New MD&AOutlookSubject to financing, the Company plans to complete the acquisition of the 85% interest in Huajun Mining,once the new mining licence is issued, (expected in Q4 2011) and further develop the profitablegermanium and thermal coal producing operations of that company under the terms of the Voltaixagreement. The demand and pricing structure for germanium metal and concentrates is expected tostrengthen in the near term and has stood up well under past and current economic conditions. Sparton’sevaluation of the operation after assuming operating and financial responsibility in early September 2009indicates significant room for upgrades to increase profitability with an underground development programto access new reserves and implementation of process controls to increase germanium recoveryefficiencies.The producing asset base at Huajun is expected to provide modest cash flow to Sparton through itssubsidiary YBB by Q3 2012 and will dovetail into the uranium recovery program from waste coal ash in thesame area. By early 2012, subject to financing, it is expected to begin a bulk extraction test program on theextraction of uranium from Lincang area waste ash followed by completion of a scoping or prefeasibilitylevel study. This will lead to final feasibility work by the end of 2012. Test work on other ash deposits, minetailings and low grade waste ore deposits will proceed on an ongoing basis.The new opportunities to acquire and develop the large Xiushui County vanadium deposits in Jiangxiprovince, China and the evaluation of the local refinery fits directly into the Company’s business plan tobecome a profitable specialty metal producer and bring new value to the shareholders through itssubsidiaries.New financing initiatives to support all of these activities are being pursued by Company management onan ongoing basis.Management is in the process of restructuring the diverse asset base of Sparton in order to realize theinherent value of each of its projects for its shareholders and focus on its core specialty metals businesses.New investors and strategic partners will be sought as part of this plan to rationalize the variouscomponents of the Company’s portfolio. The recent agreements to monetize the SBD Nevada and SierraRosario Mexico Projects while retaining potentially valuable production royalties are part of this program.