Directors' Shareholdings

29 January 2014 Paragon Diamonds Limited ("Paragon Diamonds" or the "Company") Directors' shareholdings Paragon Diamonds announces the following share dealings by directors of theCompany on 28 January 2014: Martin Doyle, Executive Chairman, purchased a total of 322,600 ordinary sharesof the Company, equivalent to 0.11 per cent. of the issued voting sharecapital, at a price of 3.1 pence per share. Stephen Grimmer, Managing Director, purchased a total of 322,600 ordinaryshares of the Company, equivalent to 0.11 per cent. of the issued voting sharecapital, at a price of 3.1 pence per share. Simon Retter, Finance Director, purchased a total of 333,999 ordinary shares ofthe Company, equivalent to 0.11 per cent. of the issued voting share capital,at an average price of 2.99 pence per share. Following these share transactions: Martin Doyle now holds a total of 1,022,600 ordinary shares, equivalent to 0.35per cent. of the issued voting share capital. Stephen Grimmer now holds a total of 922,600 ordinary shares, equivalent to0.31 per cent. of the issued voting share capital. Simon Retter now holds a total of 1,151,257 Ordinary Shares, equivalent to 0.39per cent. of the issued voting share capital. 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 / Richard Goldsmith / Catherine Miles