TMX group

SVU: TSX-V

VANCOUVER, June 19 /CNW/ - Canada-Spur Ventures Inc. (TSX Venture-SVU,
NASDAQ OTC BB-SPVEF) is pleased to announce that, further to its press release
dated June 29, 2005, Spur has signed the final agreement to acquire the
fertilizer related business of Hebei Tianren Chemical Corporation ("Tianren")
in Beijing on Sunday June 18, 2006.
Assets being acquired (the "Acquired Interests") include a:

1. 95% interest (80% direct and 15% indirect) in Tianren Agriculture
   Franchise Company, China's largest marketer of compound NPK
   fertilizers. The Ag Franchise Co. sells over 1.5 Million tonnes per
   annum ("tpa") of NPK fertilizer as a commissioned sales agent for Sino
   Arab Chemical Fertilizer Company (SACF) and Dayukou Chemical
   Fertilizer Company.

2. 75% interest in Tianding Chemical Company ("Tianding"), which has a
   100,000 tpa NPK plant in Qinhuangdao, Hebei Province. Tianding also
   has one of the largest fertilizer bag manufacturing facilities in
   China with current production under contract of in excess of 28
   million bags per annum for Tianren, SACF, Dayukou and others. The
   bagging facility is a key part of the logistics for distribution of
   50 kg bags of fertilizer within China.

3. 60% interest in Hubei Yichang Tianlong Industry Company, a raw
   materials sourcing and fertilizer trading company based in Yichang,
   Hubei Province, where Spur's current facilities are located. Tianlong
   has an import license for sulphuric and phosphoric acid and will be
   eligible to apply for more import permits in the near future.

4. 51% interest in Xinjiang Tianren Ltd. ("Xinjiang"), which has a
   100,000 tpa plant in Xinjiang Uigur Autonomous Region in northwest
   China, an emerging market in China. The Xinjiang plant has scale up
   potential for over 1 million tonnes of production.

The aggregate audited revenue and EBITDA for these businesses based on
Chinese GAAP were $USD 88.6 million and $USD 3.7 million respectively for
2004, and $USD 300.2 million and $USD 5.6 million respectively for 2005. Had
Spur owned the Acquired Interests during these periods, the contribution to
Spur's EBITDA would have been $USD 2.7 million and $USD 4.2 million for 2004
and 2005, respectively. Due Diligence was performed by Jun He Law Firm and
MG, both of Beijing.
In exchange for the Acquired Interests, Spur will issue approximately
15.5 million shares which translates to a purchase price of approximately 3.8
times EBIDTA based on the 2005 financial results and on Spur share price of
$CDN1.02 (June 16th, 2006 closing). Official approvals from Chinese
authorities are anticipated to occur on a company by company basis. The Spur
shares will be issued to Tianren on a pro-rata basis as each company receives
official approval from the Chinese authorities. The transaction is also
subject to acceptance by the TSX Venture Exchange.
"All Spur shares issued for this purchase are also subject to a 24 month
escrow period starting on the Final Agreement date, thus ensuring that our new
employees are motivated to ensure the success of the merger and the growth of
our 6 companies", said Dr. Robert Rennie, Spur's President and CEO.
"This acquisition and merger set the stage for Spur's future growth in
China" Rennie continued. "Spur will have strong Chinese senior management on
the ground, backed by significant project engineering and technical support
and China's largest NPK marketing organization representing about 15% market
share." "Building up this kind of capability would normally take years in
China" Rennie stated.
"We anticipate capturing significant synergies as we merge Tianren's four
companies with Spur's two Sino-foreign joint ventures, YSC and YMC", Dr.
Rennie continued. "Spur will now have 300,000 tonnes of NPK production
capacity, marketing capability for over 1.5 million tonnes of compound
fertilizers and a significant advantage when purchasing raw materials."
"This is the first stage of implementing Spur's strategy of growth by
consolidation in China" Steven Dean, Spur's Board Chairman stated. "This
merger also strengthens Spur's industry and political advocacy capability in
China. We anticipate that our new partners will help expedite the transfer of
the mining licenses to YMC."
The six companies will operate under the auspices of a newly created Spur
China with headquarters in Yichang City, Hubei Province close to Spur's two
mining properties and current YSC NPK production facility.

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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 NPK 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 TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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