Paragon Shipping Inc. announced the extension of its previously announced offer to exchange all properly delivered and accepted 8.375% senior notes due 2021 issued in $25.00 denominations with CUSIP number 69913R-507 for shares of common stock of Paragon to 5:00 p.m. (New York City time) on March 18, 2016. Unless there is another extension, settlement for all of the Paragon Notes validly delivered and not withdrawn on or before the Extended Expiration Date, whether made prior to or after this announcement, will be on March 23, 2016. Deliveries of Paragon Notes, whether made prior to or after this announcement, may be withdrawn and consents delivered pursuant to the Consent Solicitation, as defined below, may be revoked at any time until the Extended Expiration Date.

Based on information provided by the depository for the Exchange Offer, as of 5:00 p.m. (New York City time) on March 4, 2016, approximately 95,813 Notes or 9.8% of the outstanding Paragon Notes had been delivered and not validly withdrawn from the Exchange Offer.