Paramax Resources Ltd.

Paramax Resources Ltd.

August 26, 2010 09:00 ET

Paramax Hires New President and Provides Corporate Update

CALGARY, ALBERTA--(Marketwire - Aug. 26, 2010) - Paramax Resources Ltd. ("Paramax" or the "Corporation") (TSX VENTURE:PXM) is pleased announce that Mr. Mike Smith has joined as President of the Corporation. 

Mr. Smith is a Professional Engineer with over 13 years of experience in the oil and gas industry. He has a diverse range of experience that includes operations, engineering, marketing, acquisitions and divestments. Mr. Smith has held senior management positions for the past 6 years over which time he has managed several successful operations. Most recently Mr. Smith held a vice president position with Codeco Energy Group, an international engineering company. At Codeco, Mr. Smith was responsible for the operations of his department which included the designing and preparing of drilling and completion programs, the supervision of field operations and overall management responsibilities. "We are very excited about having someone with the background of Mike join us, as Paramax moves from the exploration to the development stage of its Idaho project" stated Dave Antony, Chairman of the Corporation.

The Corporation has also approved the granting of an additional 500,000 stock options to Mr. Smith as part of his compensation. The options will be granted at an exercise price of $0.40 per Common Share and expire five years from the date of the grant. The Corporation has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the granting of the options. 

The Corporation is also pleased to announce that it has issued 1,000,000 common shares to Salamander Energy Oil & Gas Crystal, Inc. in accordance with the purchase and sale agreement dated August 30, 2008 with Salamander Energy Oil & Gas Crystal, Inc. (the "Agreement"). The Agreement requires that upon a commercial discovery on the Crystal lands the 1,000,000 common shares were issuable by the Corporation. 

Readers' Advisory

Safe Harbour

This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law including estimates as to: future production, operations, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, other components of cash flow and earnings, anticipated discovery of commercial volumes of oil and gas.

Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, but are not limited to, the inherent risks involved in the exploration and development of conventional oil and gas properties, difficulties or delays in start-up and continuing operations, the uncertainties involved in interpreting drilling results and other geological data, fluctuating oil prices, the possibility of unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors including unforeseen delays. As an enterprise in the development stage, with some conventional production Paramax faces risks including those associated with exploration, development, start-up, approvals and the continuing ability to access sufficient capital from external sources if required. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. Paramax undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. 

The satisfaction of the definition of commercial discovery in the Agreement does not mean the Idaho project will be economically viable to produce.


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