inventory and new venture opportunities, including PET's
significant exposure to the emerging Pembina Cardium tight oil play.

CARDIUM OIL PLAY - HORIZONTAL MULTI STAGE FRAC INVENTORY

PET has 61 gross (36 net) sections of land in the Cardium light oil
fairway in the Carrot Creek area to the northwest of the giant Pembina oil
field.

In 2010, the Company is planning to drill three gross (two net) Cardium
horizontal development wells and one 100% vertical exploration well on the
play. Based on industry activity, potential development drilling density
could be two to four wells per section. On a three well per section drilling
density, the Company has a potential inventory of 118 gross (66 net)
locations.

PET also has 30 gross (18 net) sections of Cardium rights in the
Cochrane area to the South of Garrington where there has also been
significant industry activity on the Cardium trend.

"We are excited about the significant evolution in our asset base and
prospect inventory over the past three years." said Sue Riddell Rose,
President and CEO of the Trust. We are increasingly better positioned to
make our conversion to a corporation later in 2010.

Forward-Looking Information

Certain information regarding PET in this news release may constitute
forward-looking statements under applicable securities laws. The
forward-looking information includes, without limitation, statements
regarding PET's forecast production and forecast funds flows, exploration and
development, capital expenditures, gas storage, asset sustainability and
corporate structure. Various assumptions were used in drawing the conclusions
or making the forecasts and projections contained in the forward-looking
information contained in this press release, which assumptions are based on
management analysis of historical trends, experience, current conditions and
expected future developments pertaining to PET and the industry in which it
operates as well as certain assumptions regarding production, funds flows,
exploration and development, capital expenditures, gas storage, asset
sustainability and corporate structure as outlined above. Forward-looking
information is based on current expectations, estimates and projections that
involve a number of risks, which could cause actual results to vary and in
some instances to differ materially from those anticipated by PET and
described in the forward-looking information contained in this press release.
Undue reliance should not be placed on forward-looking information, which is
not a guarantee of performance and is subject to a number of risks or
uncertainties. Readers are cautioned that the foregoing list of risk factors
is not exhaustive. Forward-looking information is based on the estimates and
opinions of PET's management at the time the information is released and PET
disclaims any intent or obligation to update publicly any such
forward-looking information, whether as a result of new information, future
events or otherwise, other than as expressly required by applicable
securities laws.

PET is a natural gas-focused Canadian energy trust. PET's Trust Units
and convertible debentures are listed on the Toronto Stock Exchange under
the symbol "PMT.UN" and "PMT.DB.A", "PMT.DB.C" and "PMT.DB.D", respectively.
Further information with respect to PET can be found at its website at
www.paramountenergy.com.

The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.

For further information: Paramount Energy Trust, Susan L. Riddell Rose,
President and Chief Executive Officer; Cameron R. Sebastian, Vice President,
Finance and Chief Financial Officer; Sue M. Showers, Investor Relations and
Communications Advisor, Paramount Energy Operating Corp., Administrator of
Paramount Energy Trust, Suite 3200, 605 - 5 Avenue SW, Calgary, Alberta, T2P
3H5, +1(403)269-4400, +1(403)269-4444 Fax, Email: info@paramountenergy.com,

Website: www.paramountenergy.com

(PMT.DB. PMT.DB.A. PMT.UN. PMT.DB.B. PMT.DB.C.)

For further information: Paramount Energy Trust, Susan L. Riddell Rose, President and Chief Executive Officer; Cameron R. Sebastian, Vice President, Finance and Chief Financial Officer; Sue M. Showers, Investor Relations and Communications Advisor, Paramount Energy Operating Corp., Administrator of Paramount Energy Trust, Suite 3200, 605 - 5 Avenue SW, Calgary, Alberta, T2P 3H5, +1(403)269-4400, +1(403)269-4444 Fax, Email: info at paramountenergy.com,