OTC Bulletin Board : SPVEF


March 31, 2010 09:01 ET

Spur Ventures Updates Progress on Yichang Maple Leaf Chemicals Integrated Fertilizer Project and Announces Fiscal 2009 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2010) -

All amounts are expressed in U.S. dollars, unless otherwise stated

Spur Ventures Inc. ("Spur" or the " Company") (TSX:SVU)(OTCBB:SPVEF) announced today its results for the year ending December 31, 2009.

In fiscal 2009, the Company posted a net loss of $1,543,210, or ($0.026) per share, compared to net income of $533,976, or $0.009 per share, in 2008. Excluding foreign exchange gains, the Company would have posted a net loss in 2008 of $3,050,091, or ($0.051) per share, compared to a net loss in 2009 of $1,777,232, or ($0.029 per share).

Net cash used in operating activities for the year decreased approximately 34% to $1,272,528 from $1,932,713 in 2008 as the Company continued to aggressively control costs incurred while advancing the transfer of the mining licenses from its partner Hubei Yichang Phosphorous Chemical Co. ("YPCC") to Yichang Maple Leaf Chemicals ("YMC").

The Company continues to maintain a solid cash position with cash and cash equivalents, short- term investments in GICs and marketable securities at the end of 2009 amounting to $23.31 million compared to $20.87 million at December 31, 2008.

Key Developments

Shukongping Mining License Extension

The Central Ministry of Land and Resources ("MOLAR") in Beijing is currently reviewing the requested extension of the Shukongping mining license which officially expired on October 9, 2009.

The extension has been recommended by the relevant authorities in Yichang City and Hubei Province and in late February 2010 YPCC paid the required extension fee for the license, thus completing the last formal requirement before MOLAR can agree to extend the mining license and set a new expiry date.

Transfer of Mining Licenses from YPCC to YMC

The transfer of the mining licenses now requires a complex series of government approvals where all documents and corporate structures must meet proper legal requirements.

First, the Shukongping mining license must be extended in order for it to validly be transferred from YPCC to YMC. The Dianziping mining license is valid until February 2014.

Second, the YMC Business License, which was scheduled for review by Hubei Administration for Industry and Commerce ("Hubei AIC") before November 24, 2009, must be renewed. This renewal can only occur once both JV partners have completed their Registered Capital contributions or agreed to extend the deadline for contributions.

However, since the various approvals for transferring the mining licenses are progressing through the relevant governmental authorities, Hubei AIC has not yet enforced the formal November 24, 2009 deadline. The Company and YPCC are continuing to negotiate with the Chinese authorities to extend the November 24, 2009 deadline to mid 2010 to allow sufficient time for all approvals to be completed.

Third, YPCC must pay for the mines. YPCC has negotiated a payment schedule with Hubei Land and Resources ("Hubei L&R") and has made the first scheduled payment for the Shukongping mine. YPCC has also indicated to Spur that it believes the formal process for the transfer of the two mines from YPCC to YMC will begin once it has made its first payment to Hubei L&R for the Dianziping mine.

Potential Investment in YPCC

YPCC has notified Spur that it is in discussions with a major Chinese company which intends to acquire a majority position in YPCC.

No further details in respect of this potential investment are available at this stage. A further announcement will be made as appropriate.

More information can be found in the audited financial statements and the related notes and the management discussions and analysis of the period filed with Canadian regulators on SEDAR at www.sedar.com and on the company's website: www.spur-ventures.com.

This news release includes certain statements that may be deemed to be "forward-looking statements" regarding the timing and content of upcoming programs. Although Spur believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include phosphate and potash prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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