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Sparton Resources Inc. Announces Shares for Debt Transaction and Grant of Options

V.SRI

TORONTO, ONTARIO--(Marketwired - April 11, 2017) - Sparton Resources Inc. (TSX VENTURE:SRI) ("Sparton" or the "Company") wishes to announce that it has entered into debt settlement agreements (the "Agreements") with five creditors (which include the current President and CFO of the Company), pursuant to which the Company agreed to issue an aggregate of 4,005,700 common shares ("Shares") at a deemed price of $0.10 per share in order to settle certain obligations of the Company totalling $765,894.29 related to unpaid fees and expenses (excluding applicable HST), (the "Debt Settlement Transaction").

The Company has decided to satisfy this outstanding indebtedness with Shares in order to conserve cash.

The Debt Settlement Transaction is subject to the approval of the TSX Venture Exchange (the "Exchange"). The Company will issue the Shares (which are subject to a 4-month hold period on resale), once the Debt Settlement Transaction has been approved by the Exchange.

Grant of Options

The Company has granted options to officers, directors and consultants to purchase a total of 2,775,000 Sparton shares at a price of $0.10 per share. The options are fully vested and expire on April 10, 2020. There are currently 111,375,460 shares of Sparton issued and outstanding.

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.

Forward-Looking Statements

Information set forth in this news release involves forward-looking statements under applicable securities laws. The forward-looking statements contained herein include, but are not limited to, financings and transactions being pursued, and all such forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and, accordingly, undue reliance should not be put on such forward-looking statements. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein.

We Seek Safe Harbour

A. Lee Barker, M.A Sc., P. Eng., P.Geol.
President and CEO
Tel./Fax: 647-344-7734 or Mobile: 416-716-5762
info@spartonres.ca
www.spartonres.ca



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