Sparton Signs Final Share Purchase Agreement for Germanium Production in China

TORONTO, ONTARIO, Apr 17 (MARKET WIRE) --
Sparton Resources Inc. (TSX VENTURE: SRI) (the "Company") reported today
that it has signed the final Share Purchase Agreement to acquire an 85%
share interest in Hua Jun Coal Industry Co. Ltd. ("HJ") a private Yunnan
Province PRC based coal and germanium producer. Hua Jun is the second
largest germanium concentrate producer in the Lincang area of Yunnan, and
also produces locally marketed thermal coal from one of its three
operating coal mines in the area. (see Company News Release dated January
29, 2008).

The agreement has been signed between the two private owners of Hua Jun,
and Yunnan Blue Bay Semiconductor Technology Co. Ltd. ("YBBS"), Sparton's
Wholly Owned Foreign Enterprise (WOFE) registered in Yunnan. YBBS in turn
is 100% owned by the Company's wholly owned subsidiary Sparton Energy
Inc. ("SEI") which is registered in the British Virgin Islands. The two
private individuals who were the original owners of HJ will retain 8% and
7% share ownerships in HJ respectively.

DUE DILIGENCE

During the period between January 29, 2008 and March 31, 2008 Sparton and
its legal, financial, and technical staff and consultants completed an
extensive due diligence program on this acquisition and received strong
support from local Yunnan and Lincang government regulators in relation
to the transaction. The Company's proposed program to clean up the
radioactive ash waste produced by HJ and the other germanium producers in
the Lincang area was a key factor in the rapid progress made in licensing
YBBS as an operating company in Yunnan. Further, Yunnan Sparton New
Environ-Tech Consulting Co. Ltd. ("YSN") the Joint Venture Company formed
with the China National Nuclear Corporation subsidiary has also received
its Business Licence. Sparton's positive track record in operating the
Luxi Gold Project in Yunnan was a major factor in fast tracking the
various government approvals and licences required for these operating
companies.

PAYMENT SCHEDULE -TAKEOVER OF OPERATIONS

The payments for the Hua Jun share acquisition will be made in four
tranches tied to conditions precedent in the agreement that are related
to various government agency approvals for the new HJ owner structure,
the transfer of labour contracts to HJ, and local approvals for
environmental and safety considerations. Once 60 % of the full agreed
purchase price of 22 million RMB (approximately $C1.9 million) has been
paid, YBBS will be in full control of the operations. Appropriate new
experienced technical and administrative staff have been sourced for HJ.
It is anticipated that YBBS will be fully in charge of HJ by mid August
2008. The minority HJ owners will maintain close involvement in
operations during the transition period and YBBS will have its own
mining, financial, and processing specialists directly involved in day to
day operations during that time.

GOING FORWARD

The HJ operations continue to be highly profitable. Since Sparton signed
the initial share acquisition agreement the price for germanium metal has
increased from about $ USD1250 per Kg to over $USD1400 per Kg and demand
continues to grow.

Based on the financial records for the past 5 months of operations HJ has
been producing approximately 275 kg per month of germanium concentrate
valued at 1.6 million RMB ($C228,000) In addition, it produces and sells
thermal coal valued at approximately 330,000 RMB ($C47,300) per month.

Operating profits after all operating costs have varied from $ C
110-130,000 per month and over $C70,000 in new capital has been invested
for new processing equipment. Sparton's consultants have reviewed the
operations and are preparing recommendations to upgrade the efficiency of
both the mining and germanium production activities. The Company believes
that the operations can be upgraded to significantly increase financial
performance in the future.

URANIUM RECOVERY PROGRAM FROM LINCANG AREA WASTE ASH

Initial positive leach test results on Lincang area waste ash were
reported earlier. (see Company news release dated March 26, 2008).
Testing continues both in China and North America. Sparton's process
engineering consultants Lyntek Inc. are currently designing a bulk
testing plant and flow sheet that will leach test a minimum of 500 tonnes
of Lincang ash later this year. Local permitting and project proposal
applications are underway in Yunnan for this work and the units will be
constructed locally to Lyntek's design specifications. This program is
receiving strong support from the local Yunnan environmental agencies.

DISCUSSION

Sparton now is well on the way to becoming a profitable producer in the
rapidly developing germanium market. The purchase of HJ, which already is
a successful germanium operation with significant scope for expansion and
value added technology is expected to lead to other germanium related
transactions to create added value for the Company.

The advancement of the uranium cleanup program beginning in Lincang and
direct investment by China's National Nuclear corporation subsidiary once
again demonstrates the Chinese support for Sparton's initiatives in
advancing the secondary uranium program to production in PRC.

New results and developments will be reported when available.

Sparton's international exploration 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.

TSX Venture Exchange has not reviewed and does not
accept responsibility for adequacy or accuracy of the content of the
information contained herein.

Contacts:
Sparton Resources Inc.
A. Lee Barker
President and CEO
(416) 366-3551 or Mobile: (416) 716-5762
(416) 366-7421 (FAX)
Email: info@spartonres.ca

Sparton Resources Inc.
Charles Ge
Director
+86 13901197486
+86 13901197486 (FAX)
Email: Charlesge@vip.163.com
Website: www.spartonres.ca

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