PAR.L Regulatory News (PAR)

3rd September 2013

PARAGON RESOURCES PLC

("Paragon" or the "Company")

(AIM:PAR)

Issue of Equity to raise £93,258

Paragon is pleased to announce that it has raised £93,258 (before costs) via a draw down on its Equity Financing Facility ("EFF") with Darwin Strategic Limited ("Darwin"), a majority owned subsidiary of Henderson Global Investors Volantis Capital.

Under the terms of the EFF agreement the Company raised gross proceeds £93,258 by way of the issue of 34,750,000 ordinary shares of 0.05p each in the share capital of the Company ("Ordinary Shares") to Darwin (the "EFF Shares"). The new EFF Shares have been issued at a gross price of 0.2684 pence per Ordinary Share and rank pari passu in all respects with existing Ordinary Shares.

Application will be made to the London Stock Exchange for the 34,750,000 EFF Shares to be admitted to trading on AIM. It is expected that the admission will become effective and that trading in the EFF Shares will commence on 6 September 2013 ("Admission").

Following Admission, the Company's enlarged issued share capital will comprise of 379,224,766Ordinary Shares. This figure of 379,224,766 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

ENDS

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