Paramount Energy Trust Advises on 2007 Canadian Income Tax Information



    TSX: PMT.UN, PMT.DB

    CALGARY, Feb 25 /CNW/ - (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
TrustUnit paid or payable by Paramount Energy Trust with respect to record
datesfor the period January 31, 2007 - December 31, 2007 for Canadian Income
Tax purposes.

                                                                      Amount
                                                                   Resulting
                                                                          in
                                                        Taxable    Cost Base
                                                         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.
    





For further information:

For further 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


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