Charles & Colvard (CTHR) is the global source of Moissanite, a unique near colorless created gemstone sold through numerous channels both here in the US as well as internationally. Moissanite is recognized by the jewelry industry as the best alternative to a diamond. Charles & Colvard a successful turnaround story thanks to jewelry industry veteran and CEO Randy McCullough. Randy initiated a multi prong growth strategy a few years ago. He has grown the top line from $8m in 2009, $12m in 2010, $16m in 2011, and 2012 should approach $24m, an average growth rate close to 50% year over year. The company is profitable, has $11 million in cash, no debt, and 70 consecutive insider purchases without a sale. Listen to CEO Randy McCullough as he tells the story.

1. Management Presentation
February 2013

2. Forward-Looking Statements
This presentation may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Statements expressing expectations regarding our
future and projections relating to products, sales, revenues, and earnings are typical of such
statements and are made under the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, statements about our plans,
objectives, representations, and contentions and are not historical facts and typically are
identified by use of terms such as “may,” “will,” “should,” “could,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “predict,” “continue,” and similar words, although some
forward-looking statements are expressed differently.
All forward-looking statements are subject to the risks and uncertainties inherent in
predicting the future. You should be aware that although the forward-looking statements
included herein represent management’s current judgment and expectations, our actual
results may differ materially from those projected, stated, or implied in these forward-
looking statements as a result of many factors including, but not limited to, our dependence
on consumer acceptance and growth of sales of our products resulting from our strategic
initiatives; dependence on a limited number of customers; our current wholesale customers’
potential perception of us as a competitor in the finished jewelry business; general economic
and market conditions, including the current economic environment; dependence on Cree,
Inc. as the current supplier of the raw material; intense competition in the worldwide jewelry
industry; the financial condition of our major customers; risks of conducting business in
foreign countries; the pricing of precious metals, which is beyond our control; the potential
impact of seasonality on our business; our ability to protect our intellectual property; the risk
of a failure of our information technology infrastructure to protect confidential information
and prevent security breaches; and possible adverse effects of governmental regulation and
oversight, in addition to the other risks and uncertainties described in our filings with the
Securities and Exchange Commission, or the SEC, including our Annual Report on Form 10-K
for the fiscal year ended December 31, 2011 and subsequent reports filed with the SEC.
Forward-looking statements speak only as of the date they are made. We undertake no
obligation to update or revise such statements to reflect new circumstances or unanticipated
events as they occur except as required by the federal securities laws, and you are urged to
review and consider disclosures that we make in the reports that we file with the SEC that
discuss other factors relevant to our business.

3. What is Moissanite?
‘The World’s Most Brilliant Gem™’
First uncovered in a meteorite and impossibly
rare on earth
One of the hardest gemstones known to man
10% more brilliant with 2½ times more fire
than diamonds
Provides the luxury experience of a diamond
at about 1/10 the cost
Will never lose its brilliance, which is covered by
Charles & Colvard’s Limited Lifetime Warranty
Recognized by the jewelry industry as the best
alternative to diamond

4. Who Is Charles & Colvard?
The Exclusive Producer of Moissanite since 1998…
High-margin product with exclusivity
Sales growth accelerating
Wholesale revenue at a three-fold run rate
Direct-to-consumer initiatives targeting increasing
revenue and margin dollars
Positive operating cash flow
$1.5 million in 2010
$3.5 million in 2011
$2.1 million in 2012 through third quarter
Substantial owned inventory levels
Opportunity to monetize $34 million cost at over
$65 million wholesale
No long-term debt
Funding business from operation’s cash flows

5. Seasoned Management on board
Over a century of experience join the Company…
Management
November 2009 – Randy McCullough, 40-year jewelry veteran, CEO
October 2009 – Tom Pautz, 29-year jewelry veteran, VP of Sales &
Marketing
June 2009 – Tim Krist, 23-year accounting/finance veteran, CFO
Directors
July 2009 – Chuck Lein, 29-year jewelry veteran and retired
President & COO of Stuller, Inc.
November 2009 – Marvin Beasley, 45-year jewelry veteran
and retired CEO of Helzberg Diamonds, a Berkshire Hathaway Co.
February 2011 – Steven Larkin, e-commerce expert and
Zale jewelry veteran, currently Senior Vice President
of Golfsmith International Holdings
May 2011 – David Barr, retail and franchising expert,
jewelry veteran, currently owner and consultant for small-
and mid-cap companies
June 2012 – Anne Butler, direct sales veteran previously with Avon
Products, Mary Kay Cosmetics, PartyLite Gifts, and Blythe

6. 2010 Revitalized Business Model
Positioned for profitable growth…
Revived existing and developed new
wholesale relationships in the industry
Increased sales and profitability while
reducing operating expenses
Built on cash balances
Set up infrastructure for manufacturing
finished jewelry
Formulated long-term growth strategies

7. 2011 Expanded Business Model
Launched new growth strategies…
Established a direct-to-consumer e-
commerce site, Moissanite.com
Formulated a direct-to-consumer home
party business, Lulu AvenueTM
Installed multiple systems to support the
above initiatives
Recruited senior management to drive
new initiatives
Craig Laing – 17-year e-commerce
veteran
Ann Raulston – 21-year home-party
veteran

8. New Business Creation
Wholesale
Distributors Direct Distribution Moissanite.com Lulu Avenue
Retailers E-tailers Home Shopping TV Retail Channels E-Shopping Style Advisors
Consumers

9. Strong Cash and Revenue Trends
$21.4*
Cash and Investments Revenue
*Previous 12 months
$16.0
Millions
$12.7
$12.0
$10.5
$8.3 $8.7
$7.4
FY 2009 FY 2010 FY 2011 Q3 2012

10. #1 Seller on
The largest retailer of loose gemstones and
one of the top 4 ‘Shop at Home Networks’
Moissanite Sales for 8-hour period surpassed Charles Winston hosts all
$1,000,000 ! Moissanite Fire shows
Charles Winston shows exceeded sales goals
100% of the time.
Moissanite show hours have increased monthly!
Jewelry Television JTV runs three Moissanite
campaigns
Moissanite Elite® in karat gold
Moissanite Fire® in silver
Moissanite Loose Jewels

11. E-commerce Provides Sales Growth
E-tailers posting significant
increases in 2012
Leverages business model
Increases brand awareness
Exclusive designer brands and
styles from best-in-class jewelry
manufacturers
Full-scale brand and functional
redesign went live Fall 2012

12. E-commerce Promotes Market Awareness
1 Million Visits in 2012 Monthly Visits: 60,000+
#1 Google ranking for moissanite Over 2,000 unique items available
Visitors: 61% new / 39% returning
65,000+ email & social media
contacts

13. brings the designer in your home
Provides women an exclusive
direct social selling opportunity
featuring Moissanite in designs
by JudeFrances…
Positions Charles & Colvard with
incremental growth opportunity
2011 estimated U.S. direct sales =
$30 billion*
Exponential growth opportunities
driven by number of Style Advisors
Experienced experts driving the
business:
Ann Raulston had over 20,000 sellers at
Gold Canyon
Anne Butler had over 60,000 sellers at
Party Lite
*Source: Direct Selling Association (dsa.org)

14. brings the designer in your home
JudeFrances, known for classic, sexy, elegant
works of artistry, now designs for Lulu Avenue
Provides Lulu Avenue with exclusive lifestyle brand
New opportunities to attract stylists
Extraordinary designs that help raise awareness
Capitalizes on designer jewelry growth trends
JudeFrances designer fashion jewelry appeals to every woman
Improve Lulu’s marketing capabilities
Stellar PR…
Editors love JudeFrances!!

15. Disruptive Market Innovation
Charles & Colvard Created Moissanite®
as you’ve never seen it before…
up to four color grades brighter and whiter!
Certified, laser-inscribed, and guaranteed from the source.

16. Disruptive Market Innovation
Comparison on 1 carat solitaire
$6,000 DIAMOND
100% Brighter
$5,000 $5,999
80% Whiter
$4,000
60% Brilliant
$3,000
$2,000
40% Fiery
$1,000 20% Durable
MOISSANITE
$0 $599 0% Affordable
Recognized by the American Gem Society as the best alternative to Diamond

17. Financial State of the Business
Strong Balance Sheet
As of September 30, 2012:
$11.9 million in cash and investments
$33.7 million in inventory at cost
Significant opportunity to build
our cash position as we sell
down current inventory
Current ratio of 15:1
No long-term debt
The business continues
to be funded from cash flows
from operations
Shareholders’ equity
of $52.3 million

18. 2012 Positive Revenue Trends
Year over Year Revenue Increases
80% 76%
69%
70% 62%
60%
50%
40%
40%
30%
20%
10%
0%
Q1 2012 Q2 2012 Q3 2012 YTD 2012

19. (CTHR) Stock Information
Activity
Recent price of $3.69
(as of December 3, 2012) is a 7X
multiple below all-time high of $25.99
(as adjusted) in December 2005
Significant insider buying
Over 70 insider buys since
November 2009, no insider sales
Approximately 19,650,000
shares outstanding
Insider ownership ≈ 11%
Institutional ownership ≈ 31%

20. Management Presentation
February 2013