Paramount Energy Trust
TSX : PMT.DB
TSX : PMT.UN

Paramount Energy Trust

February 25, 2008 20:19 ET

Paramount Energy Trust Advises on 2007 Canadian Income Tax Information

CALGARY, ALBERTA--(Marketwire - Feb. 25, 2008) - The following information is intended to assist individual Canadian Unitholders of Paramount Energy Trust (TSX:PMT.UN) ("PET") in the preparation of their 2007 T1 Income Tax Return.

The information contained herein is based on PET's understanding of the Income Tax Act (Canada) and the regulations thereunder and is provided for general information only. Unitholders are advised to consult their personal tax advisors with respect to their particular circumstances.

Trust Units held within an RRSP, RRIF, RESP or DPSP

No amounts are required to be reported on the 2007 T1 Income Tax Return where the Paramount Energy Trust Units are held within an RRSP, RRIF, RESP or DPSP.

Trust Units held outside of an RRSP, RRIF, RESP or DPSP

Unitholders who held their PET Units on distribution record dates in 2007 outside of an RRSP, RRIF, RESP or DPSP, through a broker or other intermediary, and received cash distributions for 2007, will receive "T3 Supplementary" slips directly from their broker or intermediary, not from the transfer agent or PET.

Registered Unitholders of PET who received cash distributions for 2007 from the transfer agent, Computershare Trust Company of Canada (and not from a broker or intermediary), will receive "T3 Supplementary" slips directly from Computershare Trust Company of Canada.

The attached "Schedule 1" includes supplementary information on the taxable portion of the 2007 cash distributions and is shown on a per Trust Unit basis. Under Paragraph 12(1)(m) of the Income Tax Act, taxable amounts allocated by PET in 2007 to the Unitholders must be reported by the Unitholders in their 2007 Income Tax Return.

Accordingly, the taxable amount of cash distributions (i.e. "Other Income", Box 26 on the T3 slips) with respect to record dates January 31, 2007 up to and including December 31, 2007 are included in your "T3 Supplementary".

Holders of PET Units are required to reduce the Adjusted Cost Base of their Units by the Return of Capital (i.e. "Amount Resulting in Cost Base Adjustment" (Box 42 on the T3 slips), with respect to record dates January 31, 2007 up to and including December 31, 2007. The Adjusted Cost Base is used in calculating capital gains or losses on the disposition of the Trust Units if the owner holds the Trust Units as capital property.

The deadline for mailing all T3 Supplementary Information slips as required by Canada Revenue Agency is February 28, 2008.



SCHEDULE 1

PARAMOUNT ENERGY TRUST UNITS
2007 - T3 INFORMATION
FOR CANADIAN RESIDENTS

The following table outlines the breakdown of cash distributions per Trust
Unit paid or payable by Paramount Energy Trust with respect to record dates
for the period January 31, 2007 - December 31, 2007 for Canadian Income Tax
purposes.

Amount
Resulting
in
Cost Base
Taxable Amount Adjustment
Total (Box 26) (Box 42)
Distribution Other Return of
Record Date Payment Date Paid Income Capital
----------------------------------------------------------------------------
----------------------------------------------------------------------------

January 31, 2007 February 15, 2007 0.200 0.200 0.000
February 28, 2007 March 15, 2007 0.140 0.140 0.000
March 30, 2007 April 16, 2007 0.140 0.140 0.000
April 30, 2007 May 15, 2007 0.140 0.140 0.000
May 31, 2007 June 15, 2007 0.140 0.140 0.000
June 29, 2007 July 16, 2007 0.140 0.140 0.000
July 31, 2007 August 15, 2007 0.100 0.100 0.000
August 31, 2007 September 17, 2007 0.100 0.100 0.000
September 28, 2007 October 15, 2007 0.100 0.100 0.000
October 31, 2007 November 15, 2007 0.100 0.100 0.000
November 30, 2007 December 17, 2007 0.100 0.100 0.000
December 31, 2007 January 15, 2008 0.100 0.100 0.000
--------------------------------------
TOTAL PER UNIT 1.500 1.500 0.000
--------------------------------------


PET expects to release United States income tax information by February 29, 2008.

PET further advises that it expects its distributions to Unitholders to be 100 percent taxable for the foreseeable future in years following 2008.

Forward-looking information

This news release contains forward-looking information. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially and there is no guarantee by PET that actual results achieved will be the same as those forecast herein.

PET is a natural gas-focussed Canadian energy trust. PET's Trust Units and convertible debentures are listed on the Toronto Stock Exchange under the symbols PMT.UN, PMT.DB, PMT.DB.A, PMT.DB.B, and PMT.DB.C. 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.

Contact Information

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