Award of Licence

Paragon Diamonds Limited

("Paragon" or the "Company")

(AIM: PRG)

Award of Kopje Prospecting Licence (PL) in Botswana

Highlights

·; New licence awarded covering 15 km sq in Botswana

·; Strategic location adjacent to Firestone's BK14 Kimberlite and east of DeBeers' largest producing Orapa Mine

Botswana

Paragon Diamonds Limited, the AIM quoted African focused diamond development and production company, announces the granting of a Prospecting Licence (PL) to its subsidiary IDC's wholly-owned Botswana subsidiary "Kopje". The licence covers 15 km sq. and is located circa 35 km due east of the world-class Orapa Kimberlite mine and north of the Francistown road in the East Orapa Kimberlite Field. The 15 km sq. licence area is also adjacent, to the east, of Firestone's BK14 kimberlite project.

Per the Company's consultant geologist Mr Roy Spencer, the licence area lies within the large regional (40 x 30 km) "KI" anomaly which was established by DeBeers in the 1990's and of which the "Orapa-type" kimberlites of the BK series are a part. The eastern part of the "KI" anomaly has been held by DeBeers and Petra Diamonds for a number of years, and holds the potential of a new kimberlite field.

Commenting today, Paragon Chairman Luc Huyghebaert stated: "the award of a new kimberlite prospecting licence in Botswana is a strategic step forward. In combination with our Lesothoan, Zambian and Tanzanian assets, it further strengthens the company's development into a kimberlite explorer and developer in Southern Africa."

In accordance with the AIM Rules, the information in this announcement has been reviewed by Stephen Grimmer PhD, a qualified geologist with over 20 years' diamond exploration experience

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