1996:
Calvalley was incorporated.

1997:
Calvalley signed a Production Sharing Agreement for Block 9 in the Republic of Yemen.

2001:
Class A Common Shares (CVI.A) listed on TSX Venture Exchange on October 1.

2005:
Calvalley announced its intention to declare commerciality on Block 9 on June 19.

Calvalley received approval in August for the conversion of Block 9 from an "exploration block" to a "development area", which gave the Company the rights to produce and sell oil, natural gas liquids and natural gas from Block 9 for a twenty-year period, with a possible five-year extension beyond 2025.

Calvalley's common shares were approved for listing and started trading on The Toronto Stock Exchange on November 4.

2006:
In January and February of 2006, the Company issued 407,143 Common Shares for cash consideration of $1,378,000 upon the exercise of warrants, such warrants expiring on March 14, 2006 and originally issued as part of the March 2005 Private Placement. In addition, 270,000 stock options were exercised for proceeds of $187,000 pursuant to the Company's Stock Option Plan.

On February 21, 2006, the Company completed a bought deal private placement of 9,000,000 Common Shares at a price of C$6.50 per share for total gross proceeds of $50,895,000 and net proceeds of $47,749,000.

During 2006, the Company significantly increased its crude oil production volumes and, in the ordinary course of business, exported its share of crude oil pursuant to three spot sales contracts.

2007:
Calvalley produced oil predominantly from the Hiswah field at an average daily rate of 5,278 bopd. In 2007, the Company entered into a long-term marketing arrangement for the sale of its crude oil with Reliance Industries (Middle East) dmcc ("RIME").

During the year, 423,333 stock options were exercised for proceeds of $663,000 pursuant to the Company's Stock Option Plan.

2008:
Production continued primarily from the Hiswah field at an average daily rate of 4,635 bopd. A key reservoir simulation study was conducted which will be utilized to determine optimal development and injection well placement in order to optimize production from the Hiswah field. A deep exploratory well was drilled into the fractured basement at Qarn Qaymah (the "QQ-2") which discovered hydrocarbons in the fractured basement and hydrocarbon potential in the Kohlan sands. Some formation damage occurred during the drilling of the well. Simulation, testing and evaluation are still in progress and the Company has identified other basement targets. The Company commenced operation of its central processing facility. The Company extended its marketing agreement with RIME until June 30, 2009.

During 2008, the 440,000 stock options were exercised for proceeds of $514,000. Additionally, the Company repurchased 1,604,896 shares on the open market under a normal course issuer bid for a total cost of $4.8 million.

During 2008, the Company diversified its exploration portfolio by signing a Production Sharing Contract with the Ethiopian Government on the Metema and Gimbi blocks covering a total area of 11.5 million acres.

Recent Developments:

• Clean up and testing of the Qarn Qaymah 2 ("QQ-2") well in the fractured granitic basement with smaller diameter (2 7/8 inch) production tubing has commenced. The well started to flow on its own after several swabbing runs. The well is currently flowing oil, condensate, gas, and drilling and completion kill fluid. Management anticipates the well will stabilize once field personnel recover a significant volume of kill fluid. Upon full evaluation of the fractured basement, Management expects to move up-hole to perforate and test the Kohlan sand gas-condensate discovery during December, 2009.
• Calvalley has successfully completed the drilling of the Ras Nowmah-1 exploration well which, based on the log interpretations, shows a significant column of oil in two separate formations. The Ras Nowmah-1 well, spudded on September 29, 2009, is located on the plateau between Al Roidhat and Hiswah fields. The primary target zone was Qishn Clastic ("Qishn") which is produced from Al Roidhat, with the secondary target being Saar Carbonates ("Saar") which is produced from the Hiswah field. The Ras Nowmah-1 was drilled into a large four-way structural closure. The Qishn formation was encountered at 1,361 meters total vertical depth. Initial well logs analysis indicates 35 meters of gross oil column in the Qishn sands. The Saar formation was encountered at 1,483 meters total vertical depth. The Saar carbonates appear to be dolomitized with a potential gross oil column of 10 meters. The rig was released on November 2, 2009 after reaching a total depth of 1,621 meters measured depth (1,560 meters total vertical depth). The Ras Nowmah-1 is currently awaiting the service rig for completion and testing of the commerciality of Qishn Sands and Saar Carbonates. We expect the program to be completed before year-end.
• Calvalley plans to commence drilling its second exploration target at Salmin prior to the end of 2009. Salmin lies in a proven oil fairway and is situated approximately five (5) kilometers northwest of the Auqban discovery targeting a light oil carbonate structure with an estimated mean oil-in-place volume of 45 million barrels.
• Calvalley successfully tested water injection at Hiswah-26. All produced Hiswah water is expected to be re-injected into the main reservoir for pressure maintenance commencing by the end of the year. Fabrication of gas injection facilities was delayed and as a result the first gas injection is expected in the First Quarter of 2010.
• Construction of a heavy crude blending facility at the CPF is substantially complete. This will enable the Company to produce from the currently shut-in Al Roidhat field.
• Calvalley continues to focus its marketing efforts on negotiations to deliver Block 9 production to Block 14 via Block 51 in order to sell blended crude oil from all discoveries at Block 9. Negotiations are nearing a final agreement with support from the Government of Yemen and cooperative efforts from the operator of the blocks. Management is optimistic that delivery of the first oil to Block-14 could commence during the first quarter of 2010.
• The early exploration phase has commenced in Ethiopia with the initial completion of a surface geological study of the Metema and Gimbi blocks. Calvalley is currently making the necessary arrangements to conduct an aeromagnetic survey over both blocks to identify areas of interest for further geological examination.
• As we approach the end of 2009, a number of capital projects are expected to be complete or near completion. Water injection facilities are expected to commence pressure maintenance of the Hiswah field prior to year-end; the fabrication of the gas injection facilities was delayed but this facility is expected to be commissioned during the first quarter of 2010. Our crude oil blending facility is substantively complete and will be available to blend heavy Roidhat crude with lighter crudes as soon as the crude marketing agreement is finalized.
• While our 2010 capital budget is in the process of being finalized, we intend to ramp up both the development and exploration drilling programs. With the crude marketing agreement on the horizon, Calvalley plans to mobilize a second rig for field development at Roidhat and Hiswah. In addition, we intend to secure a larger rig for deeper wells in the greater Qarn Qaymah region.

Major milestones are subject to factors noted in the Risk Factors section of the Management Discussion and Analysis, dated November 16, 2009. Milestones planned for the balance of 2009 and into 2010 include the following:

• Increase total production by concluding a marketing agreement for heavy crude from the Al Roidhat field;
• Complete the initial phase of the pressure maintenance program (water and gas injection) to commence full field development at Hiswah;
• Accelerate exploration drilling by mobilizing additional rigs.
• Further appraise the Qarn Qaymah discovery by drilling step out wells.
• Follow up appraisal and exploration drilling in the shallower horizons based on the success of Ras Nowmah-1 and Salmin-1 exploration wells on Block 9;
• High-grade and re-rank the existing exploration portfolio of 46 prospects and leads following a full assessment of the 2009 exploration campaign;
• Undertake a gravity/magnetic survey at Metema and Gimbi blocks in Ethiopia; and
• Continue to take advantage of Calvalley's strong balance sheet and its international operating experience by continuing to evaluate the potential acquisition of additional assets in the Middle East and Africa