Sparton Finalizes Initial Acquisition Phase of Guojiaping Vanadium-Uranium Project In Southeastern China Independent Technical Report Completed

TORONTO, ONTARIO -- (Marketwire) -- 08/03/10 -- Sparton Resources Inc. (TSX VENTURE: SRI) (the 'Company') announced today that it has exercised its option to complete the initial acquisition phase of a 65% interest in the Guojiaping Exploration Licence in Jiangxi Province, China which contains a significant vanadium deposit and several zones of uranium mineralization. Completion of this transaction followed receipt and review of a positive National Instrument 43-101 compliant Independent Technical Report by Quest Geological Consultants of Reno Nevada USA, for the Guojiaping Project.

Sparton subsidiary Yunnan Sparton EnvironTech ('YSET') has made an initial payment of 3 million RMB (approximately CAD $450,000) to Team 267 of the Exploration Bureau of the Jiangxi Nuclear Industry ('267') which holds, and has completed the initial evaluation of the Guojiaping Exploration Licence.

ABOUT VANADIUM

Vanadium is a specialty metal most well known for its alloying qualities and use in making specialty steels. However it is now seeing increasing uses in technology applications, especially in new generation high capacity storage batteries used in pure electric and hybrid autos and solar and wind energy applications. Chemical grade vanadium oxide is sold most commonly as +98.5% V205 and recent pricing is in the range of USD$17-19 per kilogram (USD$ 8-9 per pound). Based on available reported information from competitors the Guojiaping project ranks near the top in most technical and commercial aspects critically related to economic development of the deposits. Additional information about vanadium and Guojiaping can be viewed on the Company website www.spartronres.ca.

DISCUSSION

Sparton's management is delighted to have received independent confirmation of the economic potential at Guojiaping and will continue working on the evaluation and acquisition of the vanadium and uranium deposits on the Licence. The Company has been fully supported by its new Chinese partners on this unique project, and by ARCN, the Remote Sensing Branch of the China National Nuclear Corporation ('CNNC'). This support clearly illustrates the social licence Sparton has received in PRC for its initiatives in evaluation of the vanadium opportunity and its environmental cleanup programs in secondary uranium production.

As a current specialty metal producer in PRC (germanium production in Yunnan) the vanadium project fits well with the Company's initiatives to identify and develop new opportunities to supply specialty metals for newly developing energy saving applications. Many new opportunities have been received through its strong relationships with CNNC and these are expected to continue. The potential to extract uranium from new non conventional sources is also a significant step for Sparton's established and environmentally positive, clean tech uranium extraction programs from various forms of waste material.

QUEST INDEPENDENT TECHNICAL REPORT

The Quest Report covers the vanadium due diligence work program completed on the Guojiaping Exploration License (9.02 sq. km.) and has confirmed the reliability of past exploration work by 267 which includes a total, 7,760 meters of core drilling , 3,528 cubic metres of trenching, several shallow shafts , and related geological mapping, sampling, and analyses. Quest took independent samples, confirmed 267 analytical data using an international accredited analytical laboratory (SGS Tianjin, PRC), reviewed due diligence data accumulated by YSET staff and its consultants, and 267 drilling information and calculations for the size of the vanadium deposit outlined. Quest indicated that the deposit can likely be mined by low cost open pit methods with minimal environmental impact and a very low stripping ratio. Quest also reported positive initial metallurgical recovery tests completed internally by YSET in its own laboratory, and independently by Lyntek Inc. of Denver Colorado USA, the Company's Process Engineering Consultants.

Quest concluded that Guojiaping project represents an excellent opportunity for the Company. Quest indicated that the size of the vanadium deposit can likely be increased substantially upwards from the size reported by 267 ( approximately 220,000 tonnes of contained V2O5 based on Chinese 333 and 334 category standards ) and recommended a further drilling, metallurgical testing and environmental assessment program costing approximately USD$ 500,000. A copy of the report will be posted on the Company website, www.spartonres.ca, and on the SEDAR public company electronic reporting system www.sedar.com.

TRANSACTION STRUCTURE

The acquirer, YSET is a Sino-foreign joint venture company which is 30% owned by ARCN, and 70% owned by Sparton. The Company, through YSET, now has the legal right to acquire a 65% interest in Green River Mining ('GRM') which will own and operate the development of Guojiaping Licence area (see Sparton news release dated November 23, 2009).

This payment was made in accordance with a prepayment agreement negotiated between the Company and 267 following completion of the due diligence program and completion and receipt of the Independent Technical Report by Quest. The payment will be credited towards the full purchase price of 45 million RMB according to the original option agreement between 267 and YSET (see Sparton news release dated November 23, 2009). A final comprehensive purchase agreement is under negotiation with 267 and will include a schedule of additional payments to complete the acquisition which will be tied to technical and regulatory milestones.

Green River Mining is a Sino Foreign Joint Venture Company owned 65% by YSET and 35% by 267. The Guojiaping licence contains a large shale hosted vanadium deposit with associated uranium mineralization which has been explored by 267 since May, 2007. Under related agreements ARCN will only participate in development of the uranium mineralization in the licence and vanadium development will be completely for Sparton's account through its 65% interest in Green River.

Sparton's unique international exploration, development, and evaluation programs are being carried out under the direct supervision of A. Lee Barker, P. Eng., P. Geol., the Company's President and CEO who is a Qualified Person under National Instrument 43-101.

We seek Safe Harbour.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Sparton Resources Inc.

A. Lee Barker

President and CEO

416-366-3551 or Mobile: 416-716-5762

416-366-7421 (FAX)
info@spartonres.ca


Sparton Resources Inc.

Charles Ge

Director

int'l +86 10 8559 2276

+86 10 8559 0411 (FAX)
Charlesge@vip.163.com
www.spartonres.ca