Mr. A. Lee Barker reports

SPARTON ANNOUNCES CLOSING OF SALE OF A 25 PER CENT INTEREST IN BRUELL GOLD PROJECT CLAIMS, QUEBEC

Sparton Resources Inc. and Eldorado Gold Corp. have closed an agreement, effective May 29, 2025, whereunder Eldorado acquired the company's remaining 25-per-cent interest in the Bruell gold project 51-claim property in Vauquelin township, Quebec. (The company and Eldorado are referred to jointly herein as the parties.)

The option agreement for the Bruell property was originally entered into by the parties in 2019 and has subsequently been amended to accommodate work programs and negotiate transaction terms. The parties reached an agreement on Nov. 24, 2024, to amend the agreement, whereby Sparton's 25-per-cent interest in Bruell could be purchased by Eldorado for $275,000 plus a 2-per-cent net smelter return (NSR) royalty. The original option set out in the agreement allowed for the remaining 25-per-cent interest to be purchased for $1.8-million plus an annual cost-of-living increase and the granting of a 2-per-cent production NSR royalty with a buyout of 50 per cent of this NSR for $2.5-million at any time. As a result of this transaction, Eldorado will now own 100 per cent of the Bruell gold project, and Sparton will retain the production NSR royalty as above.

Given the state of the junior exploration sector and the current company share price, the board made the decision to forgo future participation costs related to the exploration and development on the Bruell property, where the timing is not within its control, in order to obtain cash to meet current commitments and pursue opportunities on its wholly owned critical mineral and precious metals properties and for general corporate purposes.

We seek Safe Harbor.