Consolidated IncomeConsolidated Income StatementYears Ending December 312007E2008E2009E2010E

Revenue$166.0$182.2$179.1$164.4Cost of goods sold(97.0)(109.0)(112.8)(107.8)Gross profit69.073.266.356.6Gross margin42%40%37%34%SG&A(50.0)(63.0)(68.6)(62.4)EBIT19.010.2(2.3)(5.8)Interest expense(7.0)(8.2)(8.6)(8.0)Write-downs(2.0)(15.0)(2.0)pretax income12.0Taxes(4.9)(1.0)9.45.4Net Income$7.1-$1.0-$16.5-$10.4

EBITDA$27.222.810.97.6% Marging16.4%12.5%6.1%4.6%Debt service20.220.619.8Capital expenditures5.63.64.6

EBITDA/Debt service1.10.50.4(EBITDA-Capital expenditures)/Interest2.10.90.4

Consolidated Balance SheetConsolidated Balance SheetYear ending December 312008E2009E2010EAssets:Accounts Receivable$24.8$27.0$16.4Inventory$28.6$32.2$25.6Total Current Assets$53.4$59.2$42.0

Net fixed assets$61.0$55.2$49.8Intangible Assets$49.0$33.2$29.4Total Assets$163.4$147.6$121.2

LiabilitiesTotal current liabilities$16.8$24.8$29.4Bank DebtRevolver$32.2$36.8$28.2term$31.2$26.0$20.8Equipment Loans$29.2$22.6$15.8Total Bank debt$92.6$85.4$64.8Total Liabilties $109.4$110.2$94.2Shareholders equity$54.0$37.4$27.0Total liabilities and S/holders equity$163.4$147.6$121.2

Adjusted IncomeRuffco Adjusted Income StatementYear ending December 31,2007E2008E2009E2010A2011E2012E2013ERevenue$130.0$139.8$144.0$136.8$150.5$158.0$162.7Cost of goods sold(77.0)(82.8)(85.3)(88.9)(96.3)(99.5)(100.0)Gross profit53.057.058.747.954.258.562.7Gross margin40.8%40.8%40.8%35.0%36.0%37.0%38.5%SG&A(39.2)(46.8)(53.5)(49.1)(46.4)(46.8)(48.2)EBIT13.810.25.2(1.2)7.811.714.5Manufacturing depreciation6.06.87.27.47.88.37.3EBITDA19.817.012.46.215.620.021.8% Margin4.5%10.4%12.7%13.4%

AdjustmentsCost of Goods Sold0.00.02.02.0Nonrecurring Professional Fees0.01.01.02.0Extraordinary Marketing/PR costs0.00.02.02.0Lease cost adjustments1.01.01.01.0Excess Salaries1.01.01.01.0

Adjuested EBIT15.813.212.26.8Adjusted EBITDA21.820.019.414.2% Margin16.8%14.3%13.5%10.4%

Balance Sheet AdjustmentsRuffco Gold Balance Sheet after Peter Putter Sale, Adjustments & Write-OffsSale AdjustmentsPro Forma12/31/10DebitCredit12/31/10Assets:Total Assets115.252.562.7LiabilitiesTotal Current Liabilities29.45.224.2Bank debtRevolver25.8421.8Term20.80.020.8Equipment Loans15.83.612.2Total bank debt62.40.054.8Total Liabilities91.879.0Shareholders equity23.4-39.7-16.3Total liabilities and S/hoders equity115.262.7

Revolver AvailabilityRevolver AvailabilityFYE 2010Accounts Receivable16.4% Ineligable5%Advance rate85%Net Availability13.2Raw materials5.6% Ineligible0%Advance rate70%Net availability3.9Finished goods17% Ineligible5%Advance rate60%Net availability9.7Inventory - Net availability13.6Sublimit20Inventory availability13.6Total borrowing base26.9indicated Revolver Balance28.2Indicated Availability-1.3

Market ValuationPreliminary Market Multiples Valuation AnalysisRepresentative LevelsSelected Multiple Range/Discount RateIndicative Valuation

LowHighRecast 2010 EBITDA$14.203.5-5.0$49.7-$71.0Forecast FY 2012 EBITDA$20.003.5-5.0$48.6-$74.320%16%Preliminary Valuation Range$49.2-$72.7

Working Capital Adjustments to ValueNormalCurrentAdjustmentsAccount ReceivableN/AN/AN/AInventoryN/AN/AN/AAccounts Payable6.616.2-9.6Accrued Espenses4.67.8-3.2

Asset Purchase Adjustments to ValueNormalized A/P$6.6Resumption Schedule of123456Incremental A/P1.101.101.101.101.101.101.091.071.061.051.031.02NPV @ 16%$6.3

Market Approach ValuationCurrent Liabilities AssumedAsset Only

Average Enterprise Value Conclusion$61.0$61.0Working Capital Adjustments-Accounts ReceivableN/AN/A-InventoryN/AN/A-Accounts Payable(9.6)6.3-Accrued Expenses(3.2)-Deferred Capital ExpendituresN/AN/AAdjusted Market Valuation$48.2$67.3

Liquidation ValueLiquidation approach ValuationAssumed RecoveryLiquidationAmountValueAccounts Receivable10.980%8.7InventoryRaw Material4.860%2.9Finished Goods640%2.4PP&ELand & Buildings 12.480%9.9(1)Equipment25.815%3.9(1)LeasesIntellectual PropertyTotal Before Expenses59.946.4%27.8

(1) Appraised Value

Discounted Cash FlowDiscounted Cash FlowProjections For Year Ended December 312012E2013E2014E2015E2016EEBITDA$15.6$20.0$21.8$22.4$23.0Changes in W/C (1)(23.8)(1.2)(0.6)(0.8)(0.8)Capital Expenditures(4.0)(4.4)(4.6)(4.6)(4.6)Taxes @ 40%(3.0)(4.6)(5.8)(6.4)(7.4)Debt-free cash flows-$15.2$9.8$10.8$10.6$10.2

WACC AnalysisLowHighIndustry WACC13%15%

Adjusted RuffCo Gold WACC (2)16%20%

ValuationTerminal EBITDA Multiple (3)3.504.004.505.00Discount16%$50.1$55.6$61.1$66.617%$47.9$53.2$58.4$63.718%$45.8$50.9$55.9$60.919%$43.8$48.7$53.5$58.320%$42.0$46.6$51.2$55.8

Selected ValuationPreliminary Valuation Range (Current Liabilities Assumed)$48.7-$58.4$53.6

Adjustments for an asset-only transaction (4)Account Payable15.915.9$15.9Accrued Expenses3.23.2$3.2

Adjusted Valuation Range$67.8-$77.5$72.7

(1)Assumes current liabilities are assumed and are paid down to normalize working capital position, which was substantial cash in the first year(2)After restructuring premiums for financial and operating distress, among others.(3)Simple terminla value scenario. Other use Gordon growth Methdo to illustrate the impact of growth and discount eates on Terminal Value(4)See "Market Approach section for calculation. Accounts Payable are adjusted to reflect normalized levels and the net present value of reestablished trade debt

Valuation MethodologiesValuationWorking Capital Assumed by buyerAsset Only TransactionAdjustmentsDCF$53.6$19.1$72.7

Market Multiple$48.2$19.1$67.3

Liquidation Value$27.8Bank Debt$54.8Unsecured Liabilities$79.0

xLiquidation Value0$27.82$27.8xBank Debt0$54.82$54.8xUnsecured Liabilities0$79.02$79.0