Holdings in Company

TR-1: NOTIFICATION OF MAJOR INTERESTS IN SHARES 1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are PARAGON DIAMONDS PLC 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 the LANSTEAD CAPITAL LPnotification obligation: 4. Full name of shareholder(s)(if different from 3.): 5. Date of the transaction and date onwhich the threshold is crossed or 24 SEPTEMBER 2014 reached: 6. Date on which issuer notified: 25 SEPTEMBER 2014 7. Threshold(s) that is/are crossed or 29, 28, 27, 26, 25, 24, 23, 22, 21, 20reached: 8. Notified details: A: Voting rights attached to shares Class/type Situation previous Resulting situation after the triggering to the triggering transactionof shares transaction if possible Number of Number Number of Number of voting % of votingusing the Shares shares rights rightsISIN CODE of Voting Rights Direct Direct Indirect Direct Indirect GG00B6684H44 87,618,500 87,618,500 63,871,358 63,871,358 19.29% B:Qualifying Financial Instruments Resulting situation after the triggering transaction Type of Expiration Exercise/ Number of voting rights that may % offinancial date Conversion be acquired if the instrument is voting Period exercised/converted rightsinstrument 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 63,871,358 19.29 9. Chain of controlled undertakings through which the voting rights and/orthe financial 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 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