$1 Million Dollar Budget for 2011 Exploration Program

Sparton Resources Inc. (TSX VENTURE:SRI) (the "Company") is pleased to announce today that it has executed a joint venture agreement ( "JV") with Osisko Mining Corporation ("Osisko") (TSX:OSK)(FRANKFURT:EWX) pursuant to which Osisko will spend $1,000,000 on exploration during 2011 to maintain its option (the "Option") to acquire up to a 70% interest in approximately 7500 hectares of mining claims held under option from third parties or wholly owned by Sparton (the "Properties") in the Atikokan Gold Area, Ontario.

The Properties straddle Osisko's Hammond Reef Project property which hosts a NI 43-101 compliant inferred resource of 6.7 million ounces of gold (259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3 grams per tonne cut-off), of which 97% lies within 300 metres of surface.

The terms of the JV mirror the original terms of the Letter Of Intent ("LOI") signed with Osisko on November 10, 2010 (see Sparton News Release dated November 11, 2010).

Osisko will be the manager of the project. A management committee will be formed during the Option Period with two representatives from each party. This management committee will be formed shortly to review all past exploration data generated for the West Hammond and Clement Lake Claim Groups and plan the next phase of exploration. It will be responsible for reviewing programs submitted by Osisko and for approving and evaluating the results of all programs. In the event of a tie, Osisko shall have the casting vote during the Option Period. Upon acquiring a 60% or a 70% interest in the Property, a joint venture would be formed between Osisko and Sparton with pro rata cost participation.

DISCUSSION

"Ongoing work at Hammond Reef by Osisko has clearly indicated the potential for a new gold mining camp in the Atikokan area." stated Lee Barker, Sparton's President and CEO. "We are committed to working diligently with Osisko to advance the potential of the Properties". 

Mr. Barker further added: "Osisko currently has 19 drills operating in the area demonstrating its commitment to developing both the Hammond Reef deposit itself and conducting new exploration on their claim areas. We continue to believe the Sparton Properties can add new opportunities and value to Osisko's overall potential in this developing gold mining camp."

A. Lee Barker, President and CEO

Tel.: 416-366-3551

Fax: 416-366-7421

Mobile:416-716-5762

E-mail: info@spartonres.ca