Directors' Dealing and Issue of Equity

7 December 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

Directors' Dealing and Issue of Equity

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to report that the Company has raised a gross amount of £76,145 (£75,383 after costs) through a placing for 6,895,000 new common shares of no par value in the Company ("Common Shares") with Jim Ellerton, Chairman of the Company, (the "Placing Shares") at a price of 1.1044p per common share (the "Placing"). The Placing has been undertaken through Dowgate Capital Stockbrokers, the Company's broker.

The Placing Shares have been acquired by C&J Resources Inc Pension Plan, a pension plan for which Jim Ellerton is a beneficiary. Following the issue of the Placing Shares, Jim Ellerton will be interested in 36,656,738 Common Shares in the Company representing 6.3% of the enlarged issued share capital of the Company (as enlarged by both the Placing Shares and the new Common Shares in the Company being issued pursuant to the Equity Financing Facility ("EFF") with Darwin Strategic Limited announced on 6 December 2012 (the "EFF Shares")). Both the Placing Shares and the EFF Shares are being issued at a price of 1.1044p per share, equivalent to a discount of 1.8% to the closing mid-market price of the Common Shares on 6 December 2012.

The Company has raised a total of £725,000 through the EFF and Placing, with Mr Ellerton contributing 10.5% of this total. The combined net funds realised of £691,795 from the Placing and the EFF will be used primarily to finance the upgrading of the surface facilities and the water disposal system at Tapia and to accelerate the development of oil and gas wells and lease acquisition programmes in Kansas.

Application will be made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission"). It is expected that Admission will become effective and that trading in the Placing Shares will commence on 14 December 2012. The Placing Shares will rank pari passu in all respects with existing ordinary shares in the Company.

Following Admission of the Placing Shares, and the new common shares being issued under the EFF, the Company will have 577,581,720 common shares in issue. This figure may be used by shareholders in the Company as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest, under the Disclosure and Transparency Rules.

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 £6 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.