Alhambra Resources Ltd.

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CALGARY, Alberta - John J. Komarnicki, Chairman and Chief Executive Officer of Alhambra Resources Ltd. (TSX-V: ALH) ("Alhambra" or the "Corporation"), is pleased to announce that its updated independent National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate has been completed by A.C.A. Howe International Limited (“Howe”) for its 100% owned Uzboy gold deposit in north central Kazakhstan. The updated resource estimate has an effective date of December 31, 2007 and is based on drilling completed up to the end of 2007. The NI 43-101 technical report supporting the resource estimate is expected to be filed on SEDAR at www.sedar.com, within 45 days of the date of this news release.

1. The resource categories for the oxide, transitional and sulphide gold mineralization have been estimated at various cut-offs. The 0.2 grams per tonne (“g/t”) cut-off has been determined by Howe as the “natural” boundary of the deposit. At deeper levels in the deposit, the cut-off grade may have to be increased. At a 0.20 g/t gold cutoff, the gold resources contained in the oxide, transitional and sulphide for the Uzboy gold deposit by category are estimated as follows:
• Measured resource of 20,462,400 tonnes with an estimated average grade of 1.15 g/t containing 759,800 ounces (“ozs”), up 15% versus the December 31, 2006 estimate (see News Release dated June 13, 2007);
• Indicated resource of 10,469,500 tonnes with an estimated average grade of 0.92 g/t containing 309,300 ozs, up 32% versus the December 31, 2006 estimate (see News Release dated June 13, 2007);
• Measured and Indicated resource of 30,931,800 tonnes grading 1.07 g/t containing 1,069,100 ozs, up 19% versus the December 31, 2006 estimate (see News Release dated June 13, 2007); and,
• Inferred resource of 18,714,800 tonnes with an estimated average grade of 0.82 g/t containing 492,300 ozs down 7% versus the December 31, 2006 estimate (see News Release dated June 13, 2007).
2. Estimated average gold grades in all resource categories have increased from that estimated in 2006.
3. The gold mineralization in the West zone is outlined over an approximate distance of 950 m and to a depth of 500 m below surface.
4. The gold mineralization in the East zone is outlined over an approximate distance of 900 m and to a depth of between 250 m and 350 m below surface.

The new resource estimate for the Uzboy gold deposit completed by Howe has an effective date of December 31, 2007. The resource estimate was completed for oxide, transitional and sulphide gold mineralization at various cutoff grades ranging from 0.0 g/t to 5.0 g/t gold. The Measured, Indicated and Inferred mineral resource categories for the Uzboy gold deposit are set out in Tables 1 and 2 (at various cutoffs grades).

1. Measured and Indicated resources estimated for the oxide gold mineralization include previously reported oxide reserves. Inferred mineral resources cannot be used for reportable economic evaluation. Mineral resources that are not mineral reserves do not have demonstrated economic viability. See “Cautionary Note Concerning Reserve and Resource Estimates”.
2. Rounding differences may occur from those numbers presented in the Howe report following “best practice” principals.
3. The updated current mineral resource estimate set out above for the oxide, transitional and sulphide gold mineralization in the Uzboy gold deposit is based on a 3D geologic model and wireframe restricted block model that integrated the exploration work on the Uzboy gold deposit up to December 31, 2007. The block model used a cell size of 5 m by 10 m by 5 m (and sub cell to 1 m along each axis where necessary) and Ordinary Kriged interpolation technique was performed at different search radii and ellipsoid orientations.
4. High-grade outlier values were capped (‘top-cut”) at 32 g/t for the West zone and 20 g/t for the East zone gold prior to compositing based on a review of distribution table analysis (histograms, cum frequency plots), and data decomposition analysis.
5. The Measured, Indicated and Inferred mineral resource categories for the Uzboy gold deposit set out in Tables 1 and 2 (at various cutoffs grades) comply with the resource definitions of the Canadian Institute of Mining and Metallurgy (“CIMM”) and NI 43-101: Standards of Disclosure for Mineral Projects.
6. The Uzboy heap leach mine is processing the Proven and Probable oxide reserves contained in the West and East zones of the Uzboy gold deposit. The Uzboy heap leach mine has been in commercial operations since May 1, 2006. Prior to that date, all environmental, permitting, legal, title and taxation aspects of the Uzboy heap leach mine were established with the various departments of the government of the Republic of Kazakhstan. Saga Creek Gold Corporation LLP ("Saga Creek"), a 100% owned subsidiary of the Corporation, is responsible for the mining and exploration activities conducted on the Uzboy gold project. Saga Creek employs 319 people in its mining and exploration related activities and contributes significantly to the local economy. Saga Creek produces cathodic sediment as a product that is shipped to Europe for refining and marketing. As such, the estimate of the mineral resources for the Uzboy gold deposit and the mineral reserve for the oxide portion of the Uzboy gold deposit are not expected to be affected by the above mentioned issues.

Figures 1 and 2 show the three dimensional block models for the West and East zones of the Uzboy gold deposit using a 0.2 g/t cutoff. The block model for these zones shows the current open pit superimposed on the mineralized zone. The mineralized zone is open along strike to the northeast and at depth in the central portion of the zone. The block model for the East zone indicates that higher-grade gold mineralization occurs at depth and in the southwest portion of this zone. Additional diamond drilling is required to test the unexplored portions of the West and East zones of the Uzboy gold deposit.

The updated resource estimate was prepared by Mr. J.N. Hogg, MSc., MAIG senior geologist from Howe, who is an independent qualified person within the meaning of NI 43-101. Mr. Hogg has reviewed and verified the technical information that forms the basis of and has been used in the preparation of the current mineral resource estimate and this news release, including all analytical data, diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical techniques.

Howe used an Ordinary Kriging wireframe restricted linear block model to estimate the current mineral resources contained in the Uzboy gold deposit as at December 31, 2007. Classification methodology used to assign a level of confidence to the mineral resources conforms to the CIMM mineral Resource definitions referred to in NI 43-101. The input data for the current mineral resource estimate of the Uzboy gold deposit included all diamond drill holes, trenches and pit channel samples collected from the Uzboy gold deposit since 2005. The analytical results and other technical information included in the current resource estimate have been previously announced by way of news releases over the past three years and are available on www.sedar.com.

Log histrograms generated for the unrestricted analytical data show gold grades are grouped into low grade and higher grade populations with a natural cut-off boundary at about 0.2 g/t gold. The 0.2 g/t gold threshold is considered a natural boundary for the gold mineralization and as such was used for modeling of the mineralized zone at the Uzboy gold deposit.

Top cut analyses were performed on the input data set prior to block model estimation. Using these analyses, the top cut for the West zone was set at 32 g/t gold, an increase of 10 g/t over that determined in 2006. Top cut analysis for the East zone was determined to be 20 g/t gold, the same as that in 2006.

All samples contained within the mineralized wireframe were composited to a standard length for geostatistical analysis and interpolation. Variography was performed on the assay data within the 0.2 g/t mineralized wireframe to generate a series of semi-variograms. These variograms were incorporated into the search ellipsoid parameters used in the interpolation process.

Based on the geological model, exploration grid, search ellipsoid ranges, composite sizes and mining method, the data used in the resource estimate was block modeled with a block size of 5 m by 10 m by 5 m for the purposes of the resource estimate.

The gold grade was interpolated into the block model on a domain basis using the input data composite assay files for the West and East zones of the Uzboy gold deposit. Top cuts were applied and Ordinary Kriged method of interpolation technique was used at different search radii until all blocks with each domain received an interpolated grade.

Howe has also been retained to prepare an updated oxide reserve estimate for the Uzboy gold deposit as at December 31, 2007 in accordance with NI 43-101. The updated oxide reserve estimate will incorporate the current updated Measured and Indicated mineral resource estimates for the oxide gold mineralization and will be made available once completed and received. It is expected that the technical report related to the mineral resource estimate disclosed in this news release will include the updated oxide reserve estimate.

Howe has been retained by Alhambra to complete a NI 43-101 compliant Preliminary Assessment (Scoping Study) utilizing the current Measured and Indicated mineral resources estimate dated December 31, 2007 for the Uzboy gold deposit. The result of the Scoping Study will be the first step towards assessing the production potential of the Uzboy sulphide gold mineralization.

The 2007 drill program and sampling protocol was completed under the supervision of Elmer B. Stewart, MSc., P. Geo., Alhambra’s Qualified Person as defined by NI 43-101. A rigorous quality control and quality assurance protocol was used during the drilling program, including blank, duplicate and reference samples with each batch of assays. All drill core samples were analyzed by atomic absorption and fire assay at Centregeoanalit Laboratories in Karaganda, Kazakhstan. Centregeoanalit Laboratories do not have an International Standards Organization (“ISO”) rating and is independent of Alhambra. Check sample selected by Howe were fire assayed at OMAC Laboratories Ltd., County Galway, Ireland. Mr. Hogg has verified the data that forms the basis for the mineral resource estimate and the technical information contained in this press release.

Alhambra is a Canadian based gold exploration and production corporation engaged in the exploration of and production from its 100% owned, 2.7 million acre Uzboy Project. Alhambra is currently in its sixth year of operations in the Republic of Kazakhstan, commencing commercial gold production in May 2006.

Alhambra common shares trade on The TSX Venture Exchange under the symbol ALH and in Germany on the Frankfurt Open Market under the symbol A4Y. The Corporation's website can be accessed at www.alhambraresources.com.

This press release and other information released by Alhambra uses the terms “resources”, “measured resources”, “indicated resources” and “inferred resources”. United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the “SEC”) does not recognize them. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time a reserve determination is made. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

United States investors are cautioned not to assume that all or any part of Measured or Indicated resources will ever be converted into reserves. Inferred resources are in addition to Measured and Indicated resources. Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. United States investors are cautioned not to assume that all or any part of an inferred resource exist, or that it can be mined economically.

NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this press release or released by Alhambra in the future, have been or will be prepared in accordance with NI 43-101 and the CIMM and Petroleum Classification System. The requirements of NI 43-101 are not the same as those of the SEC.

Figure 1 - West Uzboy Block Model 3D View Looking Northeast

Figure 2 - East Uzboy Block Model 3D View Looking Southeast

The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.