Spur Ventures Inc.
TSX : SVU
OTC Bulletin Board : SPVEF

Spur Ventures Inc.

August 10, 2011 12:56 ET

Spur Ventures Announces Second Quarter, 2011 Results and Update on Progress in China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2011) - All amounts are expressed in U.S. dollars, unless otherwise stated.

Spur Ventures Inc. ("Spur" or the "Company") (TSX:SVU)(OTCBB:SPVEF) announces its results for quarter ending June 30, 2011.

The Company posted a net loss of $500,000 ($0.008 per share) in Q2 2011 compared to a net loss in Q2 2010 of $540,000 ($0.009 per share) mainly due to a $21,000 reduction in operating expenses and a $25,000 increase in interest income.

Net cash used in operating activities (before working capital changes) for the quarter was $309,000, a 4% ($323,000) reduction from the same period in 2010 reflecting the Company's continued focus on cost control.

Spur's cash position remains strong with approximately $23.4 million ($CDN 0.37 per share) in cash and short-term investments as of June 30, 2011 compared to $23.34 million at December 31, 2010 and $23.31 million at December 31, 2009.

China Update

As announced in our August 3, 2011 press release, the Central Ministry of Land and Resources (MOLAR) has approved the transfer of the mining licenses for the Shukongping and Dianziping deposits as part of Spur's JV partner, YPCC's "in-kind" equity contribution to Yichang Maple Leaf Chemicals ("YMC").

The next key anticipated events, as outlined in greater detail in Spur's March 30, 2011 press release are:

  1. Approval by the Hubei Province and Yichang City authorities of the takeover of YPCC by Yichang Xingfa Chemical Group Ltd. ("Xingfa")
  2. Approval by Yichang Bureau of Commerce and Hubei Department of Commerce of a modified JV agreement setting the equity sharing between YPCC and Spur to change from 51:49 to 80:20 such that Spur has no further obligation to contribute cash to YMC.
  3. Merger of Yichang Spur Chemicals Ltd. with YMC once YMC's Registered Capital contributions are complete.
  4. Vend-in of Xingfa's fertilizer complex, which is under construction, into YMC to fulfill the JV obligation for YMC to be fully integrated through mining into world scale manufacturing of compound phosphate fertilizers.

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 contains "forward-looking statements". Forward-looking statements include, but are not limited to, statements with respect to the estimation of mineral resources, the timing and content of upcoming programs, the realization of mineral resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; actual results of planned expansion activities; changes in project parameters as plans continue to be refined; future prices of resources; exchange rates for Canadian, U.S. and Chinese currencies; possible variations in grade or recovery rates, accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; Chinese government policies on fertilizer and agriculture; general economic, market or business conditions as well as those factors discussed under "Description of the Business – Risk Factors" in the Annual Information Form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. In making the forward-looking statements, the Company has made certain key assumptions, including, but not limited to, the assumptions that price for phosphate rocks and phosphate fertilizers at certain levels, the estimated phosphate rock resources can be realized and financings are available. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements or information made in this press release, except as required under applicable securities legislation.

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

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