Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

March 24, 2010 10:44 ET

Sparton Completes Sale of 39% Interest in Luxi Gold Project, Yunnan China; Total Sale Price of 14 Million Renminbi or USD$2.044 Million US Dollars

TORONTO, ONTARIO--(Marketwire - March 24, 2010) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company"), announced today that it has completed the sale of a 39% interest in Yunnan Sparton Minerals Company Limited("YSM"), the sino - foreign joint venture company which owns the Luxi Gold Project in Yunnan Province, southwest China. The total sale price is 14 million RMB or approximately USD$2.044 million US dollars, payable in cash in two tranches.

The purchaser is Joyful Ocean Industrial Group Limited ("JOG"), a Hong Kong registered company which in turn is controlled by Luxi Hai Hua Development Company (Hai Hua) the owner and operator of the local Luxi Gold Mine in the YSM exploration area.

The transaction was effected by the Company selling to JOG a 100% interest in its 100% owned British Virgin Islands ("BVI") registered subsidiary company, Sparton International Resources Inc. ("SIR"). This transaction did not trigger a change in the actual YSM shareholder structure and therefore no rights of first refusal are available to other YSM shareholders under the YSM Joint Venture Agreement.

SIR's sole asset is its 39% interest in YSM. According to the terms of the share purchase agreement payment will be made in two tranches. The first payment of 12 million RMB (approximately USD$1.752 million dollars) was made on the initial signing of the share purchase agreement, and funds have already been received by the Company. The second and final payment of 2 million RMB will be made immediately to the Company when JOG receives the BVI documents related to its registration as SRI's new sole shareholder. This process in underway and is expected to be completed in approximately 10 days.

SPARTON TO RETAIN 35% BACK IN RIGHTS

Additional terms to the share purchase agreement give the Company a right of first refusal to become a 35% participant in any future expansion and development of the Luxi Gold Mine that is forecast to increase gold production by three or more times the current production level of approximately 300KG of gold per year. Further, Sparton will have a right of first refusal to participate, with an interest equal to 35% of JOG's YSM interest, in any new mine development in the YSM area (by YSM) that at the feasibility stage is forecast to be equal to or exceed three times the current Luxi Gold Mine production level.

DISCUSSION

Sparton is delighted to be associated with JOG and Hai Hua in this new YSM structure. Combining its original sale of a 41% YSM interest to Starry Limited in 2007 (a company related to Zhao Jin Gold Mining Industry of PRC and Hong Kong) for 19.6 million RMB, along with the current transaction Sparton has realized approximately 25% more from these sales than its original investment in YSM.

Hai Hua is an aggressive and competent operator and has a current capacity at the Luxi Gold Mine to mine and heap leach up to 10,000 tonnes of ore per day. It has expanded the Luxi operation fivefold since acquiring the mine in 2006. Future exploration on the YSM exploration licences will benefit from its resource development commitment to this area.

As well, it has been agreed going forward that the Company's administrative and technical management team in China led by Sparton's director Mr. Charles Ge, will serve in a consulting capacity to JOG and Hai Hua.

SPARTON RESOURCES INC.
Listed: TSX Venture Exchange
Trading Symbol: SRI

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to exploration and development, the environment, local and foreign government regulation, currency fluctuation infrastructure, capital markets and additional funding requirements and the departure of key executives as well as those factors discussed in the Company's documents filed on SEDAR (www.sedar.com).

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Sparton Resources Inc. is available at www.sedar.com.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information