Paragon Shipping INC. Announces the Closing
of its $42.4 Million Follow-on Public Offering

Closing includes full exercise of underwriters' $5.5 million
option to purchase additional shares.

Athens, Greece - February 18, 2014

Paragon Shipping Inc. (NASDAQ:PRGN) ("Paragon Shipping" or the "Company") closed today its previously-announced public offering of 6,785,000 Class A common shares at the public offering price of $6.25 per share, which includes the issuance of 885,000 Class A common shares pursuant to the underwriters' exercise of their option to purchase additional shares granted by the Company. Following this offering, the Company has 24,622,142 shares of common stock outstanding.

The gross proceeds from the offering before the underwriting discount and other offering expenses payable by the Company amounted to approximately $42.4 million (including $5.5 million from the exercise of the option to purchase additional shares). The net proceeds from the offering after the underwriting discount and other offering expenses payable by the Company are expected to be approximately $39.7 million, which are expected to be primarily used for vessel acquisitions with the balance for general corporate purposes, including working capital and the repayment of debt.

Jefferies LLC acted as sole book-running manager of the offering. Maxim Group LLC acted as lead manager of the offering.

The offering was made pursuant to a registration statement previously filed with and declared effective by the Securities and Exchange Commission ("SEC"). The final prospectus relating to the offering has been filed with the SEC and is available at the SEC's website at http://www.sec.gov. Copies of the final prospectus relating to this offering may also be obtained from Jefferies LLC, 520 Madison Avenue, 12th Floor, New York, NY 10022, Attn: Prospectus Department, or by email to Prospectus_Department@Jefferies.com.

About Paragon Shipping Inc.
Paragon Shipping is an international shipping company incorporated under the laws of the Republic of the Marshall Islands with executive offices in Athens, Greece, specializing in the transportation of drybulk cargoes. Paragon Shipping's current fleet consists of fourteen drybulk vessels with a total carrying capacity of 853,699 dwt. In addition, Paragon Shipping's current newbuilding program consists of two Ultramax drybulk carriers and one 4,800 TEU containership that are scheduled to be delivered in 2014 and two Ultramax drybulk carriers that are scheduled to be delivered in 2015. Paragon Shipping has granted Box Ships Inc., an affiliated company, the option to acquire its newbuilding containership under construction. Additional information about the Company is available on the Company's website www.paragonship.com, which is not a part of this press release.



Paragon Shipping Inc. press release