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 Paragon Diamonds Limitedof existing shares to which voting rights areattached: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 DRAGON EQUITIES LIMITEDnotification obligation:iii 4. Full name of shareholder(s) (if different from 3.):iv 5. Date of the transaction and date onwhich the threshold is crossed or 15/10/2013reached: v 6. Date on which issuer notified: 21/10/2013 7. Threshold(s) that is/are crossed or Below 5%reached: vi, vii 8. Notified details: A: Voting rights attached to shares viii, ix Class/ Situation previous Resulting situation after the triggering transactiontype of to the triggeringshares transaction if Number Number Number Number of voting % of voting rights xpossible of of of shares rightsusing Shares Votingthe ISIN RightsCODE Indirect Direct Direct xi xii Direct Indirect 17,530,855 17,530,855 10,472,532 10,472,532 4.58% 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 rights % of voting rightsfinancial date xvii Conversion instrument refers to xix, xxinstrument period xviii Nominal Delta Total (A+B+C) Number of voting rights Percentage of voting rights 10,472,532 4.58% 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 Note: Annex should only be submitted to the FCA not the issuer Annex: Notification of major interests in sharesxxii A: Identity of the persons or legal entity subject to the notificationobligation Full name (including legal form of legal entities) Paragon Diamonds Limited Contact address Dixcart House, Sir William Place,(registered office for legal entities) St Peter Port, Guernsey, GY1 1GX Phone number & email 02070991940 Other useful information (at least legal representative for legal persons) B: Identity of the notifier, if applicable Full name Fuad Sillem Contact address 22 Grosvenor Square, London W1K 6LF Phone number & email 02075297500 Other useful information (e.g. functional relationship with the person orlegal entity subject to the notification obligation) C: Additional information For notes on how to complete form TR-1 please see the FCA website.