SER.L Regulatory News (SER)

6 December 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

£648,855 raised from Equity Financing Facility

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to report that the Company has raised a gross amount of £648,855 (before costs) by drawing down on its Equity Financing Facility ("EFF") with Darwin Strategic Limited, a majority owned subsidiary of Henderson Global Investors' AlphaGen Volantis Fund.

Highlights

·; £648,855 (before costs) has been raised from a drawdown of the £15 million EFF with Darwin Strategic at a gross price of 1.1044p per common share.

·; The funds raised will finance the upgrading of the surface facilities and the water disposal system at Tapia and to accelerate the development of oil and gas wells and lease acquisition programmes in Kansas.

Jim Ellerton, Chairman of the Board said: "Sefton has tested its EFF with Darwin. These funds will be used to accelerate the Company's E&P programme in Kansas and current upgrading facilities in its Tapia field, California. We believe this will have a significant impact on the returns in the near term."

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

Under its £15 million EFF with Darwin Strategic Limited ("Darwin"), Sefton will issue 58,750,000 new common shares raising £648,855 gross and netting £616,412 for Sefton after the costs relating to Darwin's draw down discount of 5%. Abiding by the terms of the EFF agreement the Company has allotted, conditional on admission to trading on AIM, 58,750,000 new common shares to Darwin (the "Darwin Shares"), equivalent to 10.29% of the enlarged common share capital of the Company..

The funds raised will be used primarily to finance the upgrading of the surface facilities and the water disposal system at Tapia and to accelerate the development of oil and gas wells and lease acquisition programmes in Kansas.

Application will be made to the London Stock Exchange for admission of the Darwin Shares to trading on AIM ("Admission"). It is expected that Admission will become effective and that trading in the Darwin Shares will commence on 13 December 2012. The Darwin Shares will rank pari passu in all respects with existing ordinary shares in the Company.

Following Admission, the Company will have 570,686,720 common shares in issue. This figure may be used by shareholders in the Company as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest, under the Disclosure and Transparency Rules.

About Sefton

Sefton Resources is an oil and gas exploitation 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 £6 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 key operational focus at this time is on developing three opportunities in California and Kansas:

Enhanced Oil Recovery (EOR) projects in California

Sefton owns 100% of two oil fields In East Ventura County - Tapia (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 with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal stimulation study to optimise production and reserve development for Tapia. Of all Sefton's operations, Tapia generates the majority of the revenues, at this time.

Exploration and Production in Kansas

In East Kansas, Sefton has a significant and growing acreage position (Leavenworth and Anderson Counties) in the Forest City Basin, where conventional oil and gas deposits as well as Coal Bed Methane (CBM) prospects have been identified. The current operational focus is in Leavenworth County where a workover and recompletion programme is under way 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 all the pipelines become operational.

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 outside the local Kansas market. Plans are to join the Vanguard pipeline to the LAGGS system in Leavenworth County which will increase the scale of this gathering system. This means Sefton is able to transport its own gas as well as third party gas to market and generate additional revenues.

A third pipeline in Anderson County is planned to be connected to an interstate pipeline system in the future to provide additional opportunities for redevelopment of oil, equity and third party gas.