In keeping with a new publisher and developer for this, the latest incarnation of the Heroes series, a completely new storyline has been developed, and with it, a new history.

Academy: A Chronological History (From the Official Site)

The Origins

0 YSD: The Revelation of the Seventh Dragon
Sar-Elam the first wizard reaches the conscience of the Dragon of Order who teaches him on the nature of matter and spirit and shows him the higher path of power. Enlightened by his new understanding, Sar-Elam becomes the Seventh Dragon.

62 YSD: The Schism of the Seven
Schism between the disciples of Sar-Elam, who can’t agree on the best way to follow the road laid down by the Seventh Dragon and, hopefully someday surpass him. Sar-Antor founds the Blind Brothers, a congregation of healers, seers and embalmers dedicated to the worship of Asha. Sar-Badon founds the Dragon Knights, a martial order disciplined in both body and mind. The other disciples, led by Sar-Shazzar, the most gifted of them all, lead an exodus of wizards and like-minded humans to found the Seven Cities (the first kingdom of Magic) in the southern deserts.

330 YSD: 1st Eclipse - War of the Blood Moon
A total lunar eclipse provokes a massive rupture of the Demon Prison. The Demon Lords force their way out and raven across Elven lands. Caught by surprise, they are rapidly overwhelmed.
Called upon for assistance, the wizards of the Seven Cities send their forces into battle. They experiment with demon blood, which they inoculate into human slaves and criminals. The monstrous Orcs are created as a result.
Bolstered by the Orc shock troops, the Alliance defeats the Demons. The Demon Lords are cast down, and the surviving demons banished back to their hellish prison.
In the wake of this second demon war, Orcs are re-settled in the Falcon Empire as well as the Seven Cities. They are not granted their freedom, but instead serve as indentured troops.

467-504 YSD: The Orc Crusades
Orcish rebellion in the Seven Cities, which spreads to Haven.
Rejecting their masters and the Dragon Gods, the Orcs declare themselves free.
In the Falcon Empire, Crusades are declared against the Orcs – attempts to subjugate them and convert them back to dragon worship. The fighting is brutal, and the Orcs are relentlessly driven back. Eventually, the unrepentant survivors flee wherever they can, including the deserts of the south, the steppes of the north-east and the Barrier Islands of the east, A great storm sinks the Haven fleet that was prepared to follow the Orcs to their island refuge. The Falcon Emperor declares this a sign from the Dragons, and formally ends the Orcish Crusades.

512 YSD: Creation of the Beast-men
Beast-men (minotaurs, centaurs, harpies…) are created as servants, playthings, and guards in the Seven Cities. Their stated purpose is to replace the Orcs.

610-660 YSD: Rise of the Necromancers
The Necromancer presence grows until they are a powerful political force in the Seven Cities.

751-770 YSD: Purge of the Necromancers - Civil war in the Seven Cities
Jealous of the power acquired by the Necromancers, the Wizards of the Seven Cities initiate a large-scale persecution, ranging from the seizing of their properties, to banishment, to the spectacle of public executions.
A long and gruesome civil war ensues. The ancient cities are destroyed and much of the land is rendered uninhabitable.

The Modern Ages

771 YSD: Foundation of the Silver League
Survivors of the Seven Cities establish the Silver League (the second kingdom of Magic) in the lands to the south. Necromancers flee east to the haunted valley of Heresh.

813-822 YSD: War of the Broken Staff
The Necromancers attempt to crush the newborn Silver League but the Wizards gain the upper hand and invade Heresh. The Necromancers are utterly defeated and their kingdom shattered.

The Characters

Sar-Elam: He is the first Wizard, who reaches the mind of the Dragon of Order. He learns all of the world's secrets, and becomes the Seventh Dragon, starting the 'Year of the Seventh Dragon' 0.
Sar-Antor: The founder and first leader of the 'Blind Brothers', a congregation of healers, seers and embalmers dedicated to the worship of Asha.
Sar-Badon: The founder and first leader of the 'Dragon Knights', a martial order disciplined in both body and mind. They later retreat from the world and focus on upholding the teachings of the 'Seventh Dragon' and watching for any demon activity.
Sar-Shazzar: The most gifted of all Sar-Elam's disciples, and leads an exodus of Wizards and magically-oriented people to found the Seven Cities, the First Kingdom of Magic, in the Deserts to the South. He also tells a prophecy that a Half-Demon hero will escape from the Demon Prison and engulf the world in a bloody rage.

Thanks to ThE_HyDrA for creating and looking after the Heroes 5 section of Age of Heroes!