Southern Star-LAGGS operationally certified

2 November 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

Southern Star-LAGGS operationally certified

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce an update on its gas transmission facilities in Kansas, operated by its wholly owned subsidiary, TEG Transmission LLC ("Transmission").

Highlights

·; The interconnect between the LAGGS pipeline and Southern Star interstate system has been certified by Southern Star's engineers to have the ability to flow gas.

·; Transmission expects to have its Vanguard pipeline system certified by the end of November. Permitting and joining Vanguard to LAGGS is expected to be completed within 1Q 2013.

·; Transmission can now negotiate in earnest between end users and with local natural gas producers for transmission through its system into a national market via Southern Star.

Jim Ellerton, Chairman of the Board said:

" Transmission now has the ability to flow gas into the Southern Star interstate pipeline system, thus providing access to a national market. This reinforces our desire and ability to grow both our business and reserves in Kansas."

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

LAGGS-Southern Star interconnect Operationally Certified

The construction of the Southern Star interconnect with the LAGGS pipeline system was completed on 29 October 2102 and has now been "operationally certified" to flow gas by Southern Star's engineering personnel as of 31 October 2012 and given an "in service date" of 30 October 2012.

Photographs of the Southern Star LAGGS interconnect and the associated infrastructure can be viewed on the Company's website (www.seftonresources.com).

Status of Vanguard pipeline

Transmission can now concentrate on the final testing and residual repairs to the last five mile section of 6" steel gas gathering line of the Vanguard pipeline system. The timeline for this project is estimated to be completed by the end of November 2012. Transmission personnel have dug up the 6" steel pipes at strategic points along the five miles and have installed new shut off valves and test points. The pipe has been inspected and found to be in excellent condition.

 The test points and new shut off points will serve an additional purpose. The test points will allow the connection to the line of residual gas gathered from sister company TEG Midcontinent Inc., which results from their on-going oil well recompletion programme. Third party gas will be gathered at these points as well. Although it is too early to estimate the financial benefits of this development, the Board believe it will provide a valuable revenue stream in the future.

With the completion of the last section tested and certified, Transmission will then implement the construction of a two mile section connecting the LAGGS system to the Vanguard system which is expected to be completed within 1Q 2013. Survey work has commenced and easement work is in progress.

The Board will provide further updates to shareholders on progress as appropriate.

About Sefton

Sefton Resources is an oil and gas exploration 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 £8 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 three key operations focus on developing opportunities in California and Kansas.

Enhanced Oil Recovery (EOR) projects in California

Sefton owns 100% of two oil fields In East Ventura County - Tapia Canyon (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 Canyon with an active well drilling and work-over programme being undertaken and initially the use of cyclic steam recovery to boost production and reserves leading to the ultimate goal of a full field steam flood development programme. As part of this final phase, Sefton has engaged Dr Farouq Ali, a recognised expert to undertake a study on a full steam flood development of the Tapia field and his report is expected shortly. Tapia is the most advanced of Sefton's operations and generates revenues.

Exploration and Production in Kansas

In East Kansas, Sefton has over 45,000 acres (Leavenworth and Anderson Counties) in the Forest City Basin, where conventional oil and gas deposits as well as Coal Bed Methane (CBM) have been identified. The current operational focus is in Leavenworth County where a workover and recompletion programme is planned 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 the pipelines become operational. At the same time Sefton is accelerating its leasing plans with the aim to double its current acreage in Kansas in the near future.

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 nationally. This means Sefton is able to transport its own gas as well as third party gas to market and generate additional revenues. Plans are to join the Vanguard pipeline to the LAGGS pipeline in Leavenworth County which will increase the scale of this gathering system. A third pipeline in Anderson County is currently being tested and certified - once complete this will also be connected to an interstate pipeline system to provide additional opportunities for redevelopment of oil, equity and third party gas.