Completion of acquisiton of IDC

Paragon Diamonds Limited

("Paragon" or the "Company")

Completion of purchase of additional 54.2% of International Diamond Consultants ("IDC")

Paragon Diamonds Limited, the AIM quoted African focused diamond development and production company, today announces that following approval of the resolution to allot relevant securities proposed at the companies AGM, the acquisition of a further 54.2% interest in IDC has completed.

A total of 36,994,235 new ordinary shares in the Company have been issued at a price of 34 pence per share representing consideration for the purchase and settlement of outstanding debts owed to IDC's previous controlling party.

The new shares will rank pari passu with all existing ordinary shares, and dealings on AIM are expected to commence in the new ordinary shares on 23 May 2011. The new ordinary shares represent 19.7 % of the enlarged issued share capital of the Company.

Following the issue of ordinary shares in relation to the acquisition and loan settlement as described above and in the announcement on 21 April 2011, the Company's issued share capital now consists of 188,177,054 ordinary shares of 1p each.