Mr. Peter Shippen reports

PARAGON ADVANCED LABS AGREES TO SETTLE DEBT THROUGH STRATEGIC DEBT-TO-EQUITY CONVERSION

Paragon Advanced Labs Inc. has agreed to settle outstanding indebtedness, through the issuance of common shares of the company.

Under the debt settlement, the company will settle the face value of $2-million (U.S.) together with accrued amounts of the secured promissory note issued in connection with the Paragon Geochemical acquisition, through the issuance of 1,356,135 common shares at a deemed price of $2.42 per share.

The conversion is being completed at the election of the creditor. Following the completion of the debt settlement (including existing common shares held), the creditor will hold approximately 6 per cent of the company's issued and outstanding common shares.

"This proposed transaction further aligns a significant shareholder with our business, and the reduction in debt removes a key balance sheet risk," said Peter Shippen, chief executive officer of Paragon.

The debt settlement remains subject to the acceptance of the TSX Venture Exchange and to compliance with applicable securities laws.

About Paragon Advanced Labs Inc.

Paragon Advanced is a geochemical analytical testing company building a network of laboratories equipped with Chrysos PhotonAssay technology to address structural bottlenecks in drill-sample processing. Through a hub-and-spoke network across key North American mining jurisdictions, Paragon provides fast, accurate and environmentally responsible assay services to mining and exploration clients, generating recurring, volume-based revenue across the resource exploration cycle.

We seek Safe Harbor.