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SRI.V ·

Company Subsidiary Vanspar to Maintain Minority Investment Interest IN Vanadium Flow Battery Manufacturer

Corporate Updates

News Release

SPARTON RESOURCES INC.

COMPANY SUBSIDIARY VANSPAR TO MAINTAIN MINORITY INVESTMENT

INTEREST IN VANADIUM FLOW BATTERY MANUFACTURER

TORONTO, ONTARIO July 24, 2017. Sparton Resources Inc . ( TSXV.SRI)

("Sparton" or the "Company") announced today that its 89.8% owned subsidiary

VanSpar Mining Inc. has received a Financing Notice and Subscription Agreement from

JD Holding Inc. (“JDH”) whereunder JDH will raise US $5 million through the sale of

38,759,690 Shares at a deemed value of USD$0.129 per share.

JD Holding Inc. is the parent company owning 100% of PuNeng Energy, a PRC based

manufacturer of advanced technology vanadium flow batteries.

VanSpar will initially subscribe to a total of 6,976,740 shares for a total investment of US

$900,000, to be drawn down in monthly closings by JDH in a series of five equal

tranches until the end of 2017.

Financing for VanSpar’s JDH share purchases has been arranged through a pr ivate

investment organization with the initial closing purchase of 1,395,348 JDH shares

finalized on July 19, 2017.

The investment funding will allow VanSpar to maintain its current 18% investment

interest in JDH.

For more information contact:

A. Lee Barker, M.A Sc., P. Eng., P.Geo.

President and CEO

Tel./Fax: 647-344-7734 or Mobile: 416-716-5762

Email: [email protected] Website:www.spartonres.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)

accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Information set forth in this news release involves forward-looking statements under applicable securities laws. The forward-looking

statements contained herein include, but are not limited to, financings and transactions being pursued, and all such forward-looking

statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release

are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements,

whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although

the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that

such expectations will prove to be correct and, accordingly, undue reliance should not be put on such forward-looking statements. This news

release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein.

We Seek Safe Harbour