Sparton Resources Inc.

Sparton Resources Inc.

August 31, 2010 08:30 ET

Sparton Reports Second Quarter Financial Results

Revenue of $621,524 for the First Six Months of 2010

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2010) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to report its unaudited financial statements for the three month and six month periods ending June 30, 2010.

Highlights of the statements include revenue for the three month period from April 1, 2010 to June 30, 2010 of $194,763, and from January 1, 2010 to June 30, 2010 of $621,524. Operating profit for the six month period ended June 30, 2010 was $433,484.

Sources of revenue were the sale of germanium concentrate from Sparton's 51% owned Huajun operations in Yunnan Province China and the Company's 100% owned drilling subsidiary, Edcor Drilling Services. The assets and revenue from Huajun are now being consolidated into the Company financial statements following confirmation of the fact that Sparton is in control of all operational and financial aspects of the project.

The full Interim Unaudited Consolidated Financial Statements for the three and six month periods ending June 30, 2010 can be seen on SEDAR at and the Company Website


The Huajun concentrate production operations have been resumed using stockpiled development ore and underground production work is scheduled resume in early September, following completion of the Safety Evaluation Program and receipt of relevant approvals (see Sparton News Release dated August 9, 2010).

The consolidation of the Huajun assets and revenue into the Company financial statements will now provide shareholders with a much clearer and realistic picture of the Company's asset and revenue base. Currently, Sparton receives 100% of the revenue from the Huajun germanium project. Edcor Drilling Services is a contract service company providing drilling services to the general Canadian exploration community.

Sparton Resources Inc. is a Canadian mining and exploration company presently operating (through its subsidiary company, Sparton Energy Inc.) a producing germanium deposit in China, and developing secondary uranium recovery businesses in China and Canada from radioactive waste such as coal ash, mine waste and tailings, and other types of material.

In addition, the Company is exploring the Marmion Gold Project, a large mineral claim package which adjoins the Osisko Mining Corporation - Brett Resources +7 million ounce Hammond Reef Gold Deposit in north western Ontario.

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.

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.

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