Paragon Shipping Announces Early Termination of Charter

Paragon Shipping Inc.

, announced today that Deiulemar Compagnia di Navigazione SpA, the charterer of the M/V Friendly Seas, a 2008-built 58,779 dwt Supramax bulkcarrier, has continued to fail to provide payment due since January 5 and has failed to provide the Vessel with voyage instructions. Accordingly, Paragon Shipping has provided written notice to the Charterer of the termination of the charter, but has received no response. Paragon Shipping is currently seeking alternative employment for the Vessel and will seek damages for the Charterer's breach. There can be no assurance that Paragon Shipping will be able to employ the Vessel at similar rates to those under the original charter or that the Company would be able to recover any claimable amounts from the Charterer. Current spot charter rates are significantly lower than the contracted rate under the original charter.