| For the Fiscal Year Ended December 31, 2010 | Commission File No. 001-31852 |
|---------------------------------------------|-------------------------------|

| Delaware                                                       | 94-1585250                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| Title of each class            | Name of exchange on which registered |
|--------------------------------|--------------------------------------|
| Common Stock, $0.001 par value | NYSE Amex, LLC                       |

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|   | ● | PART II—Item 6.  | Selected Financial Data                                                                     |
|--------|---------|------------------------|---------------------------------------------------------------------------------------------|
|   | ● | PART II—Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|   | ● | PART II—Item 8.  | Financial Statements and Supplementary Data                                                 |
|   | ● | PART II—Item 9A. | Controls and Procedures                                                                     |
|   | ● | PART IV—Item 15. | Exhibits and Financial Statement Schedules                                                  |

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| CONSOLIDATED BALANCE SHEET                                                                |   | As of December 31, 2010 |        |
|-------------------------------------------------------------------------------------------|--------|-------------------------|-------------|
|                                                                                      |   | As Previously Reported  |        |   | As Restated |   |
| Property and Equipment - Net                                                              |   |                    |        |   |   |   |
|   Other Property and Equipment                                                  |   |                    | 2,248,162   |   |   |   | 2,810,662 |   |
| Other Assets                                                                              |   |                    |        |   |   |   |   |   |
|   Long-Term Receivable from Joint Venture Partners                              |   |                    | 2,392,817   |   |   |   | 1,830,317 |   |
| Stockholders’ Equity                                                                |   |                    |        |   |   |   |   |   |
|   Capital in Excess of Par Value                                                |   |                    | 66,444,315  |   |   |   | 63,112,393 |   |
|   Warrants (previously reported as Additional Paid in Capital – Warrants) |   |                    | 2,868,034   |   |   |   | 1,350,678 |   |
|   Accumulated Deficit                                                           |   |                    | (65,972,740 | ) |   |   | (61,123,462 | ) |

| CONSOLDIATED STATEMENT OF OPERATIONS                                               |   | For the Year EndedDecember 31, 2010 |        |
|------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                                               |   | As Previously Reported              |        |   | As Restated |   |
| Costs and Expenses                                                                 |   |                                |        |   |   |   |
|   General & Administrative                                           |   |                                | 7,607,475   |   |   |   | 6,988,195 |   |
|   Stock-Based Compensation (previously reported as Stock Option Expense) |   |                                | 391,718     |   |   |   | 1,742,392 |   |
|   Warrant Expense                                                        |   |                                | 7,427,283   |   |   |   | - |   |
|   Derivative Instruments Loss                                            |   |                                | -           |   |   |   | 1,846,611 |   |
| Total Costs and Expenses                                                           |   |                                | 18,384,779  |   |   |   | 13,535,501 |   |
| Loss Before Minority Interest                                                      |   |                                | (13,515,075 | ) |   |   | (8,665,797 | ) |
| Net Loss                                                                           |   |                                | (13,515,075 | ) |   |   | (8,665,797 | ) |
| Basic Loss Per Common Share                                                        |   | $                                   | (0.37       | ) |   | $ | (0.24 | ) |

| CONSOLDIATED STATEMENT OF CASH FLOWS                                                        |   | For the Year EndedDecember 31, 2010 |        |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                                                        |   | As Previously Reported              |        |   | As Restated |   |
| Cash Flows from Operating Activities                                                        |   |                                |        |   |   |   |
|   Net loss                                                                        |   |                                | (13,515,075 | ) |   |   | (8,665,797 | ) |
|   Stock-Based Compensation (previously reported as Stock Option Issuance Expense) |   |                                | 391,718     |   |   |   | 1,742,392 |   |
|   Warrant Expense                                                                 |   |                                | 7,427,284   |   |   |   | - |   |
|   Unrealized Loss on Derivative Instruments                                       |   |                                | -           |   |   |   | 1,846,611 |   |
| Net Cash (Used) by Operating Activities                                                     |   |                                | (9,878,360  | ) |   |   | (9,259,080 | ) |
| Cash Provided (Used) by Investing Activities                                                |   |                                |        |   |   |   |   |   |
|   Capital Expenditures                                                            |   |                                | (1,430,331  | ) |   |   | (1,992,831 | ) |
|   Decrease in Accounts Receivable from Joint Venture Partners                     |   |                                | -           |   |   |   | 562,500 |   |
| Cash Flows from Financing Activities                                                        |   |                                |        |   |   |   |   |   |
|   Net Proceeds from the Issuance of Common Stock                                  |   |                                | 5,947,966   |   |   |   | 5,328,687 |   |
| Net Cash Provided by Financing Activities                                                   |   |                                | 4,679,601   |   |   |   | 4,060,323 |   |

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|     | PART I                                                                                         | Page   |
|----------|------------------------------------------------------------------------------------------------|--------|
| ITEM 1.  | Business                                                                                       | 1      |
| ITEM 1A. | Risk Factors                                                                                   | 3      |
| ITEM 1B. | Unresolved Staff Comments                                                                      | 7      |
| ITEM 2.  | Properties                                                                                     | 7      |
| ITEM 3.  | Legal Proceedings                                                                              | 12     |
|     |                                                                                           |   |
|     | PART II                                                                                   |   |
| ITEM 5.  | Market for Registrant's Common Equity and Related Stockholder Matters                          | 13     |
| ITEM 6.  | Selected Financial Data                                                                        | 14     |
| ITEM 7.  | Management's Discussion and Analysis of Financial Condition and Results of Operations          | 14     |
| ITEM 7A. | Quantitative and Qualitative Disclosures About Market Risk                                     | 22     |
| ITEM 8.  | Financial Statements and Supplementary Data                                                    | 25     |
| ITEM 9A. | Controls and Procedures                                                                        | 61     |
|     |                                                                                           |   |
|     |   PART III                                                                           |   |
| ITEM 10. | Directors, Executive Officers, and Corporate Governance                                        | 65     |
| ITEM 11. | Executive Compensation                                                                         | 70     |
| ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 80     |
| ITEM 13. | Certain Relationships and Related Transactions                                                 | 81     |
| ITEM 14. | Principal Accounting Fees and Services                                                         | 81     |
|     |                                                                                           |   |
|     |   PART IV                                                                            |   |
| ITEM 15. | Exhibits, Financial Statement Schedules                                                        | 82     |
|     | Signatures                                                                                     | 84     |
|     |                                                                                           |   |
|     |                                                                                           |

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|   | ● | Tri-Valley Oil & Gas Co. (“TVOG”) — conducts our hydrocarbon (crude oil and natural gas) business.  TVOG derives most of its principal revenue from crude oil and natural gas production. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Select Resources Corporation, Inc. (“Select”) — holds and maintains our precious metals business.  Select holds and develops two major mineral assets in the State of Alaska. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Tri-Valley's businesses are organized into four operating segments: |
|---------------------------------------------------------------------|
|                                                                |   |
| -                                                                   | Oil and Gas Operations — This segment represents our oil and gas business.  During 2010, this segment generated virtually all of the Company’s revenues from operations. |   |
|                                                                |   |   |
| -                                                                   | Rig Operations — This segment consists of drilling rig operations. |   |
|                                                                |   |   |
| -                                                                   | Minerals — This segment represents our precious metal mineral prospects.  In the past, it has generated revenues from pilot-scale mining projects and subcontracting exploration and business development projects.  This segment holds title to land or leases in the State of Alaska. |   |
|                                                                |   |   |
| -                                                                   | Drilling and Development — This segment includes revenue received from crude oil and natural gas drilling and development operations performed for joint venture partners. |   |

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| Year Ending       |                        | BBL       |   | MCF         |
|-------------------|-----------------------------|-----------|--------|-------------|
|              |                        | Crude Oil |   | Natural Gas |
| December 31, 2010 | Developed                   | 316,333   |   | 41,256      |
|              | Undeveloped                 | 2,738,503 |   | 0           |
|              |   Net Proved      | 3,054,836 |   | 41,256      |
|              |                        |      |   |        |
|              | Probable                    | 2,433,311 |   | 0           |
|              | Possible                    | 4,464,000 |   | 357,906     |
|              |   Net Prospective | 6,897,311 |   | 357,906     |
|              |                        |      |   |        |
| December 31, 2009 | Developed                   | 282,271   |   | 395,252     |
|              | Undeveloped                 | 2,738,439 |   | 0           |
|              |   Net Proved      | 3,020,710 |   | 395,252     |
|              |                        |      |   |        |
|              | Probable                    | 760,000   |   | 0           |
|              | Possible                    | 6,045,425 |   | 42,008      |
|              |   Net Prospective | 6,805,425 |   | 42,008      |
|              |                        |      |   |        |
| December 31, 2008 | Developed                   | 0         |   | 695,931     |
|              | Undeveloped                 | 0         |   | 0           |
|              |   Net Proved      | 0         |   | 695,931     |
|              |                        |      |   |        |
|              | Probable                    | 0         |   | 0           |
|              | Possible                    | 0         |   | 0           |
|              |   Net Prospective | 0         |   | 0           |
|              |                        |      |   |        |
|              |                        |      |   |        |

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|              | The Year Ended December 31, |
|-------------------|-----------------------------|
|              |                        |   |   |
|              | 2010                        | 2009 | 2008 |
| Natural Gas (MCF) | 30,247                      | 32,076 | 102,070 |
| Crude Oil (BBL)   | 25,796                      | 21,092 | 26,299 |
|              |                        |   |   |

|             |   | Year Ended December 31, |        |
|------------------|--------|-------------------------|-------------|
|             |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             |   | 2010                    |        |   |   |   |   | 2009 |   |   |   |   |   | 2008 |   |   |   |   |
|             |   | Gas (MCF)               |        |   | Oil (BBL) |   |   | Gas (MCF) |   |   | Oil (BBL) |   |   | Gas (MCF) |   |   | Oil (BBL) |   |
| Sales Price      |   | $                       |  2.95  |   |   | $ |  64.64 |   |   | $ |  3.55 |   |   | $ | 35.74 |   |   | $ |  8.07 |   |   | $ |  90.10 |   |
| Production Costs |   | $                       |  2.96  |   |   | $ |  54.96 |   |   | $ |  2.91 |   |   | $ |  69.68 |   |   | $ |  1.67 |   |   | $ |  37.45 |   |
| Net Profit       |   | $                       |  (0.01 | ) |   | $ | 9.68 |   |   | $ |  0.64 |   |   | $ | (33.94 | ) |   | $ |  6.40 |   |   | $ |  52.65 |   |
|             |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| As of December 31, 2010, we had the following gross and net positions in wells and producing acreage: |
|-------------------------------------------------------------------------------------------------------|

| Wells (1) |   | Acres (2) |
|-----------|--------|-----------|
| Gross     | Net    |      | Gross | Net |
| 57        | 23.19  |      | 4,113 | 1,326 |

| (1) | "Gross" wells represent the total number of producing wells in which we have a working interest.  "Net" wells represent the number of gross producing wells multiplied by the percentages of the working interests which we own.  "Net wells" recognizes only those wells in which we hold an earned working interest.  Working interests earned at payout have not been included. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | "Gross" acres represent the total acres in which we have a working interest. "Net" acres represent the aggregate of the working interests which we own in the gross acres. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        | Year Ended December 31, |
|-------------|-------------------------|
|        | 2010                    | 2009 | 2008 |
|        |                    |   |   |
|        |                    |   |   |
| Development |                    |   |   |
| Producing   | 0                       | 0 | 6 |
| Dry         | 0                       | 0 | 0 |
| Total       | 0                       | 0 | 6 |

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| State      | Gross Acres | Net Acres |
|------------|-------------|-----------|
| California | 7,944       | 4,247     |
|       |        |      |

| Gross Acres              | Net Acres                |
|--------------------------|--------------------------|
|    58,000 |    58,000 |
|                     |                     |

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| Gross Acres | Net Acres |
|-------------|-----------|
| 29,640      | 28,821    |

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|                 | Sales Prices | Closing Prices |
|----------------------|--------------|----------------|
|                 |  High   |  Low      |  High |  Low |
|   2010          |         |           |   |   |
|  Fourth Quarter |  $1.05  |  $0.35    |  $0.99 |  $0.38 |
|  Third Quarter  |  $1.03  |  $0.51    |  $0.99 |  $0.51 |
|  Second Quarter |  $2.17  |  $0.90    |  $2.15 |  $0.95 |
|  First Quarter  |  $2.30  |  $1.71    |  $2.24 |  $1.77 |
|                 |         |           |   |   |
|   2009          |         |           |   |   |
|  Fourth Quarter |  $3.80  |  $1.58    |  $3.51 |  $1.63 |
|  Third Quarter  |  $3.59  |  $0.83    |  $3.10 |  $0.83 |
|  Second Quarter |  $1.56  |  $0.93    |  $1.38 |  $0.93 |
|  First Quarter  |  $1.95  |  $0.97    |  $1.95 |  $1.01 |

|                                                       |   | Total securities to be issued upon exercise of outstanding options or vesting of restricted stock |   |   |                            |   |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|
|  Plan category                                        |   | Number                                                                                            |   |   | Weighted-average exercise price |   |   | Securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |   |
|                                                       |   | (a)                                                                                               |   |   | (b)                             |   |   | (c) |   |
| Equity compensation plans approved by security holders     |   |   2,570,500                                                                                  |   |   | $2.97                           |   |   |   1,192,350 |   |
|                                                       |   |                                                                                              |   |   |                            |   |   |   |   |
| Equity compensation plans not approved by security holders |   |   0                                                                                          |   |   |   0                        |   |   |   0 |   |
|                                                       |   |                                                                                              |   |   |                            |   |   |   |   |
| Total                                                      |   |   2,570,500                                                                                  |   |   | $2.97                           |   |   |   1,192,350 |   |

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|                                                              |   |   |       |   | Income Statement Data |               |
|-------------------------------------------------------------------|--------|--------|------------|--------|-----------------------|--------------------|
|                                                              |   | 2010   |       | 2009   |                  | 2008               |   | 2007 |   | 2006 |
| Revenues                                                          |   |   | 4,869,704  |   |                  |               | 1,448,001 |   |   |   | 8,124,700 |   |   |   | 11,016,107 |   |   |   | 4,936,723 |   |
| Operating Income (Loss)                                           |   |   | (8,665,797 | )      |                  |               | (10,661,937 | ) |   |   | (14,209,174 | ) |   |   | (8,746,830 | ) |   |   | (5,881,276 | ) |
| Loss from Discontinued Operations                                 |   |   | -          |   |                  |               | - |   |   |   | - |   |   |   | - |   |   |   | (4,774,840 | ) |
| Gain on Sale of Discontinued Operations                           |   |   | -          |   |                  |               | - |   |   |   | - |   |   |   | - |   |   |   | 9,715,604 |   |
| Income (Loss) before Minority Interest                            |   |   | (8,665,797 | )      |                  |               | (10,661,937 | ) |   |   | (14,478,178 | ) |   |   | (8,746,830 | ) |   |   | (940,512 | ) |
| Minority Interest                                                 |   |   | -          |   |                  |               | - |   |   |   | (269,005 | ) |   |   | (139,939 | ) |   |   | (27,341 | ) |
|                                                              |   |   |       |   |                  |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                          |   |   | (8,665,797 | )      |                  |               | (10,661,937 | ) |   |   | (14,209,174 | ) |   |   | (8,606,891 | ) |   |   | (913,171 | ) |
| Basic Earnings per Share:                                         |   |   |       |   |                  |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loss from Continuing Operations                 |   |   | (0.24      | )      |                  |               | (0.33 | ) |   |   | (0.54 | ) |   |   | (0.35 | ) |   |   | (0.25 | ) |
|    Income (Loss) from Discontinued Operations, Net |   |   | -          |   |                  |               | - |   |   |   | - |   |   |   | - |   |   |   | 0.21 |   |
|    Basic Earnings Per Share:                       |   |   | (0.24      | )      |                  |               | (0.33 | ) |   |   | (0.54 | ) |   |   | (0.35 | ) |   |   | (0.04 | ) |
|                                                              |   |   |       |   |                  |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |   |       |   |                  |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |   |       |   |                  | Balance Sheet Data |   |
|                                                              |   |   | 2010       |   |                  | 2009               |   |   | 2008 |   |   | 2007 |   |   | 2006 |
| Property and Equipment, Net                                       |   |   | 6,719,353  |   |                  |               | 8,180,405 |   |   |   | 9,921,501 |   |   |   | 16,232,653 |   |   |   | 12,076,043 |   |
| Total Assets                                                      |   |   | 14,687,177 |   |                  |               | 10,460,023 |   |   |   | 17,470,721 |   |   |   | 25,254,895 |   |   |   | 28,654,125 |   |
| Current Liabilities                                               |   |   | 7,872,395  |   |                  |               | 7,252,256 |   |   |   | 5,154,323 |   |   |   | 10,296,665 |   |   |   | 9,046,945 |   |
| Long-Term Obligations                                             |   |   | 661,429    |   |                  |               | 1,746,662 |   |   |   | 2,165,578 |   |   |   | 2,596,101 |   |   |   | 2,963,562 |   |
| Minority Interest                                                 |   |   | -          |   |                  |               | - |   |   |   | 3,334,596 |   |   |   | 249,945 |   |   |   | 5,410,746 |   |
| Stockholders' Equity                                              |   |   | 6,153,353  |   |                  |               | 1,461,105 |   |   |   | 6,816,225 |   |   |   | 12,112,184 |   |   |   | 11,232,872 |   |

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|                                     | 2010                                                          |          | 2009   |                                                                      | 2008                |
|------------------------------------------|---------------------------------------------------------------|---------------|--------|---------------------------------------------------------------------------|---------------------|
|                                     | $                                              | %   |   |  $                                                    | %    |   |  $     | %    |
| Oil and Gas                              |                                                          |          |   |                                                                      |                |   |   |   |
|    Sales                  |   1,757                                             | 36%           |   |     1,036                                             | 72%                 |   |   3,759 | 46% |
|    Partnership Income     |          9       | 0%            |   |          30                  | 2%                  |   |           - | 0% |
| Total Oil and Gas Revenues               |   1,766                                             | 36%           |   |     1,066                                             | 74%                 |   |   3,759 | 46% |
|                                     |                                                          |          |   |                                                                      |                |   |   |   |
| Rig Operations                           |           - | 0%            |   |             - | 0%                  |   |   1,451 | 18% |
|                                     |                                                          |          |   |                                                                      |                |   |   |   |
| Minerals                                 |           - | 0%            |   |          47                  | 3%                  |   |      142 | 2% |
|                                     |                                                          |          |   |                                                                      |                |   |   |   |
| Drilling and Development                 |           - | 0%            |   |             - | 0%                  |   |   2,589 | 32% |
|                                     |                                                          |          |   |                                                                      |                |   |   |   |
| Non-Segmented Items (Interest and Other) |   3,104                                             | 64%           |   |        335                             | 23%                 |   |      184 | 2% |
|                                     |                                                          |          |   |                                                                      |                |   |   |   |
| Total Revenue                            |   4,870                                             | 100%          |   |  $ 1,448                                                             | 100%                |   |   8,125 | 100% |

----

|                                                                 |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|  Oil and Gas Operations                                         |   |   | 1,504  |   |   |   | 2,634  |   |   |   | 2,828 |   |
|  Rig Operations                                                 |   |   | 494    |   |   |   | 442    |   |   |   | 1,424 |   |
|  Minerals                                                       |   |   | 264    |   |   |   | 247    |   |   |   | 371 |   |
|  Drilling and Development                                       |   |   | -      |   |   |   | 63     |   |   |   | 1,815 |   |
|  Non-Segmented Items (G&A, Stock- Based Compensation,       |   |   |   |   |   |   |   |   |   |   |   |   |
|      Derivative Instruments Loss and Other) |   |   | 11,274 |   |   |   | 8,724  |   |   |   | 16,165 |   |
|       Total Costs and Expenses:        |   | $      | 13,536 |   |   | $      | 12,110 |   |   | $ | 22,603 |   |

----

|                                                                     |   | 2010   |   |   | 2009   |   |    | 2008   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|  Oil and Gas                                                        |   |   | 253    |   |   |   | (1,568  | )      |   |   | 931 |   |
|  Rig Operations                                                     |   |   | (494   | )      |   |   | (442    | )      |   |   | 27 |   |
|  Minerals                                                           |   |   | (264   | )      |   |   | (200    | )      |   |   | (229 | ) |
|  Drilling and Development                                           |   |   | -      |   |   |   | (63     | )      |   |   | 774 |   |
|  Non-Segmented Items (G&A, Stock-Based Compensation, Derivative |   |   |   |   |   |   |    |   |   |   |   |   |
|      Investments Loss and Other)                |   |   | (8,161 | )      |   |   | (8,388  | )      |   |   | (15,712 | ) |
|       Total Operating Income (Loss)        |   | $      | (8,666 | )      |   | $      | (10,661 | )      |   | $ | (14,209 | ) |

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|                                                                 | Page   |
|----------------------------------------------------------------------|--------|
|                                                                 |   |
| Report of Independent Registered Public Accounting Firm              | 24     |
|                                                                 |   |
| Consolidated Balance Sheets at December 31, 2010(Restated), and 2009 | 25     |
|                                                                 |   |
| Consolidated Statements of Operations for the Years Ended            |   |
| December 31, 2010(Restated), 2009, and 2008                          | 27     |
|                                                                 |   |
| Consolidated Statements of Changes in Shareholders' Equity for the   |   |
| Years Ended December 31, 2010(Restated), 2009, and 2008              | 28     |
|                                                                 |   |
| Consolidated Statements of Cash Flows for the Years Ended            |   |
| December 31, 2010(Restated), 2009, and 2008                          | 30     |
|                                                                 |   |
| Notes to the Consolidated Financial Statements                       | 32     |
|                                                                 |   |
| Supplemental Information (Unaudited)                                 | 56     |

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|   | BROWN ARMSTRONG         |
|--------|-------------------------|
|   | ACCOUNTANCY CORPORATION |
|   |                    |

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| ASSETS                                                                   |   |              |       |   |              |   |
|--------------------------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                                                     |   | December 31, 2010 |       |   | December 31, 2009 |   |
|                                                                     |   | (Restated)        |       |   |              |   |
| Current Assets                                                           |   |              |       |   |              |   |
| Cash                                                                     |   | $                 | 581,148    |   |              | $      | 290,926 |   |
| Accounts Receivable TVOG Production     Accrual |   |              | 202,482    |   |              |   | 33,623 |   |
| Accounts Receivable - Trade                                              |   |              | -          |   |              |   | 63,151 |   |
| Prepaid Expenses                                                         |   |              | 615,778    |   |              |   | 16,889 |   |
| Accounts Receivable from Joint Venture Partners - Net (Notes 6, 12)      |   |              | 3,943,099  |   |              |   | 1,432,785 |   |
| Accounts Receivable - Other                                              |   |              | 32,552     |   |              |   | 25,717 |   |
|                                                                     |   |              |       |   |              |   |   |   |
| Total Current Assets                                                     |   |              | 5,375,059  |   |              |   | 1,863,091 |   |
|                                                                     |   |              |       |   |              |   |   |   |
| Property and Equipment - Net                                             |   |              |       |   |              |   |   |   |
| Proved Properties, Successful Efforts Method                             |   |              | 1,235,932  |   |              |   | 25,265 |   |
| Unproved Properties, Successful Efforts Method                           |   |              | 1,781,069  |   |              |   | 1,551,998 |   |
| Rig                                                                      |   |              | 891,690    |   |              |   | 1,132,847 |   |
| Other Property and Equipment                                             |   |              | 2,810,662  |   |              |   | 5,470,295 |   |
|                                                                     |   |              |       |   |              |   |   |   |
| Total Property and Equipment - Net (Note4)                               |   |              | 6,719,353  |   |              |   | 8,180,405 |   |
|                                                                     |   |              |       |   |              |   |   |   |
| Other Assets                                                             |   |              |       |   |              |   |   |   |
| Deposits                                                                 |   |              | 526,749    |   |              |   | 172,913 |   |
| Investments in Joint Venture Partnerships                                |   |              | 23,285     |   |              |   | 17,400 |   |
| Goodwill                                                                 |   |              | 212,414    |   |              |   | 212,414 |   |
| Long-Term Receivable from Joint Venture Partners - Net (Notes 6, 12)     |   |              | 1,830,317  |   |              |   | - |   |
| Other                                                                    |   |              | -          |   |              |   | 13,800 |   |
|                                                                     |   |              |       |   |              |   |   |   |
| Total Other Assets                                                       |   |              | 2,592,765  |   |              |   | 416,527 |   |
|                                                                     |   |              |       |   |              |   |   |   |
| Total Assets                                                             |   | $                 | 14,687,177 |   |              | $      | 10,460,023 |   |

----

| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                            |   |              |        |   |              |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|-------------------|--------|
|                                                                                                            |   |              |        |   |              |   |
|                                                                                                            |   | December 31, 2010 |        |   | December 31, 2009 |   |
|                                                                                                            |   | (Restated)        |        |   |              |   |
| Current Liabilities                                                                                             |   |              |        |   |              |   |
| Notes Payable (Note 5)                                                                                          |   | $                 | 134,322     |   |              | $      | 439,482 |   |
| Trade - Accounts Payable and Accrued Expenses                                                                   |   |              | 7,738,073   |   |              |   | 5,962,774 |   |
| Non-Trade Accounts Payable                                                                                      |   |              | -           |   |              |   | 850,000 |   |
|                                                                                                            |   |              |        |   |              |   |   |   |
| Total Current Liabilities                                                                                       |   |              | 7,872,395   |   |              |   | 7,252,256 |   |
|                                                                                                            |   |              |        |   |              |   |   |   |
| Non-Current Liabilities                                                                                         |   |              |        |   |              |   |   |   |
| Asset Retirement Obligation (Note 12)                                                                           |   |              | 206,183     |   |              |   | 351,013 |   |
| Long-Term Portion of Notes Payable (Note 5)                                                                     |   |              | 455,246     |   |              |   | 1,395,649 |   |
|                                                                                                            |   |              |        |   |              |   |   |   |
| Total Non-Current Liabilities                                                                                   |   |              | 661,429     |   |              |   | 1,746,662 |   |
|                                                                                                            |   |              |        |   |              |   |   |   |
| Total Liabilities                                                                                               |   |              | 8,533,824   |   |              |   | 8,998,918 |   |
|                                                                                                            |   |              |        |   |              |   |   |   |
| Stockholders' Equity                                                                                            |   |              |        |   |              |   |   |   |
| Series A Preferred Stock - 10.00%   Cumulative; $0.001 par, $10.00 liquidation value; 20,000,000 |   |              |        |   |              |   |   |   |
| shares authorized; 438,500 shares outstanding                                                                   |   |              | 439         |   |              |   | - |   |
| Common Stock, $.001 par value; 100,000,000 shares                                                               |   |              |        |   |              |   |   |   |
| authorized; 44,729,117 and 33,190,462 at December 31, 2010, and                                                 |   |              |        |   |              |   |   |   |
| December 31, 2009, respectively.                                                                                |   |              | 44,730      |   |              |   | 33,190 |   |
| Less: Common Stock in Treasury, at cost; 21,847 shares                                                          |   |              | (38,370     | )      |              |   | (13,370 | ) |
| Capital in Excess of Par Value                                                                                  |   |              | 63,112,393  |   |              |   | 51,469,228 |   |
| Warrants                                                                                                        |   |              | 1,350,678   |   |              |   | - |   |
| Additional Paid in Capital - Stock Options                                                                      |   |              | 2,806,945   |   |              |   | 2,429,722 |   |
| Accumulated Deficit                                                                                             |   |              | (61,123,462 | )      |              |   | (52,457,665 | ) |
|                                                                                                            |   |              |        |   |              |   |   |   |
| Total Stockholders' Equity                                                                                      |   |              | 6,153,353   |   |              |   | 1,461,105 |   |
|                                                                                                            |   |              |        |   |              |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                      |   | $                 | 14,687,177  |   |              | $      | 10,460,023 |   |

----

|                                                         |   |                             |       |
|--------------------------------------------------------------|--------|----------------------------------|------------|
|                                                         |   | For the Years Ended December 31, |       |
|                                                         |   | 2010(Restated)                   |       |   | 2009 |   |   | 2008 |   |
| Revenues                                                     |   |                             |       |   |   |   |   |   |   |
| Sale of Oil and Gas                                          |   | $                                | 1,756,570  |   |   | $ | 1,035,916 |   |   | $ | 3,322,353 |   |
|     Rig Income                           |   |                             | -          |   |   |   | - |   |   |   | 1,450,907 |   |
|     Partnership Income                   |   |                             | 9,056      |   |   |   | 30,000 |   |   |   | - |   |
|     Interest Income                      |   |                             | 5,851      |   |   |   | 10,295 |   |   |   | 39,273 |   |
|     Drilling and Development             |   |                             | -          |   |   |   | - |   |   |   | 2,588,650 |   |
|     Gain on Sale of Asset                |   |                             | 3,014,244  |   |   |   | 258,797 |   |   |   | - |   |
|     Other Income                         |   |                             | 83,983     |   |   |   | 112,993 |   |   |   | 723,517 |   |
|                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
| Total Revenue                                                |   | $                                | 4,869,704  |   |   | $ | 1,448,001 |   |   | $ | 8,124,700 |   |
|                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
| Costs and Expenses                                           |   |                             |       |   |   |   |   |   |   |   |   |   |
|    Mining Exploration Expenses                |   | $                                | 371,975    |   |   | $ | - |   |   | $ | 386,994 |   |
|    Production Costs                           |   |                             | 1,507,434  |   |   |   | 1,608,181 |   |   |   | 1,291,115 |   |
|    Drilling and Development                   |   |                             | -          |   |   |   | - |   |   |   | 1,815,085 |   |
|    Rig Operating Expenses                     |   |                             | -          |   |   |   | - |   |   |   | 1,109,399 |   |
|    General & Administrative               |   |                             | 6,988,195  |   |   |   | 7,071,201 |   |   |   | 9,777,850 |   |
|    Interest                                   |   |                             | 324,241    |   |   |   | 204,741 |   |   |   | 217,748 |   |
|    Investment                                 |   |                             | -          |   |   |   | 269,005 |   |   |   | 168,702 |   |
|    Depreciation, Depletion & Amortization |   |                             | 570,020    |   |   |   | 1,778,539 |   |   |   | 1,905,854 |   |
|    Stock-Based Compensation                   |   |                             | 1,742,392  |   |   |   | 521,374 |   |   |   | 745,640 |   |
|    Derivative Instruments Loss                |   |                             | 1,846,611  |   |   |   | - |   |   |   | - |   |
|    Impairment Loss                            |   |                             | 140,242    |   |   |   | 422,590 |   |   |   | 5,184,492 |   |
|    Loss on Available for Sale Securities      |   |                             | -          |   |   |   | 200,985 |   |   |   | - |   |
|    Bad Debt                                   |   |                             | 44,391     |   |   |   | 33,322 |   |   |   | - |   |
|                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
| Total Costs and Expenses                                     |   | $                                | 13,535,501 |   |   | $ | 12,109,938 |   |   | $ | 22,602,879 |   |
|                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
| Loss Before Minority Interest                                |   | $                                | (8,665,797 | ) |   | $ | (10,661,937 | ) |   | $ | (14,478,179 | ) |
| Minority Interest                                            |   |                             | -          |   |   |   | - |   |   |   | (269,005 | ) |
| Net Loss                                                     |   | $                                | (8,665,797 | ) |   | $ | (10,661,937 | ) |   | $ | (14,209,174 | ) |
|                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
| Basic Net Loss Per Share:                                    |   |                             |       |   |   |   |   |   |   |   |   |   |
|    Basic Loss Per Common Share (Note 7)       |   | $                                | (0.24      | ) |   | $ | (0.33 | ) |   | $ | (0.54 | ) |
|                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
| Weighted Average Number of Shares Outstanding                |   |                             | 36,659,198 |   |   |   | 32,629,389 |   |   |   | 26,664,682 |   |
|                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
| Weighted Potentially Dilutive Shares Outstanding             |   |                             | 39,735,217 |   |   |   | 35,159,148 |   |   |   | 29,515,887 |   |

----

|                                     |   |   |  Total |   |           |   | Common |   | Preferred |   |   | Common     |   |   | Preferred  |   |   |  Stock |   |   |     |   |   |        |   |   |     |   |   | Other         |   |   |          |   |
|------------------------------------------|--------|--------|-------------|--------|----------------|--------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|--------|----------|--------|--------|-------------|--------|--------|----------|--------|--------|---------------|--------|--------|---------------|--------|
|                                     |   |   | Common      |   |  Treasury |   | Stock  |   | Stock     |   |   | Stock      |   |   | Stock      |   |   | Options     |   |   |     |   |   | Accumulated |   |   | Treasury |   |   | Comprehensive |   |   | Stockholders' |   |
|                                     |   |   |  Stock |   |  Stock    |   | PV     |   | PV        |   |   | APIC       |   |   |  APIC |   |   | APIC        |   |   | Warrants |   |   | Deficit     |   |   | Stock    |   |   | Income        |   |   | Equity        |   |
| Balance at December 31, 2007             |   |   | 25,077,184  |   | 1,347          |   | 25,077 |   | -         |   |   | 37,090,713 |   |   | -          |   |   | 1,800,642   |   |   | 782,729  |   |   | (27,586,553 | )      |   | (13,370  | )      |   | 12,945        |   |   | 12,112,184    |   |
|                                     |   |   |        |   |           |   |   |   |      |   |   |       |   |   |       |   |   |        |   |   |     |   |   |        |   |   |     |   |   |          |   |   |          |   |
| Issuance of Common Stock                 |   |   | 2,361,183   |   | -              |   | -      |   |      |   |   | 10,815,816 |   |   |       |   |   | -           |   |   |     |   |   | -           |   |   | -        |   |   | -             |   |   | 10,815,816    |   |
| Stock Issuance Costs                     |   |   | -           |   | -              |   | 2,361  |   | -         |   |   | (1,348,176 | )      |   | -          |   |   | -           |   |   | -        |   |   | -           |   |   | -        |   |   | -             |   |   | (1,345,815    | )      |
| Warrants (see Note 11)                   |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | -           |   |   | (421,887 | )      |   | -           |   |   | -        |   |   | -             |   |   | (421,887      | )      |
| Stock Based Compensation (see Note 6)    |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | 69,355      |   |   | -        |   |   | -           |   |   | -        |   |   | -             |   |   | 69,355        |   |
| Unrealized Gain on Marketable Securities |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | -           |   |   | -        |   |   | -           |   |   | -        |   |   | (204,254      | )      |   | (204,254      | )      |
| (Net of Tax $123,079)                    |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | -           |   |   | -        |   |   | -           |   |   | -        |   |   | -             |   |   | -             |   |
| Net Loss                                 |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | -           |   |   | -        |   |   | (14,209,173 | )      |   |     |   |   |          |   |   | (14,209,173   | )      |
| Balance at December 31, 2008             |   |   | 27,438,367  |   | 1,347          |   | 27,438 |   | -         |   |   | 46,558,353 |   |   | -          |   |   | 1,869,997   |   |   | 360,842  |   |   | (41,795,726 | )      |   | (13,370  | )      |   | (191,309      | )      |   | 6,816,226     |   |
|                                     |   |   |        |   |           |   |   |   |      |   |   |       |   |   |       |   |   |        |   |   |     |   |   |        |   |   |     |   |   |          |   |   |          |   |
| Issuance of Common Stock                 |   |   | 5,752,095   |   | -              |   | -      |   | -         |   |   | 6,045,360  |   |   | -          |   |   | -           |   |   | -        |   |   | -           |   |   | -        |   |   | -             |   |   | 6,045,360     |   |
| Stock Issuance Costs                     |   |   | -           |   | -              |   | 5,752  |   | -         |   |   | (1,134,485 | )      |   | -          |   |   | -           |   |   | -        |   |   | -           |   |   | -        |   |   | -             |   |   | (1,128,733    | )      |
| Warrants (see Note 11)                   |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | -           |   |   | (360,842 | )      |   | -           |   |   | -        |   |   | -             |   |   | (360,842      | )      |
| Stock Based Compensation (see Note 6)    |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | 559,725     |   |   | -        |   |   | -           |   |   | -        |   |   | -             |   |   | 559,725       |   |
| Unrealized Gain on Marketable Securities |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | -           |   |   | -        |   |   | -           |   |   | -        |   |   | 191,309       |   |   | 191,309       |   |
| Net Loss                                 |   |   | -           |   | -              |   | -      |   | -         |   |   | -          |   |   | -          |   |   | -           |   |   | -        |   |   | (10,661,940 | )      |   | -        |   |   | -             |   |   | (10,661,940   | )      |
| Balance at December 31, 2009             |   |   | 33,190,462  |   | 1,347          |   | 33,190 |   | -         |   |   | 51,469,228 |   |   | -          |   |   | 2,429,722   |   |   | -        |   |   | (52,457,665 | )      |   | (13,370  | )      |   | -             |   |   | 1,461,105     |   |

----

|                                                     |   | Total  |       |     |   | Common |   | Preferred |   | Common |   | Preferred  |   |   |  Stock |   |     |      |        |   |       |     |   |        | Other         |   |    |          |   |
|----------------------------------------------------------|--------|--------|------------|----------|--------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|-------------|--------|----------|-----------|-------------|--------|------------|----------|--------|-------------|---------------|--------|---------|---------------|--------|
|                                                     |   | Common |       | Treasury |   | Stock  |   | Stock     |   | Stock  |   | Stock      |   |   | Options     |   |     |      | Accumulated |   |       | Treasury |   |        | Comprehensive |   |    | Stockholders' |   |
|                                                     |   | Stock  |       | Stock    |   | PV     |   | PV        |   | APIC   |   | APIC       |   |   | APIC        |   | Warrants |      | Deficit     |   |       | Stock    |   |        | Income        |   |    | Equity        |   |
| Issuance of Common Stock and Series C Warrants           |   |   | 5,162,847  |     | -      |   | 5,164  |      | -      |   |   | 3,972,517  |   |   | -           |   |     | -         |        |   | 1,131,078  |     |   | -           |          |   | -       |          |   | - |   |   | 5,108,759 |   |
| Issuance of Preferred Stock                              |   |   |       |     |   |   | -      |      | 439    |   |   |       |   |   | 4,384,561   |   |     |      |        |   | -          |     |   |        |          |   |    |          |   |   |   |   | 4,385,000 |   |
| Stock Rescission                                         |   |   | -          |     | 20,500 |   | -      |      | -      |   |   | -          |   |   | -           |   |     | -         |        |   | -          |     |   | -           |          |   | (25,000 | )             |   | - |   |   | (25,000 | ) |
| Stock Issuance Costs                                     |   |   | -          |     | -      |   |   |      | -      |   |   | (534,789   | )      |   | -           |   |     | -         |        |   | (84,491    | )        |   | -           |          |   | -       |          |   | - |   |   | (619,280 | ) |
| Exercise of Series C Warrants                            |   |   | 2,400,808  |     | -      |   | 2,401  |      | -      |   |   | 1,046,587  |   |   |        |   |     | -         |        |   | (1,046,587 | )        |   |        |          |   |    |          |   |   |   |   | 2,401 |   |
| Exchange of Series A, B and C Warrants for Common Shares |   |   | 3,975,000  |     | -      |   | 3,975  |      | -      |   |   | 2,774,289  |   |   | -           |   |     | -         |        |   |       |     |   | -           |          |   | -       |          |   | - |   |   | 2,778,264 |   |
| Warrants Issued for Services (see Note 11)               |   |   | -          |     | -      |   | -      |      |   |   |   | -          |   |   | -           |   |     |      |        |   | 1,350,678  |     |   | -           |          |   | -       |          |   | - |   |   | 1,350,678 |   |
| Stock Based Compensation (see Note 6)                    |   |   | -          |     | -      |   | -      |      | -      |   |   | -          |   |   | -           |   |     | 377,223   |        |   |       |     |   | -           |          |   | -       |          |   | - |   |   | 377,223 |   |
| Unrealized Gain on Marketable Securities                 |   |   | -          |     | -      |   | -      |      | -      |   |   | -          |   |   | -           |   |     | -         |        |   |       |     |   | -           |          |   | -       |          |   | - |   |   | - |   |
| Net Loss                                                 |   |   | -          |     | -      |   | -      |      | -      |   |   | -          |   |   | -           |   |     | -         |        |   |       |     |   | (8,665,797  | )             |   | -       |          |   | - |   |   | (8,665,797 | ) |
| Balance at December 31, 2010                             |   |   | 44,729,117 |     | 21,847 |   | 44,730 |      | 439    |   |   | 58,727,832 |   |   | 4,384,561   |   |     | 2,806,945 |        |   | 1,350,678  |     |   | (61,123,462 | )             |   | (38,370 | )             |   | - |   |   | 6,153,353 |   |

----

|                                                                                            |   | For the Years Ended December 31, |       |
|-------------------------------------------------------------------------------------------------|--------|----------------------------------|------------|
|                                                                                            |   | 2010(Restated)                   |       |   | 2009 |   |   | 2008 |   |
| Cash Flows from Operating Activities                                                            |   |                             |       |   |   |   |   |   |   |
|    Net Loss                                                                      |   | $                                | (8,665,797 | ) |   | $ | (10,661,937 | ) |   | $ | (14,209,174 | ) |
| Adjustments to Reconcile Net Loss to Net Cash                                                   |   |                             |       |   |   |   |   |   |   |   |   |   |
| Provided (Used) by Operating Activities                                                         |   |                             |       |   |   |   |   |   |   |   |   |   |
|    Depreciation, Depletion & Amortization                                    |   |                             | 570,020    |   |   |   | 1,778,539 |   |   |   | 1,905,854 |   |
|    Impairment, Dry Hole & Other Disposals of Property                        |   |                             | 140,242    |   |   |   | 422,590 |   |   |   | 5,184,492 |   |
|    Minority Interest                                                             |   |                             | -          |   |   |   | - |   |   |   | (269,005 | ) |
|    Loss on Buyback of Minority Interest                                          |   |                             | -          |   |   |   | - |   |   |   | 168,702 |   |
|    Stock -Based Compensation                                                     |   |                             | 1,742,392  |   |   |   | 521,374 |   |   |   | 745,640 |   |
|    Unrealized (Gain) or Loss on Derivative Instruments                           |   |                             | 1,846,611  |   |   |   | - |   |   |   | (374,867 | ) |
|    Marketable Securities                                                         |   |                             | -          |   |   |   | - |   |   |   | - |   |
|    (Gain) or Loss on Sale of Property                                            |   |                             | (3,014,243 | ) |   |   | (258,797 | ) |   |   | (773,565 | ) |
|    Bad Debt Expense                                                              |   |                             | 44,391     |   |   |   | 33,322 |   |   |   | - |   |
|    Director Stock Compensation                                                   |   |                             | 95,640     |   |   |   | 23,400 |   |   |   | 93,480 |   |
| Changes in Operating Capital                                                                    |   |                             |       |   |   |   |   |   |   |   |   |   |
|    (Increase) in Accounts Receivable                                             |   |                             | (156,934   | ) |   |   | 846,048 |   |   |   | (711,743 | ) |
|    (Increase) in Prepaid Expenses                                                |   |                             | (598,889   | ) |   |   | (4,860 | ) |   |   | - |   |
|    (Increase) in Deposits & Other Assets                                     |   |                             | (153,920   | ) |   |   | (49,887 | ) |   |   | 222,359 |   |
|    Increase in Accounts Payable, Deferred Revenue & Accrued Expenses         |   |                             | 925,299    |   |   |   | 2,960,272 |   |   |   | (2,088,814 | ) |
|    Increase in Amounts Payable to Joint Venture Partners                         |   |                             | -          |   |   |   | 4,160,134 |   |   |   | 630,754 |   |
|    Decrease in Accounts Receivable from Joint Venture Partners                   |   |                             | (2,033,892 | ) |   |   | (2,516,338 | ) |   |   | (7,660,681 | ) |
|                                                                                            |   |                             |       |   |   |   |   |   |   |   |   |   |
| Net Cash (Used) by Operating Activities                                                         |   |                             | (9,259,080 | ) |   |   | (2,746,140 | ) |   |   | (17,136,568 | ) |
|                                                                                            |   |                             |       |   |   |   |   |   |   |   |   |   |
| Cash Provided (Used) by Investing Activities                                                    |   |                             |       |   |   |   |   |   |   |   |   |   |
|    Proceeds from the Sale of Property                                            |   |                             | 6,919,311  |   |   |   | 287,084 |   |   |   | 7,388,654 |   |
|    Buyback of Minority Interest in Great Valley Drilling/Great Valley Production |   |                             | -          |   |   |   | (3,334,595 | ) |   |   | (418,647 | ) |
|    Proceeds from the Sale of Marketable Securities                               |   |                             | -          |   |   |   | 146,071 |   |   |   | 79,998 |   |
|    Capital Expenditures                                                          |   |                             | (1,992,831 | ) |   |   | (465,153 | ) |   |   | (7,306,831 | ) |
|    (Investment in) Marketable Securities                                         |   |                             | -          |   |   |   | 200,985 |   |   |   | - |   |
|    Decrease in Accounts Receivable from Joint Venture Partners                   |   |                             | 562,500    |   |   |   |   |   |   |   |   |   |
| Net Cash Provided (Used) by Investing Activities                                                |   |                             | 5,488,980  |   |   |   | (3,165,608 | ) |   |   | (256,826 | ) |

----

|                                                                                                 |   | For the Years Ended December 31, |          |
|------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------------|
|                                                                                                 |   | 2010(Restated)                   |          |   | 2009 |   |   | 2008 |   |
| Cash Provided by Financing Activities                                                                |   |                             |          |   |   |   |   |   |   |
|    Principal Payments on Long-Term Debt                                               |   |                             | (1,245,563    | ) |   |   | (392,249 | ) |   |   | (530,328 | ) |
|    Net Proceeds from the Sale of Minority Interest                                    |   |                             | -             |   |   |   | - |   |   |   | 3,603,600 |   |
|    Sale or (Purchase) of Treasury Stock                                               |   |                             | (25,000       | ) |   |   | - |   |   |   | - |   |
|    Net Proceeds from the Issuance of Stock Options                                    |   |                             | 2,198         |   |   |   | 21,500 |   |   |   | 39,150 |   |
|    Net Proceeds from the Issuance of Common Stock                                     |   |                             | 5,328,687     |   |   |   | 4,572,636 |   |   |   | 8,614,066 |   |
|                                                                                                 |   |                             |          |   |   |   |   |   |   |   |   |   |
| Net Cash Provided by Financing Activities                                                            |   |                             | 4,060,322     |   |   |   | 4,201,887 |   |   |   | 11,726,488 |   |
|                                                                                                 |   |                             |          |   |   |   |   |   |   |   |   |   |
| Net Increase in Cash & Cash Equivalents                                                          |   |                             | 290,222       |   |   |   | (1,709,861 | ) |   |   | (5,666,906 | ) |
|                                                                                                 |   |                             |          |   |   |   |   |   |   |   |   |   |
| Cash at the Beginning Year                                                                           |   |                             | 290,926       |   |   |   | 2,000,787 |   |   |   | 7,667,693 |   |
|                                                                                                 |   |                             |          |   |   |   |   |   |   |   |   |   |
| Cash at End of Year                                                                                  |   | $                                | 581,148       |   |   | $ | 290,926 |   |   | $ | 2,000,787 |   |
|                                                                                                 |   |                             |          |   |   |   |   |   |   |   |   |   |
| Supplemental Schedule of Noncash Transactions                                                        |   |                             |          |   |   |   |   |   |   |   |   |   |
|    Issuance of Preferred Stock Upon Conversion of Note Payable                        |   | $                                |  850,000 |   |   |   | - |   |   |   | - |   |
|    Issuance of Preferred Stock Upon Conversion of Interest in Great Valley Production |   |                             |          |   |   |   | - |   |   |   | - |   |
|    Services, LLC                                                                           |   |                             | 3,535,000     |   |   |   | - |   |   |   | - |   |
| Total Noncash Transactions                                                                           |   | $                                | 4,385,000     |   |   | $ | - |   |   | $ |  - |   |
|                                                                                                 |   |                             |          |   |   |   |   |   |   |   |   |   |
|    Interest Paid                                                                      |   | $                                | 324,241       |   |   | $ | 204,741 |   |   | $ | 217,748 |   |

----

|   | ● | Tri-Valley Oil & Gas Co. (“TVOG”) — conducts our hydrocarbon (crude oil and natural gas) business.  TVOG derives its principal revenue from crude oil and natural gas production. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Select Resources Corporation, Inc. (“Select”) — holds and maintains our precious metals business.  Select holds and develops two major mineral assets in the State of Alaska. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Tri-Valley's businesses are organized into four operating segments: |
|---------------------------------------------------------------------|
|                                                                |   |
| -                                                                   | Oil and Gas Operations — This segment represents our oil and gas business.  During 2010, this segment generated virtually all of the Company’s revenues from operations. |
|                                                                |   |
| -                                                                   | Rig Operations — This segment consists of drilling rig operations. |
|                                                                |   |
| -                                                                   | Minerals — This segment represents our precious metal mineral prospects.  In the past, it has generated revenues from pilot-scale mining projects and subcontracting exploration and business development projects.  This segment holds title to land or leases in the State of Alaska. |
|                                                                |   |
| -                                                                   | Drilling and Development — This segment includes revenue received from crude oil and natural gas drilling and development operations performed for joint venture partners. |

----

----

| CONSOLIDATED BALANCE SHEET                                                                |   | As of December 31, 2010 |        |
|-------------------------------------------------------------------------------------------|--------|-------------------------|-------------|
|                                                                                      |   | As Previously Reported  |        |   | As Restated |   |
| Property and Equipment - Net                                                              |   |                    |        |   |   |   |
|   Other Property and Equipment                                                  |   |                    | 2,248,162   |   |   |   | 2,810,662 |   |
| Other Assets                                                                              |   |                    |        |   |   |   |   |   |
|   Long-Term Receivable from Joint Venture Partners                              |   |                    | 2,392,817   |   |   |   | 1,830,317 |   |
| Stockholders’ Equity                                                                |   |                    |        |   |   |   |   |   |
|   Capital in Excess of Par Value                                                |   |                    | 66,444,315  |   |   |   | 63,112,393 |   |
|   Warrants (previously reported as Additional Paid in Capital – Warrants) |   |                    | 2,868,034   |   |   |   | 1,350,678 |   |
|   Accumulated Deficit                                                           |   |                    | (65,972,740 | ) |   |   | (61,123,462 | ) |

| CONSOLDIATED STATEMENT OF OPERATIONS                                               |   | For the Year EndedDecember 31, 2010 |        |
|------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                                               |   | As Previously Reported              |        |   | As Restated |   |
| Costs and Expenses                                                                 |   |                                |        |   |   |   |
|   General & Administrative                                           |   |                                | 7,607,475   |   |   |   | 6,988,195 |   |
|   Stock-Based Compensation (previously reported as Stock Option Expense) |   |                                | 391,718     |   |   |   | 1,742,392 |   |
|   Warrant Expense                                                        |   |                                | 7,427,283   |   |   |   | - |   |
|   Derivative Instruments Loss                                            |   |                                | -           |   |   |   | 1,846,611 |   |
| Total Costs and Expenses                                                           |   |                                | 18,384,779  |   |   |   | 13,535,501 |   |
| Loss Before Minority Interest                                                      |   |                                | (13,515,075 | ) |   |   | (8,665,797 | ) |
| Net Loss                                                                           |   |                                | (13,515,075 | ) |   |   | (8,665,797 | ) |
| Basic Loss Per Common Share                                                        |   | $                                   | (0.37       | ) |   | $ | (0.24 | ) |

| CONSOLDIATED STATEMENT OF CASH FLOWS                                                        |   | For the Year EndedDecember 31, 2010 |        |
|---------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------|
|                                                                                        |   | As Previously Reported              |        |   | As Restated |   |
| Cash Flows from Operating Activities                                                        |   |                                |        |   |   |   |
|   Net loss                                                                        |   |                                | (13,515,075 | ) |   |   | (8,665,797 | ) |
|   Stock-Based Compensation (previously reported as Stock Option Issuance Expense) |   |                                | 391,718     |   |   |   | 1,742,392 |   |
|   Warrant Expense                                                                 |   |                                | 7,427,284   |   |   |   | - |   |
|   Unrealized Loss on Derivative Instruments                                       |   |                                | -           |   |   |   | 1,846,611 |   |
| Net Cash (Used) by Operating Activities                                                     |   |                                | (9,878,360  | ) |   |   | (9,259,080 | ) |
| Cash Provided (Used) by Investing Activities                                                |   |                                |        |   |   |   |   |   |
|   Capital Expenditures                                                            |   |                                | (1,430,331  | ) |   |   | (1,992,831 | ) |
|   Decrease in Accounts Receivable from Joint Venture Partners                     |   |                                | -           |   |   |   | 562,500 |   |
| Cash Flows from Financing Activities                                                        |   |                                |        |   |   |   |   |   |
|   Net Proceeds from the Issuance of Common Stock                                  |   |                                | 5,947,966   |   |   |   | 5,328,687 |   |
| Net Cash Provided by Financing Activities                                                   |   |                                | 4,679,601   |   |   |   | 4,060,323 |   |

----

----

----

----

| Office Furniture and Fixtures      | 3 – 7 Years  |
|------------------------------------|--------------------|
| Vehicles, Machinery, and Equipment | 5 – 10 Years |
| Building                           | 15 Years           |

----

|                                                                       |        |   | December 31, |       |   | December 31, |   |        | December 31, |   |
|----------------------------------------------------------------------------|-------------|--------|--------------|------------|--------|--------------|--------|-------------|--------------|--------|
|                                                                       |        |   | 2010         |       |   | 2009         |   |        | 2008         |   |
| Net Loss                                                                   | As Reported |   |         | (8,665,797 | )      |         |   | (10,661,937 | )            |   |   | (14,209,174 | ) |
| Add: Stock-based compensation expense included in reported                 |        |   |         |       |   |         |   |        |         |   |   |   |   |
|    net income, net of tax benefit:                          |        |   |         | 1,742,392  |   |         |   | 521,374     |         |   |   | 745,640 |   |
| Deduct: Stock-based compensation expense determined under                  |        |   |         |       |   |         |   |        |         |   |   |   |   |
|     fair value based method for all awards, net of tax |        |   |         | (1,742,392 | )      |         |   | (521,374    | )            |   |   | (745,640 | ) |
|                                                                       | Pro forma   |   |         | (8,665,797 | )      |         |   | (10,661,937 | )            |   |   | (14,209,173 | ) |
|                                                                       |        |   |         |       |   |         |   |        |         |   |   |   |   |
|                                                                       |        |   |         |       |   |         |   |        |         |   |   |   |   |
| Earnings Per Share                                                         | As Reported |   |         | (0.24      | )      |         |   | (0.33       | )            |   |   | (0.54 | ) |
|                                                                       | Pro forma   |   |         | (0.24      | )      |         |   | (0.33       | )            |   |   | (0.54 | ) |

----

----

| Property and Equipment consist of the following: |   |                                                                    |   |   |       |   |
|--------------------------------------------------|--------|-------------------------------------------------------------------------|--------|--------|------------|--------|
|                                             |   |                                                                    |   |   |       |   |   |   |
|                                             |   |                                                                    |   | 2010   |       |   | 2009 |   |
|                                             |   | Oil and Gas - California                                                |   |   |       |   |   |   |
|                                             |   |    Proved Properties, Gross                              |   | $      | 2,450,537  |   |   | $ | 1,071,216 |   |
|                                             |   |    Accumulated Depletion                                 |   |   | (1,214,605 | )      |   |   | (1,045,951 | ) |
|                                             |   |    Proved Properties, Net                                |   |   | 1,235,932  |   |   |   | 25,265 |   |
|                                             |   |    Unproved Properties                                   |   |   | 1,781,069  |   |   |   | 1,551,998 |   |
|                                             |   |      Total Oil and Gas Properties              |   | $      | 3,017,001  |   |   | $ | 1,577,263 |   |
|                                             |   |                                                                    |   |   |       |   |   |   |   |   |
|                                             |   | Other Property and Equipment                                            |   |   |       |   |   |   |   |   |
| 1                                                |   |    Land                                                  |   |   | 227,826    |   |   |   | 21,281 |   |
| 2                                                |   |    Building                                              |   |   | 45,124     |   |   |   | 45,124 |   |
| 3                                                |   |    Machinery & Equipment                             |   |   | 2,742,212  |   |   |   | 7,698,587 |   |
| 4                                                |   |    Rig                                                   |   |   | 2,170,410  |   |   |   | 2,170,410 |   |
| 5                                                |   |    Vehicles                                              |   |   | 634,514    |   |   |   | 890,272 |   |
| 6                                                |   |    Transmission Tower                                    |   |   | -          |   |   |   | - |   |
| 7                                                |   |    Office Furniture and Equipment                        |   |   | 273,279    |   |   |   | 154,816 |   |
|                                             |   |      Total Other Property and Equipment, Gross |   |   | 6,093,365  |   |   |   | 10,980,490 |   |
|                                             |   |    Accumulated Depreciation                              |   |   | (2,391,013 | )      |   |   | (4,377,348 | ) |
|                                             |   |      Total Other Property and Equipment, Net   |   |   | 3,702,352  |   |   |   | 6,603,142 |   |
|                                             |   |                                                                    |   |   |       |   |   |   |   |   |
|                                             |   | Property and Equipment, Net                                             |   | $      | 6,719,353  |   |   | $ | 8,180,405 |   |

----

|  NOTE 5 - NOTES PAYABLE                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                         |   | 2010   |    |   | 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |
| Note payable to Rabobank dated October 5, 2005.  The note is secured by a vehicle at an interest rate of 6.5%, payable in 60 monthly installments of $599.                                                                                                                                                                                                         |   | $      | -       |   |   | $ | 5,813 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Note payable to Jim Burke Ford dated November 18, 2005; secured by a vehicle; interest at 6.49%; payable in 60 monthly installments of $714.                                                                                                                                                                                                                                 |   |   | 5,700   |   |   |   | 7,602 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Note payable to Sealaska Corporation dated July 15, 2005; secured by mining machines and equipment; imputed interest at 7.5%; payable in 10 yearly installments of $200,000. Face amount was $2,000,000 before the imputed interest discount of $627,184 which resulted in a principal amount of $1,372,816.                                                                 |   |   | -       |   |   |   | 944,551 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Note payable to Three Way Chevrolet dated April 03, 2006; secured by a vehicle; interest at 5.90%; payable in 60 monthly installments of $577.                                                                                                                                                                                                                               |   |   | -       |   |   |   | 8,865 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Note payable to Moss Family Trust dated February 14, 2006; secured by 200,000 shares of Tri Valley corporation unregistered restricted common stock; interest at 12.00%; payable in 60 monthly installments of $13,747.                                                                                                                                                      |   |   | 40,430  |   |   |   | 190,604 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Note payable to Moss Family Trust dated March 8, 2006; secured by 80,000 shares of Tri Valley corporation unregistered restricted common stock; interest at 12.00%; payable in 60 monthly installments of $5,728                                                                                                                                                             |   |   | 16,846  |   |   |   | 79,418 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Note payable to Three Way Chevrolet dated January 22, 2007; secured by a vehicle; interest at 6.90%; payable in 60 monthly installments of $622.                                                                                                                                                                                                                             |   |   | 7,593   |   |   |   | 14,450 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Note payable to Gary D. Borgna and Julie R. Borgna, and Equipment 2000 dated December 30, 2006; secured by Rig Equipment; imputed interest at 8.00%; payable in 120 monthly installments of $9,100 and a payment of $300,000 paid January 3, 2007.  Face amount was $1,392,000 before the discount of $342,000 which resulted in a principal amount of $1,050,000. |   |   | 518,999 |   |   |   | 583,828 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Total Debt at December 31, 2010                                                                                                                                                                                                                                                                                                                                              |   |   | 589,568 |   |   |   | 1,835,131 |   |
| Less Current Portion                                                                                                                                                                                                                                                                                                                                                         |   |   | 134,322 |   |   |   | 439,482 |   |
| Long-Term Portion of Notes Payable                                                                                                                                                                                                                                                                                                                                           |   | $      | 455,246 |   |   | $ | 1,395,649 |   |
|                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Maturities of long-term debt for the years subsequent to December 31, 2010, are as follow:                                                                                                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |

|   |            |                                                         |
|--------|-----------------|--------------------------------------------------------------|
|   | 2011            |        134,322            |
|   | 2012            |          82,061 |
|   | 2013            |          82,792 |
|   | 2014            |          89,189 |
|   |  2015-2016 |        201,204            |
|   |            | $                                                       |   |   |      589,568 |

----

| Year |   | Expected Life |   | Expected Dividend |   | Expected Volatility |   | Risk-Free Interest Rate |
|------|--------|---------------|--------|-------------------|--------|---------------------|--------|-------------------------|
| 2010 |   | 5.00          |   | None              |   | 148%                |   | 2.42%                   |

----

|                     |         |   |                                   |   |      |                                                          |   |                                       |      |                           |      |   |                                                   |   |
|--------------------------|--------------|--------|----------------------------------------|--------|-----------|---------------------------------------------------------------|--------|--------------------------------------------|-----------|--------------------------------|-----------|--------|--------------------------------------------------------|--------|
| Range of Exercise Prices |         |   | Number Outstandingat December 31, 2010 |   |      | Number Outstanding & exercisableat December 31, 2010 |   | Weighted-AverageRemaining Contractual Life |      | Weighted-AverageExercise Price |      |   | Intrinsic Value (1) at December 31, 2010(in thousands) |   |
|                     |         |   |                                   |   |      |                                                          |   |                                       |      |                           |      |   |                                                   |   |
| $                        | .54 - $10.00 |   |                                   |   | 2,570,500 |                                                          |   |                                       | 2,042,250 |                           | 3.8 years |   | $                                                      | 2.97   |   |   | $ | 13 |   |
|                     |         |   |                                   |   |      |                                                          |   |                                       |      |                           |      |   |                                                   |   |   |   |   |   |   |

|                     |         |   |                                   |   |      |                                                          |   |                                       |      |                           |      |   |                                                   |   |
|--------------------------|--------------|--------|----------------------------------------|--------|-----------|---------------------------------------------------------------|--------|--------------------------------------------|-----------|--------------------------------|-----------|--------|--------------------------------------------------------|--------|
| Range of Exercise Prices |         |   | Number Outstandingat December 31, 2009 |   |      | Number Outstanding & exercisableat December 31, 2009 |   | Weighted-AverageRemaining Contractual Life |      | Weighted-AverageExercise Price |      |   | Intrinsic Value (1) at December 31, 2009(in thousands) |   |
|                     |         |   |                                   |   |      |                                                          |   |                                       |      |                           |      |   |                                                   |   |
| $                        | .50 - $10.00 |   |                                   |   | 2,490,500 |                                                          |   |                                       | 1,849,000 |                           | 3.8 years |   | $                                                      | 3.89   |   |   | $ | 826 |   |
|                     |         |   |                                   |   |      |                                                          |   |                                       |      |                           |      |   |                                                   |   |   |   |   |   |   |

|                     |         |   |                                    |   |      |                                                           |   |                                       |      |                            |      |   |                                                   |   |
|--------------------------|--------------|--------|-----------------------------------------|--------|-----------|----------------------------------------------------------------|--------|--------------------------------------------|-----------|---------------------------------|-----------|--------|--------------------------------------------------------|--------|
| Range of Exercise Prices |         |   | Number Outstanding at December 31, 2008 |   |      | Number Outstanding & exercisable at December 31, 2008 |   | Weighted-AverageRemaining Contractual Life |      | Weighted-Average Exercise Price |      |   | Intrinsic Value (1) at December 31, 2008(in thousands) |   |
|                     |         |   |                                    |   |      |                                                           |   |                                       |      |                            |      |   |                                                   |   |
| $                        | .50 - $10.00 |   |                                    |   | 2,405,350 |                                                           |   |                                       | 1,860,350 |                            | 3.5 years |   | $                                                      | 3.49   |   |   | $ | 590 |   |
|                     |         |   |                                    |   |      |                                                           |   |                                       |      |                            |      |   |                                                   |   |   |   |   |   |   |

----

|                                                |   | 2010   |        |   | 2009     |   |      | 2008   |   |
|-----------------------------------------------------|--------|--------|-------------|--------|----------|--------|-----------|--------|--------|
|                                                |   |   |        |   | Weighted |   |      |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                |   |   |        |   | Average  |   |      |   |   |   | Average |   |   |   |   |   | Average |   |
|                                                |   |   |        |   | Exercise |   |      |   |   |   | Exercise |   |   |   |   |   | Exercise |   |
|                                                |   | Shares |        |   | Price    |   |      | Shares |   |   | Price |   |   | Shares |   |   | Price |   |
| Stock Options                                       |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |   |   |
|    Outstanding at beginning of year: |   |   | 2,490,500   |   |     | $      | 3.93      |   |   |   | 2,405,350 |   |   | $ | 4.37 |   |   |   | 2,967,350 |   |   | $ | 3.50 |   |
|    Granted                           |   |   | 1,405,000   |   |     | $      | 1.30      |   |   |   | 595,000 |   |   | $ | 1.52 |   |   |   | 350,000 |   |   | $ | 6.06 |   |
|    Exercised                         |   |   | (77,000)    |   |     | $      | 1.75      |   |   |   | (63,000) |   |   | $ | 0.69 |   |   |   | (796,000) |   |   | $ | 1.29 |   |
|    Forfeited                         |   |   | (1,248,000) |   |     | $      | 3.07      |   |   |   | (446,850) |   |   | $ | 3.56 |   |   |   | (116,000) |   |   | $ | 8.41 |   |
|                                                |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding at  year’s end          |   |   | 2,570,500   |   |     | $      | 2.97      |   |   |   | 2,490,500 |   |   | $ | 3.93 |   |   |   | 2,405,350 |   |   | $ | 4.37 |   |
|                                                |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at year’s end             |   |   | 2,042,250   |   |     | $      | 3.01      |   |   |   | 1,849,000 |   |   | $ | 3.89 |   |   |   | 1,860,850 |   |   | $ | 3.49 |   |
|                                                |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average fair value of                      |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| options granted during the year:                    |   |   |        |   |     | $      | 1.16      |   |   |   |   |   |   | $ | 1.11 |   |   |   |   |   |   | $ | 1.89 |   |
|                                                |   |   |        |   |     |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for issuance                              |   |   |        |   |     |   | 1,192,350 |   |   |   |   |   |   |   | 1,349,350 |   |   |   |   |   |   |   | 1,597,500 |   |

|                            |   |             |       |   |                                   |   |
|---------------------------------|--------|------------------|------------|--------|----------------------------------------|--------|
|                            |   | Number of Shares |       |   | Weighted-Average Grant-Date Fair Value |   |
| Non-Vested at January 1, 2010   |   |             | 639,000    |   |                                   | $      | 1.84 |   |
| Granted                         |   |             | 1,345,000  |   |                                   | $      | 1.13 |   |
| Vested                          |   |             | (1,390,750 | )      |                                   | $      | 1.28 |   |
| Forfeited                       |   |             | (65,000    | )      |                                   | $      | 1.73 |   |
| Non-Vested at December 31, 2010 |   |             | 528,250    |   |                                   | $      | 1.52 |   |

----

|                                                                                                                                               |   | December 31, |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|
|                                                                                                                                               |   | 2010         |   | 2009 |   | 2008 |
| Drilling and Development Revenue                                                                                                                   |   | $            | - |   |   | $ | - |   |   | $ | 2,588,650 |   |
|                                                                                                                                               |   |         |   |   |   |   |   |   |   |   |   |   |
| Drilling and Development Costs                                                                                                                     |   | $            | - |   |   | $ | - |   |   | $ | 1,815,085 |   |
|                                                                                                                                               |   |         |   |   |   |   |   |   |   |   |   |   |
| Oil and gas income from the Tri-Valley Oil & Gas Exploration programs 1971-1 for fiscal year-ended December 31, 2010, 2009, and 2008, follows: |   |         |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                               |   |         |   |   |   |   |   |   |   |   |   |   |
| Partnership Income, Net of Expenses                                                                                                                |   | $            | 9,056 |   |   | $ | 30,000 |   |   | $ | - |   |

|       |   | Full Year Basic |   | Weighted       |              | Weighted Average     |              |
|------------|--------|-----------------|--------|----------------|-------------------|----------------------|-------------------|
|       |   | Earnings (Loss) |   | Average Shares |              | Potentially Dilutive |              |
|  Year |   | Per Share       |   | Outstanding    |              | Shares Outstanding   |              |
| 2010       |   | $               | (0.24) |           |   36,659,198 |                 |   39,735,217 |   |
| 2009       |   | $               | (0.33) |           |   32,629,389 |                 |   35,159,148 |   |
| 2008       |   | $               | (0.54) |           |   26,664,682 |                 |   29,515,887 |   |

----

|  The components of deferred tax assets at December 31, 2010, 2009, and 2008 are composed of: |   |         |         |   |
|---------------------------------------------------------------------------------------------------|--------|--------------|--------------|--------|
|                                                                                              |   |         |         |   |   |   |   |   |   |
|                                                                                              |   | December 31, |         |   | December 31, |   |   | December 31, |   |
|                                                                                              |   | 2010         |         |   | 2009 |   |   | 2008 |   |
| Net operating  loss carry forwards                                                      |   |         | 21,967,403   |   |   |   | 19,741,824 |   |   |   | 14,813,815 |   |
| Statutory depletion carry forwards                                                                |   |         | 581,930      |   |   |   | 531,400 |   |   |   | 684,835 |   |
| Unrealized loss on investment available for sale                                                  |   |         | -            |   |   |   | - |   |   |   | 123,079 |   |
|                                                                                              |   |         | 22,549,333   |   |   |   | 20,273,224 |   |   |   | 15,621,729 |   |
|                                                                                              |   |         |         |   |   |   |   |   |   |   |   |   |
| Less: deferred tax asset valuation allowance                                                      |   |         | (22,549,333) |   |   |   | (20,273,224) |   |   |   | (15,498,650) |   |
|                                                                                              |   |         |         |   |   |   |   |   |   |   |   |   |
| Net deferred tax assets                                                                           |   | $            | -            |   |   | $ | - |   |   | $ | 123,079 |   |

| The Company’s businesses are classified into four operating segments: |
|-----------------------------------------------------------------------------|
|                                                                        |   |
| -                                                                           | Oil and Gas Operations — This segment represents our oil and gas business.  During 2010, this segment generated virtually all of the Company’s revenues from operations. |
|                                                                        |   |
| -                                                                           | Rig Operations — This segment consists of drilling rig operations. |
|                                                                        |   |
| -                                                                           | Minerals — This segment represents our precious metal mineral prospects.  In the past, it has generated revenues from pilot-scale mining projects and subcontracting exploration and business development projects.  This segment holds title to land or leases in the State of Alaska. |
|                                                                        |   |
| -                                                                           | Drilling and Development — This segment includes revenue received from crude oil and natural gas drilling and development operations performed for joint venture partners. |
|                                                                        |   |

----

|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   | Non -     |      |   |   |   |
|---------------------------------------------------------------------------------|--------|-------------|------------|--------|------------|--------|-----------|----------|--------|--------|--------------|--------------|--------|-----------|-----------|--------|--------|--------|
|                                                                            |   | Oil and Gas |       |   | Rig        |   |      |     |   |   | Drilling and |         |   | Segmented |      |   |   |   |
|                                                                            |   | Production  |       |   | Operations |   |      | Minerals |   |   | Development  |         |   | Items     |      |   | Total  |   |
|  Year Ended December 31, 2010:                                             |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |
|       Revenue                                     |   |        | 1,756,570  |   |       |   | -         |     |   |   | -            |         |   |      | -         |   |   |   | 3,113,134 |   |   |   | 4,869,704 |   |
|       Interest Expense                            |   |        | 42,200     |   |       |   | -         |     |   |   | 229,600      |         |   |      | 52,441    |   |   |   | - |   |   |   | 324,241 |   |
|       Operating Income (Loss)                     |   |        | 253,135    |   |       |   | -         |     |   |   | (636,000     | )            |   |      | (495,000  | )      |   |   | (7,787,932 | ) |   |   | (8,665,797 | ) |
|       Expenditures for Segment Assets:            |   |        | -          |   |       |   | -         |     |   |   | -            |         |   |      | -         |   |   |   | - |   |   |   | - |   |
|       Depreciation, Depletion, & Amortization |   |        | (144,165   | )      |       |   | -         |     |   |   | 264,130      |         |   |      | 450,055   |   |   |   | - |   |   |   | 570,020 |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Total Assets                                |   |        | 12,922,961 |   |       |   | -         |     |   |   | 430,488      |         |   |      | 1,333,728 |   |   |   | - |   |   |   | 14,687,177 |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Net (Loss)                                  |   |        | 253,135    |   |       |   | -         |     |   |   | (636,000     | )            |   |      | (495,000  | )      |   |   | (7,787,932 | ) |   |   | (8,665,797 | ) |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   | Non -  |   |   |   |   |   |
|                                                                            |   | Oil and Gas |       |   | Rig        |   |      |     |   |   |         | Drilling and |   |      | Segmented |   |   |   |   |   |
|                                                                            |   | Production  |       |   | Operations |   |      | Minerals |   |   | Development  |         |   | Items     |      |   | Total  |   |
|  Year Ended December 31, 2009:                                             |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Revenue                                     |   |        | 1,065,916  |   |       |   | -         |     |   |   | 46,316       |         |   |      | -         |   |   |   | 335,769 |   |   |   | 1,448,001 |   |
|       Interest Expense                            |   |        | 72,373     |   |       |   | 50,445    |     |   |   | 81,923       |         |   |      | -         |   |   |   | - |   |   |   | 204,741 |   |
|       Operating Income (Loss)                     |   |        | (4,900,000 | )      |       |   | (442,000  | )        |   |   | (200,100     | )            |   |      | (63,000   | )      |   |   | (5,056,837 | ) |   |   | (10,661,937 | ) |
|       Expenditures for Segment Assets:            |   |        | 465,153    |   |       |   | -         |     |   |   | -            |         |   |      | -         |   |   |   | - |   |   |   | 465,153 |   |
|       Depreciation, Depletion, & Amortization |   |        | 1,025,827  |   |       |   | 442,447   |     |   |   | 247,308      |         |   |      | 62,957    |   |   |   | - |   |   |   | 1,778,539 |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Total Assets                                |   |        | 5,952,959  |   |       |   | 1,660,500 |     |   |   | 1,447,387    |         |   |      | 168,241   |   |   |   | 6,303,242 |   |   |   | 15,532,330 |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Net (Loss)                                  |   |        | (4,900,000 | )      |       |   | (442,000  | )        |   |   | (200,100     | )            |   |      | (63,000   | )      |   |   | (5,056,837 | ) |   |   | (10,661,937 | ) |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   | Non -  |   |   |   |   |   |
|                                                                            |   | Oil and Gas |       |   | Rig        |   |      |     |   |   |         | Drilling and |   |      | Segmented |   |   |   |   |   |
|                                                                            |   | Production  |       |   | Operations |   |      | Minerals |   |   | Development  |         |   | Items     |      |   | Total  |   |
|  Year Ended December 31, 2008:                                             |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Revenue                                     |   |        | 3,759,000  |   |       |   | 1,451,000 |     |   |   | 142,000      |         |   |      | 2,589,000 |   |   |   | 183,700 |   |   |   | 8,124,700 |   |
|       Interest Expense                            |   |        | 79,084     |   |       |   | 53,858    |     |   |   | 84,806       |         |   |      | -         |   |   |   | - |   |   |   | 217,748 |   |
|       Operating Income (Loss)                     |   |        | (2,310,000 | )      |       |   | 27,000    |     |   |   | (229,000     | )            |   |      | 774,000   |   |   |   | (12,740,179 | ) |   |   | (14,478,179 | ) |
|       Expenditures for Segment Assets:            |   |        | 6,103,164  |   |       |   | 1,203,667 |     |   |   | -            |         |   |      | -         |   |   |   | 15,296,048 |   |   |   | 22,602,879 |   |
|       Depreciation, Depletion, & Amortization |   |        | 929,518    |   |       |   | 734,991   |     |   |   | 241,345      |         |   |      | -         |   |   |   | - |   |   |   | 1,905,854 |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Total Assets                                |   |        | 9,102,943  |   |       |   | 2,340,362 |     |   |   | 1,816,206    |         |   |      | -         |   |   |   | 4,211,210 |   |   |   | 17,470,721 |   |
|                                                                            |   |        |       |   |       |   |      |     |   |   |         |         |   |      |      |   |   |   |   |   |   |   |   |   |
|       Net (Loss)                                  |   |        | (2,310,000 | )      |       |   | 27,000    |     |   |   | (229,000     | )            |   |      | 774,000   |   |   |   | (12,740,179 | ) |   |   | (14,478,179 | ) |

----

| -   | During the year, employees of the Company exercised stock options previously granted.  The new shares issued pursuant to the Stock Option Plan amounted to 9,002 shares.  |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -             | The Company issued 10,000 shares each to six Board Members for services rendered.                                                                                                        |

| -             | The Company issued 174,000 restricted shares to five employees (four of whom were named executive officers) in recognition of extraordinary services performed during the year.  |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | During the year, the common stock issuance cost was $0.7 million.                                                                                                                |

| -   | During the year, Directors and employees of the Company exercised stock options previously granted.  The new shares issued pursuant to the Stock Option Plan amounted to 54,763 shares. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | The Company issued 90,000 shares to four consultants for services. |
|---|--------------------------------------------------------------------|

| - | The Company issued 2,000 shares each to six Board Members for services rendered. |
|---|----------------------------------------------------------------------------------|

| - | The Company issued 140,000 shares as security for the Moss Family Trust notes payable. |
|---|----------------------------------------------------------------------------------------|

| -   | The remaining 5,653,332 shares were sold in private placements at prices of $1.00 to $2.00 per share for a total consideration of $7.7 million, or a weighted average price of $1.45. Of the 5,653,332 shares issued; 5,153,332 shares were contingently issuable shares at December 31, 2009, as per the Company’s contingent stock agreement for unregistered shares.  Those shares were, subsequently, approved by the NYSE Amex, LLC, on January 5, 2010. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | During the year, the common stock issuance cost was $0.7 million.  |
|---------------|-------------------------------------------------------------------------|

----

----

|                                                       |   |   |   |   | Payments Due by Period |   |
|------------------------------------------------------------|--------|--------|--------|--------|------------------------|--------|
|                                                       |   |   |   |   | Less Than              |   |   | 1 - 3 |   |   | 3 -5 |   |   | After 5 |   |   | Total |   |
|                                                       |   |   |   |   | 1 Year                 |   |   | Years |   |   | Years |   |   | Years |   |   | Payments |   |
|  Long-Term Debt                                       |   |   | (1)    |   |                   |   | 134,322 |   |   |   | 254,042 |   |   |   | 201,204 |   |   |   | - |   |   |   | 589,568 |   |
|  Operating Lease Commitments                          |   |   | (2)    |   |                   |   | 123,215 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 123,215 |   |
|     Total Contractual Cash Obligations |   |   |   |   |                   | $      | 257,537 |   |   | $ | 254,042 |   |   | $ | 201,204 |   |   | $ | - |   |   | $ | 712,783 |   |

| (1) | Represents cash obligations for principal payments and interest payments on various loans that are all secured by the asset financed. For further detail, see Part II, Item 8. Financial Statements, Note 5 – Notes Payable. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)    | Lease agreement for corporate headquarters in Bakersfield, California; lease terms through May 31, 2011, at a monthly payment of $24,643. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                      |

----

|                                                                  |   | December 31, |     |   |   | December 31, |   | December 31, |    |
|-----------------------------------------------------------------------|--------|--------------|----------|--------|--------|--------------|--------|--------------|---------|
|                                                                  |   | 2010         |     |   |   | 2009         |   | 2008         |    |
|  Beginning Asset Retirement Obligation                           |   | $            | 351,013  |   |   |         |   | $            | 327,845 |   |   | $ | 240,394 |   |   |
|     Liabilities Assumed in Acquisitions           |   |         | -        |   |   |         |   |         | -       |   |   |   | 33,341 |   | (1) |
|     Liabilities Assumed in Revisions              |   |         | 24,070   |   |   | (2)          |   |         | -       |   |   |   |   |   |   |
|     Liabilities Released in the Disposal of Wells |   |         | (192,618 | )      |   | (3)          |   |         |    |   |   |   |   |   |   |
|     Accretion of Discount                         |   |         | 23,718   |   |   |         |   |         | 23,168  |   |   |   | 54,110 |   |   |
|                                                                  |   |         |     |   |   |         |   |         |    |   |   |   |   |   |   |
|  Ending Asset Retirement Obligation                              |   | $            | 206,183  |   |   |         |   | $            | 351,013 |   |   | $ | 327,845 |   |   |

| (1)   | The Company’s portion of the liability for the plugging and abandonment of wells drilled from the Pleasant Valley and Moffat Ranch acquisitions.                                                 |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)   | The Company’s portion of the liability for the upward revisions for the plugging and abandonment costs of current wells.                                                                         |
| (3)   | The Company’s portion of the liabilities released from the abandonment of wells during the year at the Oxnard leases and the wells released from the sale of the Belridge and Edison properties. |

----

----

----

----

|                                                             |   | December 31, |       |   | December 31, |   |       | December 31, |   |
|------------------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|------------|--------------|--------|
|                                                             |   | 2010         |       |   | 2009         |   |       | 2008         |   |
|                                                             |   |         |       |   |         |   |       |         |   |
| Aggregated Capitalized Costs:                                    |   |         |       |   |         |   |       |         |   |
|   Proved Properties                                    |   |         | 2,450,537  |   |         |   | 1,071,216  |         |   |   | 1,175,566 |   |
|   Unproved Properties                                  |   |         | 1,781,069  |   |         |   | 1,551,998  |         |   |   | 1,616,919 |   |
|   Accumulated Depletion, Depreciation and Amortization |   |         | (1,214,605 | )      |         |   | (1,045,951 | )            |   |   | (1,022,021 | ) |
| Net Capitalized Assets                                           |   | $            | 3,017,001  |   |         | $      | 1,577,263  |         |   | $ | 1,770,464 |   |

|                                                       |   | December 31, |       |   | December 31, |   |       | December 31, |   |
|------------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|------------|--------------|--------|
|                                                       |   | 2010         |       |   | 2009         |   |       | 2008         |   |
|                                                       |   |         |       |   |         |   |       |         |   |
| Sales to Unaffiliated Parties                              |   | $            | 1,756,570  |   |         | $      | 1,035,916  |         |   | $ | 3,322,353 |   |
| Production Costs                                           |   |         | (1,507,434 | )      |         |   | (1,608,181 | )            |   |   | (1,291,115 | ) |
| Accretion of Discount                                      |   |         | (23,718    | )      |         |   | (23,168    | )            |   |   | (164,993 | ) |
|                                                       |   |         |       |   |         |   |       |         |   |   |   |   |
| Income Tax Expense                                         |   |         | 225,418    |   |         |   | (595,433   | )            |   |   | 1,866,245 |   |
|                                                       |   |         |       |   |         |   |       |         |   |   |   |   |
| Results of Operations from Activities before               |   |         |       |   |         |   |       |         |   |   |   |   |
|    Extraordinary Items (Excluding Corporate |   |         |       |   |         |   |       |         |   |   |   |   |
|     Overhead and Interest Costs)       |   | $            | 225,418    |   |         | $      | (595,433   | )            |   | $ | 1,866,245 |   |

----

|                                                            |   | December 31, 2010 |      |    | December 31, 2009 |   |     | December 31, 2008 |   |
|-----------------------------------------------------------------|--------|-------------------|-----------|---------|-------------------|--------|----------|-------------------|--------|
|                                                            |   | Oil (BBL)         |      |    | Gas (MCF)         |   |     | Oil (BBL)         |   |   | Gas (MCF) |   |   | Oil (BBL) |   |   | Gas (MCF) |   |
|                                                            |   |              |      |    |              |   |     |              |   |   |   |   |   |   |   |   |   |   |
| Proved Developed and                                            |   |              |      |    |              |   |     |              |   |   |   |   |   |   |   |   |   |   |
|    Undeveloped Reserves:                         |   |              |      |    |              |   |     |              |   |   |   |   |   |   |   |   |   |   |
|      Beginning of year                 |   |              | 3,020,710 |    |              |   | 395,252  |              |   |   | - |   |   |   | 695,931 |   |   |   | 372,048 |   |   |   | 791,129 |   |
|      Revisions (a), (b), (c), (d), (e) |   |              | 96,996    |    |              |   | (323,749 | )                 |   |   | 3,041,802 |   |   |   | (268,603 | ) |   |   | (345,749 | ) |   |   | (50,115 | ) |
|      Divestiture (f)                   |   |              | (37,074   | )  |              |   | -        |              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|      Improved Recovery (g )            |   |              | -         |    |              |   | -        |              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56,987 |   |
|      Production                        |   |              | (25,796   | )       |              |   | (30,247  | )                 |   |   | (21,092 | ) |   |   | (32,076 | ) |   |   | (26,299 | ) |   |   | (102,070 | ) |
|                                                            |   |              |      |    |              |   |     |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End of Year                                                     |   |              | 3,054,836 |    |              |   | 41,256   |              |   |   | 3,020,710 |   |   |   | 395,252 |   |   |   | - |   |   |   | 695,931 |   |
|                                                            |   |              |      |    |              |   |     |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved Developed Reserves:                                      |   |              |      |    |              |   |     |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Beginning of Year                 |   |              | 282,271   |    |              |   | 395,252  |              |   |   | - |   |   |   | 695,931 |   |   |   | 372,048 |   |   |   | 791,128 |   |
|      End of Year                       |   |              | 316,333   |    |              |   | 41,256   |              |   |   | 282,271 |   |   |   | 395,252 |   |   |   | - |   |   |   | 695,931 |   |

----

|   | (1) | Estimates are made of quantities of proved reserves and the future periods during which they are expected to be produced based on year-end economic conditions. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2) | The estimated future production of proved reserves is priced on the basis of year-end prices.                                                                   |
|   | (3) | The resulting future gross revenue streams are reduced by estimated future costs to develop and to produce proved reserves, based on year end cost estimates.   |
|   | (4) | The resulting future net revenue streams are reduced to present value amounts by applying a ten percent discount.                                               |

|                                                    |   | December 31,2010 |         |   | December 31,2009 |   |         | December 31,2008 |   |
|---------------------------------------------------------|--------|------------------|--------------|--------|------------------|--------|--------------|------------------|--------|
|                                                    |   |             |         |   |             |   |         |             |   |
| Future Cash in Flows                                    |   | $                | 219,409,376  |   |             | $      | 160,584,010  |             |   | $ | 4,911,415 |   |
| Future Production Costs                                 |   |             | (83,842,848) |   |             |   | (47,677,817) |             |   |   | (1,406,356) |   |
| Future Development Costs                                |   |             | (17,054,100) |   |             |   | (18,464,694) |             |   |   | - |   |
| Future Income Tax Expenses                              |   |             | (4,532,016)  |   |             |   | (3,513,156)  |             |   |   | (200,908) |   |
| Future Net Cash Flows                                   |   |             | 113,980,412  |   |             |   | 90,928,343   |             |   |   | 3,304,151 |   |
| 10% Annual Discount for Estimated Timing of Cash Flows  |   |             | 62,601,993   |   |             |   | 46,676,521   |             |   |   | 1,557,893 |   |
| Standardized Measure of Discounted Future Net Cash Flow |   |             | 51,378,419   |   |             |   | 44,251,822   |             |   |   | 1,746,258 |   |

----

|                                                        |   | December 31,2010 |         |   | December 31,2009 |   |         | December 31,2008 |   |
|-------------------------------------------------------------|--------|------------------|--------------|--------|------------------|--------|--------------|------------------|--------|
|                                                        |   |             |         |   |             |   |         |             |   |
| Standardized Measure - Beginning of Period                  |   | $                | 44,251,822   |   |             | $      | 1,746,258    |             |   | $ | 12,324,390 |   |
|                                                        |   |             |         |   |             |   |         |             |   |   |   |   |
| Sales of oil and gas produced, net of production costs      |   |             | (249,136)    |   |             |   | (329,949)    |             |   |   | (3,090,340) |   |
| Revisions of estimates of reserves provided in prior years: |   |             |         |   |             |   |         |             |   |   |   |   |
|    Net Changes in Prices                     |   |             | 55,418,995   |   |             |   | 54,439,800   |             |   |   | 973,607 |   |
|    Revisions of Previous Quantity Estimates  |   |             | 5,678,992    |   |             |   | 1,416,000    |             |   |   | 2,641,502 |   |
|    Extensions and Discoveries                |   |             | -            |   |             |   | 107,819,000  |             |   |   | 86,986 |   |
|    Property Divestitures                     |   |             | (374,310)    |   |             |   | -            |             |   |   | - |   |
| Accretion of Discount                                       |   |             | (15,676,336) |   |             |   | (52,792,287) |             |   |   | 1,485,846 |   |
| Changes in Production Costs                                 |   |             | (38,040,933) |   |             |   | (46,235,306) |             |   |   | (11,307,724) |   |
| Changes in Development Costs                                |   |             | 1,410,594    |   |             |   | (18,464,694) |             |   |   |   |   |
| Net Change in Income Taxes                                  |   |             | (1,041,269)  |   |             |   | (3,347,000)  |             |   |   | (1,368,009) |   |
|                                                        |   |             |         |   |             |   |         |             |   |   |   |   |
| Net Increase (Decrease)                                     |   |             | 7,126,597    |   |             |   | 42,505,546   |             |   |   | (10,578,132) |   |
|                                                        |   |             |         |   |             |   |         |             |   |   |   |   |
| Standardized Measure - End of Period                        |   | $                | 51,378,419   |   |             | $      | 44,251,822   |             |   | $ | 1,746,258 |   |

----

|                                    |   | 2010                                                          |
|-----------------------------------------|--------|---------------------------------------------------------------|
|                                    |   |  First                                                   |   |  Second |   |  Third |   |  Fourth |
|                                    |   |  Quarter                                                 |   |  Quarter |   |  Quarter |   |  Quarter |
|                                    |   |                                                          |   |   |   |   |   |   |
|  Operating Revenue                 |   |    1,190,467                                   |   |    1,556,623 |   |       370,927 |   |    1,751,687 |
|  Net Income (Loss)                 |   |   (2,201,374)                                       |   |   (2,190,570) |   |   (1,647,159) |   |   (2,626,694) |
|                                    |   |                                                          |   |   |   |   |   |   |
|  Net Income per Common Share Basic |   |  $        (0.07) |   |  $        (0.06) |   |  $        (0.04) |   |  $        (0.07) |
|                                    |   |                                                          |   |   |   |   |   |   |
|                                    |   | 2009                                                          |
|                                    |   |  First                                                   |   |  Second |   |  Third |   |  Fourth |
|                                    |   |  Quarter                                                 |   |  Quarter |   |  Quarter |   |  Quarter |
|                                    |   |                                                          |   |   |   |   |   |   |
|  Operating Revenue                 |   |       359,770                   |   |       509,713 |   |       450,291 |   |       128,227 |
|  Net Income (Loss)                 |   |   (3,053,839)                                       |   |   (2,189,288) |   |   (2,726,063) |   |   (2,692,747) |
|                                    |   |                                                          |   |   |   |   |   |   |
|  Net Income per Common Share Basic |   |  $        (0.11) |   |  $        (0.08) |   |  $        (0.09) |   |  $        (0.05) |
|                                    |   |                                                          |   |   |   |   |   |   |
|                                    |   | 2008                                                          |
|                                    |   |  First                                                   |   |  Second |   |  Third |   |  Fourth |
|                                    |   |  Quarter                                                 |   |  Quarter |   |  Quarter |   |  Quarter |
|                                    |   |                                                          |   |   |   |   |   |   |
|  Operating Revenue                 |   |    1,678,847                                   |   |    2,262,189 |   |    1,425,456 |   |    2,758,206 |
|  Net Income (Loss)                 |   |   (2,107,883)                                       |   |   (3,340,668) |   |   (1,197,399) |   |   (7,832,228) |
|                                    |   |                                                          |   |   |   |   |   |   |
|  Net Income per Common Share Basic |   |  $        (0.09) |   |  $        (0.13) |   |  $        (0.05) |   |  $        (0.27) |

----

|    |    |   |                                                                                                                                                                                                                                                                                                                      |
|--------------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         | ● |   | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;                                                                                                                                                                          |
|         |    |   |                                                                                                                                                                                                                                                                                                                      |
|         | ● |   | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|         |    |   |                                                                                                                                                                                                                                                                                                                      |
|         | ● |   | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements.                                                                                                                       |

----

----

----

|   | BROWN ARMSTRONG         |
|--------|-------------------------|
|   | ACCOUNTANCY CORPORATION |
|   |                    |

----

|                      |   |   |   | Year First         |   |                                                                                                                                                                                                                                                       |
|--------------------------------|--------|--------|--------|--------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |   |   |   | Became Director or |   | Position With                                                                                                                                                                                                                                              |
| Name of Director               |   | Age    |   | Executive Officer  |   | The Company                                                                                                                                                                                                                                                |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| F. Lynn Blystone (a)           |   | 75     |   | 1974               |   | Chairman of the Board of Directors, Chief Executive Officer and Director, Tri-Valley Corporation;  Chief Executive Officer and Director, Tri-Valley Oil & Gas Co.;                                                                           |
|                           |   |   |   |               |   | Chief Executive Officer and Director, Select Resources Corporation, Inc.                                                                                                                                                                                   |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Loren J. Miller (1)(4)         |   | 65     |   | 1992               |   | Director                                                                                                                                                                                                                                                   |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Henry Lowenstein, Ph.D. (2)(3) |   | 56     |   | 2005               |   | Director                                                                                                                                                                                                                                                   |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| G. Thomas Gamble (1)(2)(4)     |   | 50     |   | 2006               |   | Chairman of the Board of Directors, Director, Tri-Valley Corporation                                                                                                                                                                                       |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Paul W. Bateman (1)            |   | 53     |   | 2007               |   | Director                                                                                                                                                                                                                                                   |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Edward M. Gabriel (3)          |   | 60     |   | 2007               |   | Director                                                                                                                                                                                                                                                   |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| James S. Mayer (4)             |   | 53     |   | 2008               |   | Director                                                                                                                                                                                                                                                   |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Maston N. Cunningham (b)       |   | 58     |   | 2009               |   | President and Chief Operating Officer, President and Chief Executive Officer, Tri-Valley Corporation; Chief Executive Officer and Director, Tri-Valley Oil & Gas Co.; Chief Executive Officer and Director, Select Resources Corporation, Inc.         |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| John E. Durbin                 |   | 56     |   | 2009               |   | Chief Financial Officer, Treasurer, and Secretary, Tri-Valley Corporation; Chief Financial Officer, Secretary, and Director, Tri-Valley Oil & Gas Co.; Chief Financial Officer, Treasurer, Secretary, and Director, Select Resources Corporation, Inc. |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Arthur M. Evans (c)            |   | 62     |   | 2005               |   | Chief Compliance Officer, Tri-Valley Corporation                                                                                                                                                                                                           |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Joseph R. Kandle               |   | 68     |   | 1999               |   | Senior Vice President, Corporate Development, Tri-Valley Corporation; President, Tri-Valley Oil & Gas Co.                                                                                                                                              |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| James G. Bush                  |   | 61     |   | 2007               |   | President, Select Resources Corporation, Inc.                                                                                                                                                                                                         |
| James C. Kromer                |   | 67     |   | 2009               |   | Vice President, Operations, Tri-Valley Corporation                                                                                                                                                                                                         |
|                           |   |   |   |               |   |                                                                                                                                                                                                                                                       |
| Michael P. Stark               |   | 62     |   | 2010               |   | Vice President, Exploration, Tri-Valley Corporation                                                                                                                                                                                                   |

----

| F. Lynn Blystone - 75                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Chairman of the Board of Directors; Chief Executive Officer and Director, Tri-Valley Corporation; Chief Executive Officer and Director, Tri-Valley Oil & Gas Co.; Chief Executive Officer and Director, Select Resources Corporation, Inc..  Bakersfield, California | 1974   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                               |   |
| Mr. Blystone became President of Tri-Valley Corporation in October, 1981, and was nominally Vice President from July to October, 1981.  His background includes institutional management, venture capital, and various management functions for a mainline pipeline contractor, including the Trans-Alaska Pipeline System (TAPS).  He has founded, managed, and sold companies in several fields, including Learjet charter, commercial construction, municipal finance, and land development.  He is also president of a family corporation, Bandera Land Company, Inc., with real estate interests in Orange County, California.  A graduate of Whittier College, California, he did graduate work at George Williams College, Illinois, in organization management.  Mr. Blystone retired from all positions with the Company on March 5, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| James S. Mayer – 53                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Director                                                                                                                                                                                                                                                                           | 2008   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                               |   |
| Since 2007, Mr. Mayer has been the President of Pinnacle Capital Management, LLC, an investment strategy and corporate advisory firm. He formerly served as a First Vice President, Investments, for Citigroup Global Markets, Inc., from 2005 to 2006, and as Vice President, Alternative Investments, for Merrill Lynch from 1999-2005 and Vice President, Special Investments, for Merrill Lynch from 1997 to 1999. He also served as Director, International Business Development, for Perkin-Elmer Corporation from 1980 to 1993. Mr. Mayer holds a Bachelor’s Degree in Chemistry from State University of New York with graduate studies in corporate finance, investment banking, alternative investments, and corporate strategy. He serves on the Finance Committee. Mr. Mayer was appointed to the Board of Directors in August 2008. He is an independent member of our Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                               |   |
| Loren J. Miller, CPA – 65                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Director                                                                                                                                                                                                                                                                           | 1992   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                               |   |
| Mr. Miller served as Treasurer of the Jankovich Company from 2001 until his retirement in 2008.  Prior to Treasurer, he served in other positions at Jankovich from 1994 to 2001.  He served successively as Vice President & Chief Financial Officer of Hershey Oil Corporation from 1987 to 1990 and Mock Resources from 1991 to 1992.  He was Senior Financial Vice President & General Manager of Tosco Production Finance Corporation from 1975 to 1986 and was a Senior Auditor for the accounting firm of Touche Ross & Company from 1968 to 1973.  Mr. Miller is a member of Financial Executive International, the nation’s leading senior financial executive organization and is a Past President of the Los Angeles Chapter.  He is experienced in exploration, production, product trading, refining, and distribution, as well as, corporate finance.  He holds a Bachelor of Science in Accounting and an M.B.A. in Finance from the University of Southern California.  Mr. Miller is an independent member of our Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Henry Lowenstein, Ph.D. - 56                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Director                                                                                                                                                                                                                                                                           | 2005   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                               |   |
| Dr. Lowenstein is Professor of Management at the E. Craig Wall Sr. College of Business Administration, Coastal Carolina University, Conway, South Carolina, since 2007, and from 2007 to 2009 was Dean of the College. Prior to joining the Coastal Carolina University, he was Dean of Business and Public Administration at California State University, Bakersfield, from 2000 to 2007. Dr. Lowenstein has a broad background in management within business, academic, government, and public service organizations. He has served as an experienced reviewer, consultant, and on a number of committees for AACSB International, the top accreditation agency for business schools worldwide. Previous academic positions include universities in Illinois, Virginia, and West Virginia.  Locally, he is Chairman of the Board of the Ocean View Memorial Foundation of Myrtle Beach, South Carolina. Dr. Lowenstein has published in the fields of human resource management, public policy, and transportation. During his business career, he was a corporate officer for Kemper Group-Insurance and Financial Services, Dominion Bankshares Corporation, and Americana Furniture, Inc. He previously served as a management analyst for the Executive Office of the President of the United States, Office of Management and Budget, during the Gerald R. Ford Administration. Dr. Lowenstein received his Ph.D. in Labor and Industrial Relations from the University of Illinois; an M.B.A. from George Washington University; and a Bachelor of Science in Business Administration from Virginia Commonwealth University. Dr. Lowenstein is an independent member of our Board of Directors.  He is chairman of both the Personnel and Compensation Committee and the Nominating and Corporate Governance Committee. |

----

|   G. Thomas Gamble - 50                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   Director & Vice Chairman of the Board of Directors; Chairman of the Board of Directors and Director |   2006 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                |             |
| As a significant investor in bothTri-Valley and its TVC OPUS 1 Drilling Program, L.P., Mr. Gamble was invited to join the Tri-Valley board of directors.  Mr. Gamble is a businessman with active investments beyond Tri-Valley Corporation in agriculture and educational services.  He is the managing member of Gamble Family Vineyards, LLC, and serves as a director of privately-held Boston Reed College, Inc.  He has successfully participated in the creation, operation, and disposition of several businesses.  His various businesses have received recognition from both the California State Senate and the U.S. House of Representatives, including “Business of the Year” in 2005.   Mr. Gamble graduated from the University of California, Los Angeles, and is an independent member of our Board of Directors.  He succeeded Mr. F. Lynn Blystone as Chairman of the Board of Directors, following Mr. Blystone’s retirement from all company positions on March 5, 2010. |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |     |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|--------|
| Paul W. Bateman - 53                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Director | 2007   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |     |   |
| Mr. Bateman is President of the Klein & Saks Group, a Washington, D.C.-based firm that advises clients, principally in the mining and metals industries, on public policy matters.  He joined the firm in 1994 and became its President in 1997.  A graduate of Whittier College, he began his career in the late 1970’s, as an aide to then President Richard M. Nixon. In 1981, he joined the White House Staff under President Ronald R. Reagan and, subsequently, served in that Administration in senior positions at the Departments of Commerce and Treasury. From 1989 to 1993, he served on President George H. W. Bush's White House Staff as Deputy Assistant to the President for Management. Since 2005, Mr. Bateman has been the Chairman and Chief Executive of the International Cyanide Management Institute, which administers a voluntary industry program aimed at improving the management of cyanide used in gold mining. He is a member of the Economic Club of New York, the nation's leading nonpartisan speaking forum, and was its President from 2004 to 2007. He presently serves on the Board of Directors of Green Seal, a non-profit, third-party certifier and standards development body for eco-labeling in the United States.  Mr. Bateman is an independent member of our Board of Directors. |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Edward M. Gabriel - 60                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Director | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |
| Ambassador Gabriel is the former U.S. Ambassador to the Kingdom of Morocco, and, since 2002, President and Chief Executive Officer of a Washington, D.C.-based strategic business counseling company, The Gabriel Company, LLC.  Ambassador Gabriel brings a diverse background in a variety of petroleum and other energy sources. Ambassador Gabriel’s experience is both domestic and international, with extensive relationships with the U.S. and Middle Eastern governments, and investment capital companies interested in energy projects. He is a member of the advisory board of Guggenheim Partners, a private wealth management firm. His career includes senior management positions with firms such as CONCORD, and the Madison Public Affairs Group, where he advised Fortune 100 Companies on multi-national matters in technology, energy, banking, environmental, and tax policy. Ambassador Gabriel served the Federal Energy Administration, U.S. Department of Energy, as Senior Economic Analyst. He serves as Vice Chairman of the American Task Force for Lebanon and is a Visiting Fellow at the Center for Strategic and International Studies. He is also on the board of directors of the American School of Tangier and the Casablanca American School. He is a Bachelor of Sciences graduate of Gannon University, where he was also awarded an honorary Doctorate of Laws.  Ambassador Gabriel is an independent member of our Board of Directors. |

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| Maston N. Cunningham - 58                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | President and Chief Operating Officer, President and Chief Executive Officer, Tri-Valley Corporation; Chief Executive Officer and Director, Tri-Valley Oil & Gas Co.; Chief Executive Officer and Director, Select Resources Corporation, Inc.Bakersfield, California                    | 2009 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Mr. Cunningham was elected by the Board of Directors as President and Chief Executive Officer in March 2010.  He had been Tri-Valley’s President and Chief Operating Officer since May 2009 and joined the company in January 2009 as Vice President of Corporate Development.  Prior to joining Tri-Valley, Mr. Cunningham had a 22-year international career with Occidental Petroleum Corporation (Oxy) that included over 15 years in Pakistan, Peru, and Ecuador.  In 1996, he was appointed President & General Manager of Oxy’s Ecuadorian subsidiary where he led a successful oil exploration and development program and restructuring of the business unit that included renegotiation of its Oriente Basin Block 15 contract to increase oil reserves, production, and profitability.  He was co-founder and first president of ASOPEC, an Ecuadorian petroleum industry association that spearheaded the industry’s efforts to secure government approval for construction of a private $1.1 billion heavy oil pipeline and marine terminal to facilitate additional heavy oil development in the Oriente Basin.  Mr. Cunningham was also responsible for obtaining ISO 14001 certification in 1997 for Block 15’s Environmental Management System which, at the time, was the first Oxy operation worldwide to obtain this certification, the first enterprise in Ecuador to be certified, and only the third oil and gas operation certified in South America.  Mr. Cunningham is a past president of the Association of American Chambers of Commerce in Latin America (AACCLA), a leading regional trade advocacy organization affiliated with the U.S. Chamber of Commerce in Washington, D.C.  He currently serves as treasurer on the Board of Trustees of the Pan American Development Foundation (PADF), an affiliate of the Organization of American States (OAS) in Washington, D.C., which implements over $50 million of projects annually to assist disadvantaged people in the hemisphere through public and private grants.  Mr. Cunningham is a graduate of Trinity University and received an M.B.A. from the University of Texas at Austin.  He is also a Certified Public Accountant and fluent in Spanish. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| John E. Durbin - 56                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Chief Financial Officer, Treasurer, and Secretary, Tri-Valley Corporation; Chief Financial Officer, Secretary, and Director,  Tri-Valley Oil & Gas Co.; Chief Financial Officer, Treasurer, Secretary, and Director, Select Resources Corporation, Inc.Bakersfield, California | 2009 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Mr. Durbin joined Tri-Valley Corporation as Chief Financial Officer in October 2009.  A majority of his 32-year career was spent in various senior management positions in finance and treasury with subsidiaries of Conoco Inc. and The DuPont Company. He has considerable experience working internationally through assignments in Bermuda, Switzerland, and Brazil. His last position at ConocoPhillips was as Assistant Treasurer, Risk Management, in Houston, Texas, and involved the design and implementation of an Enterprise Risk Management Program across the corporation. In 2005, he left ConocoPhillips and relocated to Rio de Janeiro, Brazil, to found JED Consulting LLC to provide capital formation and business consulting services for select private clients in such areas as gasoline refining, sugar cane optimization, and iron ore development. He returned to the U.S. late in 2008 and joined Utah-based coal producer, America West Resources, Inc., as Chief Financial Officer. Mr. Durbin holds a Bachelor of Science in Finance from Montana State University, Bozeman, and an M.B.A. in International Financial Management from the Thunderbird School of Global Management in Glendale, Arizona. He is multilingual with abilities in Arabic, French, German, Italian, Portuguese, Russian, and Spanish.  He holds memberships in the Brazil-Texas Chamber of Commerce (BRATECC), the Financial Executives Networking Group (FENG), and the Association for Financial Professionals (AFP).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

| Arthur M.  Evans, CPA - 62                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Chief Compliance Officer, Tri-Valley CorporationBakersfield, California | 2005 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Mr. Evans was named as Tri-Valley Corporation’s Chief Financial Officer in November 2005 and as Chief Compliance Officer in October 2009.  Prior to coming to Tri-Valley, Art was a self-employed financial consultant from 2000 to 2005.  Mr. Evans has a full range of accounting, mergers and acquisitions, and financial management experience in several industries as well as oil, gas, and mining with Fortune 500 companies, as well as, independent companies, like Tri-Valley.  He held several senior financial management positions with Getty Oil and Texaco.  He holds a Bachelor of Science in accounting from Weber State University, a M.B.A. in finance from Golden State University and a M.S. in systems management from the University of Southern California.  His professional designations include Certified Public Accountant, Certified Management Accountant and Certified Financial Manager.  On February 25, 2010, Mr. Evans left the Company when the compliance function was outsourced to legal counsel. |

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| Joseph R. Kandle - 68                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Senior Vice President, Corporate Development, Tri-Valley Corporation; President, Tri-Valley Oil & Gas Co.Bakersfield, California | 1998 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Mr. Kandle joined Tri-Valley Oil & Gas Co. in June 1998 as Vice President, Engineering, and was named Senior Vice President, Corporation Development, in 2010.  He is a 1965 graduate of the Montana School of Mines where he received a Bachelor of Science in Petroleum Engineering.  Mr. Kandle has nearly 45 years of experience in drilling, production, and operations, beginning his professional career with Mobil in 1965 where he specialized in deep well drilling.  After his time with Mobil, Mr. Kandle held the positions of Vice President & Chief Engineer of Great Basins Petroleum; Vice President, Engineering, with Star Resources; and Vice President, Engineering, with Atlantic Oil Company.   Mr. Kandle plans to retire from the Company and from all Company subsidiary positions in April 2011.  Please refer to Part II, Item 8. Financial Statements, Note 16 – Subsequent Events .  |

|               |                                                                   |   |
|--------------------|------------------------------------------------------------------------|--------|
| James G. Bush - 61 | President of Select Resources Corporation, Inc.Bakersfield, California | 2007   |

|   |
|--------|
|   | Mr. Bush joined the Company in June 2007, and brings a wide range of experience with over 30 years in the natural resource industry (oil, gas, and minerals), the consulting business, and in heavy industry.  Prior to joining Tri-Valley, Mr. Bush spent ten years with the U.S. Department of Energy’s Pacific Northwest National Laboratory as a Manager of Business and Technology Development from 1996 to 2007, and the preceding ten years with ICF Kaiser Engineers.  Prior to those assignments, he worked for Atlantic Richfield (on- and offshore Alaska and Texas), Aspen Exploration, and the Anaconda Copper Mining Company.  His areas of expertise include oil and gas exploration and drilling, uranium exploration and drilling, and metals exploration, with particular expertise in gold placer exploration and mining.  Mr. Bush received his Bachelor of Science in Geology from Ohio State University and his Master of Science from the South Dakota School of Mines and Technology.  He is certified by the American Institute of Professional Geologists and is a registered geologist in the States of Alaska and Washington.  He also served three years in the U.S. Navy’s Seabees.  Mr. Bush, subsequently, left the Company in January 2011, following the elimination of the position of President of Select Resources Corporation, Inc., and the assumption of the related responsibilities by other corporation officers.  Please refer to Part II, Item 8. Financial Statements, Note 16 – Subsequent Events . |

| James C. Kromer - 67                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Vice President, Operations, Tri-Valley CorporationBakersfield, California  | 2009 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Mr. Kromer joined Tri-Valley in May 2009 as Operations Manager and has over 45 years of experience in drilling, production, reservoir engineering, and operations.  He was named Vice President of Operations in 2009.  Prior to Tri-Valley, he held engineering and management positions at Continental Oil Company (subsequently, Conoco Inc.), Exxon Corporation, Amerada Hess, Omni Exploration, Damson Oil, Ely and Associates, Stream Energy, Matris Exploration, and Delta Petroleum.  His experience includes seven years in foreign assignments in Libya and Abu Dhabi.  Mr. Kromer is a graduate of Pennsylvania State University where he received a Bachelor of Science in Petroleum and Natural Gas Engineering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Michael P. Stark - 62                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Vice President, Exploration, Tri-Valley CorporationBakersfield, California | 2010 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Mr. Stark joined Tri-Valley as its Vice President of Exploration in June 2010.  Mr. Stark has over 39 years of experience with leading oil and gas producers in increasingly responsible positions.  He was most recently Vice President of Exploration and Land for Ivanhoe Energy (USA) Inc., where he worked for 12 years.  In his position at Ivanhoe, he developed a successful California exploration program that resulted in four discoveries over a three-year period.  He was also responsible for the geotechnical evaluation of Ivanhoe’s Block 20 in Ecuador, acquired in 2008.  Prior to Ivanhoe, Mr. Stark spent 20 years at Occidental Oil and Gas Corporation (Oxy), where he served in a variety of positions in the U.S. and abroad, including the United Kingdom and Pakistan.  As Oxy’s Regional Exploration Manager for Europe, the Middle East, and the Commonwealth of Independent States, he directed an exploration team that acquired several exploration contracts and made several discoveries in the U.K.-North Sea, Russia, Oman, and The Netherlands.  After leaving Oxy in 1998, Mr. Stark co-founded Diatom Petroleum, a startup exploration company, which was acquired by Ivanhoe Energy in 2000.  He began his career as a geologist with Texaco.  Mr. Stark has a Bachelor of Science in Geology from the University of California, Los Angeles, and a Master of Science in Geology from Iowa State University. |

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|   | ● | Motivate and retain Tri-Valley Corporation executive officers,                                                                      |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                |
|   | ● | Attract new executives with the requisite skill sets to implement and achieve Tri-Valley Corporation’s business strategy, and |
|   |    |                                                                                                                                |
|   | ● | Align executive compensation with the attainment of strategic business objectives that increase shareholder value.                  |

----

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|   | ● | 401(K) Profit Sharing Plan . The Company has a Defined Contribution (“DC”) Profit Sharing/401(K) Plan, designed to assist employees in saving for their retirement. The Company contributes to the Plan, in cash, at the rate of three percent (3%) of an employee’s wages or salary. The Company’s contributions to the Plan vest immediately upon receipt.                                                             |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | ● | Health and Welfare Benefits . Employees are eligible to participate in medical, dental, vision, life insurance, and tax-advantaged healthcare accounts to meet their health and welfare needs. These benefits are provided on a competitive basis for human talent within the Company’s marketplace and industry. This is a fixed component of compensation, and the benefits are provided on a non-discriminatory basis to all employees. |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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|                                                 |  Fiscal |   |   |    |   |    |   |   | Stock   |   |   | Option  |   |   | Company 401(K) |      |   | All Other    |   |   | Total        |   |
|------------------------------------------------------|--------------|--------|--------|---------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|----------------|-----------|--------|--------------|--------|--------|--------------|--------|
|                                                 | Year         |   | Salary |    |   | Bonus   |   |   | Awards  |   |   | Awards  |   |   | Contribution   |      |   | Compensation |   |   | Compensation |   |
|  Name                                           | Ending       |   | ($)    |    |   | ($) (1) |   |   | ($) (2) |   |   | ($) (3) |   |   | ($)            |      |   | ($) (4)      |   |   | ($)          |   |
|  ( a )                                          |  ( b )  |   | ( c )  |    |   | ( d )   |   |   | ( e )   |   |   | ( f )   |   |   | ( g )          |      |   | (ii )        |   |   | ( j )        |   |
|  F. Lynn Blystone, CEO                          | 12/31/10     |   | $      | 39,039  |   |    | $      | -      |    |   | $      | -       |   |   | $              | 1,162,000 |   |         | $      | 1,050  |         |   | $ | - |   |   | $ | 1,202,089 |   |
|                                                 | 12/31/09     |   | $      | 210,000 |   |    | $      | 6,650  |    |   | $      | -       |   |   | $              | 7,366     |   |         | $      | -      |         |   | $ | - |   |   | $ | 224,016 |   |
|                                                 | 12/31/08     |   | $      | 210,000 |   |    | $      | 38,950 |    |   | $      | -       |   |   | $              | 6,300     |   |         | $      | -      |         |   | $ | - |   |   | $ | 255,250 |   |
|                                                 |         |   |   |    |   |    |   |   |    |   |   |    |   |   |           |      |   |         |   |   |         |   |   |   |   |   |   |   |   |
|  Maston N. Cunningham, President, COO & CEO | 12/31/10     |   | $      | 190,020 |   |    | $      | 15,000 |    |   | $      | -       |   |   | $              | 48,900    |   |         | $      | 5,701  |         |   | $ | - |   |   | $ | 259,621 |   |
|                                                 | 12/31/09     |   | $      | 171,025 |   |    | $      | -      |    |   | $      | -       |   |   | $              | 53,950    |   |         | $      | 4,175  |         |   | $ | - |   |   | $ | 229,150 |   |
|                                                 |         |   |   |    |   |    |   |   |    |   |   |    |   |   |           |      |   |         |   |   |         |   |   |   |   |   |   |   |   |
|  John E. Durbin, CFO                            | 12/31/10     |   | $      | 180,000 |   |    | $      | 12,000 |    |   | $      | -       |   |   | $              | 57,600    |   |         | $      | 5,400  |         |   | $ | - |   |   | $ | 255,000 |   |
|                                                 | 12/31/09     |   | $      | 45,000  |   |    | $      | -      |    |   | $      | -       |   |   | $              | 19,200    |   |         | $      | 450    |         |   | $ | - |   |   | $ | 64,650 |   |
|                                                 |         |   |   |    |   |    |   |   |    |   |   |    |   |   |           |      |   |         |   |   |         |   |   |   |   |   |   |   |   |
|  Joseph R. Kandle, SVP Corporate Development    | 12/31/10     |   | $      | 210,700 |   |    | $      | -      |    |   | $      | -       |   |   | $              | 187,050   |   |         | $      | 6,322  |         |   | $ | - |   |   | $ | 404,072 |   |
|                                                 | 12/31/09     |   | $      | 210,700 |   |    | $      | -      |    |   | $      | -       |   |   | $              | 7,560     |   |         | $      | 6,571  |         |   | $ | - |   |   | $ | 224,831 |   |
|                                                 | 12/31/08     |   | $      | 180,350 |   |    | $      | -      |    |   | $      | 5,922   |   |   | $              | 3,780     |   |         | $      | 5,410  |         |   | $ | - |   |   | $ | 195,462 |   |
|                                                 |         |   |   |    |   |    |   |   |    |   |   |    |   |   |           |      |   |         |   |   |         |   |   |   |   |   |   |   |   |
|  James G. Bush. President Select Resources      | 12/31/10     |   | $      | 163,800 |   |    | $      | -      |    |   | $      | -       |   |   | $              | 89,160    |   |         | $      | 4,914  |         |   | $ | - |   |   | $ | 257,874 |   |
|                                                 | 12/31/09     |   | $      | 171,662 |   |    | $      | -      |    |   | $      | -       |   |   | $              | 96,260    |   |         | $      | 5,349  |         |   | $ | - |   |   | $ | 273,271 |   |
|                                                 | 12/31/08     |   | $      | 169,758 |   |    | $      | -      |    |   | $      | -       |   |   | $              | 84,980    |   |         | $      | 5,093  |         |   | $ | - |   |   | $ | 259,831 |   |
|                                                 |         |   |   |    |   |    |   |   |    |   |   |    |   |   |           |      |   |         |   |   |         |   |   |   |   |   |   |   |   |
|  James C. Kromer, VP Operations                 | 12/31/10     |   | $      | 206,283 |   |    | $      | 12,000 |    |   | $      | -       |   |   | $              | 25,200    |   |         | $      | 5,580  |         |   | $ | - |   |   | $ | 249,063 |   |
|                                                 | 12/31/09     |   | $      | 116,800 |   |    | $      | -      |    |   | $      | -       |   |   | $              | 33,600    |   |         | $      | 2,670  |         |   | $ | - |   |   | $ | 153,070 |   |
|                                                 |         |   |   |    |   |    |   |   |    |   |   |    |   |   |           |      |   |         |   |   |         |   |   |   |   |   |   |   |   |
|  Michael P. Stark, VP Exploration               | 12/31/10     |   | $      | 131,250 |   |    | $      | 7,000  |    |   | $      | -       |   |   | $              | 16,875    |   |         | $      | 3,375  |         |   | $ | - |   |   | $ | 158,500 |   |

----

----

| ( a )                |   | (b)                            |   |   | (c)                |   |   | (d)                                                                                   |   |   | (e)                                                                              |   |
|----------------------|--------|--------------------------------|--------|--------|--------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|
| Name                 |   | Shares AcquiredOn Exercise (#) |   |   | Value Realized ($) |   |   | Number of SecuritiesUnderlying UnexercisedOptions at FY End Exercisable/Unexercisable |   |   | Value of Unexercised InThe Money Options at FY End ($)Exercisable/ Unexercisable |   |
|                 |   |                           |   |   |               |   |   |                                                                                  |   |   |                                                                             |   |
| F. Lynn Blystone     |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 700,000/0                                                                        |   |   | $ | 0/$0 |   |
| Maston N. Cunningham |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 125,000/75,000                                                                   |   |   | $ | 0/$0 |   |
| John E. Durbin       |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 40,000/60,000                                                                    |   |   | $ | 0/$0 |   |
| G. Thomas Gamble     |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 80,000/0                                                                         |   |   | $ | 0/$0 |   |
| Paul W. Bateman      |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 80,000/20,000                                                                    |   |   | $ | 0/$0 |   |
| Edward M. Gabriel    |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 80,000/20,000                                                                    |   |   | $ | 0/$0 |   |
| Joseph R. Kandle     |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 435,000/0                                                                        |   |   | $ | 13,050/$0 |   |
| James G. Bush        |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 67,000/50,000                                                                    |   |   | $ | 0/$0 |   |
| Henry Lowenstein     |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 100,000/0                                                                        |   |   | $ | 0/$0 |   |
| Loren J. Miller      |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 0/0                                                                              |   |   | $ | 0/$0 |   |
| James S. Mayer       |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 60,000/40,000                                                                    |   |   | $ | 0/$0 |   |
| Michael P. Stark     |   |                           | 0      |   |               |   | 0      |                                                                                  |   |   | 18,750/131,250                                                                   |   |   | $ | 0/$0 |   |

|                 |   | Number of Shares   |    |   | % of Total      |   |  Exercise Price |   |   Market Value |     |       |
|----------------------|--------|--------------------|---------|--------|-----------------|--------|----------------------|--------|---------------------|----------|------------|
|                 |   | Underlying Options |    |   | Options Granted |   |  Per Share      |   |  of Securities |     | Expiration |
| Name                 |   | Granted            |    |   | in Fiscal Year  |   | ($/Security)         |   | Options (4)         |     | Date       |
|                 |   |               |    |   |            |   |                 |   |                |     |       |   |
| F. Lynn Blystone (1) |   |               | 700,000 |   |            | 52.0%  |                 | $1.85  |                | $ 0      |       | 3/2015 |
|                 |   |               |    |   |            |   |                 |   |                |     |       |   |
| Michael P. Stark (2) |   |               | 150,000 |   |            | 11.2%  |                 | $0.99  |                | $ 0      |       | 6/2015 |
|                 |   |               |    |   |            |   |                 |   |                |     |       |   |
| Joseph R. Kandle (3) |   |               | 435,000 |   |            | 32.3%  |                 | $0.54  |                | $ 13,050 |       | 5/2014 |
|                 |   |               |    |   |            |   |                 |   |                |     |       |   |

| (1)   | The warrants were granted March 5, 2010, and all warrants were vested as of December 31, 2010.                                          |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| (2)   | The options were granted June 7, 2010, and 18,750 options were vested as of December 31, 2010.                                          |
| (3)   | The warrants were granted November 22, 2010, and all warrants were vested as of December 31, 2010.                                      |
| (4)   | Based upon the difference between the exercise price per share and the market closing price of $0.57 per share as of December 31, 2010. |

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| Name                 |   | Number of Securities Underlying |    |   | Option Exercise |   | Option Expiration |
|----------------------|--------|---------------------------------|---------|--------|-----------------|--------|-------------------|
|                 |   | Unexercised Options             |    |   | Price           |   | Date              |
|                 |   | Exercisable                     |    |   | Unexercisable   |   |              |   |   |   |
| ( a )                |   | (b)                             |    |   | (c)             |   |              | (d) |   | (e) |
|                 |   |                            |    |   |            |   |              |   |   |   |
| Paul W. Bateman      |   |                            | 80,000  |   |            |   | 20,000            |   |   | $ | 6.37 |   | 8/2/2017 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| F. Lynn Blystone     |   |                            | 700,000 |   |            |   | -                 |   |   | $ | 1.85 |   | 3/5/2015 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| James G. Bush        |   |                            | 50,000  |   |            |   | 50,000            |   |   | $ | 7.88 |   | 5/23/2017 |
|                 |   |                            | 7,000   |   |            |   | -                 |   |   | $ | 6.10 |   | 7/3/2013 |
|                 |   |                            | 10,000  |   |            |   | -                 |   |   | $ | 1.10 |   | 5/18/2014 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| Maston N. Cunningham |   |                            | 70,000  |   |            |   | 30,000            |   |   | $ | 1.28 |   | 1/14/2014 |
|                 |   |                            | 55,000  |   |            |   | 45,000            |   |   | $ | 1.10 |   | 5/15/2014 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| John E. Durbin       |   |                            | 40,000  |   |            |   | 60,000            |   |   | $ | 2.42 |   | 10/1/2014 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| Edward M. Gabriel    |   |                            | 80,000  |   |            |   | 20,000            |   |   | $ | 6.49 |   | 8/1/2017 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| G. Thomas Gamble     |   |                            | 80,000  |   |            |   | -                 |   |   | $ | 6.35 |   | 5/9/2016 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| Joseph R. Kandle     |   |                            | 435,000 |   |            |   | -                 |   |   | $ | 0.54 |   | 11/22/2013 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| James C. Kromer      |   |                            | 60,000  |   |            |   | 40,000            |   |   | $ | 1.23 |   | 5/18/2014 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| Henry Lowenstein     |   |                            | 100,000 |   |            |   | -                 |   |   | $ | 6.35 |   | 5/9/2016 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| James S. Mayer       |   |                            | 60,000  |   |            |   | 40,000            |   |   | $ | 7.25 |   | 8/14/2013 |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| Loren J. Miller      |   |                            | -       |   |            |   | -                 |   |   |  $ | - |   | - |
|                 |   |                            |    |   |            |   |              |   |   |   |   |   |   |
| Michael P. Stark     |   |                            | 18,750  |   |            |   | 131,250           |   |   | $ | 0.99 |   | 6/7/2015 |

----

| (a)                  |   | (b)                |   |            | (c)    |                                 | (d)    |                      |   | (g)               |   |                                                                                              | (h)    |
|----------------------|--------|--------------------|--------|-----------------|--------|--------------------------------------|--------|---------------------------|--------|-------------------|--------|---------------------------------------------------------------------------------------------------|--------|
|   Name     |   |     Fees |   | StockAwards (1) |   |   OptionAwards (2)              |   | All OtherCompensation (3) |   | TotalCompensation |
| Paul W. Bateman      |   | $                  | 9,250  |            | $      |      19,300 |   | $                         | 40,200 |              |   |                 - |   | $ |             68,750 |
|                 |   |               |   |            |   |                                 |   |                      |   |              |   |                                                                                              |   |   |   |
| Edward M. Gabriel    |   | $                  | 1,500  |            | $      |      19,300 |   | $                         | 40,800 |              |   | -                                                                                                 |   | $ |             61,600 |
|                 |   |               |   |            |   |                                 |   |                      |   |              |   |                                                                                              |   |   |   |
| G. Thomas Gamble     |   | $                  | 15,500 |            | $      |      19,300 |   |                      | -      |              |   | -                                                                                                 |   | $ |             34,800 |
|                 |   |               |   |            |   |                                 |   |                      |   |              |   |                                                                                              |   |   |   |
| Dr. Henry Lowenstein |   | $                  | 16,750 |            | $      |      19,300 |   |                      | -      |              |   | -                                                                                                 |   | $ |             36,050 |
|                 |   |               |   |            |   |                                 |   |                      |   |              |   |                                                                                              |   |   |   |
| James S. Mayer       |   | $                  | 1,000  |            | $      |      19,300 |   | $                         | 45,000 |              | $      |             104,000                   |   | $ |           169,300 |
|                 |   |               |   |            |   |                                 |   |                      |   |              |   |                                                                                              |   |   |   |
| Loren J. Miller      |   | $                  | 6,500  |            | $      |      19,300 |   |                      | -      |              |   | -                                                                                                 |   | $ |             25,800 |

| (1)   | This column represents the Dollar amount recognized for financial statement reporting purposes with respect to the 2010 fiscal year for the fair value of stock granted in 2010.  Fair value is initially calculated using the closing price of our stock on the date of grant.  In 2010, each Director was granted 5,000 shares of common stock on January 4, 2010, for services rendered in 2009 and 5,000 shares of common stock on June 22, 2010, for services rendered in 2010.  The values of the stock granted to each director on those dates were $14,050, based on a closing market price of $2.81 per share on October 20, 2009, for the stock granted on January 4, 2010, and $5,250 based on the closing market price of $1.05 per share on June 22, 2010, for the stock granted that same day. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Stock option awards relate to the accounting expense for options vested in accordance with Accounting Standards Codification (ASC) 718, which requires the expensing of equity stock awards based on the grant date of the option. The grant date for Mr. Mayer was August 14, 2008; Mr. Bateman’s was August 2, 2007; Mr. Gabriel’s was August 1, 2007; and for Mr. Gamble and Dr. Lowenstein, the grant date was May 9, 2006. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Strategic business and institutional investor development consulting services fees were paid to Pinnacle Capital Management, LLC, during 2010.  Mr. Mayer is the President and Managing Member of Pinnacle Capital Management, LLC.  Our agreement with Pinnacle Capital Management, LLC, for such consulting services will expire on March 31, 2011.  |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                      |   | Number of                                                       |   | Percent of |
|-----------------------------------------------------------|--------|-----------------------------------------------------------------|--------|------------|
| Name and Address                                          |   | Shares (1)                                                      |   | Total      |
|                                                      |   |                                                            |   |       |
| G. Thomas GambleP.O. Box 128Oakville, CA  94562 |   |          3,016,650 |   | 6.7%       |

| (1)   | Includes 80,000 shares of stock Mr. Gamble has the right to acquire upon the exercise of options. |
|-----------------|---------------------------------------------------------------------------------------------------|

|                             |   | Number of  |   | Percent of |
|----------------------------------|--------|------------|--------|------------|
| Directors and Executive Officers |   | Shares (1) |   | Total (2)  |
|                             |   |       |   |       |
| Paul W. Bateman                  |   | 114,000    |   | 0.2%       |
|                             |   |       |   |       |
| F. Lynn Blystone                 |   | 1,105,453  |   | 2.5%       |
|                             |   |       |   |       |
| James G. Bush                    |   | 117,000    |   | 0.3%       |
|                             |   |       |   |       |
| Maston N. Cunningham             |   | 250,000    |   | 0.6%       |
|                             |   |       |   |       |
| John E. Durbin                   |   | 140,000    |   | 0.3%       |
|                             |   |       |   |       |
| Arthur M. Evans                  |   | -          |   | 0.0%       |
|                             |   |       |   |       |
| Edward M. Gabriel                |   | 114,000    |   | 0.2%       |
|                             |   |       |   |       |
| G. Thomas Gamble                 |   | 3,016,650  |   | 6.7%       |
|                             |   |       |   |       |
| Joseph R. Kandle                 |   | 535,000    |   | 1.2%       |
|                             |   |       |   |       |
| James C. Kromer                  |   | 140,000    |   | 0.3%       |
|                             |   |       |   |       |
| Henry Lowenstein, Ph.D.          |   | 116,000    |   | 0.3%       |
|                             |   |       |   |       |
| James S. Mayer                   |   | 112,000    |   | 0.2%       |
|                             |   |       |   |       |
| Loren J. Miller                  |   | 254,236    |   | 0.6%       |
|                             |   |       |   |       |
| Michael P. Stark                 |   | 174,000    |   | 0.4%       |

----

|                                               |   | Number of  |   | Percent of |
|----------------------------------------------------|--------|------------|--------|------------|
|                                               |   | Shares (1) |   | Total (2)  |
| Total Group : All Directors and Executive Officers |   |       |   |       |
|  (14 Persons)                                 |   | 6,188,339  |   | 13.8%      |

| (1)   | Includes shares which the listed shareholder has the right to acquire from options or warrants as follows:   F. Lynn Blystone 700,000; G. Thomas Gamble 80,000; Joseph R. Kandle 435,000; Dr. Henry Lowenstein 100,000; Paul W. Bateman 100,000; Edward M. Gabriel 100,000; James S. Mayer 100,000; James G. Bush 117,000; Maston N. Cunningham 200,000; James C. Kromer 100,000; John E. Durbin 100,000, and Michael P. Stark 150,000. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Based on total issued and outstanding shares of 44,729,117 as of December 31, 2010.  The persons named herein have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them, subject to community property laws where applicable. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| YEAR | AUDIT SERVICES | TAX SERVICES | AUDIT RELATED                                                   |
|------|----------------|--------------|-----------------------------------------------------------------|
| 2010 | $ 146,445      | $ 97,567     | $           - |
| 2009 | $ 106,012      | $ 70,689     | $ 25,931                                                        |
| 2008 | $ 103,607      | $ 28,226     | $ 32,303                                                        |

----

| ● | should not be treated as categorical statements of fact, but rather as a way of allocating the risk among the parties if those statements prove to be inaccurate;                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; |
| ● | may apply standards of materiality in a way that is different from the way investors may view materiality; and                                                                                         |
| ● | were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.                                |

| (a) (3)             | Exhibits                                                                                                                                                                                                                                                                          |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                                                                                              |
| Exhibit                  |                                                                                                                                                                                                                                                                              |
| Number                   | Description of Exhibit                                                                                                                                                                                                                                                            |
| 3.1                      | Amended and Restated Certificate of Incorporation, incorporated by reference to Exhibit 3.1 of the Company’s Registration Statement on Form S-3, filed with the SEC on December 2, 2009.                                                                                    |
| 3.2                      | Amended and Restated Bylaws, incorporated by reference to Exhibit 3.3 of the Company's Form 10-Q for the quarter ended September 30, 2007, filed with the SEC on November 9, 2007.                                                                                                |
|    4.1 *       | Rights Agreement as amended May 14, 2010.                                                                                                                                                                                                                                         |
| 4.2                      | Form of Warrant to Purchase Common Stock, incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K dated April 6, 2010, filed with the SEC on April 6, 2010.                                                                                                      |
| 4.3                      | Warrant Agent Agreement, incorporated by reference to Exhibit 4.2 of the Company’s Form 8-K dated April 6, 2010, filed with the SEC on April 6, 2010.                                                                                                                       |
| 4.4                      | Form of Series B Warrant to Purchase Common Stock, incorporated by reference to Exhibit 4.2 of the Company’s Form 8-K/A dated April 6, 2010, filed with the SEC on April 7, 2010.                                                                                           |
|    4.5 *       | Certificate of Designation in Respect of Series A Preferred Stock as amended.                                                                                                                                                                                                     |
| 10.1                     | Employment Agreement with F. Lynn Blystone, executed on March 10, 2009, incorporated by reference to Exhibit 10.1 of the Company’s Form 10-K for the year ended December 31, 2008, filed with the SEC on March 30, 2009.                                                    |
| 10.2                     | Tri-Valley Corporation 2005 Stock Option Plan, as amended, incorporated by reference to Exhibit A of the Company’s 2007 Proxy Statement and Definitive Schedule 14A, filed with the SEC on August 2, 2007.                                                                  |
| 10.3                     | Tri-Valley Corporation 2010 Sample Indemnification Agreement for Directors, Officers, Employees, or Agents of the Company, incorporated by reference to Exhibit 10.3 of the Company’s Form 10-K for the year ended December 31, 2009, filed with the SEC on March 29, 2010. |
| 10.4                     | Executive Retirement Agreement and General Release with F. Lynn Blystone, executed on March 5, 2010, filed herewith, incorporated by reference to Exhibit 10.4 of the Company’s Form 10-K for the year ended December 31, 2009, filed with the SEC on March 29, 2010.       |
|    10.5 * | Executive Retirement Agreement and General Release with Joseph R. Kandle, executed on December 6, 2010, amended on February 25, 2011.                                                                                                                                             |
|    10.6 *      | Separation Agreement with James G. Bush, executed on February 18, 2011.                                                                                                                                                                                                           |
| 10.7                     | Securities Purchase Agreement between the Company and certain purchasers dated April 6, 2010, incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K dated April 6, 2010, filed with the SEC on April 6, 2010.                                                 |
| 10.8                     | Sales Agreement between the Company and C. K. Cooper & Company, Inc., dated October 22, 2010, incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K dated October 22, 2010, filed with the SEC on October 22, 2010.                                       |
| 10.9                     | Sales Agreement between the Company and C. K. Cooper & Company, Inc., dated February 3, 2011, incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K dated February 3, 2011, filed with the SEC on February 4, 2011.                                       |
|    10.10 *     | Agreement to Facilitate Dispute Resolution, dated September 1, 2010.                                                                                                                                                                                                              |
|    10.11 *     | Agreement to Facilitate Dispute Resolution, dated September 1, 2010.                                                                                                                                                                                                              |
|    10.12 *     | Purchase and Sale Agreement between the Company and Columbia River Carbonates, dated December 21, 2010.                                                                                                                                                                           |

----

| ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (Continued)  |
|----------------------------------------------------------------------------------|
| Exhibit                                                                          |   |
| Number                                                                           | Description of Exhibit |
|    10.13 *                                                             | Agreement of Partnership of TVC Opus I Drilling Program, L.P., as amended. |
|    10.14 *                                                             | Drilling Program Agreement between the Company and TVC Opus I Drilling Program, L.P. |
|     21.1  *                                                  | Subsidiaries of the Registrant. |
|     23.1  *                                                  | Consent of Independent Petroleum Engineers and Geologists, Cecil Engineering, Inc., dated February 12, 2011. |
|     23.2  *                                                  | Consent of Independent Petroleum Engineers and Geologists, AJM Petroleum Consultants, dated February 18, 2011. |
| 23.3                                                                             | Consent of Brown Armstrong Accountancy Corporation, dated November 3, 2011, filed herewith. |
| 31.1                                                                             | Certification Pursuant to Rule 13a-14(a) / 15d-14(a), filed herewith. |
| 31.2                                                                             | Certification Pursuant to Rule 13a-14(a) / 15d-14(a), filed herewith. |
| 32.1                                                                             | Certification Pursuant to 18 U.S.C. §1350, filed herewith. |
| 32.2                                                                             | Certification Pursuant to 18 U.S.C. §1350, filed herewith. |
|     99.1  *                                                  | AJM Petroleum Consultants, Reserve Estimation and Economic Evaluation, Executive Summary, dated January 1, 2011. |
|     99.2  *                                                  | Leland B. Cecil, P.E., Evaluation of Oil and Gas Reserves, Tri-Valley Oil & Gas Co., dated December 31, 2010. |
|                                                                             |   |
|              *       | Previously filed as an exhibit to the Company's original Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 22, 2011.  |

----

|         |  November 17, 2011 | By:   /s/ Maston N. Cunningham                                        |
|--------------|-------------------------|---------------------------------------------------------------------------------|
|         |                    |        Maston N. Cunningham                  |
|         |                    |        President and Chief Executive Officer |
|    |                    |                                                                            |
|         |                    |                                                                            |
|         |                    |                                                                            |
|         |  November 17, 2011 | By:   /s/ Gregory L. Billinger                                        |
|         |                    |        Gregory L. Billinger                  |
|         |                    |        Interim Chief Financial Officer       |

|   |                    |   |                                                                                                          |
|--------|-------------------------|--------|---------------------------------------------------------------------------------------------------------------|
|   |                    |   |                                                                                                          |
|   | November 17, 2011       |   | By:   /s/  Paul W. Bateman                                                                |
|   |                    |   |        Paul W. Bateman, Director                                           |
|   |                    |   |                                                                                                          |
|   |                    |   |                                                                                                          |
|   |  November 17, 2011 |   | By: /s/  Edward M. Gabriel                                                                          |
|   |                    |   |        Edward M. Gabriel, Director                                         |
|   |                    |   |                                                                                                          |
|   |                    |   |                                                                                                          |
|   |  November 17, 2011 |   | By: /s/  G. Thomas Gamble                                                                           |
|   |                    |   |        G. Thomas Gamble, Director & Chairman of the Board of Directors |
|   |                    |   |                                                                                                          |
|   |                    |   |                                                                                                          |
|   |  November 17, 2011 |   | By: /s/  Henry Lowenstein                                                                           |
|   |                    |   |        Henry Lowenstein, Ph.D., Director                                   |
|   |                    |   |                                                                                                          |
|   |                    |   |                                                                                                          |
|   | November 17, 2011       |   | By: /s/  Loren J. Miller                                                                            |
|   |                    |   |        Loren J. Miller, Director                                           |