Trading Statement

Sefton Resources, Inc.

("Sefton" or the "Company")

Fourth Quarter Operations Update and Reports Closing of Additional Pipeline Acquisition

11 January 2011

Sefton Resources, Inc. (AIM: SER), an independent exploitation and production company with assets in the East Ventura Basin of California and the Forest City Basin of Eastern Kansas, today provides a fourth quarter operations update and announces the closing on an additional pipeline acquisition.

California Operations Update

PRODUCTION & OIL SALES

Oil production and sales have been relatively steady throughout the Fourth Quarter of 2010 despite the hiatus in cyclic steam injection since mid-year. TEG Oil & Gas USA Inc. ("TEG") shipped 27 truckloads (approximately 3,940 bbls) of crude oil during the month of December yielding an estimated $325,000 in gross revenue, which is up from the previous month due to the strengthening of oil prices since late in the month of November. The average monthly gross revenues for 2010 were over $345,000. In all, 2010 oil sales revenues of $4.13 million were up over 40% from the 2009 gross sales of $2.97 million due, in combination, to cyclic steaming results and an increase in crude oil prices.

All wells are producing with the exception of the Yule #7 well which has been down since mid-December in need of a pump change. This work will be accomplished sometime during the first two weeks of January, 2011, following the rig work on Yule #9 located on the same well pad.

STEAM PROJECTS

The Hartje #11 and #13 wells have returned to their respective baseline production levels post steam injection. The data indicates that the Hartje #11 and #13 wells produced at elevated levels for approximately 6 and 8 months, respectively, following cyclic steam stimulation. As discussed in earlier reports, these wells received larger volumes of steam (11,000 and 16,000 bbls, respectively), double that of earlier tests. The smaller steam injection volumes of approximately 6,000 bbls used in other wells cyclic steamed resulted in a premature return to their baseline oil production rates after 3 to 4 months. These results are very encouraging in that the length of time these wells produce at stimulated rates appears proportional to the amount of heat (volume of steam) injected into the subsurface. This also supports the earlier engineering work of Reed Ferrill and Associates as well as the initial work of Dr. Farouq Ali.

Steamflood Pilot Approval- The public comment phase of the California DOGGR (Division of Oil, Gas and Geothermal Resources) Pilot Continuous Steamflood Permit application for the Tapia Oilfield ended on December 24, 2010. TEG has been verbally informed that there has been no significant commentary that will affect the completion of the permit paperwork and TEG can proceed with the preparatory well work on Hartje #10 that includes conversion to a dedicated steam injector. This well work will commence following the pump change in Yule #7. TEG anticipates that continuous steam injection into the Hartje #10 well location will result in improved oil production over time in the six surrounding wells. Initially this will be from improved local reservoir pressure and then followed by thermal stimulation.

Steamflood Simulation and Engineering Study - Petrel Robertson Consulting, Ltd. of Calgary, Alberta, Canada have started their work on a detailed geologic model of the Tapia Oilfield reservoir. The completed model will be incorporated into the steam simulation models of Dr. Farouq Ali of HOR-Heavy Oil Recovery Technologies Ltd. Dr. Ali's final simulation will incorporate data from his initial study, data from the cyclic pilot, and any new data from the Hartje #10 well continuous steam pilot collected to that point. The result will be a more thorough steamflood design for the entire reservoir.

Preliminary numbers from Dr. Ali are substantial and extremely encouraging, identifying total recoveries for the field in the range of 51% to 78% of the original oil in place ("OOIP"). Given that the OOIP for Tapia is greater than 11 million barrels of oil and the primary production to date is less than 2 million barrels, there is a significant amount of oil that could potentially be recovered in the near future with these thermal stimulation methods.

OPERATIONS AND WELL WORKOVERS

TEG is currently completing the conversion of the Yule #9 well into an oil production well. The work includes the abandonment of the shallower Saugus gas zone, perforation of the Yule oil zone, and the installation of a stainless steel (corrosion resistant) production liner that is gravel packed in place. The well was originally drilled and cased across the Yule oil zone. TEG estimates a resultant increase of 15 to 20 BOPD from the work.

Kansas Operations Update/Cholla Pipeline Closing

LEAVENWORTH COUNTY ASSETS:

Vanguard Pipeline:

As of this date, all valve stations have been installed on the system. Phase One certification of the system is now complete. The entire 8 inch pipe section has been tested and found serviceable. The remaining 6 inch, 4 inch and 3 inch pipe sections of the system will require some repair prior to testing. To date, repair costs have proven to be minimal and will be completed over the next couple of weeks.

Strategically, the 8 inch portion of the system is the most critical segment of the system. This segment will see the first volumes in 2011. Cash flow from TEG MidContinent Inc. ("TEGMC") via third party gas moving through this portion of the system is expected to accelerate the payout of the Vanguard Pipeline through calendar year 2011. We are expecting a third party joint venture partner to be the anchor for our midstream business development.

Negotiations have been successfully concluded with a third party and a letter of intent executed, that will enable them to move gas through the Vanguard system for a fee. Currently, we are in active discussions for completion of a mutually agreeable Gas Transportation and Marketing Agreement (as well as a Capacity and Transportation Agreement ("C&T"). This partner has two approved Kansas permits to drill in proximity to the 8 inch segment of the Vanguard Pipeline.

The C&T agreement will guarantee capacity in the Vanguard Pipeline system. The agreement will be a sliding scale volume commitment with volume throughput of 1 million cubic feet of gas per day ("CFGPD") and over time increasing to as high as 6 million CFGPD. A transportation charge paid to TEGMC will be required regardless of the volumes delivered.

Currently, our partner has oil production with associated gas in the area of the pipeline with plans to drill or recomplete at least one new well per month, and controls over 20,000 areas in proximity to the Vanguard system.

This third party gas is expected to provide steady cash flow to TEGMC for the foreseeable future.

Additional Pipeline Acquisition:

Closing on the Cholla Pipeline in Leavenworth County was completed during the week of December 20, 2010. These assets provide a serviceable pipeline and a tap into the Southern Star interstate pipeline system. Testing and activation of the pipeline will commence in January.

Additionally, Cholla has a significant acreage position and well count along this pipeline. We are in discussions with them for the acquisition of these assets. Negotiations will begin in earnest in mid-January, 2011.

ANDERSON COUNTY ASSETS:

Waverly Facilities:

The Waverly facilities consist of over 10 miles of pipeline, fifteen well bores, two salt water disposal wells and a dehydration facility capable of processing 10 million CFGPD. The Waverly facility has an inactive tap with Quest (an interstate pipeline company) at the TEGMC dehydration facility. Reactivation of the tap at an appropriate time is expected to be a simple process.

There has been no additional activity to report on the Waverly facilities. Testing and activation is scheduled for late 2011/early 2012 subject to drilling and rework schedules.

Southern Star Pipeline:

We are actively working with Southern Star Pipeline to establish two separate interconnect points. One tie-in point would give us access to a Southern Star gas storage facility (via the Vanguard pipeline). We would need to demonstrate a minimum deliverability of 1 million CFGPD prior to start of interconnect construction. The work would be performed in the first six months of 2011 (thus demonstrating the importance to TEGMC of our joint venture partner in addition to TEGMC's own acreage and wells for the project's economic return).

The second Southern Star interconnect point would be on the Cholla system. The tap already exists and requires only an upgrade in equipment to be operational.

Southern Star owns and operates major interstate pipelines in six states and is considered a force in the MidContinent region of the United States.

SUMMARY:

It is anticipated that in 2011 the two systems, Vanguard and Cholla will be "looped" together. By looping the two systems, we will be able to strategically move gas to market at two separate points and to two separate markets. Theoretically, this will give us the flexibility to move gas to the higher return market from month to month.

Management Comment

"Sefton had a strong year considering the lingering effects of the worldwide recession and is poised to fully exploit its California oil assets and begin to bring its Kansas gas assets on stream during 2011", said Jim Ellerton, CEO and Acting Chairman. "With continued strong oil prices and the implementation of our continuous pilot steamflood in Tapia, we expect strong oil based revenue growth in 2011, while we strategically position our Kansas gas assets for future growth".

Enquiries

John James Ellerton, CEO - Tel: 001 303-759-2700

Nick Harriss/Derek Crowhurst, Religare Capital Markets (Nomad) - Tel: 020 7444-0800

Daniel Briggs, Religare Capital Markets (Broker) - Tel: 020 7444-0500

Note:

The information in this release has been compiled and reviewed by Harry Barnum, President of TEG Oil & Gas USA, Inc., who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Barnum has Bachelors and Masters Degrees in Geology and over 20 years of experience in the oil and gas industry. He is a registered professional geologist in the State of California.

Sefton Resources, Inc. is an AIM listed oil and gas production company. Its main core area of activity is in the East Ventura Basin in California, where it owns 100% of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil), both of which have over twenty years of expected production life. In addition, Sefton has over 40,000 acres in the Forest City Basin of Eastern Kansas where Coal Bed Methane gas, as well as conventional oil and gas deposits, are targets.