Holding(s) in Company

For filings with the FCA include the annex For filings with issuer exclude the annex TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi 1. Identity of the issuer or the underlying issuer of existing Paragon Diamonds Limitedshares to which voting rights are attached:ii 2. Reason for the notification (please tick the appropriate box or boxes): An acquisition or disposal of voting rights X An acquisition or disposal of qualifying financial instruments which may resultin the acquisition of shares already issued to which voting rights are attached An acquisition or disposal of instruments with similar economic effect toqualifying financial instruments An event changing the breakdown of voting rights Other (please specify): 3. Full name of person(s) subject to the notification DRAGON EQUITIES LIMITEDobligation:iii 4. Full name of shareholder(s) (if different from 3.):iv 5. Date of the transaction and date on which the threshold is 14/02/2014crossed or reached: v 6. Date on which issuer notified: 19/02/2014 7. Threshold(s) that is/are crossed or reached: vi, vii Below 3% 8. Notified details: A: Voting rights attached to shares viii, ix Class/ Situation previous Resulting situation after the triggeringtype of to the triggering transactionshares transaction if Number Number Number Number of voting % of votingpossible of of of shares rights rights xusing Shares Votingthe ISIN RightsCODE Direct Indirect Direct xi xii Direct Indirect Below 10,472,532 10,472,532 reporting Below 3% threshold B: Qualifying Financial Instruments Resulting situation after the triggering transaction Type of Expiration Exercise/ Number of voting % of votingfinancial date xiii Conversion Period xiv rights that may be rightsinstrument acquired if the instrument is exercised/ converted. C: Financial Instruments with similar economic effect to Qualifying FinancialInstruments xv, xvi Resulting situation after the triggering transaction Type of Exercise price Expiration Exercise/ Number of voting % of votingfinancial date xvii Conversion rights instrument rights xix, xxinstrument period xviii refers to Nominal Delta Total (A+B+C) Number of voting rights Percentage of voting rights N/A Below 3% 9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will ceaseto hold: 12. Date on which proxy holder will cease to holdvoting rights: 13. Additional information: 14. Contact name: FUAD SILLEM 15. Contact telephone number: 020 7529 7500