Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

October 17, 2006 11:07 ET

Sparton Closes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - Oct. 17, 2006) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced that it has completed a non-brokered private placement to a group of investors, led by three funds from the MineralFields Group. The Company issued an aggregate of 1,666,667 units at a subscription price of $0.15 per unit, for aggregate gross proceeds of $250,000. Each unit consists of one common share and one-half of a Series D common share purchase warrant. Each whole Series D Warrant entitles the holder to acquire one common share of the Company until October 13, 2008 at a price of (i) $0.20 per share if the Warrant is exercised on or before October 12, 2007, or (ii) $0.25 per share if the Warrant is exercised after October 12, 2008, subject to the right of the Company to accelerate the expiry date of the Warrants in certain circumstances. In connection with the private placement to the MineralFields Group, the Company paid a cash finder's fee and issued 66,666 finder's options to Limited Market Dealer Inc. Each finder's option entitles the holder to purchase one unit at a price of $0.15 until October 13, 2008.

The common shares and warrants comprising the units are subject to a hold period that expires February 13, 2007.

Net proceeds of the financing will be used for general corporate purposes and for the expenditures planned for the Company's exploration programs in China, Mexico and elsewhere.

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about MineralFields Group is available at www.mineralfields.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for adequacy or accuracy of the content of the information contained herein.

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