Sparton Resources Inc.

Sparton Resources Inc.

January 10, 2005 09:39 ET

Sparton Reports Encouraging Initial Results From Sierra Rosario Project, Sinaloa Mexico


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SPARTON RESOURCES INC.

TSX VENTURE SYMBOL: SRI

JANUARY 10, 2005 - 09:39 ET

Sparton Reports Encouraging Initial Results From
Sierra Rosario Project, Sinaloa Mexico

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2005) - Sparton Resources Inc.
(TSX VENTURE:SRI) (the "Company") announced today geochemical results
from a reconnaissance sampling program recently completed at its Sierra
Rosario precious metals project in Sinaloa State, Mexico. The Company
may earn a 51% interest in the 500 ha Rossy claim group from
International Northair Mines Ltd. ("(Northair") under certain terms and
conditions (see news release dated March 18, 2004).

The property hosts a number of gold and silver occurrences, some
associated with base metal mineralization, that were identified by
Northair staff during regional exploration in 2002. Detailed background
information about the property is available on the Company website
www.spartonres.ca.

Sparton staff visited the area in December 2004 accompanied by Northair
personnel, and completed a preliminary stream sediment survey and rock
sampling program which included float and outcrop sampling of
mineralized material within the Rossy claim area. The work was designed
to assist in locating the source areas for the extensive alluvial
workings observed in the principal drainage area providing access into
the southern part of property, locate bedrock sources for mineralized
float material sampled by Northair, and further evaluate the San Rafael
Zone, the principal target identified to date on the Rossy claim. In
addition, all the previous sample data were compiled, and field sample
locations were checked and in some cases re-sampled for verification.
All previous and current analyses were done by ALS Chemex Laboratories
in Hermosillo, Mexico using a fire assay with gravimetric or atomic
absorption 'AAS' finish technique for gold, and ICP techniques for
silver and base metals.

SAN RAFAEL RESULTS COMPILATION

The previous sampling by Northair on the San Rafael zone involved the
collection of 23 channel samples, each approximately 5 to 7 metres in
length. These were taken in silicified and mineralized quartz feldspar
porphyry in the area of an extensive series of historical mine workings,
pits and excavations located near the central area of outcrop of this
rock unit. They cover a northwest trending zone approximately 200 metres
long and 70 metres wide (see map and photo on website). The various
sample locations and intervals were verified in the field by Sparton.
With the exception of the Northair sampling there is no evidence of any
work having been done in this area since the early 1900's. There are
extensive overgrown waste dumps associated with these excavations and it
is planned to systematically sample these in the future The Northair
data are summarized below, significant results are highlighted.



---------------------------------------------------------------------
Sample Length Gold Silver Copper Lead Zinc
interval metres ppb ppm ppm Ppm ppm
---------------------------------------------------------------------
Ros 41-43 15.0m 173 675
---------------------------------------------------------------------
Ros 44-46 14.5m 208 46
---------------------------------------------------------------------
Ros 47 7.0m 50 7.2
---------------------------------------------------------------------
Ros 48 5.0m 85 11.4
---------------------------------------------------------------------
Ros 49 5.0m 35 11.6
---------------------------------------------------------------------
Ros 50 5.0m 815 663
---------------------------------------------------------------------
Ros 51-52 14.0m 355 170
---------------------------------------------------------------------
Ros 53 7.0m 950 243
---------------------------------------------------------------------
Ros 54 7.0m 335 81.4
---------------------------------------------------------------------
Ros 55 6.5m 260 52.8
---------------------------------------------------------------------
Ros 56 7.0m 45 38.4
---------------------------------------------------------------------
Ros 57-59 15.0m 208 53
---------------------------------------------------------------------
Ros 60-62 15.0 210 113
---------------------------------------------------------------------
Ros 63 5.0 1705 53.8
---------------------------------------------------------------------


(Note: the arithmetic average of all these samples is 321ppb gold and
181g/t silver)

These channel samples were not analysed for base metals but the archived
pulps will be retrieved if available, and analysed for base metals in
the near future.

In addition Northair collected 8 grab samples representing typical
mineralization from the area of old workings and waste piles. Excluding
one very high grade sample (10.8g/t gold, 292g/t silver, 20.3%copper,
9.1% lead, and 1.7% zinc) the arithmetic average grade for 7 grab
samples was 498 ppb gold, 186 ppm silver, 0.95% copper, 1.2%lead and
0.14% zinc. This result compares well with the arithmetic average of the
23 channel sample gold and silver analyses.

STREAM SEDIMENT RESULTS

Eighteen stream sediment samples were taken during the initial Sparton
work program, covering side drainages on both the east and west sides of
the central and north parts of the Rossy claim. Only the minus 80 mesh
fractions were analyzed. Seven of these returned anomalous results in
Gold, silver, copper lead and zinc. These are summarized below.



---------------------------------------------------------------------
Sample Gold Silver Copper Lead Zinc
number ppb ppm ppm ppm ppm Remarks
---------------------------------------------------------------------
SS-1 43 3.6 107 49 122 Near old alluvial pits
---------------------------------------------------------------------
SS-7 13 3.5 138 94 157 Ditto
---------------------------------------------------------------------
SS-13 6 0.6 168 19 92 Central part of claim
---------------------------------------------------------------------
SS-15 103 6.1 201 26 93 North part of claim
---------------------------------------------------------------------
SS-16 73 7.0 205 189 357 ditto
---------------------------------------------------------------------
SS-17 11 1.4 129 60 93 ditto
---------------------------------------------------------------------
SS-18 547 11.1 301 306 514 ditto


Other stream sediment samples have either low or background values for
silver or base metals or are below the detection limit (5ppb) for gold

Results from the rock sampling program are also encouraging. Except for
samples SR-15-16 from San Rafael which confirm the earlier results
obtained by Northair, the others provide new information and indicate
new areas of potential mineralization that require detailed
investigation. In addition a local prospector provided several grab
samples collected from the western part of the Rossy claim which assayed
up to 0.95 grams of gold per tonne. This area will also be checked in
the next program.

ROCK SAMPLING RESULTS



---------------------------------------------------------------------
Sample Gold Silver Copper Lead Zinc
number ppb ppm ppm ppm ppm Remarks
---------------------------------------------------------------------
SR-2 270 14 471 46 118 Float south central
---------------------------------------------------------------------
SR-3 170 3.7 114 18 58 ditto
---------------------------------------------------------------------
SR-4 175 2.7 2130 13 36 ditto
---------------------------------------------------------------------
SR-5 680 1.3 41 26 48 Float central area
---------------------------------------------------------------------
SR-7 319 0.8 10 12 7 ditto
---------------------------------------------------------------------
SR-8 1325 5.6 212 417 254 Grab from vein in north area
---------------------------------------------------------------------
SR-11 274 24 30 93 86 Ditto
---------------------------------------------------------------------
SR-13 284 2.3 85 2370 6140 Vein zone SW of San Rafael
---------------------------------------------------------------------
SR-15 112,500 610 2.55% 1.32% 2.29% San Rafael dump
selected sample
---------------------------------------------------------------------
SR-16 80 28.8 8350 743 1670 Old pit San Rafael
---------------------------------------------------------------------


DISCUSSION

The Northair channel sample results indicate that the San Rafael zone
may have the potential to host a bulk mineable polymetallic precious
base metal deposit. Higher grade mineralization appears to be associated
with strong base metal mineralization but the distribution of structures
and metals is not well understood at present. The abundance of high
grade base and precious metal fragments on the old San Rafael dumps
indicate that the historical mining operations were likely only capable
of recovering precious metals from very oxidized and decomposed material
and the primary, sulphide rich mineralization was rejected.

The anomalous stream sediment results indicate both the effectiveness of
this method and possible source areas for the extensive alluvial gold
workings in the south and central part of the Rossy claim, as well as
the possible extension of the San Rafael zone in the north.

The anomalous values in precious and base metals obtained from the rock
samples in the south central area, and from the previously unrecognized
vein breccia zone west of San Rafael are indicative of possible new
areas of mineralization that require evaluation.

FUTURE WORK

A detailed follow up program of gridding, soil sampling, mapping and
additional stream sediment sampling to cover the remainder of the area,
will begin in early February 2005. Road access will be established to
the San Rafael zone and it is likely that an induced polarization survey
will be undertaken in this area as well.

Sparton's exploration program in Mexico is being carried out under the
direct supervision of A. Lee Barker, P. Eng., P Geol., the Company's
President and CEO who is a Qualified Person under National Instrument
43-101.

Sparton Resources Inc. is a diversified mineral exploration company,
which has been an active participant in the Canadian junior resource
sector for over 20 years. In addition to its Mexican, Chinese and
Canadian portfolio of gold exploration properties it also holds an
interest in a significant offshore natural gas reserve in eastern Canada.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sparton Resources Inc.
    A. Lee Barker
    President and CEO
    (416) 366-3551
    (416) 366-7421 (FAX)
    info@spartonres.ca
    or
    Sparton Resources Inc.
    Edward G. Thompson
    Chairman
    (416) 366-6083
    (416) 366-2713 (FAX)
    egt@interlog.com
    www.spartonres.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for adequacy or accuracy of the content of the
    information contained herein.