Holding(s) in Company

For filings with the FSA 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 shares Paragon Diamondsto which voting rights are attached:ii Limited 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 obligation: Lanstead Capital LPiii 4. Full name of shareholder(s) (if different from 3.):iv 5. Date of the transaction and date on which the threshold is 4 June 2013crossed or reached: v 6. Date on which issuer notified: 7 June 2013 7. Threshold(s) that is/are crossed or reached: vi, vii 3, 4, 5, 6, 7, 8, 9, 10, 11 8. Notified details:A: Voting rights attached to shares viii, ix Class/type of Situation previous Resulting situation aftershares to the triggering the triggering transaction transaction if possible using Number Number % of votingthe ISIN CODE Number of Number of rights x of Voting of voting Shares Rights shares rights Direct Direct xi Indirect xii Direct Indirect GG00B6684H44 25,000,000 25,000,000 11.2 B: Qualifying Financial Instruments Resulting situation after the triggering transaction Type of financial Expiration Exercise/ Number of voting % of voting instrument date xiii Conversion Period xiv rights that may be rights acquired if the instrument is exercised/ converted. N/A C: Financial Instruments with similar economic effect to Qualifying FinancialInstruments xv, xvi Resulting situation after the triggering transaction Type of financial Exercise Expiration Exercise/ Number of voting % of voting instrument price date xvii Conversion rights instrument rights xix, xx period xviii refers to Nominal Delta N/A Total (A+B+C) Number of voting rights Percentage of voting rights 25,000,000 11.2 9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi 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 will cease to hold voting rights: 13. Additional information: 14. Contact name: Ed Lukins, Morrison & Foerester (UK) LLP 15. Contact telephone number: 020 7920 4064