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V an S par RENTIAN PROJECT XIUSHUI VANADIUM REGION JIANGXI, CHINA LONG TERM, HIGH QUALITY VANADIUM PRODUCTION FOR THE FLOW BATTERY, STEEL AND CHEMICAL INDUSTRIES AUGUST 2018 VanSpar Mining Inc. a subsidiary of FORWARD


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RENTIAN PROJECT XIUSHUI VANADIUM REGION JIANGXI, CHINA

LONG TERM, HIGH QUALITY VANADIUM PRODUCTION FOR THE FLOW BATTERY, STEEL AND CHEMICAL INDUSTRIES

AUGUST 2018

VanSpar

斯帕顿钒业

VanSpar Mining Inc. a subsidiary of

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FORWARD LOOKING STATEMENTS

This presentation contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act

  • f 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of

Sparton Resources Inc.(“Sparton”). Forward-looking statements include, but are not limited to, statements with respect to the future price and estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” or variations of such words and phrases or statements that certain actions, events or results“ may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward- looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Sparton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and

  • ther risks of the mining industry. Although Sparton has attempted to identify important factors that could cause actual results to differ

materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements. Sparton does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws. All amounts are in U.S. dollars, unless otherwise stated.

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AVAILABLE VANADIUM PROCESSING PLANT

NEW IN 2010

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ROASTING KILN PRIMARY CRUSHER FEED TO ROASTER CHLORINE RECOVERY SYSTEM COOLING KILN WATER MIX ORE STORAGE

RENTIAN INFRASTRUCTURE

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FORWARD LOOKING STATEMENTS

200 KM

RENTIAN VANADIUM AREA LOCATION

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VanSpar

斯帕顿钒业

VANADIUM

)

2017 -2018 world shortages , price per pound >$12 USD

USES: Steel Industry & Alloys 85%

Major growth opportunities in large storage batteries for solar/wind energy as well as electric and hybrid vehicles Commercial Aviation Aerospace Tools Marine Batteries(VRB) Buildings Bridges Pipelines Airports Subways/Rail Nuclear Facilities

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➢ Large High Grade Primary Deposit - Average 0.9% V205 - up to +2% V2O5 locally,

low impurities ➢ Known Resources in only 3 areas with detailed evaluation

  • over 670,000 tonnes V2O5 defined
  • only 30% of area evaluated in detail

➢ RENTIAN LICENSE OVER 100,000 TONNES V2O5 DRILLED AND AVAILABLE FOR STARTUP MINING ➢ Partially developed open pit areas for mining available, low cost immediate open pit mining, minimal waste / ore ratio ➢ Infrastructure in place - process plant, roads / transportation, power, labor, and water ➢ No process waste to store or reclaim ➢Total maximum capex to production ~$30 million USD

WHY COST ADVANTAGES OF XIUSHUI RENTIAN AREA AND ITS DEPOSIT TYPES

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➢ Clean, efficient, patented process technology

+ 85% recoveries, + 99.7% V2O5 ➢ Low levels of V battery impurities in raw V ore, hence low levels in V2O5 ➢ Direct V battery electrolyte production possible ➢ Potential co-product revenue to subsidize V production ➢ Multiple product markets , Steel , chemical and flow battery industries ➢Low Capex (maximum ~$30 Million USD) to acquire resources, infrastructure and begin production at ~1500 tonnes V205 / Year ➢ Favourable economics , +60% IRR and <2 year payback.

COST ADVANTAGES OF XIUSHUI AREA Cont’d

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NEW PATENTS FOR CLEAN VANADIUM EXTRACTION TECHNOLOGY

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GENERAL AREA V DEPOSITS –A+B+C= 670,000 TONNES V2O5 Government Mandate to Consolidate Vanadium Production in Area RENTIAN QUANKENG MINING LICENSE (C) B A D E Infrastructure Center RENTIAN PROCESS PLANT

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RENTIAN “STONE COAL” VANADIUM MINERALIZATION 0.93% V2O5 / 10 METRES 15% FREE CARBON

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PARTIALLY DEVELOPED FOR VANADIUM MINING RENTIAN PITS DEVELOPED FOR MINING

5-7 DEG. DIPS

25 metres

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HIGH GRADE OXIDIZED VANADIUM RICH ZONES EASILY PROCESSED

1 - 2% V2O5

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RENTIAN DETAILED DATABASE - SURFACE AND DRILLING RESULTS 1.3% V2O5 / 5 METRES

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SEVERAL AREAS WITH DETAILED DRILLING

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DDH 03-11 45M 1.08% V205, 18 g/t Ag, 0.42% Zn / 5 METRES RENTIAN QUANKENG MINING LICENSE DETAILED DRILLING

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1.1% V2O5 OVER 28 METRES 0.32% Zn OVER 28 METRES

RENTIAN DRILL RESULTS

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0.90% V2O5 OVER 12 METRES 0.83% V205 OVER 8.5 METRES 0.30% Zn OVER 24.3 METRES 11.5 G/T Ag OVER 24.3 METRES

RENTIAN DRILL RESULTS

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A 18.2M tonnes @ 0.820% V2O5, (0.5% V2O5 cut off) 170,000 tonnes V2O5 B 35.7M tonnes @0.91% V2O5, (0.7% V2O5 cut off) 350,000 tonnes V2O5 RENTIAN ~15M tonnes @ 0.90% V2O5, (0.5% V2O5 cut off) 150,000 tonnes V2O5

TOTAL + 670,000 TONNES V2O5 !

Several Other Areas with Significant Additional Resources

PARTIAL “RESOURCES” SUMMARY XIUSHUI AREA VANADIUM

NON- NI 43-101 COMPLIANT Over 150 drill holes!

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GRADE THICKNESS CONTOURS

CROSS SECTIONS

Area B Vanadium Project Area A Area B

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FLAT LYING, EASILY MINED ZONES

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➢ World Class PRIMARY Vanadium Deposits. Large Resources, Above Average Grade ➢ Low Content of Impurities ➢ Patented, Clean Metallurgical Processing Developed ➢ Low Environmental Impact, Recyclable Waste ➢ Established Infrastructure, ➢ Low Capex, Low Opex ➢ Potential Co-product and Waste Sales to Subsidize V Production ➢ Multi V Product Production Stream to Subsidize Specialty V Products ➢ READY MARKET IN SPARTON’S MINORITY OWNED VRB ENERGY BATTERY BUILDER ➢ Initial funding required ~ $500,000

RENTIAN COST COMPETITIVE SUMMARY

WHY RENTIAN AND XIUSHUI AREA VANADIUM DEPOSITS ?

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CONCLUSIONS

FUTURE PRODUCTION OF VANADIUM FROM RENTIAN AND THE XIUSHUI AREA CAN RESULT IN:

➢ Stable, Long Term Supply of Vanadium Products

➢ Lower Cost, High Quality High Value Vanadium Products ➢ Possible Vertical Integration for End Product Users of Vanadium

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A SUBSIDIARY OF SPARTON RESOURCES INC.

FOR FURTHER DETAILED INFORMATION: 更多信息请联系:

Lee Barker Tel:+1 – 416-716-5762 Email: info@spartonres.com Richard Williams Tel : +1-416-364-3123 Email: blackwell@tcn.net Charles (Qiming) Ge Tel: +86-18670107777 Email: charlesge@vip.163.com