Mr. Lee Barker reports

SPARTON RESOURCES INC. VRB CHINA ANNOUNCEMENT

Sparton Resources Inc. has discussed news from VRB China. It was announced Sept. 5, 2025, that Beijing Puneng Century Technology Co. Ltd. (BJP) has successfully won the bid to construct a 50-megawatt, 200-megawatt-hour all-vanadium liquid flow battery energy storage power station in Longzhouping town, Changyang, Hubei province, PRC.

This announcement marks a significant milestone in the progress of the VRB China joint venture, which is 51 per cent owned by Shanxi Red Sun Co. Ltd. (Red Sun) and 49 per cent owned by VRB Energy Inc. through its 100-per-cent ownership of BJP.

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. This translates into an indirect 4.4-per-cent interest held by the company in the VRB China joint venture. Ivanhoe Electric Inc. (IE) owns 90.025 per cent of VRB Energy which owns 100 per cent of BJP. The joint venture was announced by IE on Oct. 15, 2024

The installation will be put into operation by a consortium consisting of BJP, the Changyang Lutong Engineering Construction Co. Ltd. and the Hubei Electric Power and Design Institute Co. Ltd. According to an internet published report, the winning bid value was 467 million Chinese yuan (approximately $65.6-million (U.S.).

The project is expected to be connected to the grid by Dec. 31, 2025, and once completed will effectively improve the stability of electricity in the area, enhance new economic development locally and will drive the coordinated development of the overall vanadium flow battery industry going forward.

Full details of the project can be found on the VRB China website.

"The combination of the joint venture's ability to execute its projects quickly, BJP's advanced flow battery technology and the successful 17-year history of building the world's, safest and longest active service vanadium flow batteries, has resulted in this successful bid. It is very rewarding to see this progress, and we congratulate the Joint Venture and BJP on these accomplishments," commented company president A. Lee Barker.

It should be noted that in conjunction with the Red Sun announcement last fall, Ivanhoe Electric also announced that it is proceeding with the establishment of VRB USA to construct a vanadium battery manufacturing facility in Arizona, for vanadium redox battery deployment outside of Asia.

Full information regarding the history of the company's VRB Energy investment is available in its various news releases and corporate filings available at SEDAR+, and on the Sparton website.

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