Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

March 26, 2008 09:00 ET

Sparton Reports Encouraging Leach Test Results From Lincang Area Coal Ash

70-90% OF CONTAINED URANIUM RECOVERED BUSINESS LICENCES RECEIVED FOR OPERATING COMPANIES

TORONTO, ONTARIO--(Marketwire - March 26, 2008) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") reported today that initial leaching tests on coal ash from the Lincang germanium area of Yunnan PRC have returned very encouraging results (see news release dated January 3, 2008). Using sulphuric and nitric acid leaching tests, the amount of uranium recovered into solution from small samples of ash taken from the Tianhao waste piles varied from 70-80%. Sparton has an agreement with Tianhao to test and ultimately extract uranium from the Tianhao waste deposits which are estimated to contain over 450,000 tonnes of ash material.

Tianhao is a local company which controls the Lincang area government waste ash produced by other local germanium operations. It reprocesses this waste ash for secondary germanium recovery.

The current test work was done by a local Yunnan laboratory and duplicate samples are currently being tested by the Company process engineering consultants Lyntek Inc of Denver Colorado USA.

Testing Results

Initial ash sample uranium content: 281 ppm U (approximately 0.73 lbs U3O8 per tonne)

Size fraction: 80% minus 100 microns

Recovery with 5% sulphuric acid after 2 hour leach test: 70% of uranium into solution

Recovery with 10% nitric acid after 2 hour leach test: 80% of uranium into solution

Sulphuric acid consumption: approximately 250 Kg per tonne at 5% strength.

Lime content of ash: 3%

Discussion

These results are very encouraging and are considered preliminary in nature. Further work is being done to increase the leaching efficiency and will involve using different acid strengths and also column testing of agglomerated ash to simulate heap leach conditions. The low acid consumption is also considered a positive factor and is consistent with the low lime content of the material. The results are also consistent with historical information on recoveries from this material when uranium was produced from Lincang area waste ash in the 1970's by the Production Bureau of the China National Nuclear Corporation.
The laboratory involved has been in operation for approximately 20 years and is recognized as the leading analytical facility in the area. The results of Lyntek test work currently under way will use similar test methods and expand on these tests based on the results reported here.

Business Licences Received

As indicated in previous new releases Sparton has organized the operating structure for uranium production in Yunnan and at Lincang in an environmental solutions company WOFE (Wholly Owned Foreign Enterprise) and a joint venture company with the ARCN the branch of the China National Nuclear Corporation. Business Licences have now been received for both companies paving the way for completion of the final operating structure to begin uranium production. The rapid issuance of these licences has received the full support or both the Provincial Yunnan and local Lincang are governments who are anxious to see the commencement of the environmental cleanup of radioactive waste material in the area using the Company's patented technology.

Future Plans

Longer term testing work will involve larger samples and samples taken from other parts of the various waste piles in the Lincang area. It is anticipated that advanced bulk sampling and uranium oxide recovery programs leading to a scoping or prefeasibility level report will be the main focus of this work and are expected to be completed by year end 2008. Sparton is very encouraged with these results as they support the historical information indicating that significant amounts of uranium oxide were produced historically from waste ash from the Lincang area.

New results will be reported when available.

Sparton's international exploration and evaluation programs are 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.

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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