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                             Paragon Diamonds Ltd
    of existing shares to which voting rights are                                                      
    attached: ii                                                                                       
                                                                                                       
    2 Reason for the notification (please tick the appropriate box or boxes):                          
                                                                                                       
    An acquisition or disposal of voting rights                                                 YES    
                                                                                                       
    An acquisition or disposal of qualifying financial instruments which may result              NO    
    in the acquisition of shares already issued to which voting rights are attached                    
                                                                                                       
    An acquisition or disposal of instruments with similar economic effect to                    NO    
    qualifying financial instruments                                                                   
                                                                                                       
    An event changing the breakdown of voting rights                                             NO    
                                                                                                       
    Other (please                                                                                      
    specify):                                                                                          
                                                                                                       
    3. Full name of person(s) subject to the       SPREADEX LTD                                        
    notification obligation: iii                                                                       
                                                                                                       
    4. Full name of shareholder(s)                                                                     
     (if different from 3.):iv                                                                         
                                                                                                       
    5. Date of the transaction and date on         14/07/2015                                          
    which the threshold is crossed or                                                                  
    reached: v                                                                                         
                                                                                                       
    6. Date on which issuer notified:              14/07/2015                                          
                                                                                                       
    7. Threshold(s) that is/are crossed or         3%,4%,5%,6%,7%,8%,9%,10%                            
    reached: vi, vii                                                                                   
                                                                                                       


     

    8. Notified details:                                                                                 
                                                                                                         
    A: Voting rights attached to shares viii, ix                                                         
                                                                                                         
    Class/type of   Situation previous          Resulting situation after the triggering transaction     
    shares          to the triggering                                                                    
                    transaction                                                                          
    if possible                                                                                          
    using           Number         Number       Number      Number of voting      % of  voting rights x  
    the ISIN CODE   of             of           of shares   rights                                       
                    Shares         Voting                                                                
                                   Rights       Direct      Direct xi    Indirect Direct      Indirect   
                                                                         xii                             
                                                                                                         
    Ordinary 1 -      0            0            29,711,966  29,711,966            10.69%                 
                                                                                                         
    GG00B6684H44                                                                                         
                                                                                                         
    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.                    
                                                                                                         
    C: Financial Instruments with similar economic effect to Qualifying Financial                        
    Instruments xv, xvi                                                                                  
                                                                                                         
    Resulting situation after the triggering transaction                                                 
                                                                                                         
    Type of financial  Exercise    Expiration Exercise/       Number of voting rights  % of voting rights  
    instrument         price       date     Conversion      instrument refers to     xix, xx             
                                   xvii     period xviii                                                 
                                                                                                         
                                                                                     Nominal     Delta   
                                                                                                         
    Total (A+B+C)                                                                                        
                                                                                                         
    Number of voting rights                           Percentage of voting rights                        
                                                                                                         
    29,711,966                                        10.69%                                             
                                                                                                         


     

    9. Chain of controlled undertakings through which the voting rights and/or the              
    financial instruments are effectively held, if applicable: xxi                              
                                                                                                
    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:                            DAVID REES                                     
                                                                                                
    15. Contact telephone number:                01727 895195