Earnings Conference Call First Quarter Ended March 31, 2015

Earnings Conference Call First Quarter Ended March 31, 2015

Forward Looking Statements 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. Slide 2

Agenda 1Q 2015 & YTD Highlights Company Update Drybulk Industry Overview Investment Summary Slide 3

Highlights - 1Q 2015 & YTD Financial Highlights, 1Q 2015: Net Revenue, net of voyage expenses: $6.8 m. vs. $10.3 m. in 1Q 2014. Adjusted Net Loss: $ 8.8 m. or $0.35 p.s. vs. a loss of $6.0 m. or $0.29 p.s. in 1Q 2014 Reduced average daily TVOE by 23.5% year-over-year, to $5,907 per vessel per day Recent Developments: Agreed with the shipyard to postpone the delivery of the three Kamsarmax newbuildings till the first quarter of 2016, or by an aggregate of about 22 months from the original contract date. Agreed with certain of our lenders to defer a portion of the scheduled quarterly installments originally due through the second quarter of 2016 and to amend the terms with respect to the financial and security cover ratio covenants. In the second quarter of 2015, we sold the shares of Box Ships Inc. and Korea Line Corporation with net proceeds of $3.9 million in the aggregate. Slide 4

Financing Update Agreed with certain lenders to amend the terms and conditions of our facilities From 1Q 2015 to 2Q 2016: reduced payments from available cash by $6.5 million Waived several financial and security cover ratio covenants Repayment Profile Comparison (USD Million) (1) 6 5 4 3 2 5.2 5.2 5.2 5.2 5.2 5.2 4.7 4.7 3.8 3.8 3.8 3.8 1 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Before Amendments After Amendments (1) Includes scheduled quarterly repayments originally payable from the Company s available cash Slide 5

NBs On the Water Chartering Update Average age of Paragon s current fleet 7.7 years vs. 8.8 years for the industry Fully-deployed basis: 21 vessels totaling 1.35 million Dwt with average age of 6.6 years Name Calm Seas Sapphire Seas Priceless Seas Precious Seas Dream Seas Proud Seas F riendly Seas Deep Seas Diam ond Seas Coral Seas Gentle Seas Kind Seas Prosperous Seas Peaceful Seas Pearl Seas Golden Seas Type Panam ax Supram ax Handysiz e Handysiz e Panam ax Handysiz e Supram ax Panam ax Panam ax Panam ax Ultram ax Panam ax Handysiz e Ultram ax Panam ax Panam ax C harter Type / Rate TC / $4,850 TC / $7,250 VC TC / $5,750 TC / $3,000 TC / $6,500 TC / $11,200 TC / $5,500 TC / $4,625 TC / $4,000 TC / $6,400 TC / $4,100 TC / $7,000 TC / $8,200 TC / $7,050 TC / $7,050 Ex pected Redelivery Aug-1 5 Aug-1 5 Jul-1 5 Jul-1 5 Dec-1 5 Dec-1 5 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4 Hull No. DY4050 Hull No. DY4052 Hull No. YZJ1144 Hull No. YZJ1145 Hull No. YZJ1142 Ultram ax Ultram ax Kamsarmax Kamsarmax Kamsarmax Fixed Revenue Days ( 1) 2,806 open days 7,478 open days (1) Assumes earliest redelivery dates Minimum Fixed Days Open Days Optional Period Slide 6

Operating Performance 1Q15 vs 1Q14-15.1% YOY increase in average number of vessels 1Q15 vs 1Q14-23.5% YOY decrease in daily TVOE 1Q 2014 1Q 2015 Fleet Data Average number of vessels 13.9 16.0 Calendar days for fleet 1,254 1,440 Available days for fleet 1,211 1,428 Operating days for fleet 1,198 1,423 Fleet utilization 98.9% 99.6% Daily Results Time Charter Equivalent 8,557 4,801 Vessel operating expenses 4,262 3,965 Dry-docking expenses 1,178 197 Management fees 1,056 893 G&A expenses (ex. non-cash items) 1,221 852 Total Vessel Operating Expenses (TVOE) 7,717 5,907 Slide 7

Financial Performance Net revenue, net of voyage expenses: $6.8 million in 1Q 2015 1Q 2014 1Q 2015 F inancial Performance Net Revenue, net of voyage expenses $ 10.3 m $ 6.8 m EBITDA ($ 19.1 m) ($ 1.6 m) Adjusted EBITDA $ 0.3 m ($ 1.4 m) Net Loss ($ 25.9 m) ($ 8.9 m) Adjusted Net Loss ($ 6.0 m) ($ 8.8 m) Loss Per Share ($1.24) ($0.36) Adjusted Loss Per Share ($0.29) ($0.35) Non - Cash Items (USD 000's) Impairment loss $15,695 - Loss on investment in affiliate $2,754 - Unrealized gain on interest rate swaps ($177) ($60) Share based compensation $1,113 $236 Write off of financing expenses $483 - Total $19,868 $176 Slide 8

Million Dwt Drybulk Market TC Rates remained weak throughout 2015 YTD The BDI hit a 30-year low in February 2015, demand remains sluggish Positive signs from the supply side with scrapping at elevated levels Average T/C Routes (USD Per Day) BDI, New-Building (NB) orders and Demolition 15,000 10,000 18 16 14 12 10 2,500 2,000 1,500 5,000 0 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 8 6 4 2 0 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 1,000 500 0 Panamax Supramax Handysize NB Orders Demolition BDI (Right Axis) Source: Clarkson s Research Slide 9

Million Dwt 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Million Dwt Supply Fundamentals Orderbook currently stands at 18.7% of existing fleet Increased Scrapping : 17.3 million dwt, so far this year vs. 16.2 million dwt in full year 2014 Drybulk fleet growth is slowing down and has been less than 1% of growth in YTD 2015. Outstanding Orderbook by Vessel Type Global Fleet vs Orderbook 80 60 40 20 0 58 m 65 m 19 m Remainder 2015 2016 2017+ 1,000 800 600 400 200 0 100% 75% 50% 25% 0% Capesize Panamax Supramax Handysize Global Fleet Orderbook Orderbook as a % of Global Fleet Deletions vs Newbuilding Deliveries Deletions / Deliveries: 150 33% 37% 34% 78% 100.2 100 66.8 62.8 48.1 33.4 39.4 50 23.3 31.9 16.2 22.3 17.3 0 2012 2013 2014 2015 YTD Deliveries Deletions Net Growth Source: Clarkson s Research 5.0 Slide 10

Demand Fundamentals & Equilibrium qwe Drybulk demand is still growing, albeit at a slower pace than in the recent years In 2016, demand growth is expected to outpace supply growth, while utilization is gradually increasing India is expected to surpass China in terms of Coal imports in 2015 Supply Vs Demand Equilibrium Coking & Thermal Coal Imports (Million Tonnes) 18% 16% 14% 12% 10% 8% 6% 95.7% 94.8% 95.2% 97.3% 95.7% 92.8% 91.6% 88.6% 88.6% 87.2% 87.0% 87.4% 86.8% 86.3% 100% 96% 92% 88% 300 250 200 150 100 141 109 166 127 229 158 265 175 239 216 196 238 4% 2% 84% 50 0% 80% 0 Supply Growth Demand Growth Utilization China India Source: Pareto Securities Equity Research, Clarkson s Research Slide 11

Investment Summary Drybulk Market Demand is expected to maintain its current trend Manageable orderbook and the scrapping of older vessels will keep supply in check Charter market remains volatile Paragon s Strengths Built-In Fleet Growth: Five newbuildings on order expected to be delivered through the next nine months Cost Control: Reduced average daily TVOE by 23.5% year-over-year Financing: Agreed with certain of our lenders to defer a portion of the next quarterly installments and to waive several financial and security cover ratio covenants Chartering: Spot exposure with the intention to enter into medium-term charters to enhance cash flow visibility Slide 12

Investor Relations: DresnerAllenCaron Rudy Barrio (Investors) Tel: (212) 691-8087 Email: r.barrio@allencaron.com Company: Paragon Shipping Inc. 15 Karamanli Ave. GR 166 73, Voula, Greece Tel: +30 (210) 8914 600 Email: ir@paragonshipping.gr

Appendices Slide 14

Statement of Operations 1Q14 vs 1Q15 (US$ 000's) 3 Months Ended 3 Months Ended Mar. 31, 2014 Mar. 31, 2015 Revenue Charter revenue $14,237 $10,685 Commisssions (808) (651) Net Revenue 13,429 10,034 Expenses / (Income) Voyage expenses, net 3,178 3,203 Vessel operating expenses 5,345 5,710 Dry-docking expenses 1,477 283 Management fees - related party 2,204 1,286 Depreciation 4,427 4,927 General & administrative expenses 1,765 1,464 Impairment loss 15,695 - Bad debt provisions - 27 Other income (40) - Total Operating Expenses 34,051 16,900 Operating Loss (20,622) (6,866) Other Income / (Expenses) Interest and finance costs (2,210) (2,183) Loss on derivatives, net (26) (156) Interest income 7 15 Equity in net (loss) / income of affiliate (276) 174 Loss on investment in affiliate (2,754) - Foreign currency (loss) / gain (4) 84 Total Other Expenses, net (5,263) (2,066) Net Loss ($25,885) ($8,932) Weighted average number of shares, basic & diluted 20,560,102 24,460,642 Loss per Common Share, basic & diluted ($1.24) ($0.36) Slide 15

Balance Sheet & Cash Flow Statement (US$ 000's) December 31, March 31, 2014 2015 Cash and restricted cash (current and non-current) 20,920 11,768 Vessels, net 369,033 364,167 Advances for vessel under construction 49,972 51,042 Other fixed assets, net 923 860 Investment in affiliate 2,956 3,124 Other assets 12,800 11,636 TOTAL ASSETS 456,604 442,597 Total debt 226,418 221,586 Total other liabilities 7,786 7,356 TOTAL LIABILITIES 234,204 228,942 Total shareholders'equity 222,400 213,655 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 456,604 442,597 3 Months Ended 3 Months Ended Mar. 31, 2014 Mar. 31, 2015 Net cash from / (used in) operating activities 1,204 (2,495) Net cash (used in) / from investing activities (63,240) 824 Net cash from / (used in) financing activites 61,794 (5,360) Slide 16