SER.L Regulatory News (SER)

5 March 2013

Sefton Resources, Inc.

("Sefton" or the "Company")

Trading Update

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas is pleased to announce a trading update of operations in Kansas and California.

Highlights

·; Preliminary oil production tank data for California for the month of February 2013 shows 3,443 barrels of oil which after an estimated 4% shrinkage equates to 118 barrels of oil per day (BOPD), a slight increase from January's actual production of 111 BOPD.

·; Dr Farouq Ali believes that work on the history match stage of the thermal stimulation report is now coming to an end. Dr Ali has advised that he is about to start the cyclical steam matches and various steamflood scenarios which he plans to work on simultaneously.

·; Monthly oil production in Kansas is currently circa 300 barrels of oil from 6 wells. Improving production from these wells will be achieved from stimulation and recompletions; and additional production will be from ongoing workovers and improved infrastructure.

Jim Ellerton, Chairman of the Board said:

"Sefton is progressing its operations in both California and Kansas to allow for substantially higher oil production in the coming years. The Board expects full year 2012 financials to be reported early May and to be materially in-line with market expectations."

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

California

Oil production

Preliminary oil production data (tank data) has been compiled for the month of February 2013. After a 4% shrinkage number is applied, tank data indicates an estimate of 3,305 barrels of oil produced or approximately 118 barrels of oil per day (BOPD) compared with a final production figure of 111 BOPD in January 2013. Production was restricted during February 2013 (as in January) by tank testing and repairs that were required by new State of California regulations for operators with inspection overseen by the Californian Division of Oil, Gas & Geothermal Resources ("DOGGR").

The regulations required that tanks be emptied of liquids to conduct wall thickness measurements which have disrupted oil production during this process, as wells have been shut in for partial or complete day cycles. Testing and repair of the tanks continues and there are two remaining tanks to be tested.

Net oil production figures reported to the DOGGR

Final production numbers will be available after oil sales numbers are provided to TEG USA (Sefton's wholly owned subsidiary) by our oil purchaser (expected in mid-March), in which oil volume is adjusted for any shrinkage to API specification and with basic sediment and water (BS&W) removed. The final production numbers will then be submitted to the DOGGR for posting on its website. The table above shows the production numbers for the past seven months, including the shrinkage percentage.

Cyclic steaming

The portable steam generator will complete injection into the Snow #5 well shortly. Approximately 7,000 bbls of steam have been injected thus far. Snow #5 will be the final well to be steamed on the Snow lease before moving to the Hartje lease. Snow #3 and #4 were returned to production after steaming, and are showing a response to steaming. Collectively they are producing 23 BOPD (vs. 4 to 5 BOPD total before steam). Snow #5 will be returned to production in late March.

Thermal stimulation report

Dr Farouq Ali believes that the history match stage of the thermal stimulation report is now coming to an end. The history match involves the fine tuning of the model to make sure that the model actively reflects the historic performance of the Tapia Canyon oil field since oil production began in the 1950's. Dr Ali reports that he is about to start the cyclical steam matches and various steamflood scenarios which he plans to work on simultaneously. Although the steam injection is computationally more intensive so it runs slow, Dr Ali reports he has been able to speed up the runs somewhat. With the completion of the thermal stimulation report pending, the Board plan to review the findings of this report ahead of drilling any new wells (the Hartje #21 new water disposal well and the Hartje #20 new development oil well etc), so that they can be incorporated into a more comprehensive development plan.

Kansas E&P

Workover and recompletion programme

Current monthly oil production is circa 300 barrels from six wells. Oil production at these wells is planned to increase by improving production from these wells by stimulation and recompletions. The Company also plans to bring additional wells on stream, from the workover and recompletion programme that has seen more than 20 wells worked over to date. Work on infrastructure continues in which downhole equipment is replaced, surface facilities are upgraded (electrics, new tanks, flowlines etc) and some existing wells that have been worked over are being hooked to the LAGGS pipeline system to allow associated gas removal in order to produce more oil.

Warrants

The Company has agreed with the holder of warrants over 1.5 million shares exercisable at 3.25p per share that such warrants be cancelled.

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 staff and third party consultants in carrying out his review.

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 £5 million and an unrisked PV(10) proved reserves and resources value of $278 million (approximately £185 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.