Diana Shipping Inc (DSX): 12 West Capital Management Buys More Shares

 **12 West
Capital Management LP (“12 West Management”) serves as the investment manager to 12 West Capital Fund LP, a
Delaware limited partnership (“12 West Onshore Fund”), and 12 West Capital Offshore Fund LP, a Cayman Islands
exempted limited partnership (“12 West Offshore Fund”), and possesses the sole power to vote and the sole power
to direct the disposition of all securities of Diana Shipping Inc. (the “Company”) held by 12 West Onshore
Fund and 12 West Offshore Fund. Joel Ramin, as the sole member of 12 West Capital Management, LLC, the general partner of 12 West
Management, possesses the voting and dispositive power with respect to all securities beneficially owned by 12 West Management.

As of August 2, 2016, 12 West
Onshore Fund held 2,476,244 shares of common stock of the Company, par value $0.01 per share (“Common
Stock”), and 12 West Offshore Fund held 1,748,245 shares of Common Stock.

Based on information disclosed in the Company’s
Annual Report on Form 20-F, filed with the Securities and Exchange Commission on March 28, 2016, there were 82,546,017 shares of Common Stock outstanding as of December 31, 2015. As a result of the foregoing, for purposes of Reg. Section 240.13d-3, 12 West
Management is deemed to beneficially own 4,224,489 shares of Common Stock, or 5.1% of the Common Stock deemed issued and outstanding as
of August 2, 2016.