Sparton Resources Inc. Final Private Placement Closing and Updates

Core Viewpoint - Sparton Resources Inc. has successfully completed a non-brokered private placement offering, raising a total of C$410,000 from both tranches, with the final tranche closing on December 12, 2025 [1] Group 1: Private Placement Details - The second closing involved the issuance of 5,285,715 National Flow-Through Share (NFTS) Units at C$0.035 per unit, generating proceeds of C$185,000 [2] - Each NFTS Unit consists of one common share and one-half of a non-flow-through Share Purchase Warrant (SPW), totaling 2,642,858 full SPWs, which allow the purchase of one common share at C$0.08 within 12 months [2] - Additionally, 500,000 non-flow-through share units (SU) were issued at C$0.03 per unit, each including one common share and one-half warrant, with a full warrant allowing the purchase of one common share at C$0.05 for up to 2 years [3] Group 2: Use of Proceeds - Gross proceeds from the NFTS issuance will be allocated exclusively for resource exploration expenses qualifying as "Canadian exploration expenses" and "flow-through mining expenditures" under the Income Tax Act [4] - The expenditures will be renounced to NFTS purchasers with an effective date no later than December 31, 2025, in an amount equal to or greater than the gross proceeds raised [4] - Proceeds will support exploration activities for the Company's Critical Metals projects in Ontario, particularly focusing on the Pense polymetallic metals project, which has identified mineralization of zinc, copper, and nickel [8] Group 3: Corporate Updates - The Company has awarded and approved the issuance of 4,200,000 incentive options to Directors, Officers, and Consultants, which vest immediately and allow the purchase of common shares at C$0.03 per share, valid for three years [9] - Drilling activities are ongoing on the Quebec Pense Project claims, with a new Expert Geophysics Target EM survey completed in previously unexamined areas [10]