OTC Bulletin Board : SPVEF


August 15, 2008 09:01 ET

Spur Ventures Announces Second Quarter 2008 Results and Project Updates

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 15, 2008) - 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 second quarter ending June 30, 2008. "Yichang Spur Chemical (YSC)'s NPK plant has been closed since August 2007 in order to convert it into a world-scale, flexible manufacturing MAP facility and thus, although we present them, the usual year over year financial comparisons are not particularly useful," Dr. Rob Rennie, Spur's President & CEO stated.

Q2-2008 Revenues were $176,000 resulting in a Gross Profit of $107,000 versus $1,161,000 and $90,000 respectively in 2007. Net Income was ($999,000) or ($0.017) per share versus ($1,435,000) or ($0.024) per share in Q2-2007.

Spur's cash and short-term investment position as of July 31 remains strong at $24,151,717 versus $24,576,521 on March 31, 2008.


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

The Toronto Stock Exchange and the Company's shareholders have approved the investment by Zhong Chuan of $11.34 million in the Company. It is intended that Mr. Sun Ximing and Charles Yan, principals of Zhong Chuan, will be appointed to Spur's board once the financing has been completed.

Closing is expected on or before August 27, 2008.

Mining License Transfers

The Resource Report which defines the current value of the two YMC mines has been completed and is being reviewed by Spur's joint venture partner YPCC prior to submission to officials of the Government of Yichang City. Having a current mine value is a key formal step in the process of the mining license transfer recommendation from Yichang City to Hubei Province.

MAP Project

The formal ground turning for the MAP Project occurred on May 29th with senior officials from Spur, Yichang and Yidu City and the provincial Hubei government in attendance.

To date approximately $1.14 M has been spent on the project. The Company has committed to $6.18 million in contracts for long-lead capital equipment and construction of which approximately $2.0 million is scheduled to be paid by the end of August.

It is anticipated that the Company will draw down the $4.3 million project and $2.86 million working capital loan from Yichang Commercial Bank in the third quarter of 2008. Spur also continues to explore possibilities for project and working capital loans from other Chinese banks.

Integration of YSC and YMC

It was always Spur's intent to consolidate YSC and YMC as the first phase of the Integrated Phosphate Project of YMC.

The first step, formally approved by the Chinese authorities on June 23, 2008, was the purchase by YMC from Yidu Yuanfeng Chemical Company Ltd. of its 11.13% interest in YSC. This leaves Spur and Spur's joint venture partner, YPCC, as the two shareholders of both YSC and YMC which will simplify the eventual integration.

Qualified YSC and YPCC employees are being offered employment with YMC.

Spur Remains in a Strong Working Capital Position

As of June 30, 2008 Current Assets were $25,166,343 and Current Liabilities were $687,170 with no bank loans outstanding.

As of July 31, 2008 Spur had $24,151,717 ($0.40 per share) of cash and short-term deposits, including $21,258,019 held in Canadian banks and $2,893,698 in China (of which $842,329 is in $CDN).

The Company anticipates receiving the $11.34 million Zhong Chuan investment on or before August 27, 2008.

Looking Forward

"Our YMC team is focused on the completion of the construction of the MAP project by the end of December and its commissioning late in the first quarter of 2009 under the leadership of Mr. Sun Ximing as YMC's new Chairman," Dr. Robert Rennie stated. "MAP prices remain strong while sulphur and sulphuric acid prices anticipated to decrease which will add to the profitability of this investment," Rennie explained.

"Our focus is solidly on advancing the Integrated Phosphate Project in Yichang," Rennie stated. The first step will be the successful completion of the MAP Project. When the two mining licenses are transferred, YMC will begin developing the mines and finalizing engineering studies for the two 600,000 mt/yr fertilizer plants."

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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