Response to Press Speculation

15 July 2014 Paragon Diamonds Limited ("Paragon" or "the Company") Response to Press Speculation The Company notes this morning's press speculation regarding Titanium CapitalInvestments Limited ("Titanium"). The Company can confirm that it is in initialdiscussions with Titanium about potentially appointing a representative to jointhe board of the Company, but have yet to reach any formal agreement. Further,the Company can confirm that no offer for the entire issued share capital ofthe Company has been forthcoming from Titanium, nor any other parties. The Company will make any further announcements relating to Titanium ifnecessary. For further information: Paragon Diamonds Limited +44 (0) 20 7099 1940Martin Doyle - ChairmanSimon Retter - Finance Director Sanlam Securities UK (Nominated Adviser & Broker) +44 (0) 20 7628 2200Lindsay Mair / James Thomas