PRG.L Regulatory News (PRG)

Paragon Diamonds Limited ("Paragon Diamonds" or "the Company") Award of new Prospecting Licence in Botswana * Large licence area of 442 km² in Botswana; * Located in the Tsabong Kimberlite Field, host to many world-class size kimberlites and a recent 200 ha "super-kimberlite" discovery; * Positive kimberlite indicator mineral results including a diamond from previous results; and * A number of as-yet untested magnetic anomalies. Paragon Diamonds is pleased to announce that its wholly-owned Motswanasubsidiary, Kopje (Pty) Ltd, has been issued with the Prospecting Licence 203/2013 for precious stones which covers an area of 442 km2 in the KgalagadiDistrict, southern Botswana, centred 20 km north of the town of Tsabong. TheLicence was issued with effect from 1 October 2013 with the full title documentreceived on 31 October 2013, and is valid until 30 September 2016. It can berenewed twice for further periods two years provided 50% of the area isrelinquished at each renewal, giving a total validity of seven years. The Licence area is on the northern flank of the Tsabong Kimberlite Field, withthe closest kimberlite pipe approximately 8 km south of the Licence. RecentlyPangolin Diamonds have announced the discovery of new kimberlites which extendthe known field to the northwest. Although the diamond potential of these newkimberlites is to be tested, it is evident that at least one of the bodiesfound is very large, perhaps greater than 200 ha. The Tsabong Kimberlite Field is remarkable in that it includes many largediatremes, including M1, which at 180 ha is one of the largest kimberlitebodies in the world. The Field includes upwards of 60 known kimberlite bodies.The tectonic setting of the Tsabong kimberlites is the same as for the OrapaField, which hosts several major kimberlite mines. Historical work in the early 1990's on the western portion of the new Kopjelicence area (the "T2" area) recovered kimberlite indicator minerals includingG9 & G10 garnets, ilmenites, and also a 0.5mm diamond. This work was completedat a very broad reconnaissance level, and there is considerable scope to followup these results. In addition, aeromagnetic surveying has identified 10 targetsthat have not yet been drilled. Access into Prospecting Licence 203/2013 is good, via the tarred road leadingnorth from Tsabong to Gaborone, which passes from Tsabong to the KalahariTrans-Frontier National Park. Within the area there are many graded sand andgravel roads and tracks suitable for four-wheel drive vehicles. The terrain andweather allow exploration work to continue year round. Work will commence with a thorough review of historical results and existingdata, including extensive geophysical and mineralogical results on open filewith the Geological Survey of Botswana. Executive Chairman, Martin Doyle commented: "The award of this licence will complement our holdings of historicalkimberlite discoveries. I am very familiar with this area and the era of workhaving been part of the team that discovered the Lekgudu kimberlites to thesouth west in the 1970's. The recovery of a diamond in widely spaced soilsampling, less than 5 kilometers from undrilled magnetic anomalies and on themargin of the extensive Tshabong Kimberlite field is highly significant.Securing this licence is a continuation of Paragon Diamonds' strategy ofapplying modern-day sampling protocols to historical discoveries to correctlyassess grade and diamond values, a strategy we continue to focus on in Lesothoat our flagship Lemphane Kimberlite, at the Kaplamp Lamproite Field in Zambiaand now at Tsabong in Botswana." Managing Director, Stephen Grimmer, commented: "With the recent successful award of a Mining Lease on the Lesotho LemphaneKimberlite to our 85% owned subsidiary Meso Diamonds, and the imminentdevelopment of that project into a mining operation, the award of thisProspecting Licence in the highly prospective Tsabong Area is very timely andfurther adds to Paragon Diamonds' pipeline of projects at every stage ofdevelopment." In accordance with the AIM Rules, the information in this announcement has beenreviewed by Stephen Grimmer PhD., MSc., a qualified geologist with over 25years' diamond exploration experience. 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