Mr. Lee Barker reports

SPARTON RESOURCES INC. - VRB ENERGY ANNOUNCES INITIAL COMMISSIONING OF MAJOR VANADIUM FLOW BATTERY IN HUBEI

Sparton Resources Inc.'s VRB Energy Inc. (formerly Pu Neng Energy) reported, on Oct. 31, 2018, the successful commissioning of the initial one-megawatt-hour vanadium-redox-battery energy storage system (VRB-ESS) module of the phase 1, 12-megawatt-hour energy storage project in Zaoyang, Hubei province, China.

Phase 1 is part of a larger 40-megawatt-hour energy storage project awarded to VRB in 2017 (see Sparton's news release dated Nov. 2, 2017, and Pu Neng Energy's news release dated Nov. 1, 2017).

The VRB-ESS is being used to integrate a large solar photovoltaic system into the local electricity grid, and, when phase 1 is completed by the end of 2018, the 12-megawatt-hour installation will be the largest VRB-ESS in China.

The customer, Hubei Pingfan, will immediately benefit from cost savings on peak-hour electricity tariffs through energy arbitrage at its industrial park. By charging the VRB-ESS at hours when electricity tariff is low and then discharging that power during on-peak hours when electricity tariff is high, the customer will achieve reduced overall electricity costs.

Sparton is delighted with the progress in Hubei and commends the VRB staff and management for achieving this milestone in its development as the VRB-ESS supplier of choice to the overall energy storage market.

The full VRB Oct. 31, 2018, news release is available on Sparton's website and on VRB Energy's website.

The following information regarding the company's minority interest held in VRB is as follows.

Sparton's 89.8-per-cent-owned subsidiary, VanSpar Mining Inc., registered in the British Virgin Islands, owns 18 per cent of VRB Energy Inc., registered in the Cayman Islands (formerly JD Holding Inc.), which in turn owns 100 per cent of VRB Energy System, registered in China, which is the vanadium flow battery manufacturer.

We seek Safe Harbor.