Sparton Resources Inc. (SRI:TSX-V) (the "Company") is pleased to announce that its subsidiary, Sparton Energy Inc. ("SEI") has executed a Letter Of Intent (LOI) with a private investor, where under the investor will purchase a debenture in SEI in the sum of C$1.7 million (the “Transaction”). The proceeds of the debenture will be used to complete SEI's acquisition of an initial 51% share interest in Linxing 306 Huajun Coal Co. Ltd. Lincang City (" Huajun "), which owns the profitable Huajun coal and germanium producing operations in Yunnan, China. This will result in SEI taking over control of the operations and the cash flow at Huajun, which latter is currently estimated to be approximately USD$50,000 per month based on recent concentrate sales. SEI has completed the sourcing of experienced technical and financial staff to effect transition of the operational and management changes.

Under the non binding terms of the LOI, the investor will receive monthly revenue from the Huajun operations.  As investor repayment options, SEI or the investor may elect, at or 30 days prior to debenture maturity, to have the principal of the debenture plus a 25% premium paid in cash, or to have the principal of the debenture converted into shares of SEI at a 50% premium in value, if SEI is in the process of becoming a publicly listed entity. In the event that neither of these alternatives is chosen, the investor may elect to hold a direct 34% share interest in Huajun.

The debenture will mature 21 months from closing the Transaction and is subject to all applicable third party and regulatory approvals and such other terms as are customary and mutually agreed to between SEI and the investor, according to definitive documentation related thereto. The anticipated closing date of the Transaction is July 15, 2009.

Closing of the Transaction is subject to various conditions precedent, including receipt of all required regulatory, corporate and third party approvals.

RICHARD D. WILLIAMS JOINS SPARTON BOARD

The company welcomes Richard D. Williams to Sparton’s Board of Directors, effective his election at the Company Annual and Special Meeting held on June 25, 2009. Mr. Williams is a senior level mining executive with broad, in-depth experience in international and corporate and commercial affairs and securities law. A multilingual member of the Law Society of Upper Canada, he is an active director of several public resource companies and has been involved in successful development, financing and administration of a number of junior issuers. Sparton will benefit from his experience and connections in the industry.

NEW INITENTIVE OPTIONS GRANTED

Pursuant to receiving shareholder approval of the Company Stock Option Plan at the June 25, 2009 Annual and Special Meeting of Shareholders, incentive  options to purchase a total of 885,000 common shares of the Company have been granted to Directors,  Officers and Consultants of the Company on July 3, 2009.  The options are exercisable at $0.10 and will expire on July 3, 2014.

SPARTON RESOURCES INC. Company website: www.spartonres.ca
Listed:TSX Venture Exchange
Trading Symbol: SRI.

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to exploration and development, the environment, local and foreign government regulation, currency fluctuation infrastructure, capital markets and additional funding requirements and the departure of key executives as well as those factors discussed in the Company’s documents filed on SEDAR (www.sedar.com).  Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.  Further information on Sparton Resources Inc. is available at www.sedar.com.

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.

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.