Placing of Shares and Update on Drilling

8 December 2011

Sefton Resources, Inc.

("Sefton Resources" or the "Company")

Placing of New Common Shares

and

Update on Drilling

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce a share placing (the "Placing") of 47,619,047 new common shares of no par value in the capital of the Company ("New Common Shares") at a price of 2.1p per share.

The gross proceeds of the Placing of £1.0 million will be used to finance the continued development of the 100% owned Tapia Canyon oil field in California as well as accelerating the development of the opportunities in Kansas which include obtaining further oil and gas leases and joining Sefton's gas pipeline systems to the interstate pipeline.

The New Common Shares will represent approximately 11.98 per cent. of the Company's enlarged issued share capital immediately following the Placing.

Application has been made for the New Common Shares to be admitted to trading on AIM. It is expected that Admission will be effective and that dealings in the shares will commence on 15 December 2011.

The New Common Shares will rank pari passu with the existing common shares. Sefton Resources will have 397,651,006 common shares in issue following the Placing.

Update on Drilling

Two wells out of the four planned have been completed. Yule #12 well was completed on 25 November and Yule #9R/D was completed on the 5 December.

The third well Hartje #19 is currently being drilled which will be followed by the last well, Hartje #20, in the coming weeks.

Cores have been collected from Yule #12 and Hartje #19 wells and will soon be collected from the Hartje #20 well, all of which will be analysed by CoreLab of Bakersfield, California. These results will then be added in to the steam model developed for the field and provide a final steam flood design to be utilised in the Enhanced Oil Recovery development programme.

As has been previously reported, the continous steaming pilot programme was temporarily halted during drilling of some of the wells, and we plan to recommence the cyclic steam programme at the end of December restoring oil production to previous levels. The programme will be increased further in the New Year once the newly completed wells become fully operational.

Jim Ellerton, Executive Chairman, commented today "We have made good progress on the drilling at Tapia and hope to have this completed soon and to see the increased production and revenues this will deliver. At the same time we are pleased to have taken the opportunity to strengthen our financial position so that we remain well placed to make the most of the opportunities we have identified for growth."

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

About Sefton Resources:

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.