SER.L Regulatory News (SER)

14 May 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

£2 million Placing Oversubscribed

And

£10 million Equity Financing Facility

Highlights

·; £2 million raised accelerate plans to expand leasing and recompletion programmes in Kansas and continuing on-going work in California allowing for a faster build-up of oil and gas production

·; New funds will also finance bolt-on acquisitions in Kansas to add oil and gas reserves and production close to Sefton's pipelines in Kansas

·; Henderson Global Investors has taken a 4.5% stake in Sefton

·; Letter of intent agreed for a £10 million three year Equity Financing Facility ("EFF") with Henderson-backed Darwin Strategic Limited which, once implemented, would provide future funding flexibility

Jim Ellerton, Chairman of the Board, commented:

"These are exciting times for Sefton as we have strengthened our funding and shareholder base and have commenced negotiations on a Henderson-backed £10 million EFF that, if implemented, will provide greater financial flexibility. Following on from this successful Placing, we look forward to building an excellent working relationship with the new institutional investors introduced by our brokers.

The placing funds will allow acceleration of our investment in the on-going development of our oil and gas and pipelines assets in Kansas that are expected to generate a new revenue stream for the Company. In California, we continue to invest in increasing production and keenly await the recommendations on the potential application of a full-field steam flood development the Tapia oil field from Dr Farouq Ali, a recognised world expert, news of which is expected in June that, if implemented, could be material for Sefton's oil reserves.

The Henderson-backed EFF will also be supported by other industry-related financing instruments such as joint ventures and farm outs that we intend progressing later this year. The Board believes that these steps will put us in a sound position to support our on-going strategic expansion."

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

Placing Raising £2 million

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce a placing, through Fox-Davies Capital Limited and Dowgate Capital Stockbrokers, of 114,285,714 new common shares at 1.75 pence per share (the "Placing Shares") to raise £2 million before expenses (the "Placing"). The Placing, which was over-subscribed, involved the participation of new institutional investors including Henderson Global Investors ("Henderson").

In line with the Company's stated strategy, the funds raised under the Placing will be used primarily in Kansas to accelerate plans to expand its leasing and recompletion programmes on its Eastern Kansas asset base that will enable a faster build-up of oil and gas production as well as funding acquisitions of additional long-life partially-developed reserves in the areas surrounding Sefton's gas pipelines in Leavenworth County, Kansas. The Company's Leavenworth gas pipeline system that is 100% owned is expected to become operational in the summer of 2012. These funds will also support the on-going cyclic steam programme and work-overs in California to increase production prior to the planned drilling programme in the autumn of 2012.

Application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission"). It is expected that Admission will become effective and that trading in the Placing Shares will commence on or about 17 May 2012. The Placing Shares will rank pari passu in all respects with existing ordinary shares in the Company.

Following Admission, the Company will have 511,936,720 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.

The EFF Letter of Intent and Other Financing Instruments

Sefton is seeking to assemble a basket of financial instruments to fund the growth of the business. The Board has entered into a letter of intent in relation to a three-year £10 million EFF with Darwin Strategic Limited which is majority owned by funds managed by the Henderson Volantis Capital Team to provide Sefton with future funding flexibility to develop its assets.

The EFF provides Sefton with a £10 million facility that can be drawn down at any time over the next three years, subject to certain restrictions. The timing and value of any draw down is at the sole discretion of the Company.

Additionally, the Directors are in the process of negotiating enlarged debt funding facilities as well as industry-related financings using joint venture financing or farm out deals to add further to the future financing alternatives available to the Company.

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Jim Ellerton, Chairman of Sefton Resources, Inc. a qualified geologist with over thirty years oil & gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement. Jim Ellerton has also relied on primary information supplied by third party consultants in carrying out his review.

About Sefton

Sefton Resources is an AIM-listed 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 add value in order to maximise shareholder value through asset development using the Company's funds initially, then involving third party capital, farm-out or merger.

The Company has a current market capitalisation of ~£10 million but the report published by Reed W. Ferrill & Associates and the Competent Persons Report published by Dr Nafi Onat experts have calculated that the potential value of the Company's three projects are at a significant premium to this at $278 million (£173 million) as at 31 December 2011. The Board's primary objective is to crystalize the value in its three projects for the benefit of shareholders by accelerating their development and significantly enhance the platform of cash flow on which to grow the Company.

·; Oil in California - In East Ventura, the Company owns 100% of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil). 2011 year-end proved reserves stood at 3.8 million barrels. The current focus is on Tapia Canyon where Sefton continues to drill and increase production. The Company is also investigated the wider application of steam in its secondary recovery programme to further improve the Tapia field's recovery factor and increase reserves. In addition, the Company has also engaged Dr Farouq Ali, a recognized world-expert in this area, to advise on an application of a full-field steam-flood development of the Tapia field. If a full-field steam flood is recommended by that report, then its application would be expected to have a material impact on the Tapia field's overall recovery factor and reserves.

And the Company's two recent initiatives in Kansas:

·; Oil & Gas in Kansas - In East Kansas, Sefton has leases over 45,000 acres in the Forest City Basin where coal bed methane, as well as conventional oil and gas deposits, are targets. The leasing and planned recompletion programme, that will see oil, gas and CBM wells brought back into production, is being accelerated and the current plan is to double the size of Company's acreage holdings in Kansas. Any gas produced will be transported through the Company's pipelines.

·; Pipeline system in Kansas - Three gas pipelines have been acquired of which two have been refurbished and are in the process of being certified and connected to the Southern Star Interstate Pipeline system. The gas pipelines will transport the Company's expected future gas production in East Kansas and, importantly, also generate gas transmission fees from third parties. The gas pipelines are expected to flow first gas and generate revenues for the Company from the summer of 2012.