SRI Sparton Resources Inc

Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced today that
its 85% owned subsidiary company, Lincang Linxiang 306 Huajun Coal Industry Co.
Ltd. ("Huajun"), has executed an agreement for the sale of all of its germanium
production assets in the Lincang area of China.


The purchaser is the Yunnan Lincang Xinyuan Germanium Industry Stock Co.
("Xinyuan") a PRC registered company listed on the Shenzen Stock Exchange.
Xinyuan is China's largest germanium producer and is also based in the Lincang
area.


The transaction will be effected by the Company selling to Xinyuan all of
Huajun's germanium related production assets including its mining licence and
infrastructure.


The agreement provides for Xinyuan to pay a total of RMB13.6 million
(approximately C$2.16 million) for the Huajun assets.


60% of the purchase price or RMB8.16 million (approximately C$1.3 million) is to
be paid within 7 days of Xinyuan's board of directors approving the transaction,
and the remaining 40% or RMB5.44 million (approximately C$0.86 million) is to be
paid within 7 days of finalization of the transfers of the Huajun mining licence
and related operating permits from Huajun to Xinyuan.


The imposed sale of the Huajun germanium production assets is a consequence of
China Central Government policy changes mandating the consolidating of small
coal mining operations into the control of larger operators and has been ongoing
in PRC for approximately 2 years. Implementation of this policy has been the
responsibility of various provincial and local governments where small coal
mining operations exist, and although Huajun produces germanium concentrates it
is operated as a small coal mine with a coal mining licence and related coal
mine safety protocols.


The sale of the Huajun assets to Xinyuan was mandated by the Lincang Local
Government and Xinyuan was designated by the Lincang Local Government as the
sole buyer. Upon completion of the transaction Xinyuan will have purchased all
of the smaller coal (germanium) operations in the Lincang area and the
consolidation program in that area will be completed.


We Seek Safe Harbour

FOR FURTHER INFORMATION PLEASE CONTACT: 
Sparton Resources Inc.
A. Lee Barker
President and CEO
Tel./Fax: 647-344-7734 or Mobile: 416-716-5762
info@spartonres.ca


Sparton Resources Inc.
Charles Ge
Director
Tel.: int'l +86-10-8559-0034
charlesge@vip.163.com
www.spartonres.ca

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