Paramount Energy Trust advises on 2009 Canadian Income Tax information

CALGARY, Feb. 22 /PRNewswire-FirstCall/ - (TSX - PMT.UN) -- The following information is intended to assist individual Canadian Unitholders of Paramount Energy Trust ("PET") in the preparation of their 2009 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, RPP, DPSP, or TFSA
    ---------------------------------------------------------------

    No amounts are required to be reported on the 2009 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 outside of an RRSP, RRIF, RESP or DPSP, through a broker or other intermediary, and received cash distributions during the period, 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 during the period 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 Trust has designated the entire 2009 cash distribution of $0.64 per Trust Unit as return on capital and taxable. The attached "Schedule 1" includes supplementary information on the taxable portion of the 2009 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 2009 to the Unitholders must be reported by the Unitholders in their 2009 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 30, 2009 up to and including December 31, 2009 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 30, 2009 up to and including December 31, 2009. 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 a capital property.

The deadline for mailing all T3 Supplementary Information slips as required by Canada Revenue Agency is March 31, 2010.

                                 SCHEDULE 1

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                         PARAMOUNT ENERGY TRUST UNITS
                            2009 - T3 INFORMATION
                           FOR CANADIAN RESIDENTS

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    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 30, 2009 - December 31, 2009 for Canadian Income Tax
purposes.

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

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    January 30, 2009    February 17, 2009     0.070        0.070       0.000
    February 27, 2009   March 16, 2009        0.070        0.070       0.000
    March 31, 2009      April 15, 2009        0.050        0.050       0.000
    April 30, 2009      May 15, 2009          0.050        0.050       0.000
    May 29, 2009        June 15, 2009         0.050        0.050       0.000
    June 30, 2009       July 15, 2009         0.050        0.050       0.000
    July 31, 2009       August 17, 2009       0.050        0.050       0.000
    August 31, 2009     September 15, 2009    0.050        0.050       0.000
    September 22, 2009  October 15, 2009      0.050        0.050       0.000
    October 22, 2009    November 16, 2009     0.050        0.050       0.000
    November 23, 2009   December 15, 2009     0.050        0.050       0.000
    December 31, 2009   January 15, 2010      0.050        0.050       0.000
                                           ----------------------------------

    TOTAL PER UNIT                            0.640        0.640       0.000
                                           ----------------------------------

    PET expects to release United States income tax information within the
next few weeks.

    Forward-looking Information
    ---------------------------

Certain information regarding PET in this news release including the information regarding receipt of T3 Supplementary slips and United States income tax information may constitute forward-looking statements under applicable securities laws. Various assumptions were used in drawing the conclusions contained in the forward-looking information contained in this press release, which assumptions are based on management experience, current conditions and expected future developments pertaining to PET and the industry in which it operates as well as certain assumptions regarding the matters 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-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.A, PMT.DB.C and PMT.DB.D. 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.

SOURCE Paramount Energy Trust