Result of AGM

Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources 8 July 2014 Paragon Diamonds Limited (`Paragon Diamonds' or the `Company') Result of AGM Paragon Diamonds Limited, the AIM quoted diamond development and productioncompany in Africa, is pleased to announce that all resolutions were duly passedat the Company's Annual General Meeting held earlier today. **ENDS** For further information please visit www.paragondiamonds.com or contact: Martin Doyle Paragon Diamonds Limited +44 (0) 20 7099 1940 Simon Retter Paragon Diamonds Limited +44 (0) 20 7099 1940 Lindsay Mair Sanlam Securities UK +44 (0) 20 7628 2200 Andrew Wagstaff Sanlam Securities UK +44 (0) 20 7628 2200 Felicity Edwards St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Frank Buhagiar St Brides Media and Finance Ltd +44 (0) 20 7236 1177 Notes Paragon Diamonds has a pipeline of projects in Lesotho, Botswana and Zambia,the most advanced of which is its Lemphane Kimberlite Pipe Project in Lesotho,located close to the world class Letšeng mine, Lesotho's largest diamond mine.Lemphane is the last known world-class sized kimberlite to be developed inLesotho. Among the stones recovered in the Company's 2013 bulk samplingprogramme were several large high value stones of up 8.9 carats in size andindividual diamond values in excess of US$2,400/ct have been achieved,demonstrating the potential for Lemphane to hold large and valuable diamonds.The first of a two stage production programme is currently expected to commencelate 2014 (subject to financing) which will further define the resource atLemphane. As increased tonnages of kimberlite are processed the proportion oflarger diamonds recovered will improve, increasing the average value ofdiamonds recovered at the project, as was the case at Letšeng. Stage 1 production will cover a two year period during which approximately 1 Mtof kimberlite will be mined and processed out of the currently estimated 48.6Mtof kimberlite (to 350m depth) at the site, using a 75 tonne per hour processingplant. The Company is targeting 20,000 carats during Stage 1 production with anestimated minimum values of circa US$900-US$1000 per carat that is expected togenerate revenues in excess of US$8m per annum. Cash flow will be reinvested tofurther develop Lemphane and complete a bankable feasibility study, a 3Dgeological model and a substantial inferred resource ahead of commencing theStage 2 production phase. Stage 2 will see production ramped up to 3Mt/yearwith peak production expected to hit 65,000 carats per year of high valuediamonds.