Spur Ventures Announces 2007 Annual Results and Expansion into MAP Production for Industrial and Export Markets

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 03/31/08 -- 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 financial year ending December 31, 2007. Revenues for 2007 were $7,042,959 versus $7,193,009 in 2006 resulting in gross profit of $133,173 in 2007 versus $174,381 in 2006.

Annual net income was ($4,837,391) or ($0.08) per share versus ($7,024,912) or ($0.12) per share in 2006 while EBITDA was ($4,141,352) versus ($6,016,288) in 2006.

Cash flows from operating activities was ($1,127,318) or ($0.02) per share much improved from ($2,955,641) or ($0.05) per share in 2006.

Revenues for the quarter ending December 31, 2007 were $118,494 versus $1,877,848 in 2006 because the YSC plant was idled at the end of August to prepare for a new MAP (mono-ammonium phosphate expansion). Net income for Q4 was ($3,507,085) or ($0.05) per share versus ($5,319,716) or ($0.10) per share in 2006.

During the year ended December 31, 2007, the Company retroactively changed its accounting policy for exploration expenditures to align itself with future IFRS policies and those applied by other companies in the fertilizer industry. Previously the Company capitalized all such costs to mineral properties and only wrote down capitalized costs when either the property was abandoned or if the capitalized costs were not considered to be economically recoverable. Exploration expenditures are now charged to earnings as they are incurred. The impact of these changes for 2006 is fully detailed in the Company's financial statements filed with SEDAR.

KEY DEVELOPMENTS

Sino-Canadian Integrated Phosphate Project at Yichang Maple Leaf Chemicals (YMC)

The first stage of the project will be the construction of a mono-ammonium phosphate (MAP) plant at Yichang Spur Chemicals (YSC)'s current NPK plant. The engineering design has been started by the Yunnan Chemical Engineering Design Institute, the Supervisory Contract has been awarded to Changsha Huaxing Construction Supervision Company and commitments for long-lead equipment have also been made. All permitting has been approved by the relevant Yichang and Yidu authorities. This MAP project, with a total capital cost of $14.6 million, is anticipated to come on line near the end of the first quarter of 2009 and to generate EBITDA in the range of $3 to 4 million per year once fully operational.

"This MAP Project fits well with Spur's strategy of flexible manufacturing and economy of scale, positioning Spur as one of China's top ten MAP producers," Dr. Rob Rennie, Spur's President and CEO said. "This project leverages our current investment in YSC allowing Spur to produce up to 200,000 mt/yr of powdered MAP (11-44-0) for the domestic NPK industry, up to 100,000 mt/yr of granular MAP for export to SE Asia or 100,000 mt of specialty NPK's depending on market demand. Both MAP products will allow Spur to have reduced monthly inventory and working capital requirements and positions Spur as an industrial as well as an agricultural supplier. Spur has received Letters of Intent for over 230,000 mt/yr of powdered MAP from NPK producers in China."

Mining License Transfers

Since the two Mining Licenses are considered state assets and are being transferred to a foreign-controlled joint venture, it is necessary to complete an assessment ("Resource Report") of the current value of the mines updated from that made at the time the original joint venture contract was signed in 2003.

This Resource Report must be approved by the Central Ministry of Land and Resources and forms an integral part of the file that will be transferred from Yichang City to Hubei Province Land and Resources as part of the mining license transfer process.

Spur has also engaged Intercedent Beijing Ltd. to assist in the review of the Resource Report and the advancement of the mining license transfers.

Spur-Hubei Tianren Merger

Spur announced on January 30, 2008 that because of the take over of China National Chemical Construction Corporation (CNCCC) by China National Overseas Oil Corporation (CNOOC) and the uncertainty of receiving Chinese regulatory approval, Spur had decided to write off $455,806 in merger-related costs.

Since that time, CNOOC has incorporated the Ag Franchise Company of Hebei Tianren into the operations of its subsidiary, Sino Arab Chemical Fertilizer (SACF), thus removing one of Tianren's major assets to be acquired by Spur and effectively putting an end to the merger.

Spur Retains Its Strong Working Capital Position

As of December 31, 2007, Spur had cash and cash equivalents and short-term investments of $24,987,065 ($0.425 per share) of which $20.7 M was held in Canadian banks and $4.2 M in China versus $26.5 million ($0.453 per share) at YE 2006.

Total Assets were $30.9 million versus Current Liabilities of $768,174 with no bank loans outstanding.

Spur Director Wu Sihai Promoted

Mr. Wu Sihai has been promoted to the Standing Committee of the CPPCC (Chinese People's Political Consultative Conference), China's highest level strategic advisory group for the Communist Party of China (CPC).

2008 Outlook

The severe winter weather during the New Years Festival has caused significant crop damage for winter crops, fruits and vegetables. 11 million hectares or approximately 9% of China's cropland has been affected. In addition, electrical interruptions caused the shut down of many fertilizer plants. Transportation interruptions also impacted the industry.

Since the only means to recover from these crop losses is to increase yields per hectare, the government has taken several steps to ensure adequate supplies of fertilizer for the 2008 domestic market. The government has imposed export tariffs of 35% on MAP, DAP and NPK's from February 15 to September 30 and 20% from October 1 to December 31, 2008 and 30% on MOP, SOP and TSP for the remainder of this year. In addition, the railways have been directed not to carry fertilizers intended for export. Suppliers of raw materials have also been directed to prioritize fertilizer producers.

Despite the previously announced price controls on fertilizers and the continued cost increases for sulphuric acid and potash which are causing many small producers to idle their facilities, the very high DAP and MAP prices on the international market are encouraging continued exports of MAP and DAP by larger scale manufacturers.

"From this point forward, Spur is in "Project Mode" Dr. Rob Rennie stated. "Spur will remain focused on our Integrated Phosphate Project in Yichang. The construction of the MAP plant is our first step in that project." Dr. Rob Rennie said, "and will demonstrate Spur's capability and commitment to the government authorities."

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.

Contacts: Spur Ventures Inc. Dr. Robert Rennie Email: rrennie@spur-ventures.com

Spur Ventures Inc. Mr. Michael Kuta (604) 697-6201 Email: mkuta@spur-ventures.com Website: www.spur-ventures.com

2008-03-31 19:47:56 0324120 MARKETWIRE