Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources     

    4 August 2015

                 Paragon Diamonds Limited ('Paragon' or the 'Company')             

                                    Result of AGM                                  

    Paragon Diamonds Limited, the AIM quoted diamond development company, is
    pleased to announce that all resolutions were duly passed at the Company's
    Annual General Meeting held earlier today.

                                       **ENDS**                                    

    For further information please visit www.paragondiamonds.com or contact:

    Philip Falzon Sant       Paragon Diamonds              +44 (0) 20 7182 1920    
    Manduca                  Limited                                               
                                                                                   
    Simon Retter             Paragon Diamonds              +44 (0) 20 7182 1920    
                             Limited                                               
                                                                                   
    David Hignell                Northland Capital         +44 (0) 20 7382 1100    
    Gerry Beaney           Partners Limited                                        
                                 (Nominated Adviser)                               
                                                                                   
    John Howes                   Northland Capital         +44 (0) 20 7382 1100    
    Mark Treharne          Partners Limited                                        
                                 (Sales and broking)                               
                                                                                   
    Felicity Winkles             St Brides Partners        +44 (0) 20 7236 1177    
                           Limited                                                 
                                                                                   
    Frank Buhagiar               St Brides Partners        +44 (0) 20 7236 1177    
                           Limited                                                 

    Notes

    Paragon Diamonds has an 80% interest in the Lemphane Kimberlite Pipe project in
    Lesotho, located close to the world class Letšeng mine, Lesotho's largest
    diamond mine.  Lemphane is the last known kimberlite to be developed in
    Lesotho.  The first of a two stage production programme is expected to commence
    in 2015 which will further define the resource at Lemphane. As increased
    tonnages of kimberlite are processed the proportion of larger diamonds
    recovered will improve, increasing the average value of diamonds recovered at
    the project, as was the case at Letšeng. In addition to Lemphane, Paragon
    Diamonds has signed a Memorandum of Understanding with Lucara Diamond
    Corporation, a TSX quoted mining company, to acquire a 75% interest in and
    operate the defined Mothae Kimberlite Resource, which is located only 5 km from
    the world class Let?eng le Terai diamond mine in Lesotho.