Sparton Reports Positive Gold Recovery At Luxi.

TORONTO -- 77% Recovery From Crushed Drill Core Opens New Potential For 40 Km Luxi Gold Belt

Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to report positive metallurgical results from gold recovery test work on representative drill core samples from its Luxi Gold Project in southwest Yunnan Province, China, as well as an update on exploration progress at the project. The Company owns an 80% interest in the Luxi Project assets through its Chinese joint venture company, Yunnan Sparton Minerals Company Limited ("YUSPAR"). Yunnan Nuclear Geological Exploration Brigade 201 holds a 20% interest. Full project information is available on the Company's website www.spartonres.ca.

Over 100kg of samples of "HQ" (63mm) sized drill core from three drill holes representing the two styles of mineralization encountered in drilling the Guanlingpo mine area at Luxi were sent to Kappes, Cassidy & Associates at their Reno, Nevada, USA Laboratories. This organization has considerable experience in the gold recovery testing  of disseminated, sediment hosted "Carlin Style" gold mineralization, and is a recognized leader in this field of gold recovery test work. Maps showing the location of the drill holes may be seen on the Company's website.

TEST RESULTS

These first test results reported are for standard 'cyanide soluble gold', the simplest and least rigorous testing method. Further test work on these samples will make use of bottle roll cyanide extraction tests and CIL (carbon in leach) gold extraction  methods. These involve more comprehensive treatment of the samples under similar conditions to those used for commercial extraction of gold in producing operations and may result in increased gold recoveries.

Samples from drill holes GU04-01 & 02 (composite average 2.7g/t gold over 45 metres) represent carbonaceous sulphide rich mineralization occurring in lens-like shear zones which represent only about 10% of the mineralization encountered in the drilling completed to date. These samples produced low gold recovery results.

Samples from drill hole GU04-07 (5.24 g/t gold over 24 metres) are representative of the dominant and more widespread breccia style mineralization encountered in most of the drill holes at Guanlingpo. Approximately 90% of the gold intersections from the 28 hole program completed in 2004 are from this type of mineralization. Gold recoveries varied from 62%-92% in these samples, averaging 77% for all the breccia material tested.

Leachable, Cyanide Soluble Gold

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Drill Hole Number  Sample Number  Head Grade g/t Au  %Gold Extraction
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      GU04-07            1               1.95               78%
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        "                2               1.23               71%
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        "                3               1.89               61%
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        "                4               2.54               83%
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        "                5               3.57               92%
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                                                      Av'g equals 77%
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DISCUSSION

This information clearly indicates that gold can be easily recovered from representative samples of the dominant type of mineralization encountered to date in the Luxi drill program. The low gold recovery for the small amount of carbonaceous, sulphide rich material in the deposit was previously known from earlier test work on apparent refractory looking material by the operators of the Guanlingpo Mine and not unexpected in the current data. Refractory material was only encountered in the first two drill holes and not seen in the remainder of the drilling completed to date. Careful geological mapping in the mine area shows it to be restricted to small lens-like structural shear zones. Similar mineralization is not uncommon in parts of some 'Carlin style' gold deposits with strong structural controls.

40 KM ZONE OF GOLD ANOMALIES UNDER INVESTIGATION

Presently approximately 40 % of the planned 30-40 line km of Induced Polarization ("IP") survey work has now been completed in the overall Luxi area. The work completed has covered a 600m-1000m wide, 3km long zone from Guanlingpo to Mongmo along the Shangmanggyang fault structure hosting the Guanlingpo mine and three other known oxide gold deposits, and a 600 metre wide zone approximately one kilometre long in the Mabozi Area. Preliminary data have been received and show a number of excellent untested targets in both areas. These were previously unrecognized in past limited geophysical work. The IP surveying will continue to test the areas of Hebienzhai-Guanming and Bajowa in the southwest part of the Luxi Project area and is expected to be completed in late May or early June.

YUSPAR also owns its own mobile auger drilling equipment which has been used to successfully trace bedrock gold mineralization through overburden covered areas from Guanlingpo to Mongmo along a 3 km segment of the Shangmanggyang fault zone. The well defined anomalous gold zone will be correlated with the IP results to aid in the selection of drill targets. Over 300 holes have now been completed using this equipment Current auger drilling work is evaluating covered areas at Hebienzhai and Guanming.

All the priority Luxi target areas have now been geologically mapped and exposed outcrops systematically chip sampled. Most of the assay results for this work are pending.

A new core drilling program using YUSPAR owned equipment is expected to begin in the third week of June and will initially focus on delineating resources at Guanlingpo and along the zone to the southwest towards Mongmo. Targets in other areas will be tested later in the year.

COMMENTS

These very positive metallurgical results using very simple gold extraction tests on the dominant mineralization type are extremely gratifying to Company management. There has been a misconception in some sectors that Sparton has been exploring a refractory gold deposit at Luxi and this is certainly not the case. Even higher recoveries are anticipated when the results of the additional testing become available and are reported to shareholders. As well, the early results from the geophysical IP program are extremely encouraging and clearly indicate many good targets along the 3km long zone from the Guanlingpo Mine south-westwards to the Mongmo oxide gold deposit, and also at Mabozi. These provide exciting opportunities for new discoveries.

Sparton's exploration program in China is being carried out under the direct supervision of A. Lee Barker, P. Eng., P. Geol., the Company's President and CEO who is a Qualified Person under National Instrument 43-101.

Sparton Resources Inc. is a diversified mineral exploration company, which has been an active participant in the Canadian junior resource sector for over 20 years. In addition to its Chinese, Mexican, and Canadian portfolio of exploration properties it also holds an interest in a significant offshore natural gas reserve in eastern Canada.

The TSX Venture Exchange has not reviewed and does not accept responsibility for adequacy or accuracy of the content of the information contained herein.

Sparton Resources Inc. (TSX VENTURE:SRI)