California Operations, Proved Reserves & AGM

15 May 2013

Sefton Resources, Inc.

("Sefton" or the "Company")

California Operations, Proved Reserves Report & AGM Information

Sefton Resources, Inc. (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, announces an operations report on California and an update on reserves for the Tapia and Eureka Canyon Fields in California as at 31 December 2012.

Highlights:

·; Oil production for April 2013 filed with the DOGGR is 3,874 barrels (129 barrels of oil per day)

·; Proved Reserves (P1) of an estimated 3.5 million barrels of oil in California as at 31 December 2012

·; Annual General Meeting ("AGM") of shareholders is to be held on 19 June 2013.

Commenting today, Jim Ellerton, Chairman of the board said:

"The surface work (mandated by the State of California) within our California properties has been completed and production is recovering from such. As our water disposal facilities are improved, we should be able to process more fluids (oil & water), thus further increasing oil production. Our ongoing cyclic steaming programme is adding to production and providing good data for Dr Ali to complete his thermal simulation study."

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

Oil production

Oil production figures for California reported to the California Division of Oil, Gas & Geothermal Resources ("DOGGR") for the month of April 2013 were 3,874 barrels of oil which equates to 129 barrels of oil per day (BOPD), a 25% increase over the previous month. The table below shows oil production for the year to date.

Net oil production figures reported to the DOGGR

Note: April final numbers are being submitted to the DOGGR to be posted on its website.

Cyclic steaming

Cyclic steaming is continuing on the Hartje lease, following the cyclic steaming at the Snow lease where the second cycle of steaming was successful in clearing the mud damage in wells drilled late 2011. The Yule lease also demonstrated a good response to cyclic steaming which will be repeated after cyclic steaming on the Hartje lease.

Production graphs to illustrate cyclic steaming results will be posted on the Company's website www.seftonresources.com

Rig availability

Overall rig availability has improved over the past few months in California. The Company should not have any problems securing a rig to drill the proposed Hartje #21 well (replacement water disposal well) and the Hartje #20 well (not drilled in the late 2011 drilling programme) when required. All the permits are in place to drill both wells. Management is also investigating alternatives to drilling a replacement disposal well by making use of under-utilized wells on neighboring properties which could offer significant savings of capital investment.

Thermal simulation study

Dr. Ali's assessment (Progress Report #10) is that the current cyclic steaming has provided a definite influence in maintaining production rates and arresting primary decline. Dr Ali also believes that the volumes and rates of steam being injected are too small to maximize oil production.

Our existing steam generator was built to meet minimum permitting requirements and to test whether the reservoir at Tapia was responsive to thermal stimulation via steaming.

The completed thermal simulation study (by Dr Ali) will outline the ultimate oil that is likely to be recovered at Tapia along with optimum development scenarios (both cyclic and full steam stimulations) for this field. In addition, Dr Ali's final report will provide the parameters for an intermediate cyclic steaming stage with specifications for the building of a second steam generator. Both the intermediate and the full development stages as outlined by Dr Ali are expected to have a significant impact on production and recoverable reserves.

At this point, Dr Ali is coming to the end of his study and we are discussing adjustments to match actual cyclic steaming results and parameters for final simulation run(s).

Eureka

Over the past three weeks, two wells have been returned to production within the Eureka field that have been idle for over a year. In addition, three pump changes have been conducted, all of which should result in improved production from this field. The Company continues to pursue options to acquire nearby mineral leases that our operating team believes have promising oil trends. At the same time, work is moving forward on the modification and extension of the Eureka Conditional Use Permit (CUP) which contains provisions for 20 wells and 20 drill sites at specific surface locations. This permitting process is required prior to additional wells being drilled.

Competent Persons Report on California Oil Assets

The Independent Competent Persons Report (CPR) produced by Reed W. Ferrill & Associates, Inc. outlined Proved Reserves (P1) of 3.5 million barrels of oil at 31 December 2012 in California. This reserve figure is viewed as conservative by the Company as it was produced primarily for Sefton's bank which reviews P1 reserves only (not P2, P3 and Contingent Resources) as is normal for bank lending scenarios.

The present value of the estimated future net cash flows from these Proved Reserves (P1) before income taxes using a 10% discount rate (PV10) was calculated to be US$107.4 million (£71.1 million). This is based in year-end 2012 US GAPP reporting, with constant prices and costs in which an oil price of US$102 per barrel was used.

Economic Analysis of TEG USA's California 2012 Proved Reserves

For the purposes of its report, Reed W. Ferrill & Associates, Inc. classed reserves according to the Reserve Definition as promulgated by the Society of Petroleum Engineers (SPE).

In his analysis Reed W. Ferrill calculated reserves from recovering 50% of original oil in place (OOIP). Dr Ali's initial study (October 2010) highlighted that a final recovery factor of between 51% and 78% was possible; and his final report will contain a refined estimate.

Comparison of TEG USA's California 2012 and 2011 Proved Reserves (P1)

Using a Nymex strip price of $102 per barrel in both cases

Comparison between the same analysis carried out at year-end 2011 shows a reduction in both proven reserves and the PV10 valuation at year-end 2012. These reductions result from production in 2012 not being replaced, together with cost increases associated with cyclic steaming and other production-related items, the effect of which has reduced economic life and therefore reserve recovery. The Dr Ali report is anticipated to have a significant change to the reserves study at Tapia and the Company plans another CPR following the receipt of the complete thermal simulation report.

The principal author of the CPR, Reed W. Ferrill Jr is a Professional Engineer registered in the State of Colorado with over 45 years' practical experience in the field of Petroleum Engineering. He is a graduate of the Colorado School of Mines, Golden, Colorado with both a Bachelors and Master degrees in Petroleum Engineering. Reed's experience includes involvement in the engineering of heavy oil fields and working with the energy departments of several lending institutions.

Annual General Meeting (AGM) Information

The AGM is planned to be held at 10am on 19 June 2013 at the offices of Chantrey Vellacott, Russell Square House, 10-12 Russell Square, London WCIB 5LF. The Proxy Notice and Annual Report will be mailed shortly. Keith Morris and Tom Milne will be standing for re-election while Karl Arleth will be retiring by rotation and will not stand for re-election. Mr Arleth has decided to retire from the Company in order to focus on his other business activities.

Publication of results

The Company plans to announce Final Results for the year ending 31 December 2012 next week.

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 staff and third party consultants in carrying out his review.

About Sefton

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

Currently Sefton has a market capitalisation of approximately £3.1 million and a higher PV(10) value for its unrisked proved reserves and unproved resources. The key operational focus at this time is on developing three revenue sources from both California and Kansas:

Enhanced Oil Recovery (EOR) projects in California

Sefton owns 100% of two oil fields in the East Ventura Basin, California - Tapia (heavy gravity oil) and Eureka Canyon (medium gravity oil). The current operational focus is to develop Tapia with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel Robertson Consulting to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal simulation study to fully optimise production and reserve development of the Tapia field.

Tapia generates the majority of Sefton's revenue at this time and has 2012 year-end estimated Proved Reserves (P1) of 3.5 million barrels.

Natural Gas Transmission in Kansas

Three gas pipelines have been acquired by Sefton in North East Kansas. The LAGGS pipeline in Leavenworth County has been fully refurbished and is now connected to the Southern Star Interstate Pipeline system which allows gathering, transportation and sales of natural gas outside local Kansas markets. Plans are to join the Vanguard pipeline to the LAGGS system (Leavenworth County) which will increase the scale of this gathering system. This means Sefton will be able to transport its own and third party natural gas to a national market and generate additional revenues. A third pipeline in Anderson County is planned to be connected to an interstate pipeline system in the future, which will provide additional opportunities for redevelopment of oil and natural gas.

Exploration and Production in Kansas

In North East Kansas (Forest City Basin), Sefton has a significant and growing acreage position (Leavenworth and Anderson Counties) where conventional oil, gas and coal bed methane (CBM) prospects have been identified. The current operational focus is in Leavenworth County where a workover, recompletion, surface equipment replacement and leasing programme is under way that will see oil, gas and CBM wells brought back into production. Initial revenues are from oil whilst additional gas assets are being assembled for future development as pipelines become operational. Estimated 2012 year-end Proved Reserves (P1) for the Leavenworth portion of our Kansas assets are 82,653 barrels of oil and 2.06 Bcf of gas; and Total unrisked Proved Reserves and Unproved Resources of 832,485 barrels of oil and 14.4 Bcf of gas for the same area.