Sparton Announces Debt Reduction and Restructuring

TORONTO, ONTARIO--(Marketwire - April 21, 2011) -Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to announce that its wholly-owned subsidiary, Sparton Energy Inc. ("SEI") has restructured the 2009 $1.7 million loan financing provided by an arm's length third party (the "Lender") (see Company news release dated July 28, 2009). The restructuring includes the repayment of the sum $500,000 of the original $1.7 million principal and the issuance of a new loan (the "New Loan").

The unsecured NewLoan will be issued in the principal amount of $1.3 million and evidenced by a new debenture. This new debenture will carry interest at 6.0% annually, payable in arrears, on a quarterly basis - and is repayable on or before maturity on November 18, 2011.

Sparton management has undertaken not to enter into any transaction or obligation that would rank in priority to or equal to the New Loan, or impinge on Sparton's ability to make repayment, without prior written consent of the Lender. Sparton has also undertaken and agreed not to grant any security interests to third parties except subordinate to this NewLoan while the NewLoan remains outstanding.

Subject to regulatory approval the Company will issue to the Lender 1,200,000 one-half share purchase warrants. Two of these one-half share purchase warrants will entitle the Lender to purchase one common share of Sparton Resources Inc. for $0.25 per share for one year from the date of receipt of TSX Venture Exchange approval for the issuance of these warrants.

If any major financing, or asset sale completed by Sparton results in the Company having in excess of $1.5 million in cash net of the NewLoan, the NewLoan will be repaid immediately. In addition, if the Company sells its Huajun Germanium producing operations in China, it will pay the Lender 5% of the difference between Sparton's total investment in Huajun (estimated to be $USD 3.8Million) and the value received from the sale of Huajun, up to a maximum of $USD 50,000.

Sparton Resources Inc. is a Canadian mining and exploration company focussed on exploration development and production of specialty and precious metals in Canada and abroad. It is currently operating a producing germanium mine in China.

Company subsidiary, VanSpar Mining Inc. is also developing a world class vanadium deposit in China, and Sparton has pioneered the reactivation of secondary uranium recovery businesses from radioactive waste such as coal ash, mine waste and tailings, and other types of material.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" in the Company's filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume any obligation to update any forward-looking statements, save and except as may be required by applicable securities laws.

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.

We Seek Safe Harbour.