PRG.L Regulatory News (PRG)

Paragon Diamonds Limited / Index: AIM / Epic: PRG / Sector: Resources 11 November 2014 Paragon Diamonds Limited ("Paragon Diamonds"or the "Company") Directorate Change Paragon Diamonds Limited, the AIM quoted diamond development and productioncompany in Lesotho, Africa, advises that Buddy Doyle, Non-Executive Director ofthe Company, is stepping down from the Board with immediate effect to pursueother business interests. In line with Paragon's strategy to build a leadingvertically integrated diamond company, the Company expects to appoint asuitable replacement in due course. Paragon's Chairman, Philip Falzon Sant Manduca said, "I would like to thankBuddy for the contribution he has made to Paragon Diamonds and wish him wellwith his future endeavours. As part of our expansion plans, we are looking tostrengthen the Board with individuals with appropriate European and Asiandiamond market experience, as we look to build a global diamond house withmaterial interests in upstream and downstream activities, ensuring as muchvalue as possible is retained for our shareholders. With Stage 1 production oflarge high value stones at our flagship Lemphane kimberlite diamond project inLesotho set to commence in the near term, this is an exciting time for Paragonand I look forward to providing further updates on our progress." **ENDS** For further information please visit www.paragondiamonds.com or contact: Philip Falzon Sant Paragon Diamonds Limited +44 (0) 20 7099 1940Manduca Simon Retter Paragon Diamonds Limited +44 (0) 20 7099 1940 Edward Hutton /Gerry Northland Capital Partners +44 (0)20 7382 1100Beaney Limited John Howes/Charles Northland Capital Partners +44 (0) 20 7382 1100Laughton Limited Felicity Winkles 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 value of US$930 per carat that is expected to generaterevenues in excess of US$9m per annum. Cash flow will be reinvested to furtherdevelop Lemphane and complete a bankable feasibility study, a 3D geologicalmodel and a substantial inferred resource ahead of commencing the Stage 2production phase. Stage 2 will see production ramped up to 3Mt/year with peakproduction expected to hit 65,000 carats per year of high value diamonds. It is the intention of the Company to become a fully integrated diamond companymaximizing the margins gained from being exposed from the mining to selling ofdiamonds.