Sparton Resources Inc. Final Approval for Private Placement and Updates

Executive Summary

• Sparton Resources Inc. received final regulatory approval for its non‑brokered private placement, raising total gross proceeds of C$410,000.
• The offering comprised 5,285,715 NFTSU units at C$0.035/unit, 6,000,000 QFTSU units at C$0.035/unit, and 500,000 non‑flow‑through share units at $0.03/unit, together with associated warrants.
• Proceeds will be used exclusively for Canadian exploration expenses on the company's Critical Metals projects in Ontario and Quebec, including the Pense polymetallic project and the Oakes Project.

Key Details

• Total Gross Proceeds: C$410,000 from both closings of the private placement.
• Units Issued:
• 5,285,715 National Flow‑Through Share Units (NFTSU) at C$0.035 per unit.
• 6,000,000 Quebec Flow‑Through Share Units (QFTSU) at C$0.035 per unit.
• 500,000 non‑flow‑through share units (SU) at $0.03 per unit.
• Warrant Structure:
• Each NFTSU/QFTSU includes one‑half of a Share Purchase Warrant (SPW); total full SPWs issued: 5,642,858.
• Full SPW exercise price: C$0.08 within 12 months of issue date.
• SU units include one‑half warrant; total full warrants from SU issuance: 250,000.
• Full warrant exercise price for SU: $0.05, exercisable up to 2 years from issue.
• Finder’s Fees: Cash fees of $29,700 and 673,571 full broker warrants issued to third‑party finders.
• Broker warrants on NFTSUs: purchase at $0.05 per share, exercisable within 24 months of Dec 12 2025 closing.
• Broker warrants on QFTSUs: purchase at $0.08 per share, exercisable for 12 months.
• Regulatory Approvals: All necessary approvals obtained from the TSX Venture Exchange and other regulators; securities not registered in the U.S. and may not be offered to U.S. persons without exemption.
• Use of Proceeds: Exclusively for Canadian exploration expenses qualifying as flow‑through mining expenditures, supporting:
• Pense polymetallic metals project (Ontario).
• Oakes Project (near Matachewan, Ontario) – targeting Zn, Cu, Au, Ni, and minor Co mineralization.
• Corporate Updates – Operations:
• Drilling ongoing on the Quebec Pense Project claims; two holes completed.
• New Expert Geophysics EM survey finished across previously un‑covered areas in Ontario and Quebec; results pending.

Notable Quotes

“The successful completion of this financing provides us with the capital needed to advance our critical metals projects in Ontario and Quebec, positioning Sparton for future growth.” – A. Lee Barker, President & CEO

Materiality Assessment: Material – Positive (the financing materially enhances the company’s ability to fund exploration activities.)