Steamflooding of Tapia Field and Credit Facility

Sefton Resources, Inc.

("Sefton" or the "Company")

Steamflood operations commence in Tapia Field

and credit facility extended

1 March 2011

The Directors of Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with assets in the East Ventura Basin of California and the Forest City Basin of Eastern Kansas are delighted to announce that continuous steamflood operations have commenced at its wholly-owned subsidiary, TEG Oil & Gas USA, Inc. (TEG USA) in the Tapia oilfield near Castaic, California on the Hartje Lease in the central portion of the oilfield. This continuous steam injection pilot is part of an ongoing steam study being conducted by Dr. Farouq Ali P.Eng. Honorary Professor of Oil and Gas Engineering at the University of Calgary prior to the implementation of the field-wide steamflood development of Tapia. At the same time the Directors are pleased to confirm that they have reaffirmed and extended their bank borrowing facility.

Steamflood Development Operations

Steam is being injected into the Hartje #10 well, which was formerly idle after it was converted to accept the steam injection process by the installation of a new slotted liner across the Yule oil reservoir at a depth of approximately 1,100ft. and which was achieved at a cost significantly lower than drilling a new injector. The Hartie #10 well is surrounded by six other producing wells which the Directors believe will also benefit from the heat and pressure caused by the local steam injection. Each well will be carefully monitored during the process and the data will be input into the steamflood simulation modelling developed by Dr. Farouq Ali. These refinements to the model, along with a newly developed geologic and reservoir model, will allow TEG USA to identify the most efficient methods and injection patterns for the steamflood on a full field basis. Additionally, TEG USA anticipates the benefit of increased oil production rates on the Hartje Lease and eastern portion of the adjacent Yule lease as a direct result of the steam injection.

Credit Facility Extended

The Directors of Sefton have agreed to extend their existing senior debt banking facility for a further year to January 2012. The facility consists of a reserve-based revolving credit facility for $10 million with a declining balance borrowing base of $6.8 million. In January 2011 the company made a decision to reduce its borrowing base debt level by $100,000 per month from company cash flow. As a result, the bank has agreed to put in place a reducing revolver facility which has lower servicing costs for 2011. The company will have a borrowing base redetermination in June/July 2011 which will evaluate the reserve and cash flow impact of the current continuous Tapia steam pilot and report by Dr. Farouq Ali. At that time, the company may opt to reinstate a standard credit facility with excess borrowing capacity. Loans made under this revolving credit agreement are secured by mortgages on substantially all of the company's oil and gas properties. The credit facility is available to provide funds for exploration, development and/or acquisition of oil and gas properties, to refinance existing indebtedness and for working capital and other general corporate purposes. The company was in compliance with all of its ratios and covenants as of year-end 2010.

Commenting today, Jim Ellerton, Acting Chairman and CEO of Sefton Resources said:

" We are very pleased to have started the steamflooding at the Hartje well and looking forward to seeing the data collected by Dr Ali which will give us a much better indication of what we will be able to extract from Tapia and the adjoining Yule lease. We have already proved that the steam process works very well in this area and have achieved very low lifting costs. This, coupled with the fact that we are profitable and have the continued support of our bank places us well for the future development of our other leases"

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.Currently Sefton Resources has a market capitalisation of £3.9 million compared to a Present Value (PV10) of US $80.6 million' (£50.0 million). Sefton's proved reserves totaled 3.8 million barrels at yearend 2010. The company grew proven 2010 reserves 7.45%vs 2009 and replaced 512% of its estimated 2010 net production volumes. The changes from 2009 year-end estimated proven reserves to 2010 year-end estimated proven reserves included production of approximately 51,255 barrels of oil and upward revisions of 262,290 barrels of oil. Additions, including revisions were attributed primarily to the company's successful cyclic steam pilot program in Tapia Field, which was initiated in 2009.

The present value of the estimated future net cash flows from estimated proved reserves before income taxes using a 10% discount rate (PV10) was approximately US $80.6 million using a 2010 average 12 month blended price per barrel of US $71.38 for Tapia and Eureka Canyon Fields. Using strip prices as of December 31, 2010, the pre-tax PV10 value of Sefton's proved reserves would have been US $109.9 million. The estimated 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 2010 year-end estimated proved and possible reserves were independently estimated by Reed W. Ferrill & Associates.

About Steamflooding

Steam injection is a common method of extracting heavy oil. It is considered an enhanced oil recovery method and is the main type of thermal stimulation of heavy oil resevoirs. There are several different forms of the technology, with the two main ones being Cyclic Steam Stimulation and Continuous Steam Flooding. Both are most commonly applied to heavy oil reservoirs which are relatively shallow and which contain crude oils which are very viscous at the temperature of the native underground formation. Steam injection is widely used in the San Joaquin Valley of California (USA), the Lake Maracaibo area of Venezuela and the oil sands of northern Alberta (Canada).

About Dr Farouq Ali

S. M. Farouq Ali is Honorary Professor of oil and gas engineering at the University of Calgary, and also serves as a petroleum consultant. He holds B.Sc. (Hons.), M.S., and Ph.D. degrees in petroleum engineering, and has served as professor at the Pennsylvania State University and in Alberta for over 38 years. Dr. Farouq Ali has authored over 500 papers and supervised over 200 graduate theses, and carried out over 200 reservoir studies. A recipient of numerous awards and two honorary doctorates from universities in Russia, he received the Petroleum Society's Distinguished Service Award in 2000 and APEGGA's Summit Award in 2001. Dr. Farouq Ali is also a member of SPE and a registered professional engineer in Pennsylvania.