Sparton Resources Inc.

Sparton Resources Inc.
Santoy Resources Ltd.

Santoy Resources Ltd.

November 17, 2005 10:16 ET

Santoy Proposes To Undertake Private Placement In Sparton Resources

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 2005) - Sparton Resources Inc. (TSX VENTURE:SRI) ("Sparton" or the "Company") is pleased to report that it proposes to enter into a non-brokered private placement to raise $300,000 by the issuance of 2 million units of the Company to Santoy Resources Ltd. (TSX VENTURE:SAN) ("Santoy") of Vancouver, British Columbia at a price of $0.15 per unit. Each unit will consist of one common share and one share purchase warrant. Each share purchase warrant will allow Santoy to purchase a further common share for a two-year period from the closing of the private placement at a price of $0.25 per common share. The warrants will have an accelerator clause wherein the remaining exercise period may be reduced to 15 business days if Sparton's stock trades at or greater than $0.40 per share for 20 consecutive trading days. The shares will have a four month hold period. No commissions or finder's fees are payable in respect of this transaction.

The private placement is subject to the approval of the TSX Venture Exchange.

The private placement will be undertaken by the Company in order to satisfy an underlying obligation to provide a series of stock issuances to the vendor of the Blizzard uranium project. The Blizzard deposit, located in the Greenwood Mining Division of British Columbia, was acquired by a 50:50 joint venture comprised of Santoy and Sparton (see news release dated June 13, 2005). Subsequently, one hundred percent of the equity in the project was consolidated into Santoy and the joint venture terminated (news release dated August 9, 2005). Sparton will receive a royalty of $0.50 per pound of uranium (U3O8) produced from the property.

The Blizzard deposit was the subject of a positive feasibility study in 1979 by a joint venture company comprised of Norcen Energy Resources, Campbell Chibougamou Mines, E & B Explorations and Ontario Hydro. The property was never placed in production due to a (now expired) moratorium on exploration and development for uranium resources in the Province, which was imposed by the B.C. Government in 1980.

The feasibility study was prepared after extensive drilling (over 400 reverse circulation and diamond drill holes) and engineering studies and was based on a reported resource of 2.2 million tones grading 0.214 percent U3O8, using a cut-off grade of 0.025% U3O8 (for an estimated 10.4 million pounds of U3O8). This estimate predates and therefore does not conform to the more stringent reporting requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects, and thus should not be relied upon according to these standards; however, while the drill and assay data have not subsequently been verified, Santoy believes that the calculation provides a favourable indication of the potential of the deposit and are therefore relevant to this news release. A geological evaluation of the project, dated August 31, 2005, has been prepared by an independent Qualified Person, Dr. Peter A. Christopher, P.Eng., and has been posted to SEDAR and the Company's website.

Blizzard is a secondary-type uranium deposit located in a paleo-drainage channel of Tertiary age. It is interpreted to have been formed by the concentration of uranium minerals leached from nearby highly radioactive intrusive rocks and deposited in an old riverbed channel which was preserved from glacial erosion by a cover of younger volcanic rocks. This "basal-type" deposit may be amenable to exploitation by widely used, low environmental impact, in situ solution recovery processes (ISL recovery). Santoy plans to undertake a full engineering study to investigate the viability of using this recovery method, which involves only minimal surface disturbance.

The previous feasibility study did not consider this extraction option and was based on the application of a conventional open pit mining method.

Negotiations to resolve an outstanding title dispute registered against the property and a legal case against the Province of British Columbia by a prior property owner, are on-going. Santoy is working toward a business resolution of this matter.

The Qualified Persons, as defined by National Instrument 43-101, responsible for review of this news release are Ron Nichols, P.Eng, Santoy's Vice-President of Exploration, and A. Lee Barker, P. Eng., President and CEO of Sparton.

On Behalf of the Respective Boards of Directors,


"Ron Netolitzky" "A. L. Barker"

Ron Netolitzky, President A. Lee Barker, President

Cautionary Statement on Forward-Looking Information

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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