Operational Update

Sefton Resources, Inc.

("Sefton" or the "Company")

Operational Update

Sefton Resources, Inc. (AIM: SER), the independent exploitation and production company with assets in the East Ventura Basin of California and the Forest City Basin of Eastern Kansas, is pleased to announce an operational update on its most recent activities.

Oil in California

·; Oil production rises to approximately 135 barrels per day during August.

·; Steam flooding pilot project sees oil production from Hartje #18 well boosted by 60% with increased reservoir pressure recorded at neighbouring Yule #5 well.

·; Four wells planned for drilling during November at Tapia Canyon oil field.

·; A subsidiary of Occidental, the fourth largest US oil exploration company, has begun drilling the adjacent Wayside Canyon Oilfield, less than a mile away from Tapia Canyon. (Their field represents a virtual mirror image of Sefton's Tapia Canyon oil field only separated by a series of small faults).

Gas in Kansas

·; Letter of intent signed to acquire a fourth gas pipeline plus adjacent wells and leases.

·; Agreement with Southern Star expected to be signed in late September to connect Sefton's pipelines from Leavenworth County to their interstate pipeline.

·; Significant progress with repairing the LAGGS pipeline system.

·; On going discussions with an exploration and production company which has significant acreage along the Vanguard pipeline for transportation of their gas through the Sefton pipeline system.

·; On going acreage acquisition program being developed based on the company's residual trend surface mapping techniques.

Commenting today, Jim Ellerton, Executive Chairman said: "We are making good progress both in California and Kansas and now have in place a strong operational base, strong balance sheet and good cash flows from which to grow the business.

In California, oil production is rising on the back of steaming and we are looking forward to the publication of Dr Ali Farouq's report in October which will give us a clear indication of the potential and value of our interests in California as well as how to fully develop them.

In Kansas, 40-50% of Sefton's target areas for development in Leavenworth County and those in the surrounding areas remain underexplored due to a lack of activity over the past ten years. We believe this presents a significant opportunity for us."

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

Oil in California

Despite a worldwide crude oil price correction in recent months, the California market has remained strong relative to NYMEX futures quotes and the trend has continued upward. At month's end, the posted price for Tapia Canyon 18°API crude ($103.80) was at a premium to NYMEX ($89.10), compared to a price last August of $69.43 which was at a discount to NYMEX.

Steam flood pilot progress

In August, Sefton injected approximately 19,000 barrels of steam at Tapia Canyon, compared with 16,700 barrels injected in July. Modification of the existing steam generator has allowed the rate of injection to rise to an all-time high in August which has resulted in the production wellhead temperature rising to 190°F at an offset well, Hartje #18. In fact, production from Hartje #18 has climbed by 60% in August to 32 BOPD compared with 20 BOPD in July. Also, the static fluid level has risen at another offset well, Yule #5, which indicates an increase in local reservoir pressure. All of these factors are positive indications for the steam flood pilot study and the Board anticipates that these results should begin to spread to other offset well locations as more steam is injected into the subsurface.

Steam flood modelling study

The full field computer geologic model from Petrel Robertson has been completed and is now being used by Dr. Farouq Ali to develop the steam flood model and design for the field. The geologic model contains 50 layers and over 500,000 data grid cells in order that the study and design is of the greatest accuracy. Dr Ali will be developing the steam flood design for the full field and this report is expected to be completed in October.

Tapia Canyon drilling program

Sefton expects to begin a 4 well drilling program in November, although the actual start date is dependent on rig availability and to a lesser degree, final permitting. State of California Division of Oil Gas and Geothermal Resources  permits are already in place for the wells, however, other necessary permits are outstanding but due to be issued later this month. The wells planned will be on the Hartje and Yule leases which are core areas of the oilfield. The locations are supported by the newly-completed Petrel Robertson geologic model. Additionally, the Company is planning liner replacements in two wells. A successful program will boost primary oil production significantly by the end of 2011.

Interest in the surrounding acreage seems to be increasing. Less than a mile away from Tapia Canyon, Occidental's subsidiary Vintage Petroleum has just completed the drilling of two of these wells in the adjacent Wayside Canyon oil field which they are evaluating. This field is a virtual mirror image of Sefton's Tapia Canyon oil field in many respects and it is only separated from Tapia Canyon by a series of small faults.

Eureka Canyon

Sefton is moving forward with plans for additional geologic work within the 1,500 acres of the Eureka Canyon leases. The work is tentatively scheduled for later this autumn and will include surface mapping, sample collection and analysis, and prospect generation. The Company will begin work updating the existing Conditional Use Permit early in 2012 to accommodate infill and step-out drilling plans for this acreage.

Gas in Kansas

Pipeline testing and repairs

Sefton owns three pipelines in Kansas; Vanguard, LAGGS and Waverly. In Leavenworth County, the Vanguard and LAGGS pipelines total 50 miles in length and allow for gas gathering over an approximately 200 square mile area. The primary focus of the Company's pipeline efforts in 2011 is on the reactivation of the LAGGS and Vanguard systems in Leavenworth County. The Waverly system in Anderson and Franklin Counties will be the focus in 2012.

Significant progress has been made over the last two months on the testing and repair of the LAGGS pipeline system. All repairs and final pressure testing in the North and West LAGGS is nearing completion and awaiting third party independent certification. At present, the Company is testing and repairing only selected segments of the South LAGGS line, which may have value in connecting southernmost gas into the system, or in potentially connecting into other pipeline systems south of the LAGGS area.

Fourth pipeline acquisition

Sefton has executed a non-binding letter of intent, which will lead to a binding purchase and sale agreement once due diligence is completed, to acquire essentially all of the assets of a gas production and transportation company in Leavenworth County. The vendor is currently producing gas through its pipeline system into a limited capacity municipal gas system. The board will be working to complete this transaction over the next few months. If closed, this transaction will have the immediate benefit of adding wells, leases, gas production, reserves, cash flow and additional pipeline capacity to our existing pipeline infrastructure.

Interstate pipeline contract

The agreement with Southern Star, the regulated interstate pipeline, to transport the Company's gas from Leavenworth County to national interstate markets is expected to be signed in late September. With a 4-6 month construction schedule, completion of the Southern Star interconnect is timetabled for 1Q 2012, barring any additional regulatory or weather delays.

Gas production

Along the LAGGS pipeline system, Sefton is developing a recompletion program for existing (but currently non-producing) wells which will provide the initial gas volumes through the Company's LAGGS pipeline system to the Southern Star interconnect. Many of these currently "shut in" wells were acquired in the Cholla Production asset purchase concluded earlier this year. The Company is also continuing to acquire additional leases and inactive wells adjacent to the LAGGS pipeline. The majority of this "early production" along the LAGGS system is expected to be reclassified from possible to proven reserves once the wells are activated and the pipeline is operational.

Third party gas

In order to maximize cash flow and earnings, Sefton intends to operate the pipeline system at close to its optimum capacity (estimated at 10 million cubic feet per day ("mmcfd")) by carrying a significant volume of third party gas, in addition to the Company's own gas production. Discussions have continued with another exploration and production company with a significant acreage position adjacent to the Vanguard pipeline with respect to transporting their gas through Sefton's pipeline system.

Exploration and acreage acquisition

Sefton is using the proprietary geological data base, acquired from Cholla Production Company, to enhance and develop its own exploration program in Leavenworth County. The Company's residual trend surface mapping techniques have resulted in a paleo-restoration map that has revealed a number of exploration leads in the Cretaceous McClouth Formation, which overlies the older Mississippian erosional (unconformity) surface. This analysis allows Sefton to locate and high-grade the best targets for oil and conventional gas. Coal bed gas, which exists in a widespread area over the acreage controlled by the Company, will provide solid secondary targets and will vastly reduce risk normally associated with the drilling and completion of new wells in the area.

About Sefton

Sefton Resources is an AIM-listed oil and gas exploration and production company. Its main area of activities are the East Ventura Basin of California, where it owns 100% of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil), and East Kansas with over 45,000 acres in the Forest City Basin, where coal bed methane, as well as conventional oil and gas deposits are targets.

Currently Sefton Resources has a market capitalisation of £6.4 million. Mid-year 2011, the company had a Present Value of its proved reserves (PV10) of US$136.76 million (approximately £83.9 million). The estimated 2010 year-end proved reserves of 3.8 million barrels includes proved developed (PD) reserves of 1.6 million barrels and proved undeveloped (PUD) reserves of 2.2 million barrels. In addition, there are 2.3 billion cubic feet (BCF) of estimated possible gas reserves at year-end 2010 associated with the Company's eastern Kansas assets. All of Sefton's mid-year2011 estimated proved and possible reserves were independently estimated by Reed W. Ferrill & Associates.

In addition, a Competent Persons Report by Dr Nafi Onat, of Sure Engineering, LLC placed a maiden Net Present Value of $100.1 million (approximately £61.4 million) on Sefton's Kansas prospects which was announced in May 2011. This report provided an independent geo-technical review and economic evaluation of the conventional (sandstone, limestone and dolomite) and unconventional (coalbed methane gas) prospects in Sefton's Kansas exploration prospects which covers the Anderson, Franklin and Leavenworth Counties. Dr Onat's report did not include any revenue from the pipeline revenue nor was any valuation placed on the McLouth development in Leavenworth County.