Sparton Announces Exclusive Germanium Supply Arrangement With Voltaix LLC

TORONTO, ONTARIO--(Marketwire - Sept. 26, 2011) - Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") announced today that Sparton Energy Inc. ("SEI"), a subsidiary corporation, has executed a Memorandum of Understanding (the "MOU") with Voltaix LLC, ("Voltaix") a leading U.S. specialty materials producer, for the sale of all germanium production from the Huajun Mine in Yunnan Province, China. The MOU contemplates an investment by Voltaix of approximately $US4.2 million dollars in a series of advances related to milestones in the development of the Huajun operations.

General Terms

The MOU contemplates deliveries of germanium dioxide (GeO₂) by Huajun to Voltaix over the life of the Strategic Supply Agreement (the "SSA"). The advances are to be recouped through deliveries of GeO₂ pursuant to the SSA. The price for this product is based on a blended formula related to actual processing and refining costs and local market pricing for GeO₂. The advances are to be used for several purposes, including additional safety upgrades and efficiency improvements that will increase production rates.

Huajun Operations

The Huajun Mine is in the final stages of having a new mining licence issued. At full capacity, the mine employs approximately 400 people. The mine has completed all necessary safety and security upgrades to meet new Chinese regulatory requirements and reactivation of the operations will begin immediately after the new mining licence is received. The mine has a 7 year history of no major lost time accidents.

About Voltaix

Voltaix is a privately held U.S. manufacturer of specialty chemicals with exceptional expertise in silicon, germanium and boron chemistry. Its products are custom designed for use in the most demanding semiconductor deposition applications. Voltaix is the world leader in production of germane (GeH₄), diborane (B₂H₆), and other performance-enhancing materials critical to the microelectronics, photonics, and solar industries.

"We are pleased to have reached this important strategic relationship with Sparton," said Mark Wilkinson, Executive Vice President of Voltaix. "As the world's leading germane producer, securing our germanium supply is critical. This relationship allows us to continue to provide our customers with the highest levels of supply chain security by giving Voltaix an exclusive source of significant germanium reserves. This also represents a win for the local workers at Huajun, who will be re-employed once the mining license is granted."

About Sparton

Sparton is a Canadian based exploration, development and production company, establishing strategic relationships in order to advance its various mineral properties. The Company has a portfolio of production and development projects with germanium, gold, vanadium and uranium.

Sparton President, Lee Barker, stated: "Sparton is delighted to establish this unique long term relationship with Voltaix and become a supplier of one of the primary components necessary for its leading edge technology products. Local germanium concentrate prices at Lincang have almost doubled within the past year, and we look forward to resuming production of this specialty metal."

SPARTON RESOURCES INC.

Company website: www.spartonres.ca

Listed: TSX Venture Exchange

Trading Symbol: SRI

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.

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