SRI Sparton Resources Inc

Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to announce
that its wholly-owned subsidiary, Sparton Energy Inc. ("SEI") has received
approval for the restructuring of the 2009 $1.7 million loan financing provided
by an arm's length third party (the "Lender") (see Company news releases dated
July 28, 2009, and April 21, 2011). The restructuring included the repayment of
the sum $500,000 of the original $1.7 million principal (paid) and the issuance
of a new loan (the "New Loan").


The unsecured New Loan will be issued in the principal amount of $1.3 million
and evidenced by a new debenture. This new debenture carries interest at 6.0%
annually, payable in arrears, on a quarterly basis and is repayable on or before
maturity on July 16, 2012. 


Sparton management has undertaken not to enter into any transaction or
obligation that would rank in priority to or equal to the New Loan, or impinge
on Sparton's ability to make repayment, without prior written consent of the
Lender. Sparton has also undertaken and agreed not to grant any security
interests to third parties except subordinate to this New Loan while the New
Loan remains outstanding. 


The Company will issue to the Lender 600,000 share purchase warrants. Each
warrant will entitle the Lender to purchase one common share of Sparton
Resources Inc. for $0.25 per share up to July 16, 2012.


If any major financing, or asset sale completed by Sparton results in the
Company having in excess of $1.5 million in cash, net of the New Loan, the New
Loan will be repaid immediately. In addition, if the Company disposes of its
Huajun Germanium producing operations in China, it will pay the Lender 5% of the
difference between Sparton's total investment in Huajun (estimated to be $USD
3.8Million) and the value received from the sale of Huajun, up to a maximum of
$USD 50,000. 


Sparton Resources Inc. is a Canadian mining and exploration company focussed on
exploration development and production of specialty and precious metals in
Canada and abroad. It is currently operating a producing germanium mine in
China.


Company subsidiary, VanSpar Mining Inc. is also developing a world class
vanadium deposit in China, and Sparton has pioneered the reactivation of
secondary uranium recovery businesses from radioactive waste such as coal ash,
mine waste and tailings, and other types of material.


Statements in this release that are forward-looking statements are subject to
various risks and uncertainties concerning the specific factors disclosed under
the heading "Risk Factors" in the Company's filings with Canadian securities
regulators. Such information contained herein represents management's best
judgment as of the date hereof based on information currently available. The
Company does not assume any obligation to update any forward-looking statements,
save and except as may be required by applicable securities laws.


This news release and the information contained herein does not constitute an
offer of securities for sale in the United States and securities may not be
offered or sold in the United States absent registration or exemption from
registration.


We Seek Safe Harbour.

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