TMX group

SVU: TSX

All amounts are expressed in U.S. dollars unless otherwise stated

VANCOUVER, Aug. 29 /CNW/ - Spur Ventures Inc. (TSX-SVU, NASDAQ OTC
BB-SPVEF) announced today consolidated EBITDA of ($599,000) in the three
months ended June 30, 2006 compared to ($550,000) in the same period in 2005.
Earnings per share were ($0.01), slightly improved from ($0.02) in the second
quarter 2005.

Spur Ventures-Hebei Tianren Final Merger Agreement Signed
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With the successful signing of the Final Merger Agreement with Hebei
Tianren on June 18, 2006 Spur has now effectively assumed functional control
of four new legal entities in China in addition to its two current companies,
YSC and YMC. All six are Sino-foreign joint ventures.
"Although we will maintain each of these six legal entities and maximize
the tax advantages given to Sino-foreign joint ventures, Spur will operate as
a fully integrated company," Dr. Rob Rennie, Spur's President & CEO said.
Once the Hebei Tianren acquisitions are approved in China and by the TSX,
Spur will have:

<<
1. Six Sino-foreign joint ventures;

2. Production capacity of 300,000 tonnes of high quality NPK at three
plants (YSC, Tianding Chemical, Xinjiang Tianren) in three distinct
geographic markets in China;

3. A bagging division (currently part of Tianding) producing 29 million
50kg capacity bags;

4 A marketing division (Agricultural Franchise Co) which markets over
1.3 million tonnes of NPK's representing the largest NPK market access in
China through a distribution channel of over 5,000 retail agents;

5. A trading company (Tianlong) with licenses to import and export rock
phosphate, phosphoric and sulphuric acid, and which will also centrally
source raw materials for all of Spur's plants; and

6. A mining division (YMC) with capacity to produce approximately
1.0 M tonnes per year of high quality rock phosphate with a 30 year
reserve life.
>>

Human Resources for Spur's 900 employees, finance, tax and treasury and
corporate and business development will all be centralized at Spur China's new
headquarters.
Mr. Zhai Jidong of Tianren has been appointed President of Spur China and
Chief Operating Officer of Spur Ventures, and will manage the daily operations
of Spur China's six joint ventures.
Spur and Tianren are working together with the Chinese authorities to
finalize the share transfer of each of the four Hebei Tianren companies to
Spur in a timely manner. The Ministry of Commerce has recently issued
procedures for the share for share exchange using offshore vehicles which will
further clarify the procedures for Spur and Tianren to finalize this merger.
Spur will start to consolidate the financial results of the four Hebei
Tianren companies once the merger is approved by the Chinese government and
Toronto Stock Exchange.
First half 2006 revenues (according to Hebei Tianren's unaudited
financial statements which are based on Chinese GAAP) for the three NPK
operations of Spur China (Spur Tianding, Spur Xinjiang, Spur Yidu) are
approximately 6% higher than 2005. Because of increased raw material costs and
lower product prices being experienced by the entire fertilizer industry in
China, EBIDTA for the four Hebei Tianren companies is in the range of $2.0 M
for the first half of 2006.

YSC (Spur Yidu) Results
----------------------

"During the second quarter we focused on making improvements to our
manufacturing facilities and new product development," Dr. Rennie said. A
$200,000 capital project was successfully completed in April at Spur Yidu
(formally YSC) to allow sustainable high production volumes with improved
product quality. The results were new daily (313 tonnes) and monthly
(6161 tonnes) production records in May, with the best ever product quality
(90% on spec). "These improvements set the stage for Spur Yidu to reduce
production costs and to achieve price premiums in the market for high quality
product," Dr. Rennie continued.
"Spur will continue to differentiate its commodity business with new
products and services," Dr. Rennie said, "in order to ensure that Spur is
viewed as the 'one-stop shop' for the Chinese farmer. As a first step in this
strategy Spur Yidu introduced a new compound fertilizer product, 14-16-15, for
post emergence application."
"Spur Yidu had a tremendous first quarter with record production, sales
and revenues," Rennie reported. "Fertilizer sales are always seasonal and time
dependent and after such a strong 1st quarter, it was not surprising that
demand in the 2nd quarter was substantially lower." As a result, Spur Yidu was
shut down in June and July for inventory control.
Production and sales volumes were 8,857 tonnes and 4,833 tonnes
respectively in the second quarter versus 9,486 tonnes and 9,311 tonnes in the
same period of 2005. Sales revenue was $1,020,000 in the three months ended
June 30, 2006 versus $2,100,000 in the same period of 2005, a 51% decrease.
Gross profit was ($151,000) versus $50,000 in the second quarter 2005,
reflecting lowering NPK selling prices in a slow market and rising raw
material costs. EBIDTA was ($5,000) versus ($93,000) in 2005.
For the first half, production and sales volumes were 22,667 and 17,391
tonnes respectively versus 15,057 and 16,613 tonnes in 2005, reflecting the
very strong first quarter. Sales revenue was virtually unchanged at $3,841,000
versus $3,826,000 in 2005. Gross profit was $45,000 versus $333,000, a
decrease of $288,000 due to increased raw material costs and lower sales
prices. EBIDTA was $128,000 versus $104,000 for the same period in 2005.

Outstanding Bank Loans Resolved for Spur-Yidu
---------------------------------------------

Agricultural Bank of China
--------------------------

YSC's outstanding three party loan situation with its joint venture
partner YPCC, and the Agricultural Bank of China has been repeatedly reported
in previous MD&A's with the Company's financial statements.
"As anticipated we have found a mutually satisfactory solution and this
complicated loan issue has been resolved," Rob Rennie is pleased to report.
"The result of this three way agreement is the restoration of good relations
with the Agricultural Bank." YPCC has agreed to cancel the loan owed by YSC
and YSC has applied that as a credit against the larger loan owed to YSC by
YPCC. The remaining loan balance will be repaid by December 2006.

ICBC Bank Loan Restructured
---------------------------

YSC also signed an agreement with ICBC bank on August 18, 2006
effectively restructuring two loans totaling $1.83 million due in the 4th
quarter of 2005. YSC will repay $0.59 million by the end of 2006 and the
remaining balance of $1.24 million by September, 2007.
"By signing the agreement with ICBC bank, we essentially 'renewed' the
loans for two years," Dr. Rennie said, "and we have maintained our good
relations with a second major Chinese bank."

Moving to the TSX Exchange
--------------------------

Effective August 22, the Company's common shares and share purchase
warrants (expiring July 28, 2007) began trading on the Toronto Stock Exchange
("TSX"). The symbols will remain as "SVU" and "SVU.WT" respectively.
"This move to the TSX is a natural evolution for Spur," Dr. Rennie said,
"as our company grows to being a fully integrated plant nutrient company with
production and market access in key regions of China."

Outlook
-------

"China is an emerging fertilizer market and such markets always lack
discipline," Dr. Rennie explained. "There are too many companies mining and
producing phosphate fertilizers and most lack economies of scale and secure
access to raw materials."
"We anticipate a significant consolidation in the industry in the next
few years which will be to Spur's advantage," Rennie continued. "As raw
material prices in China approach international levels and China's rock
phosphate reserves are depleted, a company like Spur with its own rich rock
phosphate reserves supplying its own production facilities will be more
competitive."
Spur is progressing in negotiations with Yichang City to acquire new land
for a world scale compound fertilizer production facility while continuing to
advance the Company's engineering studies for both the development of the
Company's mines and the construction of the new plant.
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

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Spur will be the preferred supplier of all the knowledge, products and
services the Chinese farmer needs to be successful.

The Toronto Stock Exchange has not reviewed nor accepted responsibility
for the adequacy or accuracy of the contents of this news release, which has
been prepared by management. Statements contained in this news release that
are not historical facts are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ materially from estimated results. Such risks and
uncertainties are detailed in the Company's filings with the TSX and on SEDAR.
Forward-looking statements are based on the beliefs, estimates and opinions of
the Company's management on the date the statements are made. The Company
undertakes no obligation to update these forward-looking statements if
management's beliefs, estimates or opinions, or other factors, should change.