Trading Statement

Sefton Resources, Inc.

("Sefton" or the "Company")

Third Quarter Operations Update &

 Shareholder Presentation in London

15 October 2010

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 third quarter operations update.

Sefton Updates

The Company will be holding a presentation to its shareholders, hosted by CEO Jim Ellerton, at 10.00am on 21 October 2010 at the offices of its auditors, Chantrey Vellacott DFK LLP. These offices are located at Russell Square House, 10/12 Russell Square, London WC1B 5LF, and all Sefton shareholders are cordially invited to attend.

An updated shareholder presentation has been posted on the Company's website (http://www.seftonresources.com/)

The Company's Annual General Meeting was held on September 30th in Denver, at which all proposed resolutions were passed:

Quorum was present at meeting, and 106 shareholders voted either in person or by proxy (Total # shares voted: 32.05 million).

Item 1 (Financials Statements): 100% of votes cast in favor

Item 2 (Appoint Auditors): 99.99% of votes cast in favor

Item 3 (Amend Articles): 99.61% of votes cast in favor

Item 4 (Amended Articles in BVI): 99.98% of votes cast in favor

Item 5 (Re-elect Jim Ellerton): 79.80% of votes cast in favor

Item 5 (Re-elect Karl Arleth): 99.72% of votes cast in favor

Item 6 (Re-elect Mark Smith): 99.78% of votes cast in favor

California Operations Update

STEAM PROJECTS

Sefton has been monitoring the response of the Hartje #11 and #13 wells post steam injection. Both wells received larger volumes of steam (11,700 and 16,200 barrels (bbls), respectively) than wells earlier in the cyclic pilot program. Earlier program results showed that the smaller cycles (6,000 to 7,000 bbls) resulted in wells returning to their baseline oil production rates after three to four months of production. Thus far, the Hartje #11 and #13 wells have been on production for four and five months post steam, and continue to produce at rates above their baseline rates. During September, Hartje #11 produced at nearly seven times its baseline rate and Hartje#13 at two times its baseline rate. These results are very encouraging and indicate the responsiveness of this reservoir to thermal stimulation.

Sefton has submitted an engineering study to the California DOGGR requesting approval of plans to conduct a six-month continuous steam "flood" injection study on the Hartje lease. The Company is anticipating a response from the DOGGR in the next week. The proposed injection well, Hartje #10, is surrounded by six producing wells that can benefit from the injection in both heat and in pressure support. The well is centrally located within the field and within an area that has shown good steam injectivity rates.

Additionally, Sefton recently retained Dr. Farouq Ali, an expert in steamflood design, and president of Edmonton, Alberta-based HOR-Heavy Oil Recovery Technologies Ltd. He has worked on over 200 oilfields throughout the world and is a well-respected expert on thermal recovery of oil. TEG is very pleased to be working with someone of Dr. Farouq Ali's caliber in the technical review for possible implementation of a steamflood at Tapia oilfield as well as the evaluation of the primary oil recovery and the cyclic steam pilot thus far.

OPERATIONS

The Eureka field was down entirely for 11 days in August and eight days in September due to a shallow hole in the casing and tubing of the only water disposal well at Eureka. Without the ability to dispose of produced water, it was necessary to temporarily shut in the field. Company engineers successfully repaired the hole in the tubing, and obtained a variance from the regulatory agencies and get the field back on production in early September. Sefton estimates that approximately 150 fewer barrels were produced during the third quarter which is attributed to the Eureka shut in.

In addition to the testing and repair of the Eureka injection well, Sefton conducted annual injection surveys last month on the two Tapia injection wells, a requirement of the State of California. The two wells at Tapia passed without incident.

At Tapia, the Snow #4 well has been shut-in due to low gross production rates. The oil formation is tight despite having a log indicating good oil saturation. Periodic well tests also support this interpretation and indicate a 50% oil cut. The Company is looking at ways to stimulate the well including acid treatments and hydraulic fracturing.

Sefton renewed the two existing drilling permits for wells in the Tapia field and will be preparing permit packages for additional wells once detailed design plans for the steamflood are finalized and budgeted.

PRODUCTION & OIL SALES

Oil production remains relatively steady. During September, Sefton shipped approximately 4,445 bbls of crude oil which generated $305,000 in gross revenues. The Company's California gross revenues have exceeded the $300,000 mark each month since June.

The steam program has clearly stabilized the Tapia oil production to this point. It is believed that additional injection of heat will be necessary in the coming months to continue this trend and add additional oil to the production stream. Sefton is looking to begin the next phase of the steam pilot program once approval is given by the DOGGR for "continuous" steam injection into the Hartje #10 well. The planned conversion of the Yule #9 to oil production will also add additional proved producing reserves and monthly oil revenue in the near future.

MidContinent Operations Update

Over the past month, Sefton has initiated a project to reactivate the 26-mile Vanguard pipeline, which it acquired in 2009.. The pipeline is currently inactive and is estimated to be restored to active status in the first quarter of 2011. The Company is also in negotiations with an exploration and production company active in the area. The negotiations involve firm gas sales to the pipeline, which could fill up to 50% of available capacity in the pipeline with a series of firm volume commitments and option contracts. It is estimated that the Vanguard pipeline could have a total daily volume capacity of 6-10 million cubic feet per day of natural gas (MMcfd) when fully operational. Current activities are focused on assessing surface installations for operational viability and performing mechanical integrity testing of the system.

The Company has also recently had an opportunity to increase the scope of the negotiations on the LAGGS pipeline. The original pipeline purchase negotiations were completed on the 25-mile pipeline system and announced last March Subsequent discussions have focused on adding additional wells, leases and equipment to the overall package. TEG MidContinent is continuing to pursue this opportunity.

Enquiries

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

David Charles/John Gaensbauer, Sierra Partners LLC - Tel: 001 303-757-2510

Nick Harriss/Derek Crowhurst, Religare Capital Markets (Nomad) - Tel: +44 20 7444 0800

Daniel Briggs, Religare Capital Markets (Broker) - Tel: +44 20 7444 0500

Note:

The information in this release has been compiled and reviewed by Harry Barnum, President of TEG USA, 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 is an AIM quoted 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 45,000 acres in the Forest City Basin of Eastern Kansas where Coal Bed Methane, as well as conventional oil and gas deposits, are targets.