Sparton Resources Inc.
TSX VENTURE : SRI

Sparton Resources Inc.

July 11, 2005 09:14 ET

Sparton Reports Geophysical Survey Results From Luxi Gold Project China

TORONTO, ONTARIO--(CCNMatthews - July 11, 2005) - Sparton Resources Inc. (TSX VENTURE:SRI) -

EXCELLENT NEW TARGETS DEFINED IN FOUR AREAS

CORE DRILLING PROGRAM RESUMES

REVERSE CIRCULATION DRILLING PROGRAM PLANNED

Sparton Resources Inc. (TSX VENTURE:SRI)(the "Company") reported today, results from recently completed induced polarization (IP) geophysical surveys at its 80% owned Luxi Gold Project in south western Yunnan Province, China. A new core drilling program is has also started to follow up the drilling results reported from earlier work in the Guanlingpo Mine ("the Mine") area and to test related IP targets. Excellent new targets have been defined by the IP work in four other areas, up to 35 km away from the Mine. These will also be drill tested during the current program. Negotiations are underway with local contractors to supply reverse circulation drilling equipment which will be used later this year at Guanlingpo to accelerate definition drilling and evaluation of the primary gold mineralization identified in the Mine.

IP SURVEYS

The IP work involved systematic surveying of five areas within the 250 sq km exploration licences held by Sparton's 80% owned subsidiary, Yunnan Sparton Minerals Company (YSMCL). Maps showing IP chargeability anomalies in the Guanlingpo Mine area and a number of IP profile results from other areas are available on the Company website www.spartonres.ca.

The field work was completed by a geophysical team from the Yunnan Provincial Bureau of Geophysics and Geochemistry using the time domain IP method, and a dipole-dipole electrode array. The estimated depth of penetration is approximately 125 metres below surface. Quality control was provided by YSMCL staff.

Well defined IP chargeability and resistivity anomalies were located in each of the five areas surveyed (Guanlingpo Mine-Yangshishan-Mongmo, Mabozi, Bajowa, and Hebianzhai -Guanming) (see map on website). None of the targets located outside of the Mine have ever been drill tested. All are associated with surface gold occurrences, gold anomalies in overburden covered bedrock sampled by the auger drill program, or areas of intense hydrothermal alteration.

Both the north and south zones of gold mineralization located in the Guanlingpo Mine pit by the previous drill program (see website maps) are also well defined by the IP data and the anomalies continue well beyond the current drilled area. Of interest is the presence of a strong IP anomaly trend extending northeast of the known south gold zone beneath the Jurassic siltstone unit which unconformably overlies the gold hosting Permian carbonate rocks in the Mine. The anomalous IP zones outlined at Guanlingpo extend more or less continuously from the north east boundary of the Mine Licence southwest through the Mine to the Yangshishan and Mongmo oxide gold deposits, a total of distance of over 2800 metres. None of these latter areas have ever been drill tested.

Similarly excellent untested IP anomalies were located along a 700m trend at Bajowa where over 200kg of gold was produced from surface oxide material in 2 pits. This area is over 35 km to the southwest of Guanlingpo, A well defined 600m long IP anomaly was also found under an overburden covered area east of the main Mabozi jasperoid hydrothermal alteration outcrops to the south of Guanlingpo.

The IP anomalies outlined at Hebianzhai and Guanming are also associated with outcrops showing strong hydrothermal alteration and anomalous gold in soil anomalies.

DRILLING PROGRAM

Core drilling has now begun with Company owned equipment in the Guanlingpo pit area to further define and extend primary gold mineralization located earlier, and test the IP targets identified by the survey. The initial holes will be located to extend the breccia mineralization located in Holes GU04-07 (5.24g/t over 24m), GU04-27 (2.0g/t over13m, and 7.0g/t over 7m) and GU04-28 (2.2g/t over 6m, and 8.0g/t over 7m) (see news releases dated January 4, 2005 and September 15, 2004) . Hole locations will be designed to test the IP targets and extend known mineralization with objective of defining an NP 43-101 compliant resource in the Guanlingpo area. Once core drilling has tested the various IP anomalies, a reverse circulation (RC) drill program will begin at Guanlingpo to enable more rapid resource definition. The core drill will then be used to test the IP targets and exposed gold mineralization in other areas. Several RC contractors have been requested to submit bids for this program, which is expected to involve over 10,000 metres of drilling, and scheduled to begin in September, 2005.

Auger drilling is also continuing to test overburden covered zones associated with the IP anomalies. This method was successful in defining a continuous zone of anomalous gold in bedrock for nearly 3km between the Guanlingpo Mine pit and the Mongmo oxide gold deposit to the southwest. This trend is also directly associated with a well defined IP anomaly zone.

DISCUSSION

Sparton's Management believes these new data confirm the potential of the Luxi 250 sq km exploration area to host several additional zones of gold mineralization. This is consistent with the extensive regional geochemical anomalies which originally highlighted the area and lead to the gold discoveries at Guanlingpo and elsewhere in the area.. The IP method has proven useful in defining bedrock targets associated with the known oxide gold mineralization and will accurately guide future drilling, especially in overburden covered areas. Initially, core drilling will be used to test these areas and if results are positive RC drilling may be used to rapidly and economically evaluate them further. IP results in the Guanlingpo Mine area clearly explain some of the mixed drilling results from the past program and have highlight untested areas representing the extensions of both the north and south gold zones. New drill results will be reported when available .

Sparton's exploration program in China is 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.

Sparton Resources Inc. is a diversified mineral exploration company, which has been an active participant in the Canadian junior resource sector for over 20 years. In addition it also holds a portfolio of Chinese, Mexican, and Canadian mineral exploration properties focussing on base and precious metals. In the energy sector, the Company has an interest in proven and probable natural gas reserves in the undeveloped Chebucto gas field offshore Nova Scotia, and an option to earn a 50% interest in the Blizzard Uranium deposit in British Columbia.

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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