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11.05.2010 10:30

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Tri-Valley Re-Starts Production at Five Claflin Wells

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Tri-Valley Corporation (NYSE Amex: TIV) today announced the re-start of production on five existing wells in the Racetrack Hill Area of the Edison Field near Bakersfield, California in eastern Kern County. Two additional existing wells in the area are expected to re-start production following the completion of repairs by the end of June 2010. Tri-Valley holds a 100% working interest and an 87.5% net revenue interest on the three parcel leasehold known as the Claflin Lease.

The Claflin Lease was evaluated earlier this year by an independent petroleum engineer who estimates that the total gross proved reserves are 2.3 million barrels (100%) and that Tri-Valley’s interest in these proved oil reserves is 2.0 million barrels (87.5%). The reserves are contained in two productive oil zones located at relatively shallow depths ranging between 650 and 750 feet subsurface. Per well production rates from these same two zones on acreage adjacent to Claflin average 15 barrels per day and Tri-Valley expects to generate similar production from the seven wells.

"The re-start of production at Claflin represents a significant operational milestone for Tri-Valley for several reasons,” stated Maston Cunningham, President & CEO. "First, by the end of June, we expect to be generating gross production of approximately 100 barrels per day, which should significantly improve our second quarter top line performance, especially considering our large ownership interest in Claflin. Second, we expect to further increase daily production through the introduction of cyclic steam injection into some of these seven wells later this month. Third, the re-start validates the investment we are planning for the drilling of 20 new wells at Claflin under permits already received from the California Department of Oil & Gas and Geothermal Resources. Our goal for the 27 wells is to exit 2010 with gross production of 400 barrels per day. If we are successful at achieving this goal, revenue from this production should enable our operations to generate cash,” Mr. Cunningham concluded.

About Tri-Valley

Tri-Valley Corporation explores for and produces oil and natural gas in California, and has an exploration-stage gold property and an exploration-stage porphyry copper, gold and molybdenum property, as well as a high grade calcium carbonate quarry in Alaska. Tri-Valley is incorporated in Delaware and is publicly traded on the NYSE Amex exchange under the symbol "TIV." The company website, which includes all SEC filings, is www.tri-valleycorp.com.

Forward-looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements which includes such words and phrases as exploratory, wildcat, prospect, speculates, unproved, prospective, very large, expect, potential, etc. Among the factors that could cause actual results, events and performance to differ materially are risks and uncertainties discussed in "Item IA. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition" contained in the company's Annual Report on Form 10-K for the year ended December 31, 2009.

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