California Production Report

19 July 2013

Sefton Resources, Inc.

("Sefton" or the "Company")

California Production Report

Sefton Resources, Inc. (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, announces a production report on California.

Highlights:

·; Oil production for June 2013 to be filed with the DOGGR is 3,310 barrels (110 barrels of oil per day (BOPD)). Production was held back by additional tank repairs on the Hartje lease that were successfully completed during the month.

·; Ongoing cyclic steaming of wells on the Hartje lease is showing positive initial results and tank readings for California show oil production averaging in excess of 180 BOPD for the first 15 days of July 2013. In the coming weeks, two more Hartje wells are expected to be returned to production, including the Hartje #19 which has developed strong historic primary production levels.

·; The Company plans to acquire a neighbouring lease (to Hartje lease) with two marginal oil wells that can be converted into water disposal wells. Being able to dispose of more produced water should allow for oil production to be further increased.

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

"Sefton has demonstrated the level of improvement in oil production that can be achieved by cyclic steaming on a lease by lease basis at Tapia. The response from the on-going cyclic steaming pilot study has been impressive even though the Company is using a small steam generator.

Although there are additional wells (Hartje #20, etc.) to be drilled, the next major step for development at our Tapia oil field is to improve the cyclic programme (larger steam generator, more steam injection/soak periods, etc.) in order to elevate production on all leases together and sustain such for longer periods of time.

While this programme is being planned, together with improved water disposal facilities, the design of a full steam flood operation can begin."

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 June 2013 were 3,310 barrels of oil (110 BOPD). The table below shows oil production for the year to date.

Net oil production figures reported to the DOGGR

Note: June final numbers will be submitted to the DOGGR to be posted on its website.

Last month, oil production was lower than in May 2013 due to maintenance and repair downtime on the Hartje lease during the middle of the month. This tank work involved replacing the Hartje Wash Tank bottom and two side panels and meant production from the Hartje lease was completely shut-in for five days during this repair.

Cyclic steaming

Ongoing cyclic steaming on the Hartje lease is just beginning to add to lease oil totals while the earlier improvement in production from cyclic steaming the Snow and Yule Leases are in decline.

Since this tank work was completed, oil production has been rising and tank readings for the first 15 days of July 2013 show an average in excess of 180 barrels of oil per day (BOPD). It must be pointed out that these tank readings are made in the field and that final production numbers 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. (Shrinkage has averaged 3.8% over the first six months of 2013).

The Hartje #17 is now producing full time post cyclic steaming and is responding well to the steam stimulation. Pre-steam, oil production from the Hartje lease was about 75 BOPD when averaged over many months. Thus far, the production from the Hartje Lease has averaged in excess of 125 BOPD, a 67% improvement. There are two more Hartje wells to come back into production following steaming. Firstly, the Hartje #15, which is now in a post steam soak cycle and will be returned to production in one week. Secondly, the Hartje #19 which is currently being steamed and has been a good primary producer, averaging over 15 BOPD prior to steaming. There are two additional wells Hartje #11 and #13 that are planned to be cyclic steamed from the present location before moving the steam generator back to the Yule lease.

An illustrated version of this announcement with steaming charts for the individual leases is to be displayed on the Company's website (www.seftonresources.com).

Water disposal facilities

Oil production at Tapia continues to be restricted to some degree by limited water disposal facilities. The Company is moving forward with the acquisition of a neighbouring lease where the plan is to convert two marginal oil wells into water disposal wells. Preliminary economic analysis indicates that this could provide a significant saving on the costs of drilling a new water disposal well.

Thermal simulation report

Dr Ali's latest progress report (number 13) outlines the final runs for completing the steam simulation study. These include determination of final pattern and spacing of the injector wells as well as utilising the existing wells at Tapia as production take points where possible in a full steam flood scenario. We are also expecting Dr Ali to provide specifications necessary for a larger steam generator(s) and parameters for an enlarged and improved cyclic steaming programme (amount of steam injected, soak time, etc.). Dr Ali has timetabled the completion of his thermal simulation report by the end of July 2013.

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, Sefton operates all its assets, the majority of which are 100% owned.

Currently Sefton has a market capitalisation of approximately £4 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.