Sparton Resources Inc. (SRI) (the "Company") is pleased to announce that its 60% owned Chinese joint venture company, Yunnan Sparton New Environ Tech Ltd. ("SNET") has signed a Letter of Intent ("LOI") with the Fourth Institute ("FINE") of Nuclear Engineering for the final engineering design and construction of a bulk sampling plant to finalize a production flowsheet for processing uranium bearing waste coal ash in the Lincang area of Yunnan Province of PRC. SNET is 30% owned by ARCN the Remote Sensing Branch of the China National Nuclear Corporation ("CNNC") and 10% owned by Beijing John Hanseng Investment Company.
		Lee Barker, Sparton's President with it's partner and the Canadian Premiers at the event in Beijing, China where the company signed the agreement

FINE is also a CNNC subsidiary and is responsible for the design, permitting and approvals of all uranium production facilities in China. The agreement was signed on November 3, 2008 during the Ontario Environmental Trade Mission to China lead by Ontario Premier Dalton McGuinty.

The LOI, with a total possible value of approximately 40 million RMB (approximately USD$5.6 million) allows for the initial Phase I construction of a semi-portable bulk sampling plant with a processing capacity of 10-15 tonnes waste ash per day. Following completion of testing of a minimum of 500 tonnes of uranium bearing ash and finalization of process flowsheet and design parameters, the agreement calls for a Phase II program involving the final design and construction of a production plant having a capacity of approximately 750 tonnes of ash per day. Both a Phases will be expedited on a turn key basis by FINE.

The design flowsheets will incorporate technology for uranium recovery from waste coal ash that has been patented by Sparton in China.

Elsewhere Sparton's wholly owned Yunnan subsidiary company Yunnan Blue Bay Mining is moving forward with the acquisition of the initial 60 % interest in the Huajun germanium operations at Lincang in Yunnan Province. The share transfer process is currently underway and going through the approval process with various government departments.

This agreement is believed to be unique in that it represents the first document of its type where a foreign organization has contracted the construction of a uranium recovery system in China. Sparton's reports and presentation on progress in developing a secondary uranium recovery program in PRC was very well received at the 2008 China Mining Conference held in Beijing from November 11-13, 2008.

Sparton's international exploration and evaluation programs are being carried out under the direct supervision of A. Lee Barker, P. Eng., P Geol., the Company's President and CEO who is a Qualified Person under National Instrument 43-101.

SPARTON RESOURCES INC. Company website: www.spartonres.ca
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Trading Symbol: SRI.

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