Result of General Meeting

8 January 2014 Paragon Diamonds Limited ("Paragon Diamonds" or the "Company") Result of General Meeting The Directors are pleased to announce that at the General Meeting of theCompany, held earlier today, all resolutions were duly passed. Following the announcement on 15 November 2013 in relation to the £400,000value payment due to Lanstead Capital L.P. ("Lanstead") in consideration forthe Equity Swap Agreement, the Company has chosen to settle this fee throughthe issue of 6,000,000 new ordinary shares in the capital of the Company toLanstead. In addition and as previously announced on 25 November 2013, the 1,000,000ordinary shares subscribed for by certain Directors at a price of 5p per share,have also now been issued. Application has been made for the admission of the 7,000,000 new ordinaryshares to trading on AIM. It is expected that admission will become effectiveand dealings will commence in the new ordinary shares on 10 January 2014. On admission to trading of the 7,000,000 new ordinary shares, the Company willhave 295,595,917 ordinary shares in issue. Terms defined in the announcement dated 15 November 2013 have the same meaningin this announcement. For further information: Paragon Diamonds Limited +44 (0) 20 7099 1940Martin Doyle - ChairmanSimon Retter - Finance Director Sanlam Securities UK (Nominated Adviser & Broker) +44 (0) 20 7628 2200Lindsay MairCatherine Miles