Update on Sales Process

Paragon Resources PLC

("Paragon" or the "Company") (AIM: PAR; ISDX: PA)

Conclusion of HAMC Minerals Limited ("HAMCM") Sales Process

24 June 2013

The Board of Directors of the Company informs that, pursuant to the sales process for HAMCM announced on 18 March 2013, no bids were received for HAMCM. As such, under the terms of the Secured Loan Facility with Richmond Partners Master Limited there is no "Excess Sales Amount" (as such term is defined in the Company's announcement of 18 March 2013), due to the Company.

The Company is satisfied with the handling and outcome of the sales process and has no further economic interest or obligation in respect of HAMCM.

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