Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

September 27, 2017 10:39 ET

Sparton Closes Private Placement Financing

Exploration Begins on Quebec Gold Property

TORONTO, ONTARIO--(Marketwired - Sept. 27, 2017) - Sparton Resources Inc. (TSX VENTURE:SRI) ("Sparton" or the "Company") announced today that it has closed, effective September 27, 2017 (the "Closing Date") a private placement financing totalling $265,000 through the sale of 5,300,000 Units to five accredited investors.

Each Unit is priced at $0.05 and consists of one Flow Through Common Share, and one Common Share Purchase Warrant. Each Common Share Purchase Warrant entitles the holder to purchase on non - flow through common share of the Company at a price of $0.10 for a period of 12 months after the Closing Date.

Resale of the shares is subject to normal restrictions under TSX Venture Exchange Policy and the transaction has received Sparton Board and regulatory approval.

Further, the exploration program has now started on the Company's Bruell Gold Project east of Val D'Or Quebec. Crews have begun clearing and re-positioning the survey grid established on the claims by earlier operators. Once this work is completed the key priority areas will be subjected to additional geophysical work to verify locations of the target zones and targets will be established for an initial drill program.

Assay results have been received from the sampling done during the first property visit. (see Sparton news release dated Aug 11, 2017).

These are all grab samples of various types of mineralization found on the property, taken from old trench areas and outcrops found along the trend of the Avocalon - Aurora zone in the south east and south central property area.

Results are as follows:

DV-1, Sheared, 2% pyritic, silicified quartz - feldspar porphyry, from Aurora trench area at east end of Avocalon - Aurora Shear Zone - 2.3 grams per tonne gold.

DV-2, Quartz -tourmaline vein material, location as above, not pyritic--- 0.5 grams per tonne gold

DV-3 As above, 2% pyritic, with 50% sheared volcanic host, -- 0.9 grams per tonne gold

DV-4 Quartz Tourmaline vein material with 5% pyrite, Avocalon shaft area -- 1.6 grams per tonne gold

DV-5 - Sheared 3% pyritic quartz feldspar porphyry, 300 meters west of Avocalon shaft area along access road - 2.7 grams per tonne gold

DV-6 As above, sheared 3% pyritic, silicified bleached volcanic -- 0.6 grams per tonne gold.

These results have confirmed the gold bearing nature of the Avocalon - Aurora structure and their locations coincide generally with an IP chargeability anomaly that has not been extensively tested by drilling. Once the survey lines covering these areas have been cleared additional sampling and possibly trenching will be done prior to drilling.

The above analyses were done by Activation Laboratories Ltd. of Ancaster Ontario ("Actlabs"). Data verification for Quality Assurance ("QA") and Quality Control ("QC") protocols for the assay data by Actlabs were completed with normal internal QA-QC protocols for blank, internal standards, and duplicate assays.

A. L. Barker M.A.Sc., P. Eng., P. Geol. is the Qualified Person under NI 43-101 for the technical information in this news release and has reviewed all available data for the Bruell Property and approved the contents of this news release.

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.

Forward-Looking Statements

Information set forth in this news release involves forward-looking statements under applicable securities laws. The forward-looking statements contained herein include, but are not limited to, financings and transactions being pursued, and all such forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and, accordingly, undue reliance should not be put on such forward-looking statements. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein.

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