PRG.L Regulatory News (PRG)

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 Diamondsof existing shares to which voting rights are Limited ("Paragon" orattached:ii the "Company") 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 TITANIUM CAPITALnotification obligation:iii INVESTMENTS LIMITED 4. Full name of shareholder(s) (if different from 3.):iv 5. Date of the transaction and date onwhich the threshold is crossed or 27/2/2015reached: v 6. Date on which issuer notified: 02/3/2015 7. Threshold(s) that is/are crossed or ABOVE 21%reached: vi, vii 8. Notified details: A: Voting rights attached to shares viii, ix Class/type of Situation previous Resulting situation after the triggeringshares to the triggering transaction transaction if possible Number Number Number Number of voting % of voting rightsusing of of of shares rights xthe ISIN CODE Shares Voting Rights Direct Direct xi Indirect Direct Indirect xii 24,000,000 24,000,000 60,000,000 60,000,000 21.8% B: Qualifying Financial Instruments Resulting situation after the triggering transaction Type of financial Expiration Exercise/ Number of voting % of votinginstrument date xiii Conversion Period xiv rights that may be rights 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 Expiration Exercise/ Number of voting rights % of votingfinancial price date xvii Conversion instrument refers to rights xix, xxinstrument period xviii Nominal Delta Total (A+B+C) Number of voting rights Percentage of voting rights 60,000,000 21.8% 9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi Titanium Capital Investments Limited is a private equity investment group ofcompanies which is controlled by Philip Falzon Sant Manduca, the ExecutiveChairman of Paragon. Philip Falzon Sant Manduca is also interested in 700,000 ordinary shares of 1pence each in the Company ("Ordinary Shares")via a pension scheme. Philip Falzon Sant Manduca's total holding in Paragon is therefore now60,700,000 Ordinary Shares which represents 22.0% of the Company's total votingrights. 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: Hugo Philion 15. Contact telephone number: 020 7182 1920 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 Paragon Diamonds Limitedentities) Contact address (registered office for legal Dixcart House, Sir William Place, St Peter Port,entities) Guernsey, GY1 1GX Phone number & email 02071821920 Other useful information (at least legal representative forlegal persons) B: Identity of the notifier, if applicable Full name Hugo Philion Contact address 103 Mount Street, London W1K 2TJ Phone number & email 02071821920 Other useful information (e.g. functional relationship with the person or legal entitysubject to the notification obligation) C: Additional information For notes on how to complete form TR-1 please see the FCA website.