OTC Bulletin Board : SPVEF


May 15, 2008 13:22 ET

Spur Ventures Announces First Quarter 2008 Results and Project Updates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - All Amounts Are Expressed in U.S. dollars Unless Otherwise Stated

Spur Ventures Inc. ("Spur" or the "Company") (TSX:SVU)(OTCBB:SPVEF) today announced its results for the first quarter ending March 31, 2008. Earnings per share were ($0.008) versus ($0.010) in the same quarter in 2007 based on revenues of $105,000 versus $2,867,000, gross profit of $16,000 versus $127,000 and net income of ($482,000) versus ($589,000).

Yichang Spur Chemical's (YSC) NPK plant has been idled since August of 2007 in preparation for the addition of a Mono-ammonium phosphate (MAP) production facility. At the time of this press release, YSC had only 230 mt of NPK fertilizer inventory remaining, all of which has been committed for sale.


Zhong Chuan International Mining Holding Company Limited ("Zhong Chuan") Investment in Spur

On April 14, 2008 Spur announced it had signed a binding MOU with Zhong Chuan to complete an equity private placement (the "Offering") in the amount of $11,340,000, and to pursue strategic investments in China and elsewhere in Spur's fertilizer business. Pursuant to the Offering, the Company will sell to Zhong Chuan 18,000,000 units at $0.63 per Unit. The units will consist of a total of 18 million shares, 9,000,000 warrants and 9,000,000 Special Warrants. The exercise of the warrants and special warrants is subject to the completion of certain milestones, including the transfer of the mining licences (described below) to the Company's majority-controlled Chinese joint venture, Yichang Maple Leaf Chemicals Ltd. ("YMC") on or before April 19, 2009, and relating to YMC being in a position to mine the deposits subject to such licences on or before May 31, 2010. Closing of the Offering is subject to, among other things, regulatory approval and the approval of the shareholders of the Company.

Mining License Transfers

The draft Resource Report has been received by our joint venture partner YPCC. Spur and YPCC are studying the report to ensure that all key assumptions are accurate and valid after which the Report must be approved by the Ministry of Land and Resources.

Mr. Sun Ximing, Chairman of Zhong Chuan, has been appointed as Chairman of YMC, and he and two Zhong Chuan employees based in Yichang have been invited to represent Spur on the Board of Directors of YMC. "In his capacity as Chairman of YMC, Mr. Sun will have full authority to work directly with government officials to advance the transfer of the two mining licenses to YMC," explained Dr. Rob Rennie, Spur's President & CEO.

Mr. Sun has also been appointed Chairman of Yichang Spur Chemicals ("YSC") in order to facilitate the future merger of YSC and YMC.

MAP Project

The MAP Project announced on March 31 remains on time and on budget.

YMC has successfully negotiated a project capital loan of $4.29 million and a working capital loan of $2.86 million with the Yichang Commercial Bank.

Bids for additional capital equipment and civil works totaling approximately $3 million are being negotiated.

"The fundamentals of this project are stronger than ever," Dr. Rennie stated. "MAP sales prices are now over $571 versus $271 per tonne when the Company commenced planning for the project, while P rock prices have remained constant at $57.43 per tonne. NPK prices have not increased to the same extent as MAP and are now at $431 per tonne before the impact of the recently negotiated $400 per tonne increase in imported KCL have been factored in."

Spur Retains Its Strong Working Capital Position

Total Assets were $30.0 million versus Current Liabilities of $700,028, with no bank loans outstanding.

As of April 30, 2008 Spur had cash and cash equivalents and short-term investments of $25,032,316 ($0.415 per share) of which $21.6 million was held in Canadian banks and $3.5 million in China of which $2.6 million are in $CDN.

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.

Spur Ventures Inc. aims to be the premier integrated fertilizer manufacturer in China, with plans to produce up to one million tonnes per year of high-quality compound phosphate fertilizer for domestic consumption in the central province of Hubei, China. These expansion plans include the development of the largest phosphate deposit in China, located near Yichang City.

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 Ventures 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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