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Gold/Mining/Energy : SPUR VENTURES STARTING TO MOVE TARGET 9.00 -- Ignore unavailable to you. Want to Upgrade?

To: Joseph LEE who wrote (1229)	10/17/2002 2:51:12 PM
From: Joseph LEE	Read Replies (1) \| Respond to of 1248

Chairman's comment is nothing but just a bunch of bs. He can say whatever he wants but market rarely lies the trades going through speak in volume of the truth. CHAIRMAN’S LETTER TO SHAREHOLDERS The successful planning of a large enterprise is the result of a number of factors. One key factor is the understanding of the market and the changes that take place each year. China is the largest consumer of phosphate fertilizer in the world representing 27% of global consumption and is growing annually by 10%. A three-year slump in fertilizer prices has now come to an end with Chinese prices advancing significantly and has resulted in new enthusiasm within the industry. A new phosphate cycle has begun and Spur Ventures Inc. ("Spur") is well prepared. Throughout this annual report, the President will address a number of areas where significant progress has been made. New product ideas, new off-take agreements, and memoranda of understanding with sulphur and ammonia suppliers will be detailed. A key factor in the development of a large project is patience. In 2001, more than most years, patience was required. The economic slow down brought on by the tragic events of September 11, 2001 were not easy to digest. Large corporations rethought plans to expand internationally, which affected the ability of the Company to conclude a financing plan or, indeed, conclude an operating agreement with a major fertilizer company. In collaboration with Jacobs Engineering, Spur responded to these changing conditions and asked Jacobs to consider a number of reconfigurations that would increase operational cash flow. The resulting model not only greatly increased cash flow, but also reduced the overall capital costs improving the projects internal rate of return. These results are very encouraging and have helped in the renewed interest in the project. An international financial group, Triennex (Pty) Ltd. from South Africa has been retained to complete a project financing, including the necessary equity component, required by Chinese law. Triennex specializes in financing infrastructure projects in developing countries and utilizes credit-enhancing programs, which eliminate the risks – country and economic – for the lending banks. By mid-May, 2002, Spur will learn the terms and conditions of these facilities. Needless to say, Triennex will work very closely with Jacobs Engineering who will now develop further engineering models and arrange for an operator who will operate the facility in the initial stages. It is important to recognize that the Yichang Project itself will be financed and lenders will have recourse to the collateral provided, our 90% interest in the Yichang project. As a result, Spur Ventures will not issue shares for the project other than in the initial stages to ensure that all details required are in order. This will avoid substantial dilution to our shareholders. In fact, the overall project financing is expected to be in place by September 2002, after which our alternatives become much more interesting. First, once it is recognized that the project is proceeding, fully financed, a number of large industry participants will view the project in a different light. A sense of urgency will be implied to industry participants that want access to China’s fertilizer industry, as.well as realizing the tremendous economic potential of the Yichang project. The prospects for a joint venture are enhanced, and this route is the preferred choice of your Directors. Second, the compelling economic returns projected by Jacobs Engineering will allow us to proceed alone utilizing professional operators, as mentioned earlier. The rewards for shareholders will be much higher, but so may be the risks. These alternatives will result in an exciting six months for the team of management and Directors. Important decisions will be made having a very large impact on the fortunes of the Company. The decisions will not be made hastily. Shareholders are asked for their continued patience. The additional patience should be rewarded handsomely. Your Directors are very aware of our lagging share price and feel confident with a little more patience the true value of your Company will be realized by the financial markets. "Robert G. Atkinson" Chairman April 20, 2002