LUXI

Sparton Resources announced that it has received the final payment for the sale of a 39% interest in Yunnan Sparton Minerals Company Limited, the Sino-foreign joint venture company which owns the Luxi Gold Project in Yunnan Province, southwest China.

A drilling program and surface exploration comprising approximately 23 holes in 4 locations (Bajaowa, Guanlingpo, Mabozi and Guanming) was completed. The drill testing continued in Q3 2008 and was suspended at the end of the Q3 2008 period when two drill holes in the Guanming were completed. Two new zones of encouraging gold mineralization were located in the Mabozi and Guanming areas. Only incomplete independently verified assay data are available for two of four drill holes in these two areas. The highlights of results that Sparton can report as verified by SGS, an international recognized analytical company, include two drill holes in the Mabozi area that returned widths of 20 – 70 metres of mineralization grading 0.5-2.0 g/t gold. No follow up drilling has been done here. The gold grades appear to improve considerably with depth and the 1500 metre long Mabozi structure will receive detailed drill testing in the future. Similarly in the Guanming area a surface trench tested by one metre chip samples and verified by SGS indicated a wide zone of 35 metres averaging 1.3 g/t gold. The samples taken from two drill holes testing this area have not yet been verified.

A 2 million RMB operating budget (approximately $300,000 Canadian dollars) has been approved for the project.