Diamond and Gold Sale

Paragon Diamonds Limited

("Paragon" or the "Company")

(AIM: PRG)

Results of Diamond and Gold Sale from Sierra Leone

Highlights

·; Total revenue of US$599,392 for 2,035 carats of diamonds and 1800g of gold Dore Bar produced in Sierra Leone

·; Diamond sales comprises US$522,275 representing an average of US$257/ct

·; Includes 114 carats of "special" stones previously announced which generated US$191,500

·; Gold sale of 1800g generated US$77,117 representing US$1,511/oz

Sierra Leone

Paragon Diamonds Limited, the AIM quoted African focused diamond development and production company, announces it has completed a diamond and gold sale from its alluvial operation in Konoma Sierra Leone. The sale comprised 2,035 carats of production including 114 carats of "special" stones and generated US$522,275 representing an average for the parcel of US$257/ct. The 114 carats of "special" stones generated US$191,500 representing an average of US$1,680/ct. Two of the "special" stones weighing a combined 46 carats generated US$154,675 representing an average of US$3,362/ct

In addition the Company sold approximately 1800g of gold Dore Bar at 85 per cent purity recovered during the production process for US$77,117 at US$1,511/oz representing US$1,599 per fine ounce.

Commenting today, Paragon Chairman Luc Huyghebaert stated: "We are pleased with this sale, which includes some very high value stones. We are currently focusing on indentifying higher grade areas in order to increase the yields we can achieve from these assets "

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