Mineral Chemistry Results

Paragon Diamonds Limited

("Paragon" or the "Company")

(AIM: PRG)

Mineral Chemistry Results for Lemphane Kimberlite, Lesotho

Paragon Diamonds, the AIM quoted, African focused diamond production and development company, today announces that it has received laboratory results for kimberlitic minerals obtained from pit sampling of the Lemphane Kimberlite in Lesotho.

Highlights

·; Mineral chemistry results show a kimberlite rich in diamond - indicative mantle minerals

·; Garnet chemistry indicates good diamond potential and includes diamond - associated "G10" garnets

o 77% of garnets are of either the mantle peridotite (P-type - 65%) or eclogite (E-type - 12%) associations

·; Results will be used to model the diamond prospectivity of the mantle material and to steer the forthcoming bulk sample programme

The surface of the kimberlite has been sampled in a series of 28 pits, as have adjacent kimberlite dykes, confirming previous shape and size estimates. As announced on 25 March 2011, the pit samples were excavated and processed for the recovery of heavy minerals. A representative sub-population of mineral grains (357 garnets, 100 chromites, 81 diopsides) were selected by consultants MSA from the two main kimberlite types (A & B) and submitted for analysis by electron microprobe. Garnets have been classified according to the internationally recognized system of Schulze (2003).

The results show that 77% of garnets are of either the mantle peridotite (P-type - 65%) or eclogite (E-type - 12%) associations, the balance being megacryst or crustal garnets. The P-types divide into 82% Lherzolitic and 18% Harzburgitic types, including 12% which plot as diamond-indicative high chrome "G10" garnets. The E-types consist of 40% Group-I and 60% Group-II types.

Facies "A" is strongly influenced by eclogitic garnets (33% of the total) whereas facies "B" is dominated by peridotitic garnets (87% of the total) suggesting at least two distinct phases of intrusion, sampling significantly different types mantle, both with the potential to host diamonds.

The results will now be used to model the pressure/temperature conditions and diamond prospectivity of the mantle material sampled by the Lemphane kimberlite, and to determine the final parameters in locating the sample trenches for the forthcoming bulk sampling programme.

Click here for a graphical representation of the mineral chemistry results.

http://www.rns-pdf.londonstockexchange.com/rns/3483K_-2011-7-13.pdf

Managing Director of Paragon, Stephen Grimmer, commented today; "the mineral chemistry confirms the results previously announced on 25th March 2011 and gives us further confidence to embark on the planned bulk sampling of the Lemphane kimberlite, preparation for which is now underway".

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.