Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTERESTS IN SHARES 1. Identity of the issuer or the underlying PARAGON DIAMONDS PLCissuer of existing shares to which voting rightsare attached: 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 whichmay result in the acquisition of shares already issued to whichvoting rights are attached An acquisition or disposal of instruments with similar economiceffect to qualifying financial instruments An event changing the breakdown of voting rights Other (please specify): 3. Full name of person(s) subject to LANSTEAD CAPITAL LPthe notification obligation: 4. Full name of shareholder(s)(if different from 3.): 5. Date of the transaction and date 10 JANUARY 2014on which the threshold is crossed orreached: 6. Date on which issuer notified: 10 JANUARY 2014 7. Threshold(s) that is/are crossed 29or reached: 8. Notified details: A: Voting rights attached to shares Class/type Situation previous Resulting situation after the triggering to the triggering transactionof shares transactionif possibleusing the Number of Number Number of Number of voting % of voting rightsISIN CODE Shares shares rights of Voting Rights Direct Direct Indirect Direct Indirect GG00B6684H44 82,758,500 82,758,500 87,618,500 87,618,500 29.64% B: Qualifying Financial Instruments Resulting situation after the triggering transaction Type of Expiration Exercise/ Number of voting rights % of votingfinancial date Conversion that may be acquired if the rights Period instrument is exercised/instrument converted N/A C: Financial Instruments with similar economic effect to Qualifying FinancialInstruments Resulting situation after the triggering transaction Type of Exercise Expiration Exercise/ Number of voting % of votingfinancial price date Conversion rights instrument rights period refers toinstrument N/A Nominal Delta Total (A+B+C) Number of voting rights % of voting rights 87,618,500 29.64 9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: N/A Proxy Voting: 10. Name of the proxy holder: 11. Number of voting rights proxy holder will cease to hold: 12. Date on which proxy holder willcease to hold voting rights: 13. Additional information: 14. Contact name: Ed Lukins, Morrison & Foerester (UK) LLP 15. Contact telephone number: 020 7920 4064