Mr. A. Lee Barker reports

SPARTON ANNOUNCES DIAMOND DRILL PROGRAM AND THE CLOSING OF PRIVATE PLACEMENT OFFERING FOR ITS QUEBEC CRITICAL METALS EXPLORATION PROGRAMS

Sparton Resources Inc. completed the final closing on July 17, 2024, of the non-brokered private placement announced on June 17, 2024, for gross proceeds of $320,000. The offering was closed in two tranches -- one for $200,000 and one for $120,000.

The company intends to use the proceeds of the offering for the exploration on the Quebec side of the company's Pense-Montreuil project, which straddles the Ontario-Quebec border. Historical work has identified zinc-copper-nickel mineralization with minor cobalt values. Airborne electromagnetic and magnetic surveys (EM and MAG) and follow-up ground-truthing by the company have identified over five untested, short-strike-length, EM and coincident magnetic anomalies on the Quebec portion of the project, with geophysical signatures indicating possible massive sulphide bodies as the anomaly sources.

A. Lee Barker, president of Sparton Resources, stated: "The company now has sufficient funds to carry out the initial drilling of several of the targets identified by the airborne and ground surveys. The drilling, scheduled to begin in late August, is subject to successful permitting applications currently under way and will be carried out using the Sparton's wholly owned subsidiary drilling company and its highly regarded and efficient drill team."

Sparton has issued a total of 6.4 million Quebec flow-through shares of the company at a price of five cents per flow-through share. Each flow-through share unit consists of one common share of the company and has been issued as a Quebec critical metal flow-through share within the meaning of the Income Tax Act (Canada) as further explained as follows.

The gross proceeds from the issuance of the flow-through shares will be used to incur resource exploration expenses, which will constitute Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act and flow-through mining expenditures as defined in Subsection 127(9) of the Income Tax Act, which will be renounced with an effective date no later than Dec. 31, 2024, to the purchasers of the flow-through share units in an aggregate amount not less than the gross proceeds raised from the issue of the flow-through shares. If the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber of flow-through share units for any additional taxes payable by such subscriber as a result of the company's failure to renounce the qualifying expenditures.

The offering has received all necessary regulatory approvals, including those of the TSX Venture Exchange. Finders' fees, totalling $28,000, have been paid for these placements.

The flow-through shares will be subject to a hold period ending on the date that is four months plus one day following the issue dates, or 2.4 million shares until Oct. 21, 2024, and four million shares until Oct. 27, 2024, in accordance with applicable securities laws.

We seek Safe Harbor.