Mr. Lee Barker reports

SPARTON RESOURCES INC. FINAL PRIVATE PLACEMENT CLOSING AND UPDATES

Sparton Resources Inc. has completed its non-brokered private placement offering, which was first announced on Oct. 30, 2025. The second and final tranche closed on Dec. 12, 2025, bringing the total gross proceeds from both closings to $410,000. For further details, refer to the company's previous news releases dated Nov. 11, 2025, and Oct. 30, 2025.

As part of the second closing, Sparton issued 5,285,715 national flow-through share (NFTS) units at a price of 3.5 cents per unit, raising proceeds of $185,000. Each NFTS unit consists of one common share and one-half of a non-flow-through share purchase warrant (SPW), amounting to 2,642,858 full SPWs. A full SPW allows the holder to purchase one common share at eight cents within 12 months from the issue date.

Each NFTS is classified as a critical metals flow-through share according to the Income Tax Act (Canada).

Additionally, the company issued 500,000 non-flow-through share units (SU) at three cents per unit. Each SU includes one common share and one-half warrant. A full warrant grants the holder the right to purchase one common share at five cents per share for up to two years from the date of issue.

The gross proceeds from the NFTS issuance will be used exclusively for resource exploration expenses that qualify as Canadian exploration expenses and flow-through mining expenditures under the Income Tax Act. These expenditures will be renounced to NFTS purchasers with an effective date no later than Dec. 31, 2025, in an amount equal to or greater than the gross proceeds raised from the NFTS issue. If the Canada Revenue Agency reduces the qualifying expenditures, Sparton will indemnify NFTS unit subscribers for any extra taxes they may owe due to the company's failure to renounce the expenditures.

Finders' fees totalling $15,000 in cash and 428,571 full broker warrants have been paid and issued to third party finders. Each broker warrant enables the holder to purchase one common share of the company at five cents, exercisable within 24 months of the closing date, Dec. 12, 2025.

The NFTS, warrant shares, SUs and any common shares resulting from the exercise of finders' warrants are subject to a statutory hold period. This period ends four months plus one day following the issue date, specifically on April 13, 2026, in accordance with applicable securities laws.

The offering received all necessary regulatory approvals, including those from the TSX Venture Exchange.

Proceeds from the offering will support exploration activities for the company's critical metals projects in Ontario and for general corporate purposes. The focus will be on the Pense polymetallic metals project east of Englehart, Ont., where historical work has identified zinc, copper and nickel mineralization with minor cobalt values. The project area has seen limited activity for over two decades, and upcoming work will include follow-up prospecting, airborne surveys, target assessments and diamond core drilling.

Corporate updates

Effective as of the date of this news release, Sparton has awarded and approved the issuance of 4.2 million incentive options to directors, officers and consultants. These options vest immediately and entitle the holder to purchase common shares at three cents per share. The options are valid for three years, expiring on Dec. 12, 2028.

Drilling activities are currently in progress on the Quebec Pense project claims. A new expert geophysics target EM survey has also been completed in areas previously not covered by earlier Sparton work. Results from these activities will be reported as they become available.

We seek Safe Harbor.