Appointment of Administrators & Nomad Resignation

Date: 3 July 2019

On behalf of: Paragon Entertainment Limited ("Paragon", the "Company" or the "Group")

Paragon Entertainment Limited

Appointment of Administrators

and

Resignation of Nomad

Further to the announcement of 20 June 2019, the Company confirms that James Lumb and Howard Smith of KPMG LLP have now been appointed as administrators to Paragon Creative Ltd ("PCL"), the principal operating subsidiary of Paragon. The Board has determined that there is little chance of there being any surplus available to shareholders of Paragon following the administration of PCL and that no other subsidiaries of Paragon have any material value left in them likely to produce such a surplus. In view of the above finnCap Ltd has resigned as Nominated Adviser and Broker to Paragon with immediate effect.

Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month, the admission of the Company's securities will be cancelled on AIM. The Company has no current intention of appointing a replacement Nominated Adviser.

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The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.