Sparta Capital Ltd.

Sparta Capital Ltd.

May 26, 2006 11:24 ET

Sparta Capital Retains Bristol Capital to Manage Strategic Investor Relations

EDMONTON, ALBERTA--(CCNMatthews - May 26, 2006) - Sparta Capital Ltd. (TSX VENTURE:SAY) today announced that it recently retained Bristol Capital Ltd. (Bristol) to manage Sparta's investor relations function. Bristol is a boutique investor relations firm specializing in helping small and micro-cap public companies in the alternative energy technology industries to develop a broader communication platform with the brokerage and institutional investment community.

"Up to now, Sparta has been focused on building its business operations. As Master Agent in the Asia-Pacific region for the Hy-Drive Hydrogen Generating System, we have experienced a rapid growth in interest from the investment community. Bristol has a proven record in the Investor Relations field, having worked closely with a significant number of emerging growth public companies. We look forward to working with Bristol as they manage communication of our success to professional and institutional investors." stated Sparta's President, Mr. Ted Rousseau.

The Hy-Drive system is a commercial patented technology that reduces harmful exhaust emissions and increases fuel economy of the internal combustion engine. It utilizes a computer-controlled on-vehicle electrolysis process powered by the vehicle's 12 or 24 volt charging system to generate hydrogen and oxygen from distilled water. The gases are injected into the engine's air intake, where the hydrogen supports a faster and more complete fuel burn. This extracts more energy from the fuel and significantly reduces emissions.

Under terms of the engagement with Bristol, Sparta will pay Bristol a six-thousand dollar monthly retainer and grant Bristol 200,000 options to purchase up to two hundred thousand (200,000) shares of Sparta Capital Ltd. common stock. Each option shall entitle Bristol to purchase one common share of Sparta Capital Ltd. common stock for $0.50 and shall expire 36 months from the date of grant. One quarter (1/4) of the total options granted will vest on the date of the grant and every 3 months thereafter.

All shares issuable under the options shall be subject to a 4 month hold restriction from the date of grant of the option under the rules of the TSX Venture Exchange.

All of the foregoing arrangements are subject to approval of the Board of Directors of Sparta, execution of documentation satisfactory to Sparta and compliance with applicable securities laws and the policies of the TSX Venture Exchange.

Forward-Looking Statements

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to Bristol and Sparta ("the companies"). Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include such risks and factors as are detailed from time to time in the periodic reports filed by the companies with regulatory authorities. Actual results may differ materially from those currently anticipated. The companies have no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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