Directorate Change

Paragon Diamonds Limited

("Paragon" or the "Company")

(AIM: PRG)

Directorate Change

Paragon Diamonds Limited, the AIM quoted African focused diamond development and production company, is pleased to announce the appointment of Francesco Scolaro to the board as Executive Chairman.

Mr Scolaro is an active investor in publicly quoted companies and is actively involved in building value for extractive or commodity companies. He was Executive Chairman of Paragon from its IPO in November 2010 to June 2011 when he left to oversee building operations in Tanzania for Obtala Resources. He has previously been Chairman of Regal Petroleum plc from October 2006 to March 2008 and was non-executive Chairman of Kopane Diamond Developments plc until September 2010 when it was acquired by Firestone Diamonds plc. Mr Scolaro is also Executive Chairman of Obtala Resources Ltd. Mr Scolaro has taken the decision to rejoin the board of Paragon Diamonds following the successful conclusion of a joint venture formation between Obtala Resources and the government of Tanzania.

In addition, Luc Huyghebaert and Rudi Saaiman have resigned from the board with immediate effect in order to pursue other interests.

Simon Retter, Finance Director of Paragon, said:

"Rudi and Luc have assisted Paragon greatly during this first stage of optimising existing assets and building a portfolio of excellent diamond exploration assets. I would like to thank both of them for their contribution to Paragon Diamonds and wish them luck for the future. We now enter a phase in our corporate development where our core focus is rapidly building value at our exploration portfolio, particularly within Lesotho. With the progress we envisage to make during 2012 Paragon welcomes the appointment of Mr Scolaro as Chairman to progress our strategy in the field."

For further information:

Francesco Scolaro (47) is currently a Director of the following companies:

Mindex Invest Ltd

Grandinex International Corp

Argento Continental Corp

Obtala Services Ltd

Obtala Resources Ltd

Obtala Ltd

Obtala Resources (T) Ltd

Uragold Ltd

In the past five years Mr. Scolaro has been a director of the following companies:

Paragon Diamonds Ltd

Sierra Leone Hard Rock (SL) Limited

Sierra Leone Hard Rock Limited

African Rock Resources Limited

Kopane Diamond Developments Limited

ANSCO Petroleum Limited

Regal Petroleum plc

Regal Petroleum Corporation Ltd

Regal Petroleum (Jersey) Ltd

African Minerals Limited

African Minerals (UK) Limited

Save as set out above, there are no details in relation to the appointment which need to be disclosed under paragraph (g) of Schedule 2 of the AIM Rules for Companies.