Overview

Our wholly-owned subsidiary, Select Resources Corporation, Inc., holds and maintains two precious metals properties in the State of Alaska. The Shorty Creek and Richardson precious metal properties are exploration stage gold prospects which require additional capital to fully evaluate their gold and minerals potential. There is evidence of porphyry deposits of copper, molybdenum, and other metals at Shorty Creek.

The Board of Directors has directed Tri-Valley management to pursue alternatives that will allow the Company to monetize the value of these assets. To that end, we have begun to pursue various alternatives, including strategic partnerships. In June 2011, we signed a binding letter of intent with US Gold Corporation outlining the principal terms and conditions for a four-year Exploration Lease and Purchase Option Definitive Agreement with respect to Select’s Richardson Project. Under terms of the letter of intent, US Gold will acquire an exploration lease for Richardson, along with an exclusive option to purchase a 60% interest in the project and enter into a joint venture with Select for its development. The Definitive Agreement is expected to be finalized by July 1, 2011. There is no assurance that commercially-viable mineral deposits exist.