Spur Ventures Inc.
OTC Bulletin Board : SPVEF

Spur Ventures Inc.

August 03, 2011 12:50 ET

Spur Ventures Inc.: Mining Licenses Transferred to Yichang Maple Leaf Chemicals

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 3, 2011) - All amounts are expressed in U.S. dollars, unless otherwise stated.

Spur Ventures Inc. ("Spur" or the "Company") (TSX:SVU)(OTCBB:SPVEF) is pleased to announce that the Central Ministry of Land and Resources ("MOLAR") in Beijing has formally approved the transfer of the mining licenses for the Shukongping and Dianziping phosphate deposits from Spur's joint venture partner, Hubei Yichang Phosphate Chemical Company ("YPCC") to Yichang Maple Leaf Chemicals ("YMC").

The legality of YMC finally owning the two mining licenses backed by security of the title issued by MOLAR result in YMC having a tangible and valuable asset in a country where high quality, large scale phosphate mines are in short supply. This title transfer also confirms that Spur, as a foreign investor, has been "grandfathered" to maintain its equity stake in YMC despite the fact that since 2008 the Ministry of Commerce has placed foreign investments in phosphate deposits on its restricted investment list.

The mining licenses were issued by MOLAR to YPCC in 2004 under the terms of the 2003 YMC joint venture agreement between Spur and YPCC for the sole purpose of YPCC's "in kind" Registered Capital contribution to YMC. Both joint venture partners must complete their Registered Capital contributions with additional cash by December 31, 2011.

The transfer of the two mining licenses from YPCC to YMC was a complicated and time consuming process requiring multiple approvals at the district, country, Yichang City, Hubei Province and Central government level because the deposits are state owned assets of Yichang SASAC being transferred to a foreign invested entity. The entire process began in March of 2005 and since that time international phosphate prices for DAP (di-ammonium phosphate) fertilizer have increased from $220 to $650 per tonne while Chinese domestic prices have increased from $200 to $508 per tonne.

Securing the title to the two mining licenses in YMC's name represents a key step in the process detailed in the Company's March 30, 2011 press release which outlined YMC's plans to develop the two phosphate deposits and to upgrade the rock phosphate into high quality phosphate fertilizers.

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. 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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