Earnings Conference Call First Quarter 2013

Slide 2

This presentation contains certain statements that may be deemed to be “forward-looking statements”

within the meaning of the Securities Acts. Forward-looking statements reflect management's current

views with respect to future events and financial performance and may include statements concerning

plans, objectives, goals, strategies, future events or performance and underlying assumptions and other

statements, which are other than statements of historic facts. The forward-looking statements in this

presentation are based upon various assumptions, many of which are based, in turn, upon further

assumptions, including without limitation, managements' examination of historical operating trends,

data contained in our records and other data available from third parties. Although Paragon Shipping Inc.

believes that these assumptions were reasonable when made, because these assumptions are

inherently subject to significant uncertainties and contingencies which are difficult or impossible to

predict and are beyond our control, Paragon Shipping Inc. can not assure you that it will achieve or

accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause

actual results to differ materially from those discussed in the forward-looking statements include the

strength of the world economies and currencies, general market conditions, including changes in charter

hire rates and vessel values, changes in demand that may affect attitudes of time charterers to

scheduled and unscheduled drydockings, changes in our vessel operating expenses, including drydocking,

crewing and insurance costs, or actions taken by regulatory authorities, ability of our counterparties to

perform these obligations under sales agreements and charter contracts on a timely basis, potential

liability from future litigation, domestic and international political conditions, potential disruption of

shipping routes due to accidents and political events or acts by terrorists. Risks and uncertainties are

further described in reports filed by Paragon Shipping Inc. with the Securities and Exchange Commission.

Forward Looking Statements

Slide 3

Agenda

1Q 2013 Highlights

Company Update

Industry Overview

Financial Update

Investment Summary

Slide 4

Highlights - 1Q 2013

Financial Performance:

• Net Revenues: $13.5 m

• Adjusted EBITDA: $3.2 m

• Adjusted Net Loss: ($2.9 m) or ($0.26) per share

Delivery of our 3rd Handysize Newbuilding – M/V Priceless Seas

Successfully Completed Debt Restructuring

Transition to NASDAQ

Slide 5

1) Subject to certain conditions precedent

2) As of April 25, 2013

3) Including newbuilding deposits, KLC Shares, loan to Box Ships and M.V. adjusted investment in Box Ships

Leverage Ratio (2)

Financing Update

Cash (including restricted cash) $ 25 m

Total Debt $ 192 m

Net Debt $ 167 m

M.V. Adjusted Net Worth (3)

$ 99 m

Total Capitalization $ 266 m

Net Debt / Total Capitalization 63%

Leverage ratio of 63%

Debt restructuring completed - Reduced debt repayment requirements

$25 million remaining under Nordea Facility to finance our last Handysize

Newbuilding (1)

Scheduled Loan Repayments (USD Million)

191.9 188.3

184.7

181.1

3.6

0.4

3.2 3.6 3.6

$150

$160

$170

$180

$190

$200

$0

$2

$4

$6

$8

$10

Q113 Q213 Q313 Q413

Debt O/S Loan Repayments settled Loan Repayments O/S

Slide 6

Chartering Update

Min. Hire

Receipts

F ixed Days Optional Period Open Days $26.1 m

$4.1 m

$4.6 m

$1.9 m

$3.0 m

$1.3 m

$2.1 m

$1.9 m

$5.0 m

Q1 Q4 Q3

0%7%

Q3

Dream Seas

Pearl Seas

Coral Seas

Deep Seas

Q2

Precious Seas

Kind Seas

Prosperous Seas

2015

Q4

Remainder

2013

Q3 Q1

2014

Q1 Q2 Q2Q4

2016

Q1 Q2 Q3 Q4

$1.0 m

$0.4 m

$0.2 m

Fixed

Revenue Days ( 1) 49%

Hull No. 657 -

-

-

Proud Seas

Hull No. 656

0%

NB

s

Priceless Seas $0.4 m

Diamond Seas $0.2 m

On

th

e W

ate

r

Sapphire Seas

Golden Seas

Calm Seas

Friendly Seas

Average charter term remaining (1) = 0.4 years

(1) Assumes earliest redelivery dates

$26.1 million contracted backlog as of Mar. 31, 2013

Slide 7

0

10

20

30

40

Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

Capesize Panamax

Supramax Handysize

Linear (Capesize) Linear (Panamax)

Linear (Supramax) Linear (Handysize) 0

10,000

20,000

30,000

Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

Capesize

Panamax

Supramax

Handysize

Drybulk Market

Average T/C Routes (USD Per Day)

Source: Clarkson’s Research

TC rates remain close to breakeven levels in all sectors

Asset values are stabilizing in all sectors

5 Year Old Secondhand Prices (USD Million)

Slide 8

Demand Fundamentals

Drybulk market growing by 6.3% CAGR in volumes through 2016

Source: Pareto Shipping Research

2006 2007 2008 2009 2010 2011 2012 2013f 2014f 2015f 2016f

Contribution

to total growth

Iron Ore 710 779 858 916 997 1,062 1,131 1,225 1,324 1,425 1,531 33.7%

Met Coal 203 216 227 206 258 246 269 298 326 354 384 9.5%

Steam Coal 916 968 1,016 1,060 1,188 1,297 1,394 1,490 1,589 1,691 1,797 33.8%

Grain 282 300 309 322 330 338 352 353 367 379 392 4.3%

Steel Products 329 349 350 267 314 338 347 367 393 420 449 9.0%

Phosrock 33 34 32 28 29 33 34 34 34 35 36 0.2%

Alumina / Bauxite 80 84 86 67 80 92 97 100 103 106 110 1.1%

Other 502 529 516 476 552 588 608 624 649 674 702 8.4%

Total 3,055 3,259 3,394 3,342 3,748 3,994 4,232 4,491 4,785 5,084 5,401 100.0%

Growth 6.7% 6.7% 4.2% -1.5% 12.2% 6.6% 5.9% 6.1% 6.5% 6.3% 6.2%

Millio

n T

on

ne

s

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

0

1,000

2,000

3,000

4,000

5,000

6,000

2006 2007 2008 2009 2010 2011 2012 2013f 2014f 2015f 2016f

Iron Ore

Met Coal

Steam Coal

Grain

Steel Products

Phosrock

Alumina / Bauxite

Other

Growth

Slide 9

0

20

40

60

80

Remainder 2013 2014 2015+

Capesize Panamax Supramax Handysize

0%

25%

50%

75%

100%

0

200

400

600

800

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Global Fleet Orderbook Orderbook as a % of Global Fleet

Supply Fundamentals

Source: Clarkson’s Research

Millio

n D

wt

Outstanding Orderbook by Vessel Type Global Fleet vs Orderbook

Drybulk orderbook is contracting – currently stands at 18% of existing fleet

Full year 2012: 99 million dwt delivered vs 34 million dwt scrapped (or 34%)

Q113: 18 million dwt delivered vs 7 million dwt scrapped (or 39%)

Millio

n D

wt

Deletions vs Newbuilding Deliveries

74 m

37 m

16 m

99

34

65

0

50

100

150

Full Year 2012

Deliveries Deletion Net Growth

10

4 4 3 2 2

7

2 2

0

5

10

15

Jan-13 Feb-13 Mar-13

Deliveries Deletion Net Growth

Slide 10

2,000

2,500

3,000

3,500

4,000

4,500

2005 2006 2007 2008 2009 2010 2011 2012e 2013f 2014f

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Net fleet growth Required dwt growth Trade

Demand & Supply Equilibrium

Net Fleet Growth is expected to be higher than required through 2013 inclusive

Source: Clarkson’s Research

14.4%

10.2%

2.9%

8.6%

4.9%

16.9% 16.9%

4.8%

1.5%

5.7%

Tra

de

in

Millio

n T

on

ne

s

Slide 11

Financial Performance – 1Q 2013

(1) Excluding loan prepayments

Q1 2013 Q1 2012

Average No. of Vessels 12.7 10.0

Time Charter Equivalent rate $ 11,388 $ 14,030

Fleet Utilization 99.8% 99.8%

Net Revenue $ 13.5 m $ 12.5 m

EBITDA $ 2.6 m $ 6.6 m

Adjusted EBITDA $ 3.2 m $ 7.0 m

Net (Loss) / Income ($ 3.5 m) $ 0.7 m

Adjusted Net (Loss) / Income ($ 2.9 m) $ 1.1 m

(Loss) / Earnings P.S. ($0.32) $0.12

Adjusted (Loss) / Earnings P.S. ($0.26) $0.19

Slide 12

Investment Summary

Drybulk Market

• 2013 remains challenging, but a recovery is in sight.

• Increased scrapping and reduced orderbook.

• A gradual recovery in the drybulk market is expected.

Paragon Shipping Inc.

• Financing & Debt Exposure: Debt restructuring completed. Reduced Debt repayment

requirements and obtained waivers. Current leverage ratio of 63%.

• Fleet Growth: 3 Handysize newbuildings delivered, 1 expected in Q413.

• Diversification: Exposure to Containership Sector through ownership of 13.8% of Box Ships.

• Chartering: Well positioned to take advantage of the market when the recovery begins.

Investor Relations /Media:

Allen & Caron Inc.

Rudy Barrio (Investors)

Tel: (212) 691-8087

Email: r.barrio@allencaron.com

Len Hall (Media)

Tel: (949) 474-4300

Email: len@allencaron.com

Company:

Paragon Shipping Inc.

Robert Perri, CFA

Chief Financial Officer

15 Karamanli Ave.

GR 166 73, Voula, Greece

Tel: +30 (210) 8914 600

Email: ir@paragonshipping.gr

Slide 14

Appendices

Slide 15

Adjustments Adjusted

000's 3 Months Ended 3 Months Ended 3 Months Ended

Mar. 31, 2013 Mar. 31, 2013 Mar. 31, 2013

Revenue

Time charter revenue $14,225 $14,225

Commisssions (772) (772)

Net Revenue 13,453 13,453

Expenses / (Income)

Voyage expenses, net 665 665

Vessel operating expenses 5,081 5,081

Dry-docking expenses 471 471

Management fees - related party 1,496 336 1,160

Depreciation 4,134 4,134

General & administrative expenses 3,611 142 3,469

Bad debt provisions 17 17

Total Operating Expenses 15,475 478 14,997

Operating Loss (2,021) 478 (1,544)

Other Income / (Expense)

Interest and finance costs (1,902) (1,902)

Loss on derivatives, net (15) (238) (253)

Interest income 226 226

Equity in net income of affiliate 569 569

Loss on investment in affiliate (391) 391 -

Foreign currency gain 23 23

Total Other Expenses, net (1,490) 153 (1,337)

($3,511) $631 ($2,880)

10,992 10,992 10,992

($0.32) $0.06 ($0.26)

Net Loss

Weighted average number of shares

Loss per Common Share

Non-cash recurring

Statement of Operations – 1Q 2013

Non-cash recurring

Non-cash

Non-cash

Slide 16

Adjusted EBITDA Reconcil iation

Adjusted Net Loss (2,880)

Plus Net interest expense, including swap interest 1,928

Plus Depreciation 4,134

Adjusted EBITDA 3,182

Statement of Operations Adjustments

3 Months Ended

Mar. 31, 2013

Adjusted Net Loss Reconcil iation

(USD thousands except for per share data)

Net Loss (3,511)

Loss on investment in affiliates 391

Unrealized gain from interest rate swaps (238)

Share based compensation 478

Adjusted Net Loss (2,880)

Non-cash recurring

Non-cash recurring

Non-cash

Slide 17

Balance Sheet & Cash Flow Statement

(US$ 000's) March 31, December 31,

2013 2012

Cash and restricted cash (current and non-current) 23,607 27,687

Other current assets 11,459 11,231

Fixed assets, net 346,185 348,467

Other long term assets 30,972 32,590

TOTAL ASSETS 412,223 419,975

Bank debt 191,935 195,542

Other liabilities 7,606 8,912

TOTAL LIABILITIES 199,541 204,454

Shareholders'equity 212,682 215,521

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 412,223 419,975

(US$ 000's) March 31, March 31,

2013 2012

Net cash from operating activities 261 3,891

Net cash used in investing activities (620) (429)

Net cash used in financing activites (3,722) (5,386)

Net decrease in cash and cash equivalents (4,080) (1,924)

Slide 18

Current Operating Fleet

Name & Type DWT Year Built Country of Build Date Acquired

Panamax Fleet

Calm Seas 74,047 1999 Japan December 2006

Deep Seas 72,891 1999 Korea December 2006

Kind Seas 72,493 1999 Japan December 2006

Pearl Seas 74,483 2006 China August 2007

Diamond Seas 74,274 2001 Japan September 2007

Coral Seas 74,477 2006 China November 2007

Golden Seas 74,475 2006 China December 2007

Dream Seas 75,151 2009 China July 2010

Supramax Fleet

Sapphire Seas 53,702 2005 China August 2007

Friendly Seas 58,779 2008 China August 2008

Handysize Fleet

Prosperous Seas 37,293 2012 China May 2012

Precious Seas 37.205 2012 China June 2012

Priceless Seas 37,202 2013 China January 2013

TOTAL 816,472

Slide 19

Current Newbuilding Program

Hull No. & Type DWT / TEU Country of Build Expected Delivery

Drybulk Handysize

625 (Proud Seas) 37,200 China Q4 2013

TOTAL 37,200

Containerships

656 4,800 China Q2 2014

657 4,800 China Q2 2014

TOTAL 9,600

Slide 20

Current Fleet Employment

(1) Deep Seas: Charterers have the option to extend the charter agreement for an additional 11 to 13 months at $14,000 per day

(2) Coral Seas: Charterers have the option to extend the charter agreement for an additional 11 to 13 months at $14,500 per day

(3) Golden Seas: Charterers have the option to extend the charter agreement for an additional 11 to 13 months at $13,000 plus 50/50 profit share

(4) Prosperous Seas & Precious Seas: Charterers have the option to extend the charter agreement for an additional 11 to 14 months at $15,500 per day

VESSEL CHARTERER GROSS HIRE DURATION T/C COMMENCED T/C EXPIRES

PANAMAX FLEET

Calm Seas Intermare Transport $ 11,800 19-24 Months Mar-12 Oct-13 / Mar-14

$ 11,000 plus 50/50 Profit Share 33-36 Months Oct-11 Jul-14 / Oct-14

$ 14,000 11-13 Months ( 1)

Kind Seas Torm A/S $ 8,500 About 90 Days Dec-12 Apr-13

Pearl Seas Cargill International $ 12,125 22-25 Months Dec-11 Sep-13 / Jan-14

Diamond Seas DS Norden A/S $ 8,750 About 50 Days Feb-13 Apr-13

$ 12,000 23-25 Months Jan-12 Dec-13 / Mar-14

$ 14,500 11-13 Months ( 2)

$ 12,250 22-25 Months Nov-11 Sep-13 / Dec-13

$ 13,000 plus 50/50 Profit Share 11-13 Months ( 3)

Dream Seas Intermare Transport $ 20,000 35-37 Months Jul-10 May-13 / Aug-13

SUPRAMAX FLEET

Sapphire Seas Nordic Bulk Carriers A/S $ 11,100 About 25 Days Apr-13 May-13

Friendly Seas Western Bulk Carriers $ 10,700 18-24 Months Feb-12 Aug-13 / Feb-14

HANDYSIZE FLEET

$ 12,125 23-26 Months May-12 Mar-14 / Jul-14

$ 15,500 11-14 Months ( 4)

$ 12,125 23-26 Months Jun-12 May-14 / Sep-14

$ 15,500 11-14 Months ( 4)

Priceless Seas Trafigura Spot Charter About 50 Days Apr-13 May-13

Coral Seas

PARAGON FLEET EMPLOYMENT

Deep Seas Morgan Stanley

Morgan Stanley

Prosperous Seas

Precious Seas

Cargill International

Cargill International

Golden Seas Mansel (Vitol S.A.)

Slide 21

Vessel Next DD Estimated Estimated

Type Quarter Budget (1)

Offhire Days (1)

Friendly Seas Supramax Q1 2013 Completed

Kind Seas Panamax Q2 2013 $ 750,000 18

Sapphire Seas Supramax Q2 2013 $ 650,000 18

Diamond Seas Panamax Q3 2013 $ 750,000 18

Calm Seas Panamax Q3 2013 $ 750,000 18

Total 2013 $ 2,900,000 72

Dry-dockings 2013 - 2014

1. The costs reflected are estimates based on drydocking our vessels in China. We estimate that each drydock will result in 18 days off-hire.

Actual costs may vary on various factors. We expect to fund these costs with cash from operations

Deep Seas Panamax Q1 2014 $ 750,000 18

Pearl Seas Panamax Q1 2014 $ 750,000 18

Coral Seas Panamax Q2 2014 $ 750,000 18

Dream Seas Panamax Q2 2014 $ 750,000 18

Golden Seas Panamax Q3 2014 $ 750,000 18

Kind Seas Panamax Q4 2014 $ 750,000 18

Total 2014 $ 4,500,000 108