Paramount Energy Trust Releases Year End 2007 Financial and Operating Results

Paramount Energy Trust (TSX: PMT.UN) ("PET" or the "Trust") is pleased to release its fourth quarter and year end 2007 financial and operating results. Increased production and gains from the Trust's commodity hedging program helped offset weaker natural gas prices, leading to solid financial results in 2007. The full text of the Trust's audited consolidated financial statements and related management's discussion and analysis can be found on PET's profile at:

www.sedar.com and on PET's website at www.paramountenergy.com/unitholder/regulatory_filings/ or http://media3.marketwire.com/docs/311PMT_MD&A.pdf and http://media3.marketwire.com/docs/311PMT_FINANCIALS.pdf.

PET is also pleased to confirm that its distribution to be paid on April 15, 2008 in respect of income received by PET for the month of March 2008, for Unitholders of record on March 31, 2008, will be $0.10 per Trust Unit. The ex-distribution date is March 27, 2008. The March 2008 distribution brings cumulative distributions paid since the inception of the Trust in February 2003 to $12.224 per Trust Unit. The Trust also announces that there will be no Trust Units available under the Optional Cash Payments component of its Distribution Reinvestment Plan ("DRIP") following the Trust's distribution payable on March 17, 2008. Optional Cash Payments that had been received by Computershare Trust Company of Canada ("the Agent") in accordance with the DRIP not less than three business days prior to the February 29 distribution record date will be accepted with respect to the distribution payable on March 17, 2008 however no additional Optional Cash Payments will be accepted until further notice. Optional Cash Payments received by the Agent subsequent to February 29, 2008 will be returned by the Agent.

Conference Call and Webcast

PET will be hosting a conference call and webcast at 10:00 a.m., Mountain Time, Wednesday March 12, 2008 to review this information. Interested parties are invited to take part in the conference call by dialing one of the following telephone numbers 10 minutes before the start time: Toronto and area 1-416-644-3421; Outside Toronto 1-800-594-3615. The webcast will also be archived shortly following the presentation. For a replay of this call please dial: Toronto and area 1-416-640-1917; Outside Toronto 1-877-289-8525, passcode 21265364# until March 19, 2008. To participate in the live webcast please visit:

www.paramountenergy.com or http://www.newswire.ca/en/webcast/index.cgi .

FOURTH QUARTER 2007 RESULTS

- Production increased 32 percent to average 190.3 MMcfe/d as compared to 144.6 MMcfe/d for the fourth quarter of 2006, primarily resulting from additional volumes from acquisitions completed in 2007.

- The Trust's realized natural gas price decreased to $7.07 per Mcfe for the three months ended December 31, 2007 from $7.83 per Mcfe for the three months ended December 31, 2006, consistent with the decrease in AECO gas prices from quarter to quarter.

- Funds flow totaled $59.6 million for the quarter or $0.55 per Trust Unit as compared to $58.2 million or $0.69 per Trust Unit in the fourth quarter of 2006, as lower realized natural gas prices in the current quarter partially offset the increase in production volumes.

- Capital spending totaled $20.3 million for the fourth quarter, including the drilling of 24 wells (19.3 net wells) primarily in east central and southern Alberta with a 95 percent net success rate.

- Distributions for the fourth quarter of 2007 totaled $0.30 per Trust Unit, paid on November 15, 2007, December 17, 2007 and January 15, 2008. PET's payout ratio, which refers to distributions measured as a percentage of funds flow, was 55.0 percent for the quarter.

- PET closed the sale of the Calgary office building that it owned and occupied in December 2007 for net proceeds of $35.0 million after realtor fees, realizing a $22.0 million gain on disposition.

- PET disposed of a minor royalty interest in the fourth quarter of 2007 for total proceeds of $8.1 million. In addition, several non-core dispositions were closed in January and February 2008 that will result in additional net proceeds of $6.4 million to the Trust, with minimal impact to production volumes.

- As a result of the building disposition and the Trust's relatively low payout ratio net bank debt at December 31, 2007 was reduced to $336 million as compared to net bank debt of $382 million at September 30, 2007.

- PET finished planning and began the execution of a $48 million 2008 winter capital program targeting 15 to 20 MMcf/d of natural gas production additions through drilling, completion, tie-in and facility projects primarily in the Trust's three core areas in northeast Alberta.

- The Trust's bank credit facility borrowing base redetermination was completed during the quarter and resulted in PET's borrowing base remaining unchanged at $400 million through May 26, 2008.

ANNUAL 2007 RESULTS

- In June 2007 PET closed a significant acquisition of predominantly natural gas producing properties in east central Alberta (the "Birchwavy Acquisition") for cash consideration of $391.8 million, plus $17.6 million in respect of working capital and acquisition costs of $3.8 million. The properties acquired ("Birchwavy Assets") are located in year round access areas within and adjacent to the Trust's core areas in southern Alberta and are an operational, geographical and strategic fit with PET's existing shallow gas operations. The properties acquired averaged daily production of approximately 44.5 MMcfe/d for the last six months of 2007, including 41.6 MMcf/d of natural gas production and 475 Bbls/d of oil and natural gas liquids production. The Birchwavy Acquisition was financed through the issuance of 20,450,000 subscription receipts which were converted into Trust Units on closing of the acquisition, at a price of $12.25 each for gross proceeds of $250.5 million and $75 million aggregate principal amount of 6.50 percent convertible extendible unsecured subordinated debentures.