Mr. A. Lee Barker reports

SPARTON RESOURCES INC. FINAL APPROVAL FOR PRIVATE PLACEMENT AND UPDATES

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

Sparton has issued a total of 5,285,715 national flow-through share units (NFTSUs) at a price of 3.5 cents per unit. It has also issued a total of six million Quebec flow-through share units (QFTSUs) at a price of 3.5 cents per share unit. Each NFTSU and each QFTSU consist of one common share and one-half of a non-flow-through share purchase warrant, amounting to a total of 5,642,858 full share purchase warrant. A full share purchase warrant allows the holder to purchase one common share of the company at eight cents within 12 months from the issue date.

Each NFTSU and each QFTSU are 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 (SUs) at three cents per unit. Each SU includes one common share and one-half warrant amounting to 250,000 full warrants. 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 NFTSU, QFTSU and SU 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 NFTSU and QFTSU 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 NFTSU And QFTSU issues. If the Canada Revenue Agency reduces the qualifying expenditures, Sparton will indemnify any unit subscribers for any extra taxes they may owe due to the company's failure to renounce the expenditures.

Finders' fees totalling $29,700 in cash and 673,571 full broker warrants have been paid and issued to third party finders. Each broker warrant issued for the NFTSUs 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. Each broker warrant issued with the QFTSUs enables the holder to purchase one common share of the company at a price of eight cents for 12 months.

The NFTSU shares, NFTSU warrant shares, QFTSU shares and QFTSU warrant shares, plus the SU shares, and any common shares resulting from the exercise of finder warrants are subject to statutory hold periods. This period ends four months plus one day following the issue dates, in accordance with applicable securities laws.

The offering has now 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 Quebec and for general corporate purposes. The focus will be on the Pense polymetallic metals project east of Englehart, Ont., and the Oakes project near Matachewan, Ont., where historical work has identified zinc, copper, gold and nickel mineralization with minor cobalt values. The project areas have seen limited activity for over two decades, and coming work will include follow-up prospecting, airborne surveys, target assessments and diamond core drilling.

Corporate updates

Drilling activities are currently in progress on the Quebec Pense project claims with two holes completed. A new Expert Geophysics target EM (electromagnetic) survey has also been completed in areas previously not covered by earlier Sparton work in both Ontario and Quebec. Results from these activities will be reported as they become available.

We seek Safe Harbor.