Paragon Offshore plc (fka PGNPQ)

[ars_2014]

VALUATION ANALYSIS

A. Estimated Reorganization Valuation of the Debtors

The Debtors have been advised by Lazard Frères & Co. LLC (“Lazard”) with respect to the
reorganization value of the Reorganized Debtors on a going concern basis.
Solely for purposes of the Plan, the estimated range of a reorganization value of the Reorganized Debtors was assumed to be approximately $1,650 million to $2,075 million (with a midpoint estimate of
approximately $1,863 million) as of an assumed Effective Date of June 30, 2016. The valuation analysis
herein is based on information as of March 14, 2016 and is based on the Projections for the Projection
Period. For purposes of this valuation, it has been assumed that no material changes that would affect
value occur between March 14, 2016 and the assumed Effective Date. Lazard’s estimate of a range of
reorganization values does not constitute an opinion as to fairness from a financial point of view of the
consideration to be received under the Plan or of the terms and provisions of the Plan.
Based upon the assumed combined range of the reorganization value of the Reorganized Debtors of
between $1,650 million and $2,075 million and assumed net debt of $1,120 million (assuming a debt
balance of $1,408 million and a pro forma cash balance of $288 million as of June 30, 2016), Lazard
has employed an imputed estimate of the range of equity value for the Reorganized Debtors between
approximately $530 million and $955 million, with a midpoint estimate of $742 million.

Math for valuation:

Common shareholders will own 65% of the entity and debt holders will own 35%
$742M x .65% to shareholders = $482.30M equity for common shareholders divided by 86M shares outstanding = $5.61 per share with a range between $4.01($530M) and $7.22($955M) per share equity value.