**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

| For                the Fiscal Year Ended December 31, 2005 | Commission                File No. 001-31852 |
|------------------------------------------------------------|----------------------------------------------|

**TRI-VALLEY      CORPORATION**

| **Delaware**                                                                  | **84-0617433**                                      |
|-------------------------------------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification No.) |

**4550      California Avenue, Suite 600, Bakersfield, California      93309**

**(661)      864-0500**

| Title                of each class            | Name                of exchange on which registered |
|-----------------------------------------------|-----------------------------------------------------|
| Common                Stock, $0.001 par value | American                Stock Exchange              |

----

**TABLE      OF CONTENTS**

| **PART                I**   |                                                                                                                |   |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------|--------|
| **ITEM                1**   | **Business**                                                                                                        | 1      |
|                        | Competition                                                                                                         | 1      |
|                        | Governmental                Regulation                                                                              | 2      |
|                        | Environmental                Regulation                                                                             | 2      |
|                        | Employees                                                                                                           | 4      |
|                        | Available                Information                                                                                | 4      |
| **ITEM                1A**  | **Risk                Factors**                                                                                     | 4      |
| **ITEM                2**   | **Properties**                                                                                                      | 9      |
|                        | Oil                and Gas Operations                                                                               | 9      |
|                        | Mining                Activity                                                                                      | 12     |
| **ITEM                4**   | **Submission                of Matters To A Vote Of Security Holders**                                              | 14     |
|                        |                                                                                                                |   |
| **PART                II**  |                                                                                                                |   |
| **ITEM                5**   | **Market                Price Of The Registrant's Common Stock And Related Security Holder                Matters** | 14     |
|                        | Recent                Sales of Unregistered Securities                                                              | 14     |
| **ITEM                6**   | **Selected                Historical Financial Data**                                                               | 15     |
| **ITEM                7**   | **Management's                Discussion And Analysis Of Financial Condition**                                      | 15     |
|                        | Notice                Regarding Forward-Looking Statements                                                          | 15     |
|                        | Overview                                                                                                            | 15     |
|                        | Critical                Accounting Policies                                                                         | 16     |
|                        | Results                of Operations                                                                                | 20     |
|                        | Financial                Condition                                                                                  | 21     |
|                        | Operating                Activities                                                                                 | 22     |
| **ITEM                8**   | **Financial                Statements**                                                                             | 24     |
| **ITEM                9A**  | **Controls                and Procedures**                                                                          | 59     |
|                        | Evaluation                of Disclosure Controls                                                                    | 59     |
|                        | Management’s                Report on Internal Control over Financial Reporting                               | 59     |
|                        |                                                                                                                |   |
| **PART                III** |                                                                                                                |   |
| **ITEM                10**  | **Directors                and Executive Officers of the Registrant**                                               | 60     |
| **ITEM                11**  | **Executive                Compensation**                                                                           | 64     |
|                        | Employment                Agreement with Our President                                                              | 65     |
|                        | Compensation                Committee Report                                                                        | 65     |
|                        | Aggregated                2005 Option Exercises and Year-End Values                                                 | 67     |
|                        | Compensation                of Directors                                                                            | 67     |
|                        | Performance                Graph                                                                                    | 68     |
| **ITEM                12**  | **Security                Ownership of Certain Beneficial Owners and                Management**                    | 68     |
| **ITEM                14**  | **Principal                Accountant Fees and Services**                                                           | 69     |
| **ITEM                15**  | **Exhibits                and Financial Statement Schedules**                                                       | 70     |
|                        |                                                                                                                |   |
| **SIGNATURES**              | 71                                                                                                                  |

----

**PART      I**

**ITEM      1 Business**

| ·   | Tri-Valley                Oil & Gas Company (“TVOG”) operates the oil & gas activities. TVOG                derives the majority of its revenue from oil and gas drilling and                development. TVOG primarily generates its own exploration prospects                from                its internal database, and also screens prospects from other geologists                and companies. TVOG generates these geological “plays” within a certain                geographic area of mutual interest. The prospect is then presented                to                potential co-ventures. The company deals with both accredited individual                investors and energy industry companies. TVOG serves as the operator                of                these co-ventures. TVOG operates both the oil and gas production                segment                and the drilling and development segment of our business                lines. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Select                Resources Corporation (“Select”) was created in late 2004 to manage, grow                and operate Tri-Valley’s mineral interests. Select operates the Minerals                segment of our business lines both through a joint venture, Tri-Western                Resources, LLC and itself. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Great                Valley Production Services, Inc., was formed in February 2006 to                operate                oil production and drilling, rigs, primarily for                TVOG. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tri-Valley                Power Corporation is inactive at the present                time. |
|--------------------|---------------------------------------------------------------------------------------------|

**Competition**

**Governmental      Regulation**

**Environmental      Regulation**

**Employees**

**Available      Information**

**ITEM      1A Risk Factors**

**Risks      Involved in Oil and Gas Operations**

**Our      success depends heavily on market conditions and prices for oil and      gas**

**Estimating      oil and gas reserves leads to uncertain results and thus our estimates of value      of those reserves could be incorrect**

**Continued      production of oil and gas depends on our ability to find or acquire additional      reserves, which we may not be able to find**

**The      unavailability or high cost of drilling rigs, equipment, supplies, personnel      and      oil field services could adversely affect our ability to execute our exploration      and development plans on a timely basis and within our budget.**

**Our      oil and gas reserves are concentrated in California**

**Oil      and gas drilling and production activities are subject to numerous mechanical      and environmental risks that could cause less production**

**Drilling      is a speculative activity, because assessments of drilling prospects are      inexact**

**Governmental      regulations make production more difficult and production costs      higher**

**Risks      Involved in Our Mineral Exploration Business**

**Our      industrial mineral operations have not yet begun to realize significant      revenue**

**Our      mining operations may not be profitable.**

|   | • | Declines                or changes in demand;                                  |
|--------|---------|--------------------------------------------------------------------------------|
|   |    |                                                                           |
|   | • | Declines                in the market price of the various metals or minerals; |
|   |    |                                                                           |
|   | • | Increased                production or capital costs;                          |
|   |    |                                                                           |
|   | • | Reduction                in the grade or tonnage of the deposit;               |
|   |    |                                                                           |
|   | • | Increase                in the dilution of the ore; and                        |
|   |    |                                                                           |
|   | • | Reduced                recovery rates;                                         |
|   | • | Delays                in new project development;                              |
|   |    |                                                                           |
|   | • | New,                lower cost competitors;                                    |
|   |    |                                                                           |
|   | • | Net                losses;                                                     |
|   |    |                                                                           |
|   | • | Reduced                cash flow;                                              |
|   |    |                                                                           |
|   | • | Reductions                in reserves; and                                     |
|   |    |                                                                           |
|   | • | Write-downs                of asset values.                                    |

**Our      joint development and operating arrangements may not be      successful.**

**Our      operations may be adversely affected by risks and hazards associated with the      mining industry that may not be fully covered by      insurance.**

|   | •                                    | Environmental                hazards;                                                                                                                                             |
|--------|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Industrial                accidents;                                                                                                                                              |
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Unusual                or unexpected geologic formations;                                                                                                                         |
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Unanticipated                hydrologic conditions, including flooding and periodic interruptions                due                to inclement or hazardous weather conditions. |
|   |                                       |                                                                                                                                                                              |
|   | Such                risks could result in: |
|   |                                       |
|   | •                                    | Personal                injury or fatalities;                                                                                                                                     |
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Damage                to or destruction of mineral properties or producing                facilities;                                                                             |
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Environmental                damage;                                                                                                                                              |
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Delays                in exploration, development or mining;                                                                                                                      |
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Monetary                losses; and                                                                                                                                               |
|   |                                       |                                                                                                                                                                              |
|   | •                                    | Legal                liability.                                                                                                                                                   |

**Risks      Involved in Our Operations Generally**

**There      are risks associated with forward-looking statements made by us and actual      results may differ.**

**If      we are unable to obtain additional funding our business operations will be      harmed.**

**The      departure of any of our key personnel would slow our operation until we could      fill the position again.**

**We      have identified material weaknesses in our internal control over financial      reporting which, if not remediated, may adversely affect our ability to timely      and accurately meet our financial reporting responsibilities.**

**ITEM      2 Properties**

**Oil      and Gas Operations**

|                             | BBL        | MCF     |
|----------------------------------|------------|---------|
|                             |       |    |   |   |
| December                31, 2005 | Oil        | 218,030 | Natural                Gas | 779,598 |
| December                31, 2004 | Condensate | 162     | Natural                Gas | 742,401 |
| December                31, 2003 | Condensate | 162     | Natural                Gas | 1,251,548 |

|                             | Year                Ended   | Year                Ended   | Year                Ended   |
|----------------------------------|-----------------------------|-----------------------------|-----------------------------|
|                             | December                31, | December                31, | December                31, |
|                             | 2005                        | 2004                        | 2003                        |
|                             |                        |                        |                        |
| Natural                Gas (MCF) | 128,602                     | 126,942                     | 162,314                     |
| Crude                Oil (BBL)   | 17                          | 22                          | 25                          |

----

|                            | Year                Ended   | Year                Ended   | Year                Ended   |
|---------------------------------|-----------------------------|-----------------------------|-----------------------------|
|                            | December                31, | December                31, | December                31, |
|                            | 2005                        | 2004                        | 2003                        |
|                            |                        |                        |                        |   |   |   |
|                            | Gas                (Mcf)    | Oil*                        | Gas                (Mcf)    | Oil* | Gas                (Mcf) | Oil* |
| Sales                Price      | $7.00                       | $44.34                      | $5.66                       | $40.60 | $5.07 | $29.46 |
|                            |                        |                        |                        |   |   |   |
| Production                Costs | $0.73                       | $                0.00       | $1.14                       | $                0.00 | $0.78 | $                0.00 |
|                            |                        |                        |                        |   |   |   |
| Net                Profit       | $6.27                       | $44.34                      | $4.52                       | $40.60 | $4.29 | $29.46 |

| Wells                (1) | Acres                (2) |
|--------------------------|--------------------------|
| Gross                    | Net                      | Gross | Net |
| 11                       | 4.537                    | 2,192 | 645 |

| (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   | Year                Ended   | Year                Ended   |
|-------------|-----------------------------|-----------------------------|-----------------------------|
|        | December                31, | December                31, | December                31, |
|        | 2005                        | 2004                        | 2003                        |
|        |                        |                        |                        |
| Exploratory |                        |                        |                        |
| Producing   | -0-                         | -0-                         | -0-                         |
| Dry         | 1                           | 1                           | 2                           |
| Total       | 1                           | 1                           | 2                           |
|        |                        |                        |                        |
| Development |                        |                        |                        |
| Producing   | -0-                         | -0-                         | -0-                         |
| Dry         | -0-                         | -0-                         | -0-                         |
| Total       | -0-                         | -0-                         | -0-                         |

----

| State      |   | Gross                Acres |   | Net                Acres |
|------------|--------|----------------------------|--------|--------------------------|
| California |   | 21,145                     |   | 19,605                   |
| Nevada     |   | 18,559                     |   | 18,559                   |

| Expires                in 2006 | 1,059                acres |
|--------------------------------|----------------------------|
| Expires                in 2007 | 6,466                acres |
| Expires                in 2008 | 4,524                acres |

**Mining      Activity**

| State  |   | Gross                Acres |   | Net                Acres |
|--------|--------|----------------------------|--------|--------------------------|
| Alaska |   | 28,720                     |   | 27,926                   |
|   |   |                       |   |                     |

| State  |   | Gross                Acres |   | Net                Acres |
|--------|--------|----------------------------|--------|--------------------------|
| Alaska |   | 9,700                      |   | 9,700                    |

**ITEM      4 Submission of Matters To A Vote Of Security Holders**

| Measure                #1 - Election of Directors |
|---------------------------------------------------|
|                                              | **FOR** | **AGAINST** | **ABSTAIN** |
| F.                Lynn Blystone                   | 11,611,328 | 118,922 |   |
| Milton                J. Carlson                  | 11,688,211 | 42,039 |   |
| C.                Chase Hoffman                   | 11,673,444 | 56,865 |   |
| Dennis                P. Lockhart                 | 11,990,064 | 40,186 |   |
| Loren                J. Miller                    | 11,661,343 | 68,907 |   |
| Harold                J. Noyes                    | 11,564,716 | 165,534 |   |
| Henry                Lowenstein                   | 11,694,328 | 35,922 |   |

| Measure                #2 - Incentive Stock                Option Plan | 11,259,404 | 397,891 | 72,955 |
|------------------------------------------------------------------------|------------|---------|--------|

**PART      II**

**ITEM      5 Market Price Of The Registrant's Common Stock And Related Security Holder      Matters**

|   |                          | Sales                Prices | Closing                Prices |
|--------|-------------------------------|-----------------------------|-------------------------------|
|   |                          | High                        | Low                           | High | Low |
| 2005   |                          |                        |                          |   |
|   | Fourth                Quarter | $12.25                      | $5.52                         | $11.75 | $6.14 |
|   | Third                Quarter  | $14.09                      | $8.51                         | $14.00 | $8.99 |
|   | Second                Quarter | $14.30                      | $8.13                         | $14.30 | $9.12 |
|   | First                Quarter  | $17.50                      | $7.70                         | $17.27 | $7.90 |
|   |                          |                        |                          |   |   |
|   |                          | Bid                Prices   | Asked                Prices   |
|   |                          | High                        | Low                           | High | Low |
| 2004   |                          |                        |                          |   |
|   | Fourth                Quarter | $12.98                      | $4.40                         | $12.23 | $4.46 |
|   | Third                Quarter  | $                4.70       | $3.73                         | $                4.70 | $3.89 |
|   | Second                Quarter | $                4.94       | $3.90                         | $                4.91 | $3.98 |
|   | First                Quarter  | $                5.40       | $4.30                         | $                5.40 | $4.36 |

**Recent      Sales of Unregistered Securities**

**ITEM      6 Selected Historical Financial Data**

|                                       |   | Year                Ended December 31, |       |
|--------------------------------------------|--------|----------------------------------------|------------|
|                                       |   | 2005                                   |       | 2004 |   | 2003 |   | 2002 |   | 2001 |   |
| Income                Statement Data:      |   |                                   |       | (restated) |   | (restated) |   |   |   |   |   |
| Revenues                                   |   | $                                      | 12,528,606 |   | $ | 4,498,670 |   | $ | 6,464,245 |   | $ | 6,284,908 |   | $ | 2,130,187 |   |
| Operating                Income (Loss)     |   | $                                      | (9,730,071 | ) | $ | (1,171,005 | ) | $ | 456,109 |   | $ | 769,130 |   | $ | (117,972 | ) |
| Basic                Earnings Per Share    |   | $                                      | (0.43      | ) | $ | (0.06 | ) | $ | 0.02 |   | $ | 0.04 |   | $ | - |   |
| Diluted                earnings per share  |   | $                                      | (0.39      | ) | $ | (0.05 | ) | $ | 0.02 |   | $ | 0.04 |   | $ | - |   |
|                                       |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                Sheet Data:         |   |                                   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                and Equipment, net |   | $                                      | 13,635,981 |   | $ | 1,778,208 |   | $ | 1,543,121 |   | $ | 1,974,501 |   | $ | 2,010,457 |   |
| Total                Assets                |   | $                                      | 19,738,730 |   | $ | 14,473,326 |   | $ | 8,341,782 |   | $ | 4,634,874 |   | $ | 3,381,757 |   |
| Long                Term Obligations       |   | $                                      | 4,528,365  |   | $ | 6,799 |   | $ | 16,805 |   | $ | 26,791 |   | $ | 8,371 |   |
| Stockholder's                Equity        |   | $                                      | 7,572,720  |   | $ | 6,796,903 |   | $ | 1,851,783 |   | $ | 1,262,306 |   | $ | 353,776 |   |

**ITEM      7 Management's Discussion And Analysis Of Financial      Condition**

**Notice      Regarding Forward-Looking Statements**

**Overview**

|  We                prepare Consolidated Financial Statements for inclusion in this Report                in                accordance with accounting principles that are generally accepted                in the                United States ("GAAP"). Note 2 to our Consolidated Financial Statements                (contained in Item 8 of this Annual Report) contains a comprehensive                discussion of our significant accounting policies. Critical accounting                policies are those that may have a material impact on our financial                statements and also require management to exercise significant judgment                due to a high degree of uncertainty at the time the estimate is made.                Our                senior management has discussed the development and selection of                our                accounting policies, related accounting estimates and disclosures                with the                Audit Committee of our Board of Directors.  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  Successful                Efforts Method Of Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|  Use                of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  Preparation                of our Consolidated Financial Statements under GAAP requires management                to                make estimates and assumptions that affect reported assets, liabilities,                revenues, expenses, and some narrative disclosures. The estimates                that are                most critical to our Consolidated Financial Statements involve oil                and gas                reserves, recoverability and impairment of reserves, and useful lives                of                assets.  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|  *Oil                and Gas Reserve Estimates.*Estimates                of our proved reserves included in this Report are prepared in accordance                with GAAP and SEC guidelines and were based on evaluations audited                by                independent petroleum engineers with respect to our major properties.                The                accuracy of a reserve report estimate is a function of:                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

|  **-**   |  The                quality and quantity of available data;                 |
|--------------------|---------------------------------------------------------------------------------------|
|  **-**   |  The                interpretation of that data;                            |
|  -       |  The                accuracy of various mandated economic assumptions; and  |
|  -       |  The                judgment of the persons preparing the estimate.         |
|     |                                                                        |

|  Because                these estimates depend on many assumptions, all of which may substantially                differ from future actual results, reserve estimates will be different                from the quantities of oil and gas that are ultimately recovered.                In                addition, results of drilling, testing and production after the date                of an                estimate may justify material revisions to the estimate.                                                                                                                                                                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|  In                2005, our proved, developed gas reserve estimates were revised upward                by a                total of approximately 165,000 million cubic feet. These upward revisions                were the result of increasing the potential future recoverable reserves                from approximately 742,000 million cubic feet. Also in 2005, our                proved                oil reserves estimated were increased by a total of approximately                217,000                barrels of oil due to acquisitions of oil properties.                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|  It                should not be assumed that the present value of future net cash flows                included in this Report as of December 31, 2005 is the current market                value of our estimated proved reserves. In accordance with SEC                requirements, we have based the estimated present value of future                net cash                flows from proved reserves on prices and costs on the date of the                estimate. Actual future prices and cost may be materially higher                or lower                than the prices and costs as of the date of the estimate.                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|  Estimates                of proved reserves materially impact depletion expense. If the estimates                of proved reserves decline, the rate at which we record depletion                expense                will increase, reducing future net income. Such a decline may result                from                lower market prices, which may make it uneconomic to drill for and                produce                higher cost fields. In addition, a decline in proved reserve estimates                may                impact the outcome of our assessment of its oil and gas producing                properties for impairment.  |

*Impairment      of Proved Oil and Gas Properties.*

|  *Asset                Retirement Obligations.*We                adopted SFAS No. 143, "Accounting for Asset Retirement Obligations"                effective January 1, 2003. Under this guidance, management is required                to                make judgments based on historical experience and future expectations                regarding the future abandonment cost of its oil and gas properties                and                equipment as well as an estimate of the discount rate to be used                in order                to bring the estimated future cost to a present value. The discount                rate                is based on the risk free interest rate which is adjusted for our                credit                worthiness. The adjusted risk free rate is then applied to the estimated                abandonment costs to arrive at the obligation existing at the end                of the                period under review. We review our estimate of the future obligation                quarterly and accrue the estimated obligation based on the                above.  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  Other                Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  In                addition to those significant accounting policies described in Note                2 to                our Consolidated Financial Statements, we have adopted the following                accounting policies which may require the use of estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  *Deferred                Tax Asset Valuation Allowances.*                We                maintain a valuation allowance against our deferred tax assets, which                result from net operating losses and statutory depletion carryforwards                from prior years. We continually assess whether it is more likely                than not                that deferred tax assets can be realized prior to their expiration,                but we                currently have a valuation allowance of 100% of the value of the                deferred                tax assets. *See                Note 7 to our Consolidated Financial Statements.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  *Commitments                and contingencies.*                We                make judgments and estimates regarding possible liabilities for litigation                and environmental remediation. We have no ongoing litigation. We                routinely                have clean-up and maintenance obligations in connection with oil                and gas                drilling and production activities, but we have never had a material                environmental liability or claim.*See Note 11 to our Consolidated Financial Statements.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  *Goodwill*.                We evaluate goodwill at least annually in December. At December 31,                2005,                goodwill, which consists of purchased assets of our subsidiary, TVOG,                constituted less than 2% of our total assets. *See                Note 2 - Goodwill - of our Consolidated Financial                Statements.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

**:      **

----

**Results      of Operations**

|  The                Company lost $1,171,005 in 2004 compared to profits of $456,109 in                2003.                Total revenue was about $1.88 million lower in 2004 than in                2003.                In 2004, our revenue from drilling and development fell to about                $3.56                million, compared to $5.44 million in 2003. In 2004 we recorded drilling                and development revenues from drilling only one well, compared to                revenues                recorded from drilling three wells in 2003.   In                2005, our largest source of revenue has been oil and gas drilling                and                development. We record revenue received by us from joint ventures                for                drilling and development when we complete drilling wells that have                been                sold to joint venture partners, including the Opus-I drilling partnership.                In 2005, our revenue from drilling and development increased to about                $11.42 million,                compared to $3.56 million in 2004. This increase was largely due                to a $3.5                million frac job on the Ehko well and the drilling of the Midland                Trail                well in Nevada which cost about $3.4 million. Also in 2005, our interest                income increased from about $46,000 in 2004 to about $121,000 in                2005.                This increase was due to both increasing interest rates and an increased                average cash balance.  Also,                in 2004 and 2003, our largest source of revenue has been oil and                gas                drilling and development. In 2004, our revenue from drilling and                development fell to about $3.56                million, compared to $5.44 million in 2003. In 2004 we recorded drilling                and development revenues from drilling only one well, compared to                revenues                recorded from drilling three wells in 2003.   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  We                expect our costs and expenses to increase significantly in 2006 due                to                drilling and workover activities on the Temblor and Pleasant Valley                properties.  Because                of our reduced drilling activity in 2004, our drilling and development                costs fell. Our 2004 drilling and development costs fell 45% from                2003.                This was due to fewer wells being permitted and the difficultly in                getting                drilling rigs during 2004.  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|  Likewise,                oil and gas lease expense fell as our production activity fell in                2004,                mainly due to having two shut in wells for much of 2004, for which                we                incurred fewer operating costs. Likewise, depreciation, depletion                and                amortization expense fell in 2004 compared to 2003 due to lower production                levels, but this is a minor component of our current operating                costs.                                                                    |

**Financial      Condition**

|                                              |   | Payments                Due By Period |      |
|---------------------------------------------------|--------|---------------------------------------|-----------|
|                                              |   | Less                than 1year        |      | 1-3                years |   | 3-5                years |   | After                5years |   | Total |   |
| Long                term debt(1)                  |   | $                                     | 966,284   |   | $ | 1,240,351 |   | $ | 775,851 |   | $ | 2,218,672 |   | $ | 5,201,158 |   |
| Operating                lease commitments (2)    |   |                                  | 154,700   |   |   | 371,280 |   |   | 371,280 |   |   | 30,940 |   |   | 928,200 |   |
| Total                contractual cash obligations |   | $                                     | 1,120,984 |   | $ | 1,611,631 |   | $ | 1,147,131 |   | $ | 2,249,612 |   | $ | 6,129,358 |   |

| (1)   | represents                cash obligations for principal payments and interest payments on                various                loans which are all secured by the asset financed. For further detail,                see                Note 4 to the financial                statements.. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | lease                agreement of new corporate headquarters in Bakersfield, California,                lease                terms are until March 2011 at a monthly payment of                $15,470. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Operating      Activities**

| During                2006, we expect to expend approximately $7 million on drilling activities.                Funds for these activities will be provided by sales of partnership                interests in the Opus-I drilling partnership, which will still be                raising                funds for development purposes. We have not yet planned our proposed                prospect drilling and development activities for 2006. Our ability                to                complete our planned drilling activities in 2006 depends on some                factors                beyond our control, such as availability of equipment and                personnel.                                                                                                                                                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| In                2006, we expect expenditures of approximately $ 3.1 million on mining                activities, including mining lease and exploration expenses. We have                spent                approximately $0.6 million on mining lease and exploration expense                in the                first two months of the year and expect approximately another $ 2.5                million in expenses in the remainder of the year to improve our production                capacity. We believe that proceeds from our prior stock sales are                more                than sufficient to fund our remaining mining activities as well as                our                operating capital needs for the balance of 2006. We expect that revenue                from mining operations will begin to offset mine operating expenses                beginning in the third quarter of                2006. |

| ·   | Cash                flow from operating activities, |
|--------------------|-----------------------------------------------------|

| ·   | Borrowings                from financial institutions, |
|--------------------|--------------------------------------------------------|

| ·   | Debt                offerings, which could increase our leverage and add to our need                for cash                to service such debt, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Additional                offerings of our equity securities, which would cause dilution of                our                common stock, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sales                of portions of our working interest in the prospects within our                exploration program, which would reduce future revenues from its                exploration program, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sale                to an industry partner of a participation in our exploration                program, |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Sale                of all or a portion of our producing oil and gas properties, which                would                reduce future revenues. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

**ITEM      8: FINANCIAL STATEMENTS**

**TRI-VALLEY      CORPORATION**

|                                                                              | Page(s) |
|-----------------------------------------------------------------------------------|---------|
|                                                                              |    |
| Report                of Independent Auditor                                      | 25      |
|                                                                              |    |
| Consolidated                Balance Sheets at December 31, 2005 and 2004          | 27      |
|                                                                              |    |
| Consolidated                Statements of Operations for the Years Ended          |    |
| December                31, 2005, 2004 and 2003                                   | 29      |
|                                                                              |    |
| Consolidated                Statements of Changes in Shareholders' Equity for the |    |
| Years                Ended December 31, 2005, 2004 and 2003                       | 30      |
|                                                                              |    |
| Consolidated                Statements of Cash Flows for the Years Ended          |    |
| December                31, 2005, 2004 and 2003                                   | 31      |
|                                                                              |    |
| Notes                to Consolidated Financial Statements                         | 33      |
|                                                                              |    |
| Supplemental                Information about Oil and Gas Producing               |    |
| Activities                (Unaudited)                                             | 52      |

----

*Internal      Control—Integrated Framework*

*Internal      Control—Integrated Framework*
*Internal      Control—Integrated Framework*

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      BALANCE SHEETS**

|                                                      |   | December                31, |           |
|-----------------------------------------------------------|--------|-----------------------------|----------------|
|                                                      |   | ___2005___                  |           | ___2004__ |   |
| **ASSETS**                                                |   |                        |           | (restated) |   |
| Current                assets                             |   |                        |           |   |   |
| Cash                                                      |   | $                           | 4,876,921      |   | $ | 11,812,920 |   |
| Accounts                receivable, trade                 |   |                        | 273,409        |   |   | 192,008 |   |
| Advance                receivable                         |   |                        | 158,460        |   |   | 150,000 |   |
| Prepaid                expenses                           |   |                        | 42,529         |   |   | 96,056 |   |
|                                                      |   |                        |           |   |   |   |   |
| Total                current assets                       |   |                        | 5,351,319      |   |   | 12,250,984 |   |
|                                                      |   |                        |           |   |   |   |   |
| Property                and equipment, net                |   |                        |           |   |   |   |   |
| Proved                properties                          |   |                        | 1,146,103      |   |   | 131,382 |   |
| Unproved                properties                        |   |                        | 3,009,564      |   |   | 1,381,667 |   |
| Other                property and equipment               |   |                        | 9,480,314      |   |   | 265,159 |   |
|                                                      |   |                        |           |   |   |   |   |
| Total                property and equipment, net (Note 3) |   |                        | 13,635,981     |   |   | 1,778,208 |   |
|                                                      |   |                        |           |   |   |   |   |
| Other                assets                               |   |                        |           |   |   |   |   |
| Deposits                                                  |   |                        | 316,614        |   |   | 200,407 |   |
| Investments                in partnerships (Note 5)       |   |                        | 17,400         |   |   | 17,400 |   |
| Goodwill                                                  |   |                        | 212,414        |   |   | 212,414 |   |
| Other                                                     |   |                        | 205,002        |   |   | 13,913 |   |
|                                                      |   |                        |           |   |   |   |   |
| Total                other assets                         |   |                        | 751,430        |   |   | 444,134 |   |
|                                                      |   |                        |                |   |   |  |   |
| **Total                assets**                           |   | **$**                       | **19,738,730** |   | **$** | **14,473,326** |   |
|                                                      |   |                        |           |   |   |   |   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      BALANCE SHEETS**

|                                                                |                               |                              |   |       |   |
|---------------------------------------------------------------------|------------------------------------|-----------------------------------|--------|------------|--------|
|                                                                |                               |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**       |                               |
|                                                                |                               | December                31,       |   |
|                                                                |                               | ___2005___                        |   | ___2004__  |   |
|                                                                |                               |                              |   | (restated) |   |
| Current                liabilities                                  |                               |                              |   |       |   |
| Notes                payable                                        | $                966,649           | $                9,985            |
| Accounts                payable and accrued expenses                | 1,190,604                          | 1,237,848                         |
| Amounts                payable to joint venture participants        | 161,747                            | 100,115                           |
| Advances                from joint venture participants, net        | 5,318,645                          | 6,321,676                         |
|                                                                |                               |                              |
| Total                current liabilities                            | 7,637,645                          | 7,669,624                         |
|                                                                |                               |                              |
| Non-Current                Liabilities                              |                               |                              |
| Due                to joint ventures                                | 201,748                            | -                                 |
| Asset                Retirement Obligation                          | 92,108                             | -                                 |
| Long-term                portion of notes payable                   | 4,234,509                          |                  6,799       |
|                                                                |                               |                              |
| Total                non-current liabilities                        | 4,528,365                          |                  16,805      |
|                                                                |                               |                              |
| Total                liabilities                                    | 12,166,010                         | 7,676,423                         |
|                                                                |                               |                              |
| Stockholders’                equity                           |                               |                              |
| Common                stock, $.001 par value; 100,000,000 shares    |                               |                              |
| authorized;                22,806,176 and 21,836,052 issued and     |                               |                              |
| outstanding                at December 31, 2005, and 2004           | 22,806                             | 21,836                            |
| Less:                common stock in treasury, at cost,             |                               |                              |
| 100,025                shares at December 31, 2005 and 2004.        | (13,370)                           | (13,370)                          |
| Subscription                receivable                              |                               | (750)                             |
| Capital                in excess of par value                       | 25,629,775                         | 15,125,607                        |
| Accumulated                deficit                                  |                  (18,066,491) |                  (8,336,420) |
|                                                                |                               |                              |
| Total                stockholders’ equity                     | 7,572,720                          | 6,796,903                         |
|                                                                |                               |                              |
| **Total                liabilities and stockholder’s equity** | **$                19,738,730**    | **$                14,473,326**   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                                                                  |   | __For                the Years Ended December 31,_ |           |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|----------------|
|                                                                                                  |   | ___2005___                                         |           | ___2004___ |   | ___2003___ |   |
|                                                                                                  |   |                                               |           | (restated) |   | (restated) |   |
| Revenues                                                                                              |   |                                               |           |   |   |   |   |
| Sale                of oil and gas                                                                    |   | $                                                  | 901,359        |   | $ | 799,474 |   | $ | 901,739 |   |
| Royalty                income                                                                         |   |                                               | 883            |   |   | 674 |   |   | 529 |   |
| Partnership                income                                                                     |   |                                               | 30,000         |   |   | 30,000 |   |   | 30,000 |   |
| Interest                income                                                                        |   |                                               | 120,904        |   |   | 45,990 |   |   | 34,479 |   |
| Drilling                and development                                                               |   |                                               | 11,422,234     |   |   | 3,559,500 |   |   | 5,440,780 |   |
| Other                income                                                                           |   |                                               | 53,226         |   |   | 63,032 |   |   | 56,718 |   |
|                                                                                                  |   |                                               |           |   |   |   |   |   |   |   |
| Total                revenues                                                                         |   |                                               | 12,528,606     |   |   | 4,498,670 |   |   | 6,464,245 |   |
|                                                                                                  |   |                                               |           |   |   |   |   |   |   |   |
| Costs                and expenses                                                                     |   |                                               |           |   |   |   |   |   |   |   |
| Mining                exploration costs                                                               |   |                                               | 6,697,441      |   |   | 1,029,898 |   |   | 366,039 |   |
| Production                costs                                                                       |   |                                               | 93,429         |   |   | 144,101 |   |   | 183,362 |   |
| Drilling                and development                                                               |   |                                               | 9,267,621      |   |   | 2,224,793 |   |   | 4,014,889 |   |
| General                and administrative                                                             |   |                                               | 5,231,624      |   |   | 2,103,457 |   |   | 1,373,058 |   |
| Interest                                                                                              |   |                                               | 377,944        |   |   | 33,332 |   |   | 2,572 |   |
| Depreciation,                depletion and amortization                                               |   |                                               | 500,453        |   |   | 21,699 |   |   | 29,216 |   |
| Impairment                of acquisition costs                                                        |   |                                               | 90,165         |   |   | 112,395 |   |   | - |   |
|                                                                                                  |   |                                               |           |   |   |  |   |   |  |   |
| Total                costs and expenses                                                               |   |                                               | 22,258,677     |   |   | 5,669,675 |   |   | 5,969,136 |   |
|                                                                                                  |   |                                               |           |   |   |  |   |   |  |   |
| Net                income (loss) before income taxes                                                  |   |                                               | (9,730,071     | ) |   | (1,171,005 | ) |   | 495,109 |   |
|                                                                                                  |   |                                               |           |   |   |  |   |   |  |   |
| Tax                provision                                                                          |   |                                               | -              |   |   | - |   |   | 39,000 |   |
|                                                                                                  |   |                                               |           |   |   |  |   |   |  |   |
| **Net                income (loss)**                                                                  |   | **$**                                              | **(9,730,071** | **)** | **$** | **(1,171,005** | **)** | **$** | **456,109** |   |
|                                                                                                  |   |                                               |           |   |   |  |   |   |  |   |
| Basic                earnings (loss) per common share                                                 |   | $                                                  | (0.43          | ) | $ | (0.06 | ) | $ | 0.02 |   |
|                                                                                                  |   |                                               |           |   |   |   |   |   |   |   |
| **Weighted                average number of shares outstanding**                                      |   |                                               | **22,426,580** |   |   | **20,507,342** |   |   | **19,801,785** |   |
|                                                                                                  |   |                                               |           |   |   |  |   |   |   |   |
| **Diluted                earnings (loss) per common equivalent share**                                |   | $                                                  | (0.39          | ) | $ | (0.05 | ) | $ | 0.02 |   |
|                                                                                                  |   |                                               |           |   |   |   |   |   |   |   |
| **Diluted                weighted average common stock****and                equivalent outstanding** |   |                                               | **25,030,468** |   |   | **23,060,942** |   |   | **22,820,385** |   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      STATEMENTS OF STOCKHOLDERS’ EQUITY**

|                                                     |   | Total  |           |     |   |                     |   | Capital                in |       | Common     |   |           |   |     |   |                |   |
|----------------------------------------------------------|--------|--------|----------------|----------|--------|--------------------------|--------|---------------------------|------------|------------|--------|----------------|--------|----------|--------|---------------------|--------|
|                                                     |   | Common |           | Treasury |   |                     |   | Excess                of  |       | Stock      |   | Accumulated    |   | Treasury |   | Stockholders’ |   |
|                                                     |   | Shares |           | Shares   |   | Par                Value |   | Par                Value  |       | Receivable |   | Deficit        |   | Stock    |   | Equity              |   |
|                                                     |   |   |           |     |   |                     |   |                      |       |       |   |           |   |     |   |                |   |
| Balance                at December 31, 2002              |   |   | 19,726,348     |     |   | 100,025                  |   | $                         | 19,726     |       | $      | 8,879,724      |   | $        | (2,250 | )                   | $      | (7,621,524 | ) | $ | (13,370 | ) | $ | 1,262,306 |   |
|                                                     |   |   |           |     |   |                     |   |                      |       |       |   |           |   |     |   |                |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock                  |   |   | 371,279        |     |   | -                        |   |                      | 389        |       |   | 1,442,439      |   |     | -      |                |   | - |   |   | - |   |   | 1,442,828 |   |
| Stock                issuance cost                       |   |   | -              |     |   | -                        |   |                      | -          |       |   | (1,311,710     | )      |     | -      |                |   | - |   |   | - |   |   | (1,311,710 | ) |
| Common                stock receivable                   |   |   | -              |     |   | -                        |   |                      | -          |       |   | -              |   |     | 2,250  |                |   | - |   |   | - |   |   | 2,250 |   |
| Net                income, as restated                   |   |   | -              |     |   | -                        |   |                      | -          |       |   | -              |   |     | -      |                |   | 456,109 |   |   | - |   |   | 456,109 |   |
|                                                     |   |   |           |     |   |                     |   |                      |       |       |   |           |   |     |   |                |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2003, as restated |   |   | 20,097,627     |     |   | 100,025                  |   |                      | 20,115     |       |   | 9,010,453      |   |     | -      |                |   | (7,165,415 | ) |   | (13,370 | ) |   | 1,851,783 |   |
|                                                     |   |   |                |     |   |                          |   |                      |            |       |   |                |   |     |        |                |   |  |   |   |  |   |   |  |   |
| Issuance                of common stock                  |   |   | 1,738,425      |     |   | -                        |   |                      | 1,721      |       |   | 6,761,354      |   |     | -      |                |   | - |   |   | - |   |   | 6,763,075 |   |
| Stock                issuance cost                       |   |   | -              |     |   | -                        |   |                      | -          |       |   | (646,200       | )      |     | -      |                |   | - |   |   | - |   |   | (646,200 | ) |
| Common                stock receivable                   |   |   | -              |     |   | -                        |   |                      | -          |       |   | -              |   |     | (750   | )                   |   | - |   |   | - |   |   | (750 | ) |
| Net                loss                                  |   |   | -              |     |   | -                        |   |                      | -          |       |   | -              |   |     | -      |                |   | (1,171,005 | ) |   | - |   |   | (1,171,005 | ) |
|                                                     |   |   |                |     |   |                          |   |                      |            |       |   |                |   |     |        |                |   |  |   |   |  |   |   |  |   |
| Balance                at December 31, 2004, as restated |   |   | 21,836,052     |     |   | 100,025                  |   |                      | 21,836     |       |   | 15,125,607     |   |     | (750   | )                   |   | (8,336,420 | ) |   | (13,370 | ) |   | 6,796,903 |   |
|                                                     |   |   |                |     |   |                          |   |                      |            |       |   |                |   |     |        |                |   |  |   |   |  |   |   |  |   |
| Issuance                of common stock                  |   |   | 970,124        |     |   | -                        |   |                      | 970        |       |   | 9,199,610      |   |     | -      |                |   | - |   |   | - |   |   | 9,200,580 |   |
| Stock                issuance cost                       |   |   | -              |     |   | -                        |   |                      | -          |       |   | (432,067       | )      |     | -      |                |   | - |   |   | - |   |   | (432,067 | ) |
| Common                stock receivable                   |   |   | -              |     |   | -                        |   |                      | -          |       |   | -              |   |     | 750    |                |   | - |   |   | - |   |   | 750 |   |
| Drilling                program equity                   |   |   | -              |     |   | -                        |   |                      | -          |       |   | 1,736,625      |   |     | -      |                |   | - |   |   | - |   |   | 1,736,625 |   |
| Net                loss                                  |   |   | -              |     |   | -                        |   |                      | -          |       |   | -              |   |     | -      |                |   | (9,730,071 | ) |   | - |   |   | (9,730,071 | ) |
|                                                     |   |   |                |     |   |                          |   |                      |            |       |   |                |   |     |        |                |   |  |   |   |  |   |   |  |   |
| **Balance                at**                            |   |   |                |     |   |                          |   |                      |            |       |   |                |   |     |        |                |   |  |   |   |  |   |   |  |   |
| **December                31, 2005**                     |   |   | **22,806,176** |     |   | **100,025**              |   | **$**                     | **22,806** |       | **$**  | **25,629,775** |   | **$**    | **-**  |                | **$**  | **(18,066,491** | **)** | **$** | **(13,370** | **)** | **$** | **7,572,720** |   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                         |   | For                the Years Ended December 31, |        |
|------------------------------------------------------------------------------|--------|-------------------------------------------------|-------------|
|                                                                         |   | 2005                                            |        | 2004 |   | 2003 |   |
|                                                                         |   |                                            |        | (restated) |   | (restated) |   |
|                                                                         |   |                                            |        |   |   |   |   |
| CASH                PROVIDED (USED) BY OPERATING ACTIVITIES                  |   |                                            |        |   |   |   |   |
| Net                income (loss)                                             |   | $                                               | (9,730,071  | ) | $ | (1,171,005 | ) | $ | 456,109 |   |
| Adjustments                to reconcile net income (loss) to net cash        |   |                                            |        |   |   |  |   |   |  |   |
| provided                (used) by operating activities:                      |   |                                            |        |   |   |  |   |   |  |   |
| Depreciation,                depletion, and amortization                     |   |                                            | 500,453     |   |   | 21,699 |   |   | 29,216 |   |
| Impairment,                dry hole and other disposals of property          |   |                                            | 90,165      |   |   | 112,395 |   |   | - |   |
| Gain                on sale of property                                      |   |                                            | 131,766     |   |   | - |   |   | - |   |
| Property,                mining claims & services paid with common stock |   |                                            | 5,666,575   |   |   | 804,180 |   |   | - |   |
| Changes                in operating capital:                                 |   |                                            |        |   |   |  |   |   |  |   |
| (Increase)                decrease in accounts receivable                    |   |                                            | (89,862     | ) |   | (28,183 | ) |   | (12,207 | ) |
| (Increase)                decrease in prepaids                               |   |                                            | 53,527      |   |   | - |   |   | - |   |
| (Increase)                decrease in deposits and other assets              |   |                                            | (307,296    | ) |   | 87,671 |   |   | (55,400 | ) |
| Increase                (decrease) in income taxes payable                   |   |                                            | -           |   |   | (39,000 | ) |   | (37,000 | ) |
| Increase                (decrease) in accounts payable and accrued expenses  |   |                                            | (47,244     | ) |   | 552,064 |   |   | 121,543 |   |
| Increase                (decrease) in amounts payable to joint venture       |   |                                            |        |   |   |  |   |   |  |   |
| participants                and related parties                              |   |                                            | 263,380     |   |   | 8,840 |   |   | 16,863 |   |
| Increase                (decrease) in advances from joint venture            |   |                                            |        |   |   |  |   |   |  |   |
| participants                                                                 |   |                                            | (1,003,031  | ) |   | 674,526 |   |   | 3,029,817 |   |
|                                                                         |   |                                            |        |   |   |   |   |   |   |   |
| Net                Cash Provided (Used) by Operating Activities              |   |                                            | (4,471,638  | ) |   | 1,023,187 |   |   | 3,548,941 |   |
|                                                                         |   |                                            |        |   |   |   |   |   |   |   |
| CASH                PROVIDED (USED) BY INVESTING ACTIVITIES                  |   |                                            |        |   |   |  |   |   |  |   |
| Proceeds                from sale of property                                |   |                                            | -           |   |   | - |   |   | 402,164 |   |
| Capital                expenditures                                          |   |                                            | (10,751,424 | ) |   | (369,181 | ) |   | - |   |
| (Investment                in) advance to joint project                      |   |                                            | -           |   |   | (150,000 | ) |   | - |   |
|                                                                         |   |                                            |        |   |   |   |   |   |   |   |
| Net                Cash Provided (Used) by Investing Activities              |   |                                            | (10,751,424 | ) |   | (519,181 | ) |   | 402,164 |   |
|                                                                         |   |                                            |        |   |   |   |   |   |   |   |
| CASH                PROVIDED (USED) BY FINANCING ACTIVITIES                  |   |                                            |        |   |   |   |   |   |   |   |
| Proceeds                from long-term debt                                  |   |                                            | 5,496,798   |   |   | - |   |   | - |   |
| Principal                payments on long-term debt                          |   |                                            | (311,673    | ) |   | (10,006 | ) |   | (13,792 | ) |
| Net                Proceeds from issuance of common stock                    |   |                                            | 3,101,938   |   |   | 5,310,224 |   |   | 133,368 |   |
|                                                                         |   |                                            |        |   |   |   |   |   |   |   |
| Net                Cash Provided (Used) by Financing Activities              |   |                                            | 8,287,063   |   |   | 5,301,939 |   |   | 119,576 |   |

----

**TRI-VALLEY      CORPORATION**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                                                  |   | For                the Years Ended December 31, |          |
|-----------------------------------------------------------------------|--------|-------------------------------------------------|---------------|
|                                                                  |   | 2005                                            |          | 2004 |   | 2003 |   |
|                                                                  |   |                                            |          | (restated) |   | (restated) |   |
|                                                                  |   |                                            |          |   |   |   |   |
| Net                Increase (Decrease) in Cash and Cash Equivalents   |   | $                                               | (6,935,999    | ) | $ | 5,805,945 |   | $ | 4,070,681 |   |
|                                                                  |   |                                            |          |   |   |  |   |   |  |   |
| Cash                at Beginning of Year                              |   |                                            | 11,812,920    |   |   | 6,006,975 |   |   | 1,936,294 |   |
|                                                                  |   |                                            |          |   |   |   |   |   |   |   |
| **Cash                at End of Year**                                |   | **$**                                           | **4,876,921** |   | **$** | **11,812,920** |   | **$** | **6,006,975** |   |
|                                                                  |   |                                            |          |   |   |   |   |   |   |   |
|                                                                  |
| **SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFORMATION:** |
|                                                                  |   |                                            |          |   |   |   |   |   |   |   |
| Interest                paid                                          |   | $                                               | 377,943       |   | $ | 33,332 |   | $ | 2,572 |   |
|                                                                  |   |                                            |          |   |   |   |   |   |   |   |
| Income                taxes paid                                      |   | $                                               | -             |   | $ | - |   | $ | 40,000 |   |

| **SUPPLEMENTAL                NON-CASH ACTIVITIES:**           |   |
|----------------------------------------------------------------|--------|
| Property                & services paid with common stocks |   | $ | 2,662,075 |   | $ | 92,200 |   | $ | 23,247 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |
| Stock                issued to exchange mining claims          |   | $ | 3,004,500 |   | $ | 712,000 |   | $ | - |   |

----

**NOTE      1 - GENERAL**

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

*Sale      of Oil and Gas*

*Drilling      and Development*

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

*Drilling      Agreements/Joint Ventures*

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

|                                                                               |   |   |   | December                31, |   |   |   |
|------------------------------------------------------------------------------------|--------|--------|--------|-----------------------------|--------|--------|--------|
|                                                                               |   | 2005   |   | 2004                        |   | 2003   |   |
|                                                                               |   |   |   |                        |   |   |   |
| Beginning                asset retirement obligations                              |   | $      | 0      |                        | $      | 0      |   | $ | 0 |   |
|                                                                               |   |   |   |                        |   |   |   |   |   |   |
| Liabilities                assumed in acquisitions (1)                             |   | $      | 92,108 |                        | $      | 0      |   | $ | 0 |   |
|                                                                               |   |   |   |                        |   |   |   |   |   |   |
| Ending                asset retirement obligationsparticipants,                net |   | $      | 92,108 |                        | $      | 0      |   | $ | 0 |   |
|                                                                               |   |   |   |                        |   |   |   |   |   |   |

| Office                furniture and fixturesVehicle,                machinery & equipmentBuilding | 3                -                7 years5                -                10 years15                years |
|-------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

|                                                                                                                                                      |   |   |                       | December                31, |   | December                31, |   | December                31, |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|-----------------------------|--------|-----------------------------|--------|-----------------------------|------------|
|                                                                                                                                                      |   |   |                       | 2005                        |   | 2004                        |   | 2003                        |       |
|                                                                                                                                                      |   |   |                       |                        |   | (restated                   |   | (restated)                  |       |
|                                                                                                                                                      |   |   |                       |                        |   |                        |   |                        |       |
| Net                Income                                                                                                                                 |   |   | As                reported |                        | $      | (9,730,071                  | )      | $                           | (1,171,005 | ) | $ | 496,109 |   |
| Deduct:                Stock-based compensation expense determined under fair value based                method                for all awards, net of tax |   |   |                       |                        |   | 631,000                     |   |                        | --         |   |   | 97,100 |   |
| Pro                forma                                                                                                                                  |   |   |                       |                        |   | (10,361,071                 | )      |                        | (1,171,005 | ) |   | 399,009 |   |
|                                                                                                                                                      |   |   |                       |                        |   |                        |   |                        |       |   |   |   |   |
| Earnings                per share                                                                                                                         |   |   | As                reported |                        |   | (0.43                       | )      |                        | (0.06      | ) |   | 0.02 |   |
| Pro                forma                                                                                                                                  |   |   |                       |                        |   | (0.46                       | )      |                        | (0.06      | ) |   | 0.01 |   |
|                                                                                                                                                      |   |   |                       |                        |   |                        |   |                        |       |   |   |   |   |
| Diluted                earnings per share                                                                                                                 |   |   | As                reported |                        |   | (0.39                       | )      |                        | (0.05      | ) |   | 0.02 |   |
| Pro                forma                                                                                                                                  |   |   |                       |                        |   | (0.41                       | )      |                        | (0.05      | ) |   | 0.01 |   |

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

** **

*”,      *

|   | (a)  | controls                to ensure that a Company’s information systems record financial                information that allows the Company to issue fair and accurate financial                statements; |
|--------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | controls                that ensure against unauthorized receipts and expenditures;                and |
|--------|-----------------|--------------------------------------------------------------------------------------------------------|

|   | (c)   | controls                to prevent and detect unauthorized acquisition, use or disposition                of the                assets. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

**NOTE      3 - PROPERTY AND EQUIPMENT**

|                                                   |   | December                31, |           |
|--------------------------------------------------------|--------|-----------------------------|----------------|
|                                                   |   | 2005                        |           | 2004 |   |
| Oil                and gas - California                |   |                        |           |   |   |
| Proved                properties, gross                |   | $                           | 1,795,653      |   | $ | 752,705 |   |
| Accumulated                depletion                   |   |                        | (649,550       | ) |   | (621,323 | ) |
| Proved                properties, net                  |   |                        | 1,146,103      |   |   | 131,382 |   |
| Unproved                properties                     |   |                        | 3,009,564      |   |   | 1,381,667 |   |
| Total                oil and gas properties            |   |                        | 4,155,667      |   |   | 1,513,049 |   |
|                                                   |   |                        |           |   |   |   |   |
| Other                property and equipment            |   |                        |           |   |   |   |   |
| Land                                                   |   |                        | 21,281         |   |   | 12,281 |   |
| Building                                               |   |                        | 2,739,442      |   |   | 50,395 |   |
| Leasehold                improvements                  |   |                        | 577,619        |   |   | 5,748 |   |
| Machinery                and Equipment                 |   |                        | 5,096,271      |   |   | - |   |
| Vehicles                                               |   |                        | 1,414,416      |   |   | 85,943 |   |
| Transmission                tower                      |   |                        | 51,270         |   |   | 45,000 |   |
| Office                furniture and equipment          |   |                        | 202,587        |   |   | 253,895 |   |
|                                                   |   |                        | 10,102,886     |   |   | 453,262 |   |
| Accumulated                depreciation                |   |                        | (622,572       | ) |   | (188,103 | ) |
| Total                other property and equipment, net |   |                        | 9,480,314      |   |   | 265,159 |   |
|                                                   |   |                        |           |   |   |   |   |
| **Property                and equipment, net**         |   | **$**                       | **13,635,981** |   | **$** | **1,778,208** |   |

**NOTE      4 - NOTES PAYABLE**

|                                                                         |   | December                31, |          |
|------------------------------------------------------------------------------|--------|-----------------------------|---------------|
|                                                                         |   | 2005                        |          | 2004 |   |
|                                                                         |   |                        |          |   |   |
| Note                payable to Union Bank dated January            |   |                        |          |   |   |
| 15,                2000; secured by a vehicle; interest at 8.5%;   |   |                        |          |   |   |
| payable                in 60 monthly installments of $380.         |   | $                           | -             |   | $ | 4,332 |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Union Bank dated July 29, 2002;          |   |                        |          |   |   |   |   |
| secured                by vehicle; interest at 8.3%; payable       |   |                        |          |   |   |   |   |
| in                60 monthly installments of $602.            |   |                        | 10,705        |   |   | 12,452 |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Rabobank dated October              |   |                        |          |   |   |   |   |
| 5,                2005; secured by a vehicle; interest at 6.5%;    |   |                        |          |   |   |   |   |
| payable                in 60 monthly installments of $599.         |   |                        | 29,238        |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| 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.                 |   |                        | 35,893        |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Rabobank dated May 15, 2005;        |   |                        |          |   |   |   |   |
| secured                by a building; interest at 6.789%; payable       |   |                        |          |   |   |   |   |
| in                119 monthly installments of $13,120 and one final     |   |                        |          |   |   |   |   |
| Payment                of $1,482,704.                              |   |                        | 1,670,374     |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| 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 $2,000,000    |   |                        | 1,420,006     |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Jim Burke Ford dated November 18,        |   |                        |          |   |   |   |   |
| 2005;                secured by a vehicle; interest at 6.49%; payable   |   |                        |          |   |   |   |   |
| in                60 monthly installments of $493.                           |   |                        | 24,759        |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Lee Financial Services dated April 05,   |   |                        |          |   |   |   |   |
| 2005;                secured by vehicles; interest at 13.446%;     |   |                        |          |   |   |   |   |
| payable                in 30 monthly installments of $2,664.                 |   |                        | 51,679        |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Financial Federal Credit Inc. dated      |   |                        |          |   |   |   |   |
| September                2, 2005; secured by vehicles, machines         |   |                        |          |   |   |   |   |
| and                equipment; interest at 8.878%; payable in 12         |   |                        |          |   |   |   |   |
| monthly                installments of $40,000 and 36 monthly      |   |                        |          |   |   |   |   |
| installments                of $19,301.                                      |   |                        | 882,832       |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Financial Federal Credit Inc. dated           |   |                        |          |   |   |   |   |
| October                1, 2005; secured by mining machines and               |   |                        |          |   |   |   |   |
| equipment;                interest at 9.079%; payable in 12 monthly          |   |                        |          |   |   |   |   |
| installments                of $8,500 and 36 monthly installments of         |   |                        |          |   |   |   |   |
| $5,269.                                                                      |   |                        | 228,332       |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Financial Federal Credit Inc. dated           |   |                        |          |   |   |   |   |
| November                6, 2005; secured by vehicles; interest at            |   |                        |          |   |   |   |   |
| 9.021%;                payable in 12 monthly installments of $9,700          |   |                        |          |   |   |   |   |
| and                36 monthly installments of $3,968                         |   |                        | 208,848       |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Financial Federal Credit Inc. dated           |   |                        |          |   |   |   |   |
| November                13, 2005; secured by vehicles; interest at           |   |                        |          |   |   |   |   |
| 9.011%;                payable in 12 monthly installments of $14,000         |   |                        |          |   |   |   |   |
| and                36 monthly installments of $8,028                         |   |                        | 368,608       |   |   | - |   |
|                                                                         |   |                        |          |   |   |   |   |
| Note                payable to Financial Federal Credit Inc. dated           |   |                        |          |   |   |   |   |
| December                16, 2005; secured by a loader; interest at           |   |                        |          |   |   |   |   |
| 9.046%;                payable in 1 monthly installments of $76,551,         |   |                        |          |   |   |   |   |
| 12                monthly installments of $10,000 and 36 monthly             |   |                        |          |   |   |   |   |
| installments                of $5,417.                                       |   |                        | 269,884       |   |   | - |   |
|                                                                         |   |                        | 5,201,158     |   |   | 16,784 |   |
| Less                current portion                                          |   |                        | 966,649       |   |   | 9,985 |   |
|                                                                         |   |                        |          |   |   |   |   |
| Long-term                portion of notes payable                            |   | **$**                       | **4,234,509** |   | **$** | **6,799** |   |

| 2006      |   | $      | 966,649   |   |
|-----------|--------|--------|-----------|--------|
| 2007      |   |   | 609,040   |   |
| 2008      |   |   | 630,946   |   |
| 2009      |   |   | 568,062   |   |
| 2010      |   |   | 207,789   |   |
| 2011-2015 |   |   | 2,218,672 |   |
|      |   |   |      |   |
|      |   | $      | 5,201,158 |   |

**NOTE      5 - RELATED PARTY TRANSACTIONS**

| Year |   | Expected                Life |   | Expected                Dividends |   | Expected                Volatility |   | Risk-Free                Interest Rates |
|------|--------|------------------------------|--------|-----------------------------------|--------|------------------------------------|--------|-----------------------------------------|
| 2005 |   | 3                            |   | None                              |   | 70%                                |   | 4.60                                    |

|                                                                          |   | 2005   |      | 2004      |   | 2003   |   |
|-------------------------------------------------------------------------------|--------|--------|-----------|-----------|--------|--------|--------|
|                                                                          |   |   |      | Weighted- |   |   |   | Weighted- |   |   |   | Weighted- |   |
|                                                                          |   |   |      | Average   |   |   |   | Average |   |   |   | Average |   |
|                                                                          |   |   |      | Exercise  |   |   |   | Exercise |   |   |   | Exercise |   |
|                                                                          |   | Shares |      | Price     |   | Shares |   | Price |   | Shares |   | Price |   |
| Fixed                Options                                                  |   |   |      |      |   |   |   |   |   |   |   |   |   |
| Outstanding                at beginning of year                               |   |   | 2,553,600 |      | $      | 1.28   |   |   | 3,018,600 |   | $ | 1.27 |   |   | 2,960,500 |   | $ | 1.25 |   |
| Granted                                                                       |   |   | 271,000   |      | $      | 5.82   |   |   | - |   | $ | - |   |   | 100,000 |   | $ | 1.33 |   |
| Exercised                                                                     |   |   | (67,000   | )         | $      | 1.94   |   |   | (465,000 | ) | $ | 1.20 |   |   | (41,900 | ) | $ | 0.50 |   |
| Cancelled                                                                     |   |   | -         |      | $      | -      |   |   | - |   | $ | - |   |   | - |   | $ | - |   |
|                                                                          |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding                at end of year                                     |   |   | 2,757,600 |      | $      | 2.03   |   |   | 2,553,600 |   | $ | 1.28 |   |   | 3,018,600 |   | $ | 1.27 |   |
|                                                                          |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options                exercisable at year-end                                |   |   | 2,757,600 |      |   |   |   |   | 2,553,600 |   |   |   |   |   | 3,018,600 |   |   |   |   |
|                                                                          |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average                fair value of options granted during the year |   |   |      |
|                                                                          |   | $      | 3.32      |      |   |   |   |   | n/a |   |   |   |   | $ | 0.96 |   |   |   |   |
|                                                                          |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available                for issuance                                         |   |   | 119,000   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                    |   | Options                Outstanding and Exercisable |
|-----------------------------------------|--------|----------------------------------------------------|
|                                    |   |                                               |   | Weighted-Average |   |   |
|                                    |   | Number                Outstanding                  |   | Remaining |   | Weighted-Average |
| Range                of Exercise Prices |   | at                December 31, 2005                |   | Contractual                Life |   | Exercise                Price |
|                                    |   |                                               |   |   |   |   |
| $.50                - $10.00            |   | 2,757,600                                          |   | 2.64                years |   | $2.03 |

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      5 - RELATED PARTY TRANSACTIONS**

|                                                                                                                                                                                                                                                                                                             |   |   |       | December                31, |   |      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|-----------------------------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                                             |   | 2005   |       | 2004                        |   | 2003      |   |
|                                                                                                                                                                                                                                                                                                             |   |   |       |                        |   |      |   |
| Drilling                and development revenue                                                                                                                                                                                                                                                                  |   | $      | 11,422,234 |                        | $      | 3,559,500 |   | $ | 5,440,780 |   |
|                                                                                                                                                                                                                                                                                                             |   |   |       |                        |   |      |   |   |   |   |
| Drilling                and development costs                                                                                                                                                                                                                                                                    |   | $      | 9,267,621  |                        | $      | 2,224,793 |   | $ | 4,014,889 |   |
|                                                                                                                                                                                                                                                                                                             |   |   |       |                        |   |      |   |   |   |   |
| Advances                from joint ventureparticipants,                net                                                                                                                                                                                                                                       |   | $      | 5,318,645  |                        | $      | 6,321,676 |   | $ | 5,647,150 |   |
|                                                                                                                                                                                                                                                                                                             |   |   |       |                        |   |      |   |   |   |   |
| Drilling                and development revenue includes $6,814,734 from the sale of seventy-five                (75%) of two new acquisitions to the Opus I partnership which cost                was                included in the drilling and development costs in the amount of                $6,419,435. |
|                                                                                                                                                                                                                                                                                                             |
| Oil                and gas income from the Tri-Valley Oil & Gas Exploration Programs                1971-1 for fiscal year ended December 31, 2005, 2004 and 2003 are                as                follows:                                                                                              |
|                                                                                                                                                                                                                                                                                                             |
| December                31,                                                                                                                                                                                                                                                                                      |   |   |       |                        |   |      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                             |   |   | 2005       |                        |   | 2004      |   |   | 2003 |   |
|                                                                                                                                                                                                                                                                                                             |   |   |       |                        |   |      |   |   |   |   |
| Partnership                income, net of expenses                                                                                                                                                                                                                                                               |   | $      | 30,000     |                        | $      | 30,000    |   | $ | 30,000 |   |

**NOTE      6 - EARNINGS PER SHARE**

| Year |   | Full                Year Basic Earnings (Loss) Per Share |   | Weighted-Average                Shares Outstanding |   | Diluted                Earnings (Loss) Per Share |   | Diluted                Weighted-Average Common Stock Equivalents Outstanding |   | Common                Stock Equivalents Excluded from Diluted Earnings Per                Share |
|------|--------|----------------------------------------------------------|--------|----------------------------------------------------|--------|--------------------------------------------------|--------|------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
| 2005 |   | $                (0.43)                                  |   | 22,426,580                                         |   | $                (0.39)                          |   | 2,603,888                                                                    |   | $                -                                                                              |
| 2004 |   | (0.06)                                                   |   | 20,507,342                                         |   | (0.05)                                           |   | 2,553,600                                                                    |   | -                                                                                               |
| 2003 |   | 0.02                                                     |   | 19,801,785                                         |   | 0.02                                             |   | 3,018,600                                                                    |   | -                                                                                               |

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      7 - INCOME TAXES**

|                                             |   | December                31, |       | December                31, |   | December                31, |   |
|--------------------------------------------------|--------|-----------------------------|------------|-----------------------------|--------|-----------------------------|--------|
|                                             |   | 2005                        |       | 2004                        |   | 2003                        |   |
|                                             |   |                        |       | (restated)                  |   | (restated)                  |   |
| Deferred                tax assets:              |   |                        |       |                        |   |                        |   |
| Net                operating loss carryforwards  |   | $                           | 5,184,000  |                        | $      | 776,000                     |   | $ | 345,727 |   |
| Statutory                depletion carryforwards |   |                        | 384,000    |                        |   | 356,000                     |   |   | 339,007 |   |
|                                             |   |                        |       |                        |   |                        |   |   |   |   |
| Total                deferred tax assets         |   |                        | 5,568,000  |                        |   | 1,132,000                   |   |   | 684,734 |   |
| Valuation                allowance               |   |                        | (5,568,000 | )                           |   | (1,132,000                  | )      |   | (684,734 | ) |
|                                             |   |                        |       |                        |   |                        |   |   |   |   |
| **Net                deferred tax assets**       |   | **$**                       | **-**      |                        | **$**  | **-**                       |   | **$** | **-** |   |

|                                                                     |   | December                31, |       | December                31, |   | December                31, |   |
|--------------------------------------------------------------------------|--------|-----------------------------|------------|-----------------------------|--------|-----------------------------|--------|
|                                                                     |   | 2005                        |       | 2004                        |   | 2003                        |   |
|                                                                     |   |                        |       | (restated)                  |   | (restated)                  |   |
|                                                                     |   |                        |       |                        |   |                        |   |
| Income                (loss) before tax                                  |   | $                           | (9,730,071 | )                           | $      | (1,171,005                  | )      | $ | 495,109 |   |
|                                                                     |   |                        |       |                        |   |                        |   |   |   |   |
| Computed                "expected" tax (benefit)                         |   | $                           | (3,308,000 | )                           | $      | (398,000                    | )      | $ | 168,000 |   |
|                                                                     |   |                        |       |                        |   |                        |   |   |   |   |
| State                tax liability                                       |   |                        | -          |                        |   | -                           |   |   | 39,000 |   |
|                                                                     |   |                        |       |                        |   |                        |   |   |   |   |
| Utilization                (non-utilization) of operating loss carryover |   |                        | 3,308,000  |                        |   | 398,000                     |   |   | (168,000 | ) |
|                                                                     |   |                        |       |                        |   |                        |   |   |   |   |
| **Total                income tax provision**                            |   | **$**                       | **-**      |                        | **$**  | **-**                       |   | **$** | **39,000** |   |

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      8 - MAJOR CUSTOMERS**

**NOTE      9 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS**

|                                                     |   | Oil                and Gas |       |     |   | Drilling                and |   |   |       |
|----------------------------------------------------------|--------|----------------------------|------------|----------|--------|-----------------------------|--------|--------|------------|
|                                                     |   | Production                 |       | Minerals |   | Development                 |   | Total  |       |
| Year                ended December 31, 2005              |   |                       |       |     |   |                        |   |   |       |
|                                                     |   |                       |       |     |   |                        |   |   |       |
| Revenues                from external customers          |   | $                          | 932,042    |     | $      | 200                         |   | $      | 11,422,234 |   | $ | 12,354,476 |   |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |
| Interest                revenue                          |   | $                          | 118,609    |     | $      | 2,295                       |   | $      | -          |   | $ | 120,904 |   |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |
| Interest                expense                          |   | $                          | 2,115      |     | $      | 375,829                     |   | $      | -          |   | $ | 377,944 |   |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |
| Expenditures                for segment assets           |   | $                          | 1,260,884  |     | $      | 9,490,540                   |   | $      | -          |   | $ | 10,751,424 |   |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |
| Depreciation,                depletion, and amortization |   | $                          | 58,319     |     | $      | 442,134                     |   | $      | -          |   | $ | 500,453 |   |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |
| Total                assets                              |   | $                          | 8,427,037  |     | $      | 9,614,726                   |   | $      | 1,696,967  |   | $ | 19,738,730 |   |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |
| Estimated                income tax benefit(expense)     |   | $                          | -          |     | $      | -                           |   | $      | -          |   | $ | - |   |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |
| Net                income (loss)                         |   | $                          | (5,615,595 | )        | $      | (6,269,089                  | )      | $      | 2,154,613  |   | $ | (9,730,071 | ) |
|                                                     |   |                       |       |     |   |                        |   |   |       |   |   |   |   |

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      9- FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS      (Continued)**

|                                                     |   | Oil                and Gas |       |     |   | Drilling                and |   |       |      |
|----------------------------------------------------------|--------|----------------------------|------------|----------|--------|-----------------------------|--------|------------|-----------|
|                                                     |   | Production                 |       | Minerals |   | Development                 |   | Total      |      |
| Year                ended December 31, 2004              |   |                       |       |     |   | (restated)                  |   | (restated) |      |
|                                                     |   |                       |       |     |   |                        |   |       |      |
| Revenues                from external customers          |   | $                          | 830,148    |     | $      | -                           |   | $          | 3,559,500 |   | $ | 4,389,648 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Interest                revenue                          |   | $                          | 45,990     |     | $      | -                           |   | $          | -         |   | $ | 45,990 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Interest                expense                          |   | $                          | 33,332     |     | $      | -                           |   | $          | -         |   | $ | 33,332 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Expenditures                for segment assets           |   | $                          | 369,181    |     | $      | -                           |   | $          | -         |   | $ | 369,181 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Depreciation,                depletion, and amortization |   | $                          | 21,699     |     | $      | -                           |   | $          | -         |   | $ | 21,699 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Total                assets                              |   | $                          | 14,473,326 |     | $      | -                           |   | $          | -         |   | $ | 14,473,326 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Estimated                income tax benefit (expense)    |   | $                          | -          |     | $      | -                           |   | $          | -         |   | $ | - |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Net                income (loss)                         |   | $                          | (400,046   | )        | $      | (1,029,898                  | )      | $          | 258,939   |   | $ | (1,171,005 | ) |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Year                ended December 31, 2003              |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Revenues                from external customers          |   | $                          | 932,268    |     | $      | -                           |   | $          | 5,440,780 |   | $ | 6,373,048 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Interest                revenue                          |   | $                          | 34,479     |     | $      | -                           |   | $          | -         |   | $ | 34,479 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Interest                expense                          |   | $                          | 2,572      |     | $      | -                           |   | $          | -         |   | $ | 2,572 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Expenditures                for segment assets           |   | $                          | -          |     | $      | -                           |   | $          | -         |   | $ | - |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Depreciation,                depletion, and amortization |   | $                          | 29,216     |     | $      | -                           |   | $          | -         |   | $ | 29,216 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Total                assets                              |   | $                          | 8,320,992  |     | $      | -                           |   | $          | -         |   | $ | 8,341,782 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Estimated                income tax benefit (expense)    |   | $                          | 54,000     |     | $      | 31,000                      |   | $          | (124,000  | ) | $ | (39,000 | ) |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |
| Net                income (loss)                         |   | $                          | (624,280   | )        | $      | (366,039                    | )      | $          | 1,446,428 |   | $ | 456,109 |   |
|                                                     |   |                       |       |     |   |                        |   |       |      |   |   |   |   |

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      10 - COMMON STOCK**

| -   | One                private individual purchased 326,667 common stock shares for total                $3,015,005 during the year: 125,000 shares at $7.50 per share, 35,000                shares at $6.50 per share, 50,000 shares at $12.00 per share, and                16,667                shares at $15.00 per share, and 100,000 shares at $10.00 per                share |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Another                private individual purchased 25,000 shares at $12.00 per share for                a total                of $300,000. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The                company issued 320,000 shares to four individuals to exchange mining                claims in Alaska. The stocks ranged in value from $10.05 to $7.75                per                share at the time of the exchange. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The                Company issued total 8,000 shares to directors of the Company for                services                rendered during the year. At the time of the issuance the stocks                were                valued at $8.13 per share. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The                Company issued 200,000 shares as consideration to acquire Pleasant                Valley                Energy Corporation. The stock was valued at $12.32 per share at the                date                of closing. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | During                the year various directors and employees of the Company exercised                stock                options previously granted. The new shares issued pursuant to the                stock                option plan amounted to 67,000 shares. Cash consideration received                totaled                to $130,000. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | During                the year the common stock issuance cost amounted to approximately                $432,067. |
|---------------|------------------------------------------------------------------------------------------------------------------|

| -   | One                private individual purchased 1,090,000 common stock shares for total                $5,385,000 during the year: 300,000 shares at $4.50 per share, 200,000                shares at $4.75 per share, and 500,000 shares at $5.00 per share,                and                90,000 shares at $6.50 per share |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Another                private individual purchased 3,000 shares at $4.05 per                share. |
|---------------|-----------------------------------------------------------------------------------------------------|

| -   | Companies                issued 160,000 shares to two individuals to exchange mining claims                in                Alaska. The stocks were valued at $4.45 per share at the time of                the                exchange. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The                Company issued total 20,000 shares to directors of the Company for                services rendered during the year. At the time of the issuance the                stocks                were valuated at $4.60 per share. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | During                the year various directors and employees of the Company exercised                stock                options previously granted. The new shares issued pursuant to the                stock                option plan amounted to 465,000 shares. Cash consideration received                totaled to $560,000. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | During                the year the common stock issuance cost amounted to approximately                $646,200. |
|---------------|------------------------------------------------------------------------------------------------------------------|

----

**TRI-VALLEY          CORPORATION**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005 and 2004 and 2003**

**NOTE      11 - COMMITMENTS AND CONTINGENCIES**

| Total                Opus Contributions |   | $ | 44,135,837 |   |
|-----------------------------------------|--------|---|------------|--------|
| Total                Opus Expenditures  |   | $ | 39,075,516 |   |
| Advances                                |   | $ | 5,060,321  |   |

| Total                Ekho joint venture contributions |   | $ | 10,604,300 |   |
|-------------------------------------------------------|--------|---|------------|--------|
| Total                Ekho joint venture expenditures  |   | $ | 10,878,236 |   |
| Interest                credited to the joint account |   | $ | 246,749    |   |

**NOTE      12 - ACQUISITIONS**

**Brea      acquisition.**

**Pleasant      Valley acquisition. **

**Mining      Claims acquisitions. **

**NOTE      13 - SUBSEQUENT EVENTS**

----

**TRI-VALLEY            CORPORATION**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**December            31, 2005 and 2004 and 2003**

**SUPPLEMENTAL      INFORMATION (unaudited)**

----

**TRI-VALLEY            CORPORATION**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**December            31, 2005 and 2004 and 2003**

**SUPPLEMENTAL      INFORMATION (unaudited)**

|                                                                |   | December                31, |      | December                31, |   | December                31, |   |
|---------------------------------------------------------------------|--------|-----------------------------|-----------|-----------------------------|--------|-----------------------------|--------|
|                                                                |   | 2005                        |      | 2004                        |   | 2003                        |   |
|                                                                |   |                        |      |                        |   | (restated)                  |   |
| Aggregate                capitalized costs:                         |   |                        |      |                        |   |                        |   |
| Proved                properties                                    |   | $                           | 1,795,653 |                        | $      | 752,705                     |   | $ | 752,705 |   |
| Unproved                properties                                  |   |                        | 3,009,564 |                        |   | 1,381,667                   |   |   | 1,251,953 |   |
| Accumulated                depletion, depreciation and amortization |   |                        | (649,550  | )                           |   | (621,323                    | )      |   | (604,223 | ) |
|                                                                |   |                        |      |                        |   |                        |   |   |   |   |
| Net                capitalized assets                               |   | $                           | 4,155,667 |                        | $      | 1,513,049                   |   | $ | 1,400,435 |   |

----

**TRI-VALLEY            CORPORATION**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**December            31, 2005 and 2004 and 2003**

|                                                                                                        |   | December                31, |      | December                31, |   | December                31, |   |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|-----------------------------|--------|-----------------------------|--------|
|                                                                                                        |   | 2005                        |      | 2004                        |   | 2003                        |   |
|                                                                                                        |   |                        |      |                        |   | (restated)                  |   |
| Acquisition                of producing properties and productive and non-productive                acreage |   | $                           | 1,736,625 |                        | $      | -                           |   | $ | - |   |
|                                                                                                        |   |                        |      |                        |   |                        |   |   |   |   |
| Exploration                costs and development activities                                                 |   | $                           | -         |                        | $      | -                           |   | $ | - |   |

|                                                        |   | December                31, |     | December                31, |   | December                31, |   |
|-------------------------------------------------------------|--------|-----------------------------|----------|-----------------------------|--------|-----------------------------|--------|
|                                                        |   | 2005                        |     | 2004                        |   | 2003                        |   |
|                                                        |   |                        |     |                        |   | (restated)                  |   |
| Sales                to unaffiliated parties                |   | $                           | 932,042  |                        | $      | 830,148                     |   | $ | 932,268 |   |
| Production                costs                             |   |                        | (93,429  | )                           |   | (144,101                    | )      |   | (183,362 | ) |
| Depletion,                depreciation and amortization     |   |                        | (28,226  | )                           |   | (17,100                     | )      |   | (26,551 | ) |
|                                                        |   |                        | 810,387  |                        |   | 668,947                     |   |   | 722,355 |   |
| Income                tax expense                           |   |                        | (291,739 | )                           |   | (240,820                    | )      |   | (264,968 | ) |
|                                                        |   |                        |     |                        |   |                             |   |   |  |   |
| Results                of operations from activities before |   |                        |     |                        |   |                             |   |   |  |   |
| extraordinary                items (excluding corporate     |   |                        |     |                        |   |                             |   |   |  |   |
| Overhead                and interest costs)                 |   | $                           | 518,648  |                        | $      | 161,096                     |   | $ | 457,387 |   |

----

|                                                                                                      |   | December                31, 2005 |    | December                31, 2004 |   | December                31, 2003 |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|----------------------------------|--------|----------------------------------|--------|
|                                                                                                      |   |                             |    |                             |   |                             |   |   |   |
|                                                                                                      |   | Oil                              |    | Gas                              |   | Oil                              |   | Gas |   | Oil |   | Gas |   |
|                                                                                                      |   | (BBL)                            |    | (MCF)                            |   | (BBL)                            |   | (MCF) |   | (BBL) |   | (MCF) |   |
|                                                                                                      |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |
| Proved                developed and undeveloped reserves:                                                 |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |
| Beginning                of year                                                                          |   |                             | 162     |                             |   | 742,401                          |   |   | 162 |   |   | 1,251,548 |   |   | 150 |   |   | 1,492,245 |   |
| Revisions                of previous estimates extensions, discoveries and other                additions |   |                             | -       |                             |   | 165,799                          |   |   | - |   |   | (374,408 | ) |   | 37 |   |   | (115,365 | ) |
| Net                reserve additions                                                                      |   |                             | 217,885 |                             |   | -                                |   |   | - |   |   | - |   |   | - |   |   | 36,982 |   |
| Production                                                                                                |   |                             | (17     | )                                |   | (128,602                         | )      |   | - |   |   | (134,739 | ) |   | (25 | ) |   | (162,314 | ) |
|                                                                                                      |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End                of year                                                                                |   |                             | 218,030 |                             |   | 779,598                          |   |   | 162 |   |   | 742,401 |   |   | 162 |   |   | 1,251,548 |   |
|                                                                                                      |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved                developed reserves:                                                                 |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning                of year                                                                          |   |                             | 162     |                             |   | 742,401                          |   |   | 162 |   |   | 1,251,548 |   |   | 150 |   |   | 1,492,245 |   |
|                                                                                                      |   |                             |    |                             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| End                of year                                                                                |   |                             | 90,555  |                             |   | 779,598                          |   |   | 162 |   |   | 742,401 |   |   | 162 |   |   | 1,251,548 |   |

|   | (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. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                   |   | December                31, |       | December                31, |   | December                31, |   |
|------------------------------------------------------------------------|--------|-----------------------------|------------|-----------------------------|--------|-----------------------------|--------|
|                                                                   |   | 2005                        |       | 2004                        |   | 2003                        |   |
|                                                                   |   |                        |       |                        |   | (restated)                  |   |
|                                                                   |   |                        |       |                        |   |                        |   |
| Future                cash in flows                                    |   | $                           | 19,154,814 |                        | $      | 5,248,091                   |   | $ | 5,973,197 |   |
| Future                production and development costs                 |   |                        | (4,292,152 | )                           |   | (989,549                    | )      |   | (1,376,902 | ) |
| Future                income tax expenses                              |   |                        | (659,464   | )                           |   | (1,357,948                  | )      |   | (1,134,811 | ) |
| Future                net cash flows                                   |   |                        | 14,203,198 |                        |   | 2,900,595                   |   |   | 3,461,484 |   |
| 10%                annual discount for estimated timing of cash flows  |   |                        | 7,147,126  |                        |   | 942,358                     |   |   | 1,190,852 |   |
| Standardized                measure of discounted future net cash flow |   | $                           | 7,056,072  |                        | $      | 1,958,238                   |   | $ | 2,270,632 |   |

----

|                                                                       |   | December                31, |          | December                31, |   | December                31, |   |
|----------------------------------------------------------------------------|--------|-----------------------------|---------------|-----------------------------|--------|-----------------------------|--------|
|                                                                       |   | 2005                        |          | 2004                        |   | 2003                        |   |
|                                                                       |   |                        |          |                        |   | (restated)                  |   |
| Standardized                measure - beginning of period                  |   | $                           | 1,958,238     |                        | $      | 2,270,632                   |   | $ | 2,224,270 |   |
|                                                                       |   |                        |          |                        |   |                        |   |   |   |   |
| Sales                of oil and gas produced, net of production costs      |   |                        | (807,930      | )                           |   | (655,373                    | )      |   | (748,906 | ) |
| Revisions                of estimates of reserves provided in prior years: |   |                        |          |                        |   |                        |   |   |   |   |
| Net                changes in prices                                       |   |                        | 1,412,965     |                        |   | 1,705,515                   |   |   | 969,281 |   |
| Revisions                of previous quantity estimates                    |   |                        | 1,630,965     |                        |   | -                           |   |   | (171,355 | ) |
| Extensions                and discoveries                                  |   |                        | 11,345,272    |                        |   | 270,891                     |   |   | 102,382 |   |
| Purchases                of minerals in place                              |   |                        | -             |                        |   | -                           |   |   | - |   |
| Accretion                of discount                                       |   |                        | (6,204,768    | )                           |   | 248,494                     |   |   | 263,451 |   |
| Changes                in production rates, etc.                           |   |                        | (1,580,186    | )                           |   | (1,658,785                  | )      |   | (436,306 | ) |
| Net                change in income taxes                                  |   |                        | (698,484      | )                           |   | 223,137                     |   |   | 67,815 |   |
|                                                                       |   |                        |          |                        |   |                        |   |   |   |   |
| Net                increase (decrease)                                     |   |                        | 5,097,834     |                        |   | (312,394                    | )      |   | 46,362 |   |
|                                                                       |   |                        |          |                        |   |                        |   |   |   |   |
| **Standardized                measure - end of period**                    |   | **$**                       | **7,056,072** |                        | **$**  | **1,958,238**               |   | **$** | **2,270,632** |   |

----

|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2005                 |          |
|-----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|---------------|
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | First                |          | Second |   | Third |   | Fourth |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Quarter              |          | Quarter |   | Quarter |   | Quarter |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |
| Operating                  Revenues                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | 202,108       |   | $ | 1,846,630 |   | $ | 6,781,574 |   | $ | 3,698,294 |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Net                  Income (Loss)                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | (3,375,111    | ) | $ | (717,680 | ) | $ | (345,932 | ) | $ | (5,291,348 | ) |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Net                  Income (Loss) per Common Share |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | (0.15         | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.23 | ) |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |
|                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2004(restated)  |
|                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 | First    |   |   | Second |   |   | Third |   |   | Fourth |   |
|                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 | Quarter  |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   | (restated | ) |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Operating                  Revenues                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | 1,386,281     |   | $ | 1,134,910 |   | $ | 223,006 |   | $ | 1,754,473 |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Net                  Income (Loss)                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | 255,258       |   | $ | (940,409 | ) | $ | (479,104 | ) | $ | (6,750 | ) |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Net                  Income (Loss) per Common Share |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | 0.01          |   | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.00 | ) |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
|                                                |                                                                                            2003                  (restated) |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 | First    |   |   | Second |   |   | Third |   |   | Fourth |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 | Quarter  |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Operating                  Revenues                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | 276,780       |   | $ | 1,190,371 |   | $ | 3,137,062 |   | $ | 1,860,032 |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Net                  Income (Loss)                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | (421,407      | ) | $ | (152,183 | ) | $ | 172,570 |   | $ | 896,129 |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |          |   |   |   |   |   |   |   |   |   |   |
| Net                  Income (Loss) per Common Share |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                    | (0.02         | ) | $ | (0.01 | ) | $ | 0.01 |   | $ | 0.04 |   |
|                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                 |

----

**ITEM      9A Controls and Procedures**

**Evaluation      of Disclosure Controls**

**Management’s      Report on Internal Control over Financial Reporting**

**PART      III**

**ITEM      10 Directors and Executive Officers of the Registrant**

|                                                                     |   |   |   | Year                First         |   |                                          |
|--------------------------------------------------------------------------|--------|--------|--------|-----------------------------------|--------|-----------------------------------------------|
|                                                                     |   |   |   | Became                Director or |   | Position                With                  |
| Name                of Director                                          |   | Age    |   | Executive                Officer  |   | Company                                       |
|                                                                     |   |   |   |                              |   |                                          |
| F.                Lynn Blystone                                          |   | 70     |   | 1974                              |   | President,                CEO, Director, TVC  |
|                                                                     |   |   |   |                              |   | CEO                and Director, TVOG         |
|                                                                     |   |   |   |                              |   | President,                CEO, Director, TVPC |
|                                                                     |   |   |   |                              |   | CHOB,                CEO, Director SRC        |
|                                                                     |   |   |   |                              |   | CHOB,                Director TWR             |
|                                                                     |   |   |   |                              |   |                                          |
| Dennis                P. Lockhart(1)                                     |   | 58     |   | 1982                              |   | Director                                      |
|                                                                     |   |   |   |                              |   |                                          |
| Milton                J. Carlson(1)                (3)                   |   | 75     |   | 1985                              |   | Director                                      |
|                                                                     |   |   |   |                              |   |                                          |
| Loren                J. Miller(1)                                        |   | 60     |   | 1992                              |   | Director                                      |
|                                                                     |   |   |   |                              |   |                                          |
| Henry                Lowenstein, Ph.D(2)                            |   | 51     |   | 2005                              |   | Director                                      |
|                                                                     |   |   |   |                              |   |                                          |
| William                H.“Mo” Marumoto(2)                (3) |   | 70     |   | 2005                              |   | Director                                      |
|                                                                     |   |   |   |                              |   |                                          |
| G.                Thomas Gamble                                          |   | 44     |   | 2006                              |   | Director                                      |
|                                                                     |   |   |   |                              |   |                                          |
| Thomas                J. Cunningham                                      |   | 63     |   | 1997                              |   | VP,                CAO, Treasurer and         |
|                                                                     |   |   |   |                              |   | Secretary,                TVC, TVOG, and TVPC |
|                                                                     |   |   |   |                              |   | Director                SRC                   |
|                                                                     |   |   |   |                              |   |                                          |
| Arthur                M. Evans                                           |   | 57     |   | 2005                              |   | Chief                Financial Officer        |
|                                                                     |   |   |   |                              |   |                                          |
| Joseph                R. Kandle                                          |   | 63     |   | 1999                              |   | President,                TVOG                |
|                                                                     |   |   |   |                              |   |                                          |
| Henry                J. “Rick” Sandri                        |   | 53     |   | 2005                              |   | President,                Select              |

----

| **F.                Lynn Blystone - 70**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | President                and Chief Executive Officer of Tri-Valley Corporation and Tri-Valley                Power                Corporation, CEO of Tri-Valley Oil & Gas Company and Select Resources                Corporation, which are three wholly owned subsidiaries of Tri-Valley                CorporationChairman                of Tri-Western Resources, LLCBakersfield,                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 institution management, venture capital and various management                functions for a mainline pipeline contractor including the Trans                Alaska                Pipeline Project. He has founded, run 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 Whittler College, California, he did graduate                work at George Williams College, Illinois in organization management.                He                gives full time to Tri-Valley.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **Dennis                P. Lockhart - 58**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Director                                                                                                                                                                                                                                                                                                                                                                                                              | 1982   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Mr.                Lockhart is a professor of International Business at Georgetown                University. He was previously Managing Partner of Zephyr Management                L.P.,                an international private equity investment fund sponsor/manager                headquartered in New York. He remains a partner in this firm. He                is also                (non-executive) Chairman of the Small Enterprise Assistance Funds                (SEAF),                a not-for-profit operator of emerging markets venture capital funds                focused on the small and mid-sized company sector. He is a director                of                CapitalSource Inc. (NYSE) and SMELoan Asia/Maveo Systems (private,                Hong                Kong based). In 2002 and 2003 he was an Adjunct Professor at the                Johns                Hopkins University School of Advanced International Studies. From                1988 to                2001, he was President of Heller International Group Inc., a non-bank                corporate and commercial finance company operating in 20 countries,                and a                director of the group’s parent, Heller Financial Inc. From 1971 to 1988 he                held a variety of international and domestic positions at                Citibank/Citicorp (now Citigroup) including assignments in Lebanon,                Saudi                Arabia, Greece, Iran and the bank’s Latin American group in New York. In                1999, he was Chairman of the Advisory Committee of the U.S. Export                Import                Bank. He is a graduate of Stanford University and The John Hopkins                University School of Advanced International Studies. He also attended                the                Senior Executive Program at the Sloan School of Management, Massachusetts                Institute of Technology. Mr. Lockhart is an independent member of                our                Board of Directors.                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **Milton                J. Carlson - 75**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Director                                                                                                                                                                                                                                                                                                                                                                                                              | 1985   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Since                1989, Mr. Carlson has been a principal in Earthsong Corporation,                which, in                part, consults on environmental matters and performs environmental                audits                for government agencies and public and private concerns. Mr. Carlson                attended the University of Colorado at Boulder and the University                of                Denver. Mr. Carlson is an independent member of our Board of Directors.                His former career experience included being corporate secretary of                Sugar,                a unit of Sara Lee Corporation and chairman of the Energy End Users                Committee of the California Manufacturers Association.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| **Loren                J. Miller, CPA - 60**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Director                                                                                                                                                                                                                                                                                                                                                                                                              | 1992   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Mr.                Miller has served in a treasury and other senior financial capacities                at                the Jankovich Company since 1994. Prior to that he served successively                as                vice president and chief financial officer of Hershey Oil Corporation                from                1987 to 1990 and Mock Resources from 1991 to 1992. Prior to that                he was                vice president and general manager of Tosco Production Finance Corporation                from 1975 to 1986 and was a senior auditor the accounting firm of                Touche                Ross & Company from 1968 to 1973. He is experienced in exploration,                production, product trading, refining and distribution as well as                corporate finance. He holds a B.S. in accounting and a 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 - 51**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Director                                                                                                                                                                                                                                                                                                                                                                                                              | 2005   |
| Dr.                Lowenstein is Dean of the School of Business and Public Administration                and                Professor of Management at California State University                Bakersfield.   Dr. Lowenstein has broad background in                management within business, academic, government and public service                organizations.   He is 2006 Chair of the California State                Universities Association of Business Deans, a director of the Western                Association of Collegiate Schools of Business, and serves on the                2005-06 World Nominating Committee for AACSB International. He previously                served as professor, department and division chairperson at universities                in Illinois, Virginia and West Virginia and is published in fields                of                human resource management, public policy and transportation.  In                business he served as Director of Education for Kemper                Group- Insurance and Financial Services, Director of Education for                Dominion Bankshares Corporation, and Vice President of Americana                Furniture, Inc.  Dr. Lowenstein previously served as a management                analyst for the Executive Office of the President of the United                States-Office of Management and Budget under the Gerald Ford                Administration.   He was a principal consultant to the Illinois                General Assembly in the 1980's on the restructuring of the                Chicago-area Mass Transit System, and, to the West Virginia                Legislature and Governor on higher education financing in the 1990's.                In                Bakersfield, he serves on the boards of the Historic Fox Theater                Foundation, and, the Minter Field Air Museum.  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 B.S.                in                Business Administration from Virginia Commonwealth University.  He                serves on Tri-Valley's Personnel Committee.  Dr. Lowenstein is an                independent member of our Board of Directors. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| **William                H. “Mo” Marumoto - 70**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Director                                                                                                                                                                                                                                                                                                                                                                                                              | 2005   |
| Mr.                Marumoto has over 30 years experience in the executive and personnel                search profession as chairman and chief executive officer of his                own                retained search firm, The Interface Group Ltd. Here he was named                to the                Global Top 200 Executive Recruiters and several other worldwide                professional awards and recognitions, according to the company. He                has 40                years experience in public, private and academic sectors. He worked                for                three years as presidential aide in the Nixon White House. Earlier                he was                assistant to the secretary of health, education and welfare. Mr.                Marumoto                has been part of boards of numerous organizations, colleges, public                agencies and businesses. In 2002 he was appointed by President George                W.                Bush to the advisory committee of the John F. Kennedy Center for                the                Performing Arts. Mr. Marumoto is an independent member of our Board                of                Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| **G.                Thomas Gamble - 44**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Director                                                                                                                                                                                                                                                                                                                                                                                                              | 2006   |
| A                graduate of UCLA, Mr. Gamble is a successful rancher and businessman                with                current active investments in agriculture, food processing, educational                services, oil, gas and minerals. In 2003, the California State Senate                proclaimed privately owned Davies and Gamble, which produces critically                acclaimed wines in California’s Napa Valley, its Green Entrepreneur Of The                Year, and in 2005, Mozzarella Fresca, the nation’s premier producer of                fresh Italian cheeses, of which he is a director and original investor,                received the Certificate of Special Congressional Recognition as                business                of the year. He is also a director and original investor in Boston                Reed                College which provides educational opportunities to busy adults seeking                stable and growing careers in the California health care industry.                Mr.                Gamble is an independent member of our Board of                Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| **Thomas                J. Cunningham - 63**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Secretary,                Treasurer and Chief Administrative Officer of Tri-Valley Corporation,                and                its wholly owned subsidiaries, Tri-Valley Oil & Gas Company,                Tri-Valley Power Corporation and Select Resources Corporation,                Director                of Tri-Western Resources, LLCBakersfield,                California                           | 1997   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Named                as Tri-Valley Corporation’s treasurer and chief financial officer in                February 1997, and as corporate secretary on December 1998, promoted                to                Chief Administrative Officer in November 2005. From 1987 to 1997                he was a                self employed management consultant in finance, marketing and human                resources. Prior to that he was executive vice president, chief financial                officer and director for Star Resources from 1977 to 1987. He was                the                controller for Tucker Drilling Company from 1974 to 1977. He has                over 25                years experience in corporate finance, Securities Exchange Commission                public company reporting, shareholder relations and employee benefits.                He                received his education from Angelo State University,                Texas.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **Arthur                M. Evans, CPA, CMA, CFM - 57**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Chief                Financial Officer of Tri-Valley Corporation, and its wholly owned                subsidiaries, Tri-Valley Oil & Gas Company, Tri-Valley Power                Corporation, Select Resources Corporation and Great Valley Production                Services, Inc.CFO                of Tri-Western Resources, LLC, Bakersfield, California                                                    | 2005   |
|  Named                as Tri-Valley Corporation’s chief financial officer in November 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 and with Fortune 500 companies as well as independents                like                Tri-Valley. He held several senior financial management positions                with                Getty Oil and Texaco. He holds a B.S. 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| **Joseph                R. Kandle - 63**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | President                and Chief Operating Officer Tri-Valley Oil & Gas Company, wholly owned                subsidiary of Tri-Valley Corporation Bakersfield,                California                                                                                                                                                                                                                        | 1998   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Mr.                Kandle was named as president of Tri-Valley Oil & Gas Co. February                1999 after joining the Company June 1998 as vice president - engineering.                From 1995 to 1998 he was employed as a petroleum engineer for R & R                Resources, self-employed as a consulting petroleum engineer from                1994 to                1995. He was vice president - engineering for Atlantic Oil Company                from                1983 to 1994. From 1981 to 1983 he was vice president for Star Resources.                He was vice president and chief engineer for Great Basins Petroleum                from                1973 to 1981. He began his career with Mobil Oil (from 1965 to 1973)                after                graduating from the Montana School of Mines in 1965.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| **Henry                J. Sandri - 53**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | President,                Select Resources Corporation, wholly owned subsidiary of Tri-Valley                Corporation Director                of Tri-Western Resources, LLCBakersfield,                California                                                                                                                                                                                                  | 2005   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Henry                J. "Rick" Sandri, Ph.D was promoted to president of Select Resources                Corporation in December 2005 after joining the company in January                2005 as                the executive vice president. Dr. Sandri has held mid- and senior-level                positions in major mining and transportation companies as well as                independent and consulting firms active in mining, transportation                and                utility operations in numerous countries. "Dr. Sandri is a broadly                seasoned mining industry executive with international experience                in                precious and base metals, gems and industrial minerals. Dr. Sandri                holds a                doctorate in mineral/energy economics and engineering minor from                the                Colorado School of Mines and undergraduate degrees from American                University and Georgetown University, both in Washington,                D.C.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

**ITEM      11 Executive Compensation**

|                            |   |                          |                        |                                |   |    |   |         |   |
|---------------------------------|--------|-------------------------------|-----------------------------|-------------------------------------|--------|---------|--------|--------------|--------|
|                            |   |                          |                        |                                |   |    |   |         |   |
|                            |   |                          |                        | Annual                Compensation  |   |    |   |
| (a)                             |   | (b)                           |                        | (                c                ) |   | (d)     |   | (e)          |   |
|                            |   |                          |                        |                                |   |    |   | Other        |   |
| Name                            |   | Period                Covered |                        | Salary                              |   | Bonus   |   | Compensation |   |
|                            |   |                          |                        |                                |   |    |   |         |   |
| F.                Lynn          |   |                          | FYE                12/31/05 |                                | $      | 159,000 |   | $            | 0      |   | $ | 2,782 |   |
| Blystone,                CEO    |   |                          | FYE                12/31/04 |                                | $      | 108,900 |   | $            | 25,000 |   | $ | 0 |   |
| FYE                12/31/03     |   |                          |                        |                                | $      | 99,000  |   | $            | 50,000 |   | $ | 0 |   |
|                            |   |                          |                        |                                |   |    |   |         |   |   |   |   |   |
| Thomas                          |   |                          | FYE                12/31/05 |                                | $      | 115,000 |   | $            | 0      |   | $ | 2,012 |   |
| Cunningham,                CAO  |   |                          | FYE                12/31/04 |                                | $      | 99,000  |   | $            | 0      |   | $ | 0 |   |
| FYE                12/31/03     |   |                          |                        |                                | $      | 90,000  |   | $            | 0      |   | $ | 0 |   |
|                            |   |                          |                        |                                |   |    |   |         |   |   |   |   |   |
| Joseph                Kandle,   |   |                          | FYE                12/31/05 |                                | $      | 150,000 |   | $            | 0      |   | $ | 2,625 |   |
| Pres.                TVOG       |   |                          | FYE                12/31/04 |                                | $      | 99,000  |   | $            | 0      |   | $ | 0 |   |
| FYE                12/31/03     |   |                          |                        |                                | $      | 90,000  |   | $            | 0      |   | $ | 0 |   |
|                            |   |                          |                        |                                |   |    |   |         |   |   |   |   |   |
| Henry                J. Sandri, |   |                          | FYE                12/31/05 |                                | $      | 144,250 |   | $            | 0      |   | $ | 2,625 |   |
| Pres.                SRC        |   |                          | FYE                12/31/04 |                                | $      | 30,000  |   | $            | 0      |   | $ | 0 |   |

----

**Employment      Agreement with Our President**

**Employee      Pension, Profit Sharing or Other Retirement Plans**

**REPORT      OF THE COMPENSATION COMMITTEE**

**ON      ANNUAL COMPENSATION OF EXECUTIVE OFFICERS**

*Overview*

|   | • |   | competitive                to attract and retain the best officer talent; |
|--------|---------|--------|---------------------------------------------------------------------------|

|   | • |   | affordable                to the Company and appropriately aligned with shareholder interests; |
|--------|---------|--------|------------------------------------------------------------------------------------------------|

|   | • |   | consistent                with the Company’s long-range business plans; |
|--------|---------|--------|-------------------------------------------------------------------------------|

|   | • |   | designed                to consider individual value and contribution to the Company’s success; |
|--------|---------|--------|-------------------------------------------------------------------------------------------------------|

|   | • |   | sensitive                to, but not exclusively reliant upon, market benchmarks; |
|--------|---------|--------|-----------------------------------------------------------------------------------|

|   | • |   | reasonably                sensitive to the needs of the Company’s executive officers, as those needs                change over time; and |
|--------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | flexible                with regard to the Company’s succession planning objectives. |
|--------|---------|--------|--------------------------------------------------------------------------------------------|

*Base      Salaries*

*Section 162(m)*

----

**Aggregated      2005 Option Exercises and Year-End Values**

| **(                a )**            | **(b)**                                                      | **(c)**                   | **(d)**                                   | **(e)**                                 |
|-------------------------------------|--------------------------------------------------------------|---------------------------|-------------------------------------------|-----------------------------------------|
|                                |                                                         |                      | Number                of Securities       | Value                of Unexercised In- |
|                                |                                                         |                      | Underlying                Unexercised     | The-Money                Options/SARs   |
|                                |                                                         |                      | Options/SARs                at FY-End (#) | at                FY-End ($)*           |
|                                | Shares                AcquiredOn                Exercise (#) |                      |                                      |                                    |
| Name                           | Value                Realized ($)                            | Exercisable/Unexercisable | Exercisable/Unexercisable                 |
| F.                Lynn Blystone     | 12,000                                                       | $122,123                  | 845,600/0                                 | $5,483,268/0                            |
| Milton                Carlson       | 5,000                                                        | $50,400                   |                                      | $1,701,640/0                            |
| Thomas                J. Cunningham | 0                                                            | 0                         | 523,000/0                                 | $3,414,190/0                            |
| Joseph                R. Kandle     | 0                                                            | 0                         | 475,000/0                                 | $3,139,750/0                            |
| Loren                J.Miller       | 50,000                                                       | $598,500                  | 0/0                                       | $0/0                                    |
| Henry                J. Sandri      | 0                                                            | 0                         | 25,000/0                                  | $0/0                                    |
|                                |                                                         |                      |                                      |                                    |

**Compensation      of Directors**

| **(a)**                           | **(b)**  | **(c)**                              |
|-----------------------------------|----------|--------------------------------------|
| **Name**                          | **Fees** | **Restricted                Shares** |
|                              |     |                                 |
| Milton                Carlson     | $11,850  | 2,000                                |
|                              |     |                                 |
| Dennis                P. Lockhart | $11,100  | 2,000                                |
|                              |     |                                 |
| Loren                J. Miller    | $14,250  | 2,000                                |
|                              |     |                                 |
| C.                Chase Hoffman   | $3,500   | 2,000                                |

----

**Performance      Graph**

|                           | December                31, |
|--------------------------------|-----------------------------|
|                           | 2000                        | 2001 | 2002 | 2003 | 2004 | 2005 |
| Tri-Valley                Corp | $100.00                     | $83.00 | $76.00 | $220.00 | $611.50 | $389.00 |
| Amex                Oil        | $100.00                     | $97.90 | $82.89 | $94.49 | $134.07 | $189.96 |
| Russell                2000    | $100.00                     | $95.82 | $87.51 | $68.61 | $89.04 | $102.44 |

**ITEM      12 Security Ownership of Certain Beneficial Owners and      Management**

|                                                                                                |   | Number                of |   | Percent                of |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------|--------|---------------------------|
| Name                and Address                                                                     |   | Shares                   |   | Total                     |
|                                                                                                |   |                     |   |                      |
| F.                Lynn BlystoneP.O.                Box 1105Bakersfield,                CA 93302     |   | 1,279,703(1)             |   | 5.4%                      |
|                                                                                                |   |                     |   |                      |
| G.                Thomas Gamble1250                Church StreetSt.                Helena, CA 94574 |   | 1,483,333                |   | 6.4%                      |

----

|                                                         |   | Number                of |   | Percent                of |
|--------------------------------------------------------------|--------|--------------------------|--------|---------------------------|
| Directors                                                    |   | Shares(1)                |   | Total(2)                  |
|                                                         |   |                     |   |                      |
| F.                Lynn Blystone                              |   | 1,279,703                |   | 5.4%                      |
|                                                         |   |                     |   |                      |
| Dennis                P. Lockhart                            |   | 347,191                  |   | 1.5%                      |
|                                                         |   |                     |   |                      |
| Milton                J. Carlson                             |   | 345,000                  |   | 1.5%                      |
|                                                         |   |                     |   |                      |
| Loren                J. Miller                               |   | 308,800                  |   | 1.4%                      |
|                                                         |   |                     |   |                      |
| Henry                Lowenstein, Ph.D.                       |   | 200                      |   | 0.0%                      |
|                                                         |   |                     |   |                      |
| G.                Thomas Gamble                              |   | 1,483,333                |   | 6.5%                      |
|                                                         |   |                     |   |                      |
| Thomas                J. Cunningham                          |   | 540,000                  |   | 2.3%                      |
|                                                         |   |                     |   |                      |
| Joseph                R. Kandle                              |   | 500,000                  |   | 2.1%                      |
|                                                         |   |                     |   |                      |
| Henry                J. Sandri                               |   | 54,392                   |   | 0.2%                      |
|                                                         |   |                     |   |                      |
| Total                group                (all directors and |   |                     |   |                      |
| Executive                officers - 9 persons)               |   | 4,858,619                |   | 20.9%                     |

| (1) | Includes                shares which the listed shareholder has the right to acquire from                options                as follows: Dennis P. Lockhart 270,000; Milton J. Carlson 263,000;                F. Lynn                Blystone 845,600; G. Thomas Gamble 33,333; Thomas J. Cunningham 523,000;                Joseph R. Kandle 475,000; Henry J. Sandri                25,000 |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Based                on total outstanding shares of 22,806,176 as of December 31, 2005.                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. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ITEM      14 Principal Accountant Fees and Services**

| YEAR | AUDIT                SERVICES | TAX                SERVICES | SEC                SERVICES |
|------|-------------------------------|-----------------------------|-----------------------------|
| 2005 | $106,082                      | $13,639                     | $12,986                     |
| 2004 | $82,419                       | $11,725                     | $17,882                     |

**Policy      on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services      of      Independent Auditors**

----

**ITEM      15 Exhibits and Financial Statement Schedules**

| Exhibit |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Description                of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.1     |   | Amended                and Restated Certificate of Incorporation, incorporated by reference                to                Exhibit A of the Company’s 2000 Proxy Statement and Definitive Schedule                14A, filed with the SEC on July 26, 2000.                                                                                                                                                                                                                                                                                                                                                                 |
| 3.2     |   | Amended                and Restated Bylaws, incorporated by reference to Exhibit 3.3 of                the                Company's Form 10-KSB for the year ended December 31, 1999, filed                with the                SEC on March 24, 2000.                                                                                                                                                                                                                                                                                                                                                                           |
| 4.1     |   | Rights                Agreement, incorporated by reference to Exhibit 99.1 of the Company’s Form                10-KSB for the year ended December 31, 1999, filed with the SEC on                March                24, 2000.                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.1    |   | Employment                Agreement with F. Lynn Blystone, incorporated by reference to Exhibit                10.1                of the Company's Form 10-KSB/A, Amendment No. 3 to Form 10-KSB for                the                year ended December 31, 2000, filed with the SEC on December 14,                2001.                                                                                                                                                                                                                                                                                                       |
| 10.2    |   | Tri-Valley                Corporation 2005 Stock Option Plan, as amended, incorporated by reference                to Exhibit B of the Company’s 2005 Proxy Statement and Definitive Schedule                14A, filed with the SEC on August 29, 2005.                                                                                                                                                                                                                                                                                                                                                                      |
| 10.3    |   | Articles                of Merger between Coastal Oil Sands Co. and Pleasant Valley Energy                Corporation, incorporated by reference to Exhibit 2.1 of the Company’s                Form 8-K filed with the SEC on May 12, 2005.                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.4    |   | Restated                Agreement and Plan of Merger Among Tri-Valley Corporation, Coastal                Oil                Sands Co., Petrawest Ltd. And Pleasant Valley Energy Corporation,                incorporated by reference to Exhibit 2.2 of the Company’s Form 8-K filed                with the SEC on May 12 2005.                                                                                                                                                                                                                                                                                            |
| 10.5    |   | Amendment                No. 1 to Restated Agreement and Plan of Merger Among Tri-Valley                Corporation, Coastal Oil Sands Co., Petrawest Ltd. And Pleasant Valley                Energy Corporation, incorporated by reference to Exhibit 2.3 of the                Company’s Form 8-K filed with the SEC on May 12, 2005.                                                                                                                                                                                                                                                                                       |
| 10.6    |   | Purchase                and Sale Agreement by and among Sealaska Corporation and Seacal,                LLC, and                Select Resources Corporation, Inc. (April 1, 2005), incorporated                by                reference to Exhibit 2.1 of the Company’s Form 8-K filed with the SEC on                August 1, 2005.                                                                                                                                                                                                                                                                                     |
| 10.7    |   | Promissory                Note between Tri-Western Resources, LLC, Maker, and Financial Federal                Credit, Inc. Holder, incorporated by reference to Exhibit 10.1 of                the                Company’s Form 8-K filed with the SEC on August 26,                2005.                                                                                                                                                                                                                                                                                                                                   |
| 10.8    |   | Security                Agreement, incorporated by reference to Exhibit 10.2 of the Company’s Form                8-K filed with the SEC on August 26, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.9    |   | Purchase                and Sale Agreement between Brea Oil Company, Brea Properties, Inc.,                Kurt                Sickles, Geraldine M. Barker, as Trustee of the Barker Bypass Trust                under                the Barker Trust, dated January 21, 1999, Geraldine M. Barker and                Alexander W. Barker, as Co-Trustees of the Barker Trust dated January                21,                1999, and Tri-Valley Oil and Gas Co., incorporated by reference to                Exhibit                2.1 of the Company’s Form 8-K filed with the SEC on January 10,                2006. |
| 14.1    |   | Code                of Business Conduct & Ethics, incorporated by reference to Exhibit14.1                of the Company’s Form 10-K filed with the SEC on March 31,                2005                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 21.1    |   | Subsidiaries                of the Registrant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 31.1    |   | Certification                Pursuant to Rule 13a-14(a) / 15d-14(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.2    |   | Certification                Pursuant to Rule 13a-14(a) / 15d-14(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 32.1    |   | Certification                Pursuant to 18 U.S.C. §1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 32.2    |   | Certification                Pursuant to 18 U.S.C. §1350.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

**SIGNATURES**

|   | March                30, 2006 |   | By:/s/                F. Lynn Blystone                |
|--------|-------------------------------|--------|-------------------------------------------------------|
|   |                          |   | F.                Lynn Blystone                       |
|   |                          |   | President,                Chief Executive Officer and |
|   |                          |   | Director                                              |
|   |                          |   |                                                  |
|   |                          |   |                                                  |
|   | March                30, 2006 |   | By:/s/                Arthur M. Evans                 |
|   |                          |   | Arthur                M. Evans                        |
|   |                          |   | Chief                Financial Officer                |

|   | March                30, 2006 |   | By:/s/                Milton J. Carlson                       |
|--------|-------------------------------|--------|---------------------------------------------------------------|
|   |                          |   | Milton                J. Carlson, Director                    |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   | March                30, 2006 |   | By:/s/                G. Thomas Gamble                        |
|   |                          |   | G.                Thomas Gamble, Director                     |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   | March                30, 2006 |   | By:/s/                Dennis P. Lockhart                      |
|   |                          |   | Dennis                P. Lockhart, Director                   |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   | March                30, 2006 |   | By:/s/                Henry Lowenstein                        |
|   |                          |   | Henry                Lowenstein, Ph.D,Director                |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   | March                30, 2006 |   | By/s/                William H. “Mo” Marumoto     |
|   |                          |   | William                H. “Mo” Marumoto, Director |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   |                          |   |                                                          |
|   | March                30, 2006 |   | By:/s/                Loren J. Miller                         |
|   |                          |   | Loren                J. Miller, Director                      |

**Exhibit      21.1**

**Tri-Valley      Corporation**

**Subsidiaries**

**Exhibit      31.1**

**Certification**

| Date:                March 30, 2006 |    | By:    |    | */s/F.                Lynn Blystone*                                                  |
|-------------------------------------|--------------|--------|--------------|---------------------------------------------------------------------------------------|
|                                |         |   |         | F.                Lynn Blystone, President and Chief Executive                Officer |

**Exhibit      31.2**

**Certification**

| Date:                March 30, 2006 |    | By:    |    | */s/Arthur                M. Evans*                     |
|-------------------------------------|--------------|--------|--------------|---------------------------------------------------------|
|                                |         |   |         | Arthur                M. Evans, Chief Financial Officer |

**Exhibit      32.1**

**Certification      Pursuant to 18 U.S.C. § 1350**

| Date:  |   | March                30, 2006                                                                   |
|-------------|--------|-------------------------------------------------------------------------------------------------|
| By:         |   | *F.                Lynn Blystone*                                                               |
|        |   | F.                Lynn Blystone, Chief Executive Officer,                Tri-Valley Corporation |

**Exhibit      32.2**

**Certification      Pursuant to 18 U.S.C. § 1350**

| Date:  |   | March                30, 2006                           |
|--------|--------|---------------------------------------------------------|
| By:    |   | *Arthur                M. Evans*                        |
|   |   | Arthur                M. Evans, Chief Financial Officer |