Directorate Change

19 December 2012

Paragon Diamonds Limited

("Paragon" or the "Company")

(AIM: PRG)

Directorate Change

Paragon Diamonds Limited, the AIM quoted African focused diamond exploration and development Company, is pleased to announce that Martin Doyle has been appointed as Executive Chairman with immediate effect. Francesco Scolaro has stepped down from the Board of Directors to facilitate the appointment of Martin Doyle.

Martin Doyle has a wealth of experience in the diamond industry following a career of more than 30 years with De Beers. In this period he has worked in exploration, resource development, laboratory management and marine mining in nine countries. His most recent position was Senior Vice President Exploration for De Beers Canada.

Martin Doyle joined the board of Paragon as vice chairman in September 2012 and has undertaken a review of the business operations and accepted the proposal of the fellow board members and Francesco Scolaro to oversee the operations of the Group going forward.

Francesco Scolaro is fully supportive of this appointment and remains supportive of the company and the Directors in his capacity as a direct shareholder of the Company and his indirect interest through Obtala Resources.

Paragon Finance Director, Simon Retter commented: "I am pleased to welcome Martin into his new role as Chairman of the Board and believe that he will add considerable strength to the operations of the Company. He brings a wealth of technical and operational expertise which will provide great benefit to the Company as we progress towards the next step of developing our portfolio of assets. I would like to thank Francesco Scolaro for his invaluable contribution to the Company and his continued support"

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