California oil production

5 December 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

California oil production

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce an update on oil production from California.

Highlight

·; Preliminary oil production data (tank readings) for California has been compiled for the month of November 2012 and indicates an average of 119 barrel of oil per day (BOPD) produced compared to 115 BOPD for the month of October 2012.

Jim Ellerton, Chairman of the Board said:

"The results of cyclic steaming and juggling the wells are showing a steady increase in oil production over the past four months which is a good sign ahead of resolving the water disposal limitations."

California oil production

Preliminary oil production data (tank data) has been compiled for the month of November, 2012. This tank data indicates an estimate of 3,593 barrels of oil produced or approximately 119 BOPD compared with 115 BOPD in October 2012 (with one production day less). The final number will be available after oil sales numbers are provided to TEG USA (Sefton's wholly owned subsidiary) by our oil purchaser, in which oil volume is adjusted for any shrinkage to API specification and with basic sediment and water (BS&W) removed, which typically represents a reduction of around 4%.

The final production number for November will be available after oil sales are provided to the Company by the oil purchaser, which the Company expects to receive about mid-December. The final production numbers will then be submitted to the Californian Division of Oil, Gas & Geothermal Resources ("DOGGR") for posting on its website. The table below shows the production numbers for the last four months, including the shrinkage percentage.

Net oil production figures reported to the DOGGR

The Company is planning to resolve the most critical oil production limiting factor at Tapia by drilling a new water disposal well. A DOGGR permit is in hand for this new well and we are awaiting L.A. County to provide a permit. A rig is available once all permitting is completed.

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Jim Ellerton, Chairman of Sefton Resources, Inc. a qualified geologist with over thirty years oil & gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement. Jim Ellerton has also relied on primary information supplied by third party consultants in carrying out his review.

For further information please visit www.seftonresources.com or contact:

About Sefton

Sefton Resources is an oil and gas exploitation and production company with significant scope to grow its three projects in onshore United States that are 100%-owned and operated. The business strategy is to acquire long life, controlling interests, partially developed reserves and then to seek maximize shareholder value through asset development using the Company's own funds initially and then involve third party capital, farm-out or merger.

Currently Sefton has a market capitalisation of approximately £7 million and was valued by independent experts to have a PV(10) of $278 million (approximately £173 million) based on its assets as at the end of December 2011. The key operational focus at this time is on developing three opportunities in California and Kansas:

Enhanced Oil Recovery (EOR) projects in California

Sefton owns 100% of two oil fields In East Ventura County - Tapia (heavy gravity oil) and Eureka Canyon (medium gravity oil). Estimated 2011 year-end proved reserves stood at 3.8 million barrels. The current operational focus is to fully develop Tapia with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal stimulation study to optimise production and reserve development for Tapia. Of all Sefton's operations, Tapia generates the majority of the revenues, at this time.

Exploration and Production in Kansas

In East Kansas, Sefton has a significant and growing acreage position (Leavenworth and Anderson Counties) in the Forest City Basin, where conventional oil and gas deposits as well as Coal Bed Methane (CBM) prospects have been identified. The current operational focus is in Leavenworth County where a workover and recompletion programme is under way that will see oil, gas and CBM wells brought back into production with first revenues from oil whilst additional gas assets are being assembled for the future development as all the pipelines become operational.

Natural Gas Transmission in Kansas

Three gas pipelines have been acquired by Sefton. The LAGGS pipeline in Leavenworth County has been fully refurbished and is now connected to the Southern Star Interstate Pipeline system which allows sales outside the local Kansas market. Plans are to join the Vanguard pipeline to the LAGGS system in Leavenworth County which will increase the scale of this gathering system. This means Sefton is able to transport its own gas as well as third party gas to market and generate additional revenues.

A third pipeline in Anderson County is planned to be connected to an interstate pipeline system in the future to provide additional opportunities for redevelopment of oil, equity and third party gas.