Appointment of Director

Paragon Diamonds Limited

("Paragon" or the "Group")

Appointment of Managing Director

Paragon has appointed Stephen Carl Grimmer (aged 49) to the Board as Managing Director with immediate effect.

Stephen is a highly experienced diamond exploration and mining professional with over 22 years of practical experience working extensively in Africa. Following a PhD in kimberlite-related mantle processes at Keele University (UK) and a post-doctorate research post at Pretoria University, South Africa, Stephen joined private diamond miner RST in Angola in 1988 as an Exploration Geologist, advancing to Chief Geologist and Development Manager, where he was co-responsible for over 3M carats of alluvial diamond production from 1989-92.

Following an MSc with distinction in Exploration Geology at the Royal School of Mines (1993) he was one of the original management team at ITM Mining in Angola. As Technical Manager, he designed and planned the Lucapa, Calonda, Mufuto and Chitotolo alluvial diamond mines with combined production of 1M carats/year from 1993-97.

Joining DiamondWorks (TSE) as Exploration Manager, then as COO and VP-Development, he built the Yetwene alluvial mine and bulk sampled the Camatchia Kimberlite in Angola and the Koidu Kimberlites in Sierra Leone from 98-2000, as well as managing JV's and exploration and evaluations in Arkhangelsk (Russia), Canada and Lesotho amongst others. As an independent consultant, he advised the Steinmetz group on the acquisition and development of the Koidu Kimberlites, the STAR Kimberlites in Canada and other opportunities.

Part of the founding management team of Kansai Mining (TSX), he led the successful exploration for kimberlites in Venezuela from 2003-2007 before joining Karelian Diamonds (AIM) and leading their Finland diamond exploration from 2007-10.

Stephen was previously a director of Compania Minera Adamantine C.A. and GWT Biofuels Ltd. GWT Biofuels Ltd never traded and was voluntarily wound up by its shareholders and directors in 2009 with no liabilities. There are no other disclosures required in relation to Schedule 2 (g) of the AIM Rules for Companies.

Commenting today Frank Scolaro, Executive Chairman, said: "I am pleased to announce the appointment of Stephen to the Board and am certain that Paragon will benefit enormously from his wide ranging experience in both hard rock and alluvial mining throughout different parts of Africa."

Paragon Diamonds Limited +44 (0) 20 7099 1940

Frank Scolaro - ChairmanSimon Retter - Finance Director

www.paragondiamonds.co

ZAI Corporate Finance Limited +44 (0) 20 7060 2220

Richard Morrison

Sarang Shah

Threadneedle Communications +44(0) 20 7653 9855

Beth Harris

Laurence Read