Issue of Equity and Company Update

23 August 2013

Sefton Resources, Inc.

("Sefton" or the "Company")

Issue of equity & Company Update

Sefton Resources (AIM: SER), the independent oil and gas exploitation, transmission and production company with interests in California and Kansas USA, announces that the Company has raised £70,500 (before costs) through its existing £15 million Equity Financing Facility ("EFF") with Darwin Strategic Limited ("Darwin"), a majority owned subsidiary of Henderson Global Investors' AlphaGen Volantis Fund.

Highlights:

· £70,500 (before costs) has been raised through the EFF at a gross price of 0.441p per common share.

· The funds raised will be used to help fund the mandatory tank work and current legal costs (see announcement of 25 February 2013). At this time legal costs are less than £100,000.

· Interim results for the six months to 30 June 2013 are planned to be announced in mid-September which the board of Sefton expect will show that the Company remained cash flow positive during the period even after the tank work and legal costs. At 30 June 2013 the Company had adequate cash in the bank (in excess of £400,000 according to unaudited management accounts).

· Oil production in California is being maintained at the higher level seen in July 2013.

· The Company is working with Dr Ali on the final version of the thermal simulation report to ensure that the Company is supplied with sufficient information to plan the further development of the Tapia oil field. An announcement will be released once the report has been finalised.

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

Issue of equity

The Company has raised £70,500 following a subscription for 16,000,000 new common shares of no par value in the Company by Darwin (the "New Sefton Shares"). The subscription for the New Sefton Shares was made by Darwin on 21 August 2013 under the terms of the EFF and at a gross price per share of 0.441p.

Following the subscription for the New Sefton Shares by Darwin as set out above, the Company has allotted, conditional on admission to trading on AIM, 16,000,000 new common shares each to Darwin. The New Sefton Shares rank pari passu in all respects with the existing common shares in Sefton.

Application has been made to the London Stock Exchange for the New Sefton Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and that trading in the New Sefton Shares will commence on or around 28 August 2013.

Following Admission, the Company's enlarged issued share capital will comprise 701,915,053 common shares with voting rights. This figure of 701,915,053 common shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Interim Results

The Company's interim results for the six months ended 30 June 2013 are planned to be announced in mid-September. Preliminary figures show that the Company remained cash flow positive during the period even after the tank work and legal costs. Revenue was relatively unchanged in the first half of 2013 compared to the same period in the previous year. At the end of the half year stage the Company had adequate cash in the bank (in excess of £400,000 as at 30 June 2013 according to unaudited management accounts).

Tapia Canyon oil field

Oil production in California is being maintained at the higher level seen in July 2013. The Company is working on the final version of the thermal simulation report with Dr Ali to ensure the report contains all that the Company requires to outline the further development of the Tapia field. The Company plans to release an announcement once the report has been finalised.

About Sefton

Sefton Resources is an oil and gas exploitation, transmission 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 £2.7 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.