Available: – Established Downtown Reno Casino & Hotel Acquisition Opportunity

Downtown Reno E. Peppermill Casino Reno/Tahoe F. Reno-Sparks Livestock International Airport Events Center A. Reno Events Center G. & F B. National Bowling Casino Stadium H. C. Reno Convention Center I. The Nugget D. Atlantis Casino H I

Downtown Reno G

A  Global Gaming & Hospitality LLC (“GGH”) is pleased to announce the sale of the B E Club Cal Neva Hotel & Casino and related assets (the “Property”), owned by Sierra Development Company (the “Company”), located in the center of historic downtown Reno, NV, which has a long-standing history as a mid- market gaming property for value-oriented consumers. D  The Property primarily consists of: 1) Cal-Neva Casino (located on East 2nd St), 2) Nevadan Hotel (loc on N. Virginia St), 3) two parking garages (one C adj & one across st from casino) & 4) warehouse (loc ~1 mile east)  The Property, situated on ±2.79 acres, has been in continuous operation for 49+ years and is strategically located at the intersection of Virginia St & East 2nd St – within convenient walking distance to all major downtown casinos and entertainment offerings For general inquires or information, please contact:  The casino currently features ±60k sq. ft. of gaming space, 850 slots, 37 table games and 3 live poker games along with 181 hotel rooms (+21 slots) Carlton L. Geer Michael S. Kim  Downtown Reno is under-going a period of renaissance/rejuvenation, with Managing Partner Managing Partner major investment capital expended on several significant projects such as new luxury condos (Montage), a baseball stadium (incl entertainment district), Global Gaming & Hospitality, LLC Global Gaming & Hospitality, LLC bowling stadium, events center and other general improvement projects. Direct: (702) 823-1952 Direct: (212) 933-0377  The Company and/or the Property are currently being offered for sale with Mobile: (702) 321-7331 Mobile: (917) 509-2975 flexibility in regards to the structure of a potential transaction [email protected] [email protected]  This opportunity offers prospective buyers unique access to a casino with long-standing history of operations & two separate non-restricted gaming 3243 E. Warm Springs Rd, Suite #121 903 Madison Avenue, Suite #5F licenses (one grandfathered w/o a hotel room requirement), established brand value & awareness, and alternative real estate potential Las Vegas, NV 89120 New York, NY 10021

GGH 1 Global Gaming & Hospitality Private and confidential www.gghsp.com Washoe County/Reno NV Market Overview

RENO

Sacramento Legend Population Density Drive Time Rings San Francisco 1,000,000 to 2,000,000 people 30 minute drive & 500,000 to 999,999 people 60 minute drive Oakland 100,000 to 499,999 people 90 minute drive 0 to 99,999 people 120 minute drive

 Reno/Sparks is among the oldest and most established  The Reno/Sparks MSA encompasses a population of ±419,000 people, a considerable locals base gaming markets in the US ranking 15th among sub-markets for gaming and other entertainment activities  Lowest gaming tax in US at ±7.0%, depending upon  The Reno/Sparks gaming market is highly-correlated with economy/demographics of Northern jurisdiction & local taxes California, currently witnessing recovery & growth driven by resurgence of tech sector.  Unlimited gaming license state; however, supply  4.2MM adults (21+) live within a three hour drive from Club Cal Neva, including the highly- limited by ability to obtain local & NGC site approvals populated areas of Sacramento, San Francisco & Oakland  The Reno/Sparks $1MM+ market features:  Since 2000, the Washoe County Reno/Sparks gaming market experienced historical  22 casinos in the Reno/Sparks $1MM+ market, fluctuations in gaming revenues incl declines from 2000-03 (tech bubble & 9/11), and 2006- producing gaming win of $679.4MM in 2010 and YTD 10 (due to the Great Recession and Tribal competition in CA)  Despite these historical declines in gaming revenue/positions, the market grew 4.9% from (10/11) gaming win of $±558.3MM 2003 to 2006 and mostTo recently Add: shows signs of stabilization, evidenced by rapidly slowing  ±18,000 gaming positions yielding a WPPD of rate of 6 month movingHistorical average Volumedecline Gamingin gaming Revenue, revenues since Dec 09 approximately $98 (TTM 10/11)  Most recently investment capitalVisitation, has textbeen on deployed the market in downtownand Reno including:  4.6MM casino hotel room nights occupied in 2010, a  Purchase of the Grand demographicsSierra Resort for ±$43MM 70% market occupancy rate, at an ADR of $72  Purchase of the Siena Hotel Spa Casino for ±$3.9MM, plus renovations  Reno hotel patrons average 3 nights per stay and  Purchase of the Riverboat Hotel for $4.6MM spend ~$1,000 on a trip per person (2007)  Fitzgerald’s conversion to CommRow for est $2.5MM

GGH 2 Global Gaming & Hospitality Private and confidential www.gghsp.com Club Cal Neva Property Overview – Reno, NV

A B C C

Downtown Reno A. The Montage Condo Complex B. CommRow Hotel (Formerly Fitzgerald’s) C. Harrah’s Casino Hotel Reno D. Siena Hotel & Spa D Property Features:  Club Cal-Neva Casino has ±60,000 SF of gaming space featuring 850 slot machines, 37 tables, 3 live poker games, full sports book, 3 restaurants, 2 snack bars/delis, a cabaret bar for entertainment and 5 bars  Offers variety of slot & table gaming “experiences” incl poker, blackjack, craps, etc. accessible from two main thoroughfares (Virginia & Center Street), in addition to main 2nd Street frontage  Gaming license for primary Club Cal-Neva Casino “grandfathered” w/no hotel room requirement  Nevadan Hotel with foot print of ±17,500 SF, consists of 181 hotel rooms (avg size ±324 SF) incl. 21 slots  Hotel currently has separate non-restricted gaming license, which is potentially “moveable”  Two separate structured parking garages w/±1,240 total parking spaces are conveniently located in the downtown core adjacent to and across the street from the Club Cal-Neva casino (connected via sky-walk)  Real estate consists of a ±121k SF site, ±103k SF owned fee simple and ±18k SF leased land, along with a ±20,000 SF fee simple site that houses a separate warehouse located ~1 mile east of the casino, offering substantial alternative commercial real estate use opportunity Investment Highlights:  Central location in downtown “core” includes established properties owned & operated by Eldorado, MGM, Harrah’s, and Affinity Gaming (formerly Herbst), among others  4th largest casino in re-vitalized downtown district (by # of gaming positions)  Long-standing historical track record (49+ yrs) of operations and presence in Reno community with continuity of ownership & management & established “brand-equity” constructed around core Cal-Neva sportsbook (recently under contract to be acquired & re-vitalized by plc (“HILL”)  Casino stand-alone (excluding hotel) generated net revenues of ±$16.6MM and ±$986k in adjusted EBITDA for seven months April 1, 2011 to November 30, 2011  Excludes results of race & sports book operations currently under contract to be sold to HILL

GGH 3 Global Gaming & Hospitality Private and confidential www.gghsp.com Transaction Highlights

 Global Gaming & Hospitality LLC (“GGH”) and its subsidiary Global For additional information related to any potential transaction please contact either Gaming & Hospitality Real Estate Services LLC (“GGHRES”) have been Carlton Geer or Michael Kim with GGH or visit us at: retained to sell the Company or the Property, either in whole or in http://www.gghsp.com/Transactions/trx-details.asp?ID=8 part, excluding certain assets already under contract to be sold to William Hill plc, the world’s largest on-line bookmaker  As part of this process, the Company in its sole discretion may elect to sell the stock of the Company or, alternatively, pursue a sale or re-capitalization of all or the component parts of the Property individually, offering flexibility to prospective buyers Sparks regarding the potential structure of a transaction(s) Market 1 1  The Company has been closely-held & controlled largely by the same 3 4 2 group of family shareholders for 30+ years, providing a buyer with the 8 5 1 4 3 2 opportunity to secure multiple gaming licenses in NV (incl original 6 1 7 1 “grandfathered” license) along with ownership of hard asset that has 1 a long track record of generating significant historical revenues & cash Reno flow Market Casino # Slots # of Tables # Rooms Market  Opportunity also provides immediate re-positioning or alternative 1 Cal Neva 877 37 181 Downtown Reno 2 Circus Circus 930 35 1,572 Downtown Reno real estate use opportunities including, among others, potentially bi- 3 Eldorado 1,260 44 816 Downtown Reno 4 Gold Dust West 480 28 - Downtown Reno furcating or downsizing existing casino, exploring alternative use or 1 0 5 Harrah's 850 37 928 Downtown Reno development for hotel, achieving substantial reduction in fixed 6 550 15 860 Downtown Reno Lake operating costs and greater operating efficiencies while concentrating 7 Siena 425 16 214 Downtown Reno Tahoe 9 8 Silver Legacy 1,420 61 1,720 Downtown Reno on serving the Property’s “core” customer base Market 9 Atlantis 1,463 39 938 Other Reno  Additional opportunity to “revitalize” value proposition & 10 Peppermill 1,632 46 1,635 Other Reno 11 Grand Sierra 1,050 38 1,994 Other Reno customer perception as “Reno’s Best Bet”, by concentrating on 12 The Nugget 1,107 26 1,600 Sparks Market core gaming customer 13 Rail City 900 5 - Sparks Market 14 790 9 147 Sparks Market

GGH 4 Global Gaming & Hospitality Private and confidential www.gghsp.com Disclaimer

This Preliminary Investment Summary (the “Summary”) is intended for the use of prospective buyers, investors or strategic JV partners (each an “Interested Party”) in determining whether or not to pursue a potential transaction involving the subject Property and/or the Company. The information contained in this Summary has been obtained from sources deemed reliable. GGH has not independently verified this information and makes no guarantee, warranty, or representation regarding any such information. It is the Interested Party’s responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for example only and do not represent the current or future performance of the market, the Property, or the Company. The value of any transaction may depend upon tax and other factors which should be evaluated by an Interested Party’s appropriate tax, financial and/or legal advisors. You and your advisors should conduct a careful, independent investigation of the Property and the Company to determine the suitability for your needs. Prospective parties should not contact any shareholder, officer, employee, customer, or suppliers of the Property or the Company. Please direct all inquiries to one of the Advisor’s representatives listed below.

FOR FURTHER INFORMATION PLEASE CONTACT:

Carlton L. Geer Michael S. Kim Managing Partner Managing Partner Global Gaming & Hospitality, LLC Global Gaming & Hospitality, LLC

Direct: (702) 823-1952 Direct: (212) 933-0377 Mobile: (702) 321-7331 Mobile: (917) 509-2975 [email protected] [email protected]

3243 E. Warm Springs Rd, Suite #121 903 Madison Avenue, Suite #5F Las Vegas, NV 89120 New York, NY 10021

GGH 5 Global Gaming & Hospitality Private and confidential www.gghsp.com