Mr. A. Lee Barker reports

SPARTON PROVIDES FURTHER INFORMATION ON THE VRB ENERGY-RED SUN TRANSACTION

Definitive agreements have been signed among VRB Energy Inc. (in which Sparton Resources Inc. owns an interest), a subsidiary of privately held Shanxi Red Sun Co. Ltd. and certain other affiliates, finalizing the terms of the transaction announced on Sept. 23, 2024 (see Ivanhoe Electric Inc. website for the news release entitled Ivanhoe Electric's VRB Energy subsidiary and Red Sun sign definitive agreements for formation of new grid-scale battery joint venture).

Sparton's interest in the flow battery industry is a 9.975-per-cent interest in VRB Energy held through Sparton's 90-per-cent interest in VanSpar Mining Inc.

The Chinese joint venture, which will receive a $35-million (U.S.) capital increase from Red Sun, is being formed to expand manufacturing and sales of vanadium redox flow battery systems. In addition to the formation of the joint venture, $20-million (U.S.) of the transaction proceeds will establish a separate United States-based vanadium redox battery business in Arizona, capable of producing 50 megawatts per year.

Company president A. Lee Barker commented: "VRB Energy's all-vanadium liquid flow energy storage products are gaining recognition as providing an important piece of the solution. The establishment of the joint venture and the creation of a United States-based operation should greatly enhance product sales and installations."

We seek Safe Harbor.