OTC Bulletin Board : SPVEF


March 31, 2009 18:42 ET

Spur Ventures Announces Fourth Quarter 2008 Results and Business Updates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2009) -

All amounts are expressed in US dollars, unless otherwise stated

Spur Ventures Inc. ("Spur" or the "Company") (TSX:SVU)(OTCBB:SPVEF) announced today its results for the fourth quarter ending December 31, 2008.

There were no revenues or gross profit in Q4-2008 because the Company's NPK plant was idled in August of 2007. Net Income was $2,484,417 or $0.041 per share compared to a loss of ($468,688) or ($0.008) per share in Q3-2008 due to a $3.45 million foreign exchange gain during the quarter, primarily from the conversion of $20.37 million into $24.73 million Canadian dollars.

Revenue and gross profit for 2008 were $333,210 and $124,083 respectively (2007: $7,042,959 and $133,173), and Net Income was $533,976 or $0.009 per share compared to a loss of ($4,837,391) or ($0.082) per share in 2007.


New Strategy

In its November 14th press release, the Company announced the temporary suspension of construction of the Company's MAP project due to the slowness of the transfer of the two mining licenses and the uncertainty of the Chinese and global fertilizer markets. The Company also announced its intention to use its financial resources to make strategic investments in stressed natural resource opportunities with an initial focus on Canadian companies with assets in low risk jurisdictions.

"Spur has two main assets in China," Dr. Rob Rennie, Spur's President and CEO explained. "First we have a major phosphate mining and fertilizer project that has been fully approved by the Ministry of Commerce (MofCom) and NDRC (National Development Reform Commission). This approval would take over 5 years for any start up to achieve and would be very difficult indeed in today's environment for a foreign company. Second, the mining licenses have actually been issued by the Central Ministry of Land and Resources."

Spur is continuing to seek an investment partner for its Chinese operations to reduce its exposure in China while working with YPCC to finalize the new value of the two mines and secure the transfer of the mining licenses to the Company's other subsidiary in China, Yichang Maple Leaf Chemicals (YMC), before the end of November, 2009.

"Spur has no doubt regarding the growth potential of agriculture and fertilizers in China," Rob Rennie stated, "but the key to Spur's continued participation in the Chinese fertilizer market is the transfer of the two mining licenses to YMC."

Consistent with the change in strategy announced in the Company's November 14, 2008 Press Release, the Company is also exploring other investment opportunities.

Controlling Costs

Until the mining licenses have been transferred to YMC, Spur is controlling all possible costs in its China operations. Approximately 120 employees have been laid off at YSC and YMC with appropriate compensation in accordance with Chinese employment law, leaving a core of 20 to maintain the facilities and to serve as a nucleus when operations resume.

Spur Remains in a Strong Working Capital Position

As of December 31, 2008 Total Assets were $28.27 million and Current Liabilities were $1.83 million, with no bank loans outstanding, versus $30.98 million and $0.77 million respectively at December 31, 2007.

As of December 31, 2008 Spur had approximately $20.80 million in cash and term deposits of which $184,000 was in China and approximately CDN $24.8 million in Canadian dollar deposits in Canadian banks.

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.

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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