Paragon Minerals Corporation (TSX-V: PGR; �Paragon�) is pleased to provide a further update on drilling activities and results on the 100%-controlled South Tally Pond volcanogenic massive sulphide (VMS) project in central Newfoundland. The South Tally Pond VMS project is located adjacent to the producing Duck Pond Cu-Zn Mine operated by Teck Resources Limited.

A total of fourteen step-out and infill drillholes (3,450 metres) have now been completed on the Lemarchant Main massive sulphide zone. The drill program has further outlined and expanded the massive sulphide mineralization intersected from sections 101N to 104N. The Lemarchant Main massive sulphide zone extends over 300 metres, remains open up-dip and to the south, and is interpreted to continue down-dip in the fault displaced lower felsic block. The Main massive sulphide zone has been intersected at vertical depths of 150 to 220 metres.

�Drilling at Lemarchant continues to encounter significant thicknesses of base metal massive sulphides and we are very encouraged by the presence of high-grade precious metals� said Michael Vande Guchte, President and CEO of Paragon Minerals Corporation. �With the drill program now complete, Paragon will look to produce a preliminary NI43-101 resource estimate on the Main massive sulphide zone�.

Highlights of the drilling include extending the Main massive sulphide zone a further 35 metres up-dip to the west (to 140 metres wide) on sections 103+00N and 102+50N and extending the massive sulphide mineralization down-dip 35 metres on section 101+00N. Drilling completed on the central portion of the Main massive sulphide zone has also returned some significant precious metal grades with six drillholes featuring visible gold. Assay results for drillholes LM11-63 to LM11-68 have now been received and are shown below:

(Drillholes LM11-59 to 62 shown in italics were reported in news release dated August 25, 2011)(LM11-63 is located between LM10-43 and LM11-52; LM11-64 is located 35 metres up-dip of LM11-52; LM11-65 is located 35 metres down-dip of LM07-13; LM11-66 is located 25 north of LM11-65 and was �dyked out� through the projected mineralized zone; and LM11-68 is located up-dip of LM07-14. Drillhole intervals are core length and interpreted to be near true width).

Additional details of the drilling will be available on the company website. A National Instrument 43-101 compliant resource estimate is being planned for the Lemarchant Main zone and anticipated to be completed in 2011. Assay results for the remaining 4 drillholes (LM11-69 to LM11-72) are pending. Paragon would like to thank the Government of Newfoundland and Labrador for its continued support of this project through a financial contribution from the Junior Exploration Assistance Program.

About Paragon Minerals Corporation

Paragon Minerals Corporation is a Canadian-based mineral exploration company focused on gold and base-metal exploration in Newfoundland and Ontario.  The Company�s flagship base metal project is the 100%-owned South Tally Pond VMS project where it actively exploring a precious metal-rich massive sulphide discovery and other priority VMS targets in a producing, world class base metal mining district in central Newfoundland. The Company is also exploring an exceptional portfolio of gold properties through partner-funded exploration programs. For more information on the Company, please visit the company website at www.paragonminerals.com

PARAGON MINERALS CORPORATION

�Michael J. Vande Guchte�
_______________________________
President & CEO

Investor Relations: Miranda McCarthy (604) 629-2353 or Wanda Cutler (416) 303-6460

Qualified Person: David A. Copeland, M.Sc., P.Geo., Exploration Manager for Paragon Minerals Corporation is a Qualified Person as defined by NI43-101 and has reviewed and approved the contents of this news release. Samples were analyzed for Au (1/2 assay ton), Ag, Cu, Pb and Zn at Eastern Analytical Labs in Springdale, NL from sawn NQ-sized half core sections. Data quality is monitored through the insertion of control samples consisting of one prepared base and precious metal standard and one blank sample for every 20 samples of Diamond drill core. Control samples conformed to the accepted contained grades of base and precious metals. Sample pulps were shipped to ALS Chemex in North Vancouver, BC for analysis for 33-element ICP analysis on all samples and for further check assays of significant base and precious metal bearing samples.

Forward-looking Statements: This news release contains certain statements that may be deemed �forward-looking statements�. All statements in this release, other than statements of historical fact, that address events or developments that Paragon expects to occur, are forward looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words �expects�, �plans�, �anticipates�, �believes�, �intends�, �estimates�, �projects�, �potential� and similar expressions, or that events or conditions �will�, �would�, �may�, �could� or �should� occur. Forward-looking statements in this document include statements regarding current and future exploration programs, activities and results. Although Paragon believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of Paragon�s management on the date the statements are made.
Except as required by securities laws, Paragon undertakes no obligation to update these forward-looking statements in the event that management�s beliefs, estimates or opinions, or other factors, should change. These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of regulatory and governmental approvals for the transactions described herein, the ability of Paragon and other relevant parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for Paragon�s proposed transactions and exploration and development programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.

�Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.�