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Sparton Resources Inc. - Positive Results From Additional Vanadium Recovery Testing Using Ultrasound Assisted Technology

Metallurgy & Processing

Sparton Resources Inc. - Positive Results From Additional Vanadium Recovery

Testing Using Ultrasound Assisted Technology

TORONTO, July 03, 2019 -- Sparton Resources Inc. (TSXV.SRI) ("Sparton" or the " Company") is pleased to announce the

results of additional testing conducted on its behalf by Central America Nickel Inc. (“CAN”) on the vanadium mineralization

hosted in black shale from Jiangxi Province in China, using CAN’s Ultrasound Assisted Extraction technology (“UAEx”).  The

results reported are from the Quankeng Stone Coal Mining License in the Xiushui area of Jiangxi, which has been under

evaluation by the Company for a number of years and is currently in acquisition negotiations.  Excellent new results were

achieved, and additional work is planned on more samples to be supplied by the Company.

TEST PROGRAM

The new test work was completed on samples of fresh and oxidized material from the Quankeng license, with grades varying

from 0.42% V 2O5 (unoxidized mineralization) to 1.31% V 2O5 (oxidized mineralization).  The new test results, using UAEx,

produced recoveries of the contained vanadium of 83% for the fresh unoxidized material, and 97% for Quankeng oxidized

mineralization.

All materials had been ground to 80%, passing a 200-mesh screen for the tests, and the UAEx leaching time was 30 minutes

at a temperature of 80o C.  Acid concentration was 50% and a solid-liquid ratio of 1:5 was used.

Additional tests are planned on samples of Bei An mineralization, a nearby vanadium mining license under acquisition

negotiations.

The current results also support conducting a further drill program at Quankeng to better define the amount of oxide

mineralization present on that mining license.

DISCUSSION

CAN’s patent-pending technology is proving to be extremely effective at recovering in solution in excess of 90% of scandium,

vanadium, nickel, cobalt, copper, iron and other minerals, in less then one hour and without the use of high heat or pressure.

 CAN has now tested over 30 different deposits using its ultrasound assisted technology.

While further detailed work is necessary, it is clear that UAEx has the potential to significantly lower vanadium recovery costs

by decreasing the leaching time and acid consumption, as well as by producing clean water waste from its application.  CAN’s

technology has the potential to reduce the number of leached elements, and in the case of vanadium, a much cleaner V 2O5

product with fewer trace metals that can be, for example, detrimental to manufacture of vanadium flow battery electrolyte and

chemical grade vanadium products.

COMMENTARY

CAN is planning the construction of a pilot scale plant, capable of limited commercial production in Quebec (Canada).  If the

technical and economic viability of the process can be established at a commercial scale, Sparton believes that the

application of UAEx may substantially reduce vanadium production costs and provide more robust economic performance for

any vanadium related production project.  The Company looks forward to additional positive results from more test work.

GOING FORWARD

The Company is currently in discussions with CAN, leading to the signing of a licensing agreement, in order to use the

technology for vanadium recovery from this style of mineralization.

Information about several of these opportunities has been previously reported by the Company in various news releases and

presentations and is available on the Company website www.spartonres.ca or at www.sedar.com.

ABOUT CAN

CAN is a Canadian corporation focused on the processing and purification of energy metals using patent pending

technologies, in partnership with strategic partners.  CAN has directly or through joint ventures access to energy and alloy

metals, such as nickel, cobalt, scandium and vanadium within substantial tailings deposits.  CAN’s key projects are the Punta

Gorda Tailings project, conducted in partnership with the Cuban Government, as well as a joint venture with Auxico Resources

Canada Inc. on optioned coltan properties in Colombia, Venezuela and Brazil.

NEWS ON VRB ENERGY

VRB Energy’s Chief Technical Officer and President of China Operations, Dr. Mianyan Huang, will provide an update on its 100

-megawatt hour pipeline of vanadium flow battery projects in China and forthcoming utility scale deployments at the

International Flow Battery Forum 2019, panel discussions in Lyon France on July 9, 2019.

A. L. Barker M.A.Sc., P. Eng., P. Geol. is the Qualified Person under NI 43-101 for the technical information in this news

release and has reviewed all available data for the results reported and approved the contents of this news release.

For more Sparton information contact:  For more CAN information contact:

A. Lee Barker, M.A Sc., P. Eng., P.Geol.  Pierre Gauthier,

President and CEO  Chairman & CEO

Tel./Fax: +1 647-344-7734  Tel: +1 514-299-0881

Mobile: 416-716-5762   

Email: [email protected]  Email: [email protected]

Website: www.spartonres.ca  Website: www.centralamericanickel.com

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.

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