Sparton Signs Morrison Mine Agreement with Glen Eagle

Sparton Resources Inc. (TSXV:SRI) has signed a definitive Option and Joint Venture Agreement with Glen Eagle Resources Inc. (TSXV:GER) concerning the Morrison Silver Mine property near Gowganda, Ontario. Under the agreement, Glen Eagle has an exclusive three-year option to earn up to a 70% interest by making payments, providing share-cost compensation and funding exploration.

The option grant and its exercise remain subject to the applicable TSX Venture Exchange requirements and the agreement's terms. The transaction is described as arm's length, carries no finder's fee and requires prior Exchange approval.

#Earn-in terms and future ownership

Glen Eagle may earn a 70% interest in Morrison during the three-year option period. If the earn-in is completed and the relevant conditions are satisfied or waived, the companies are to establish a joint venture with initial participating interests of 70% for Glen Eagle and 30% for Sparton. The agreement's dilution and other provisions will apply to the retained interests.

Sparton currently holds an option to acquire a 100% interest in the property under an agreement announced June 18, 2026.

#Payments and exploration commitments

If Glen Eagle carries the option through the full earn-in, aggregate Work Costs will total $500,000. The schedule consists of $150,000 by the first anniversary, a further $175,000 by the second anniversary and a further $175,000 by the third anniversary. The first $150,000 commitment is firm; the later commitments apply if Glen Eagle continues with the option.

Cash option payments total $112,500 if the option runs through its full term. The schedule comprises $25,000 after the effective date and required Exchange approval, $35,000 by the first anniversary and $52,500 by the second anniversary.

Glen Eagle is also required to provide $20,000 in share-cost compensation to Sparton, including $3,500 that has already been paid.

Sparton will remain the operator of exploration programmes during the option period and will receive a management fee equal to 10% of applicable Work Costs.

#Royalty attached to the property

The underlying vendor will retain a 2% net smelter returns royalty on production. One percentage point of that royalty may be acquired for $350,000.

#Planned Morrison exploration

Sparton and Glen Eagle are coordinating the initial exploration programme. Based on its review of historical information, Sparton expects the first phase to refine priority targets and assess unmined areas near the historical workings through surface exploration and drilling. Sparton says the programme remains subject to final programme design, permitting and applicable regulatory approvals.

The proposed exploration work, future expenditures, satisfaction of option and earn-in conditions, regulatory approvals, joint venture formation and joint venture operations are forward-looking matters identified by the company as subject to risks and uncertainties. Sparton said actual results may differ materially from management's expectations.

#Historical Morrison mining information

Historical records cited by Sparton report intermittent silver production at Morrison between 1912 and 1955, totalling more than 750,000 ounces at a reported final average grade of approximately 25 ounces of silver per short ton. Cobalt was the only other metal identified in those historical production records.

The four-claim property includes a capped historical shaft reported to reach approximately 600 feet below surface. Historical accounts describe eight near-vertical veins that were partly mined, along with other silver-bearing areas encountered by drilling but not subsequently developed.

Sparton also reports historical descriptions of native silver at the property, including a mass weighing more than 22 kilograms and a calcite vein containing a rich streak of native silver. Morrison material is held in the Royal Ontario Museum's mineral collection.

Sparton cautions that the production, grade, mine-development and mineral-occurrence details come from historical records and published sources. A Qualified Person has not completed sufficient work to independently verify all of the information through new exploration, and the company is not treating the historical material as a current mineral resource or mineral reserve.

#Jamal Amin appointed Vice President, Corporate Development

Sparton has appointed director Jamal Amin as Vice President, Corporate Development. Amin joined the company's board in June 2026 and is a geologist and mining professional with experience in mineral exploration, project evaluation, corporate development and capital markets.

In the expanded role, Amin will assist with Morrison and Sparton's other exploration interests, as well as project evaluation, strategic partnerships and corporate transactions. The company has granted him an additional 500,000 incentive stock options exercisable at $0.05 per common share for a period of 18 months ending on March 1, 2028. The grant is subject to Sparton's stock option plan and applicable TSX Venture Exchange requirements.

#Key Takeaways

Sparton signed a definitive option and joint venture agreement with Glen Eagle covering the Morrison Silver Mine property near Gowganda, Ontario.
Glen Eagle may earn up to 70% over a three-year option period through payments, share-cost compensation and exploration spending.
The stated full earn-in commitments include $500,000 in Work Costs, $112,500 in cash option payments and $20,000 in share-cost compensation.
Following a successful earn-in and satisfaction or waiver of applicable conditions, Glen Eagle and Sparton are to hold 70% and 30%, respectively, subject to the agreement's provisions.
Jamal Amin has been appointed Vice President, Corporate Development and granted 500,000 additional incentive stock options.

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Frequently Asked Questions

Sparton Resources Inc. (TSXV:SRI) has entered into a definitive Option and Joint Venture Agreement with Glen Eagle Resources Inc. (TSXV:GER) relating to the Morrison Silver Mine property near Gowganda, Ontario. The Agreement was signed September 1, 2026. The grant and exercise of the option are subject to applicable TSX Venture Exchange requirements, and the transaction will be subject to prior Exchange approval.

Glen Eagle has been granted the exclusive right to earn up to a 70% interest in the Morrison Property over a three-year option period by making specified cash payments and share-cost compensation and by funding exploration expenditures. If Glen Eagle completes the full earn-in and the applicable earn-in conditions are satisfied or waived, the parties will form a joint venture with initial participating interests of 70% Glen Eagle and 30% Sparton. The 30% interest is subject to the dilution and other provisions of the Agreement.

If Glen Eagle completes the full earn-in, aggregate Work Costs will total $500,000, consisting of $150,000 by the first anniversary, a further $175,000 by the second anniversary and a further $175,000 by the third anniversary. The initial $150,000 work commitment is a firm commitment, while the later-year commitments apply if Glen Eagle continues with the option. If the option proceeds through its full term, cash option payments total $112,500: $25,000 following the effective date and required Exchange approval, $35,000 by the first anniversary and $52,500 by the second anniversary. Glen Eagle is also to make $20,000 of share-cost compensation to Sparton, of which $3,500 has previously been paid.

Following a successful earn-in, Glen Eagle would hold 70% and Sparton would hold 30% of the joint venture, subject to dilution and other provisions of the Agreement. Sparton will remain operator during the option period and is entitled to a management fee equal to 10% of applicable Work Costs. The underlying vendor will retain a 2% net smelter returns royalty on production, of which 1% can be acquired for $350,000.

Sparton and Glen Eagle are coordinating the initial Morrison exploration programme. Based on Sparton's review of historical information, the Company expects the first phase to focus on refining priority targets and evaluating unmined areas around the historical workings using surface exploration and drilling. The programme remains subject to final programme design, permitting and applicable regulatory approvals. The release identifies statements concerning the Morrison exploration programme, future expenditures, option and earn-in conditions, regulatory approvals, and joint venture formation and operation as forward-looking statements subject to risks and uncertainties.

Historical records previously disclosed by Sparton report production of more than 750,000 ounces of silver during intermittent operations between 1912 and 1955, at a reported final average grade of approximately 25 ounces of silver per short ton. The four-claim property contains a capped historical shaft reported to extend approximately 600 feet below surface, and historical information identifies eight near-vertical veins that were partially mined. The release states that this information is based on historical records and published sources; a Qualified Person has not completed sufficient work to independently verify all of it through new exploration, and Sparton is not treating it as a current mineral resource or mineral reserve.

Sparton has appointed director Jamal Amin as Vice President, Corporate Development. The release says he will assist with coordinating and advancing the Morrison programme and Sparton's other exploration interests, while supporting project evaluation, strategic partnerships and corporate transactions. In connection with the appointment, the Company granted Mr Amin an additional 500,000 incentive stock options exercisable at $0.05 per common share for a period of 18 months ending on March 1, 2028, subject to the Company's stock option plan and applicable TSX Venture Exchange requirements.

Sparton Signs Morrison Option and Joint Venture Agreement with Glen Eagle