SER.L Regulatory News (SER)

3 November 2014

Sefton Resources, Inc.

("Sefton" or the "Company")

Update on Proposed Refinancing

Further to the announcement of July 16 2014 (the "Announcement"), and subsequent updates, the Board can now provide the following update with respect to the forbearance agreement with the Bank.

In respect of the forbearance payment due to the Bank on 31/10/2014, neither the Company nor Hawker were able to provide the full amount due, being $120,000 plus interest of $26,740.21. Hawker was able to make a partial payment of $50,000 on 31/10/2014, to be applied at the Bank's sole discretion, and the Bank provided a deferral of the balance due until 20/11/2014, (the "Deferral"), unless the refinancing is completed prior to that date. All other terms and conditions remain unchanged and the forbearance agreement with the bank remains in good standing. The $50,000 will be added to the balance of the Subordinated Note due to Hawker.

Hawker and the Company are continuing negotiations for financing to replace the Bank and complete the Tapia joint venture transaction. An alternative borrowing facility has been negotiated with a third party lender and due diligence is continuing with a view to closing by 20/11/2014. The recent decline in oil price has had an impact on the process, as the lower oil price deck used by lenders limits the potential borrowing base. Lower oil prices have also influenced potential equity investors to avoid commitment to the refinancing of debt due to the Bank. A definitive closing date has not yet been determined.

Sefton's October oil production has been moderately higher than the previous month while revenues are lower due to the decline in selling price of the Company's oil.

The Company appreciates the willingness of the Bank to provide the Deferral as the Company and Hawker work toward a refinancing of the Loan.

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