SER.L Regulatory News (SER)

18 December 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

Update on a Director's other interests

In accordance with Rule 17 of the AIM Rules for Companies, the Company confirms that Mark Richard Smith, a non-executive director of Sefton, is also a non-executive director of Stone Mountain Resources Limited ("Stone"), which on 6 December 2012 received approval from the Alberta Court of Queen's Bench to undertake an asset disposal pursuant to a receivership order under the Bankruptcy and Insolvency Act of the Province of Alberta, Canada (the "Transaction"). The Transaction completed on 14 December 2012. The Transaction involved Stone Mountain Resources Holdings Ltd ("Holdings"), the parent company and major creditor of Stone and Spoke Resources Ltd ("Spoke"), which is the purchaser of the assets and a subsidiary of Holdings. Mr Smith is also a director of Holdings and Spoke. All three companies are incorporated in Alberta, Canada. Stone was placed into receivership by Holdings and the creditors of Stone will not receive the full value of amounts owed to them by Stone, although at this time the final extent of the deficit is yet to be ascertained.

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

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.