Alhambra Resources Ltd.

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CALGARY, ALBERTA - Alhambra Resources Ltd. (“Alhambra” or the “Corporation”) is pleased to announce that the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan, the Committee for Geology and Subsoil Use and the State Commission on Reserves of Minerals has approved a 750,000 tonne large scale semi-industrial test (a “bulk test”) on the oxide gold mineralization from the Dombraly zone. The Dombraly zone is located in the Sary-Arka License (with serial number MG #1029-D) approximately 80 kilometres to the southeast of the Uzboy gold deposit. The Uzboy gold deposit is located in the Uzboy License (with serial number MG #719DD). These two licenses make up the Uzboy Project.

Large scale semi-industrial tests are a fundamental part of the exploration process in the Republic of Kazakhstan and are completed to gain information related to percentage gold recovery and other information for the mineralized zone under exploration.

Additional exploration including diamond drilling and the “bulk test” are planned on the oxide zone of gold mineralization at the former Dombraly open pit mine. The potential target in the oxide zone at Dombraly that is the focus of the proposed exploration program could range from 5 to 7 million tonnes with gold grades ranging from 1.40 grams per tonne (“g/t”) to 1.80 g/t.

The above potential quantities and grades of the exploration target are conceptual in nature. To date there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

The basis for the potential quantity and grade of the exploration target is:

1. the results from the historical and current exploration and previous mining information,
2. based on the diamond drilling completed in 2005, the oxide portion of the gold mineralization extends to a depth of 100 metres (“m”) below surface, has a minimum strike length of 400 m and is open along strike to the north and south, and
3. the average grade of all channel samples collected from the waste pile produced as a result of the previous mining activities at this former open pit mine.

The Dombraly zone was explored from 1969 to 1972 by surface and underground exploration methods. Open pit mining of the upper portion of the oxidized part of the deposit to a depth of 60 m occurred between 1985 and 1988. Alhambra commenced exploration at Dombraly in 2005 (see News Releases dated June 27, 2005 and October 18, 2005). A summary of the Historical and Current exploration activities is set out below:

The Dombraly deposit is located approximately 60 kilometres north of the city of Stepnogorsk, Kazakhstan. Stepnogorsk is Alhambra's operating base for its 100% owned Uzboy heap leach mine in north central Kazakhstan. The "bulk test" is planned on both the in-situ oxide gold mineralization and includes what is referred to as a "waste pile" produced by the former open pit mining activities. Trenching at 20 m intervals and continuous channel sampling along the walls of the trenches in the waste pile was completed. The gold grades of the channel samples ranged from 0.10 g/t to 47.8 g/t. The average grade of all channel samples collected was 1.18 g/t gold based on a 0.10 g/t gold cutoff.

The Dombraly zone is located within the NNW trending Dombralinskaya fault zone, a regional scale structure in this part of Kazakhstan. To the north of the Dombraly deposit is the Kimerly gold-polymetallic mineral showing and the South Balusti quartz-lode gold deposits. A number of gold showings are located south of the Dombraly zone.

The gold mineralization at Dombraly is oxidized to a depth of approximately 100 m. The oxide zone is underlain by a transitional zone which in turn is underlain by sulphide gold mineralization. The gold mineralization is hosted in volcanogenic and sedimentary rocks of Upper Ordovician age. These rocks show varying degrees of alteration ranging from propylitization on the margins to hydromica (sericite)-chlorite-quartz and sericite-quartz metasomatites in the central part of the mineralized zone. The metasomatites are composed of fragments of brecciated rocks with streaks of fine quartz and veins and impregnations of sulphides.

Sulphide gold mineralization occurs below the oxide zone at Dombraly. The sulphide gold mineralization has been intersected at a depth of 260 m below surface, has a minimum strike length of 400 m and is open below the 260 m depth and along strike to the north and south.

Bottle roll and column leach tests on the oxide gold mineralization from the Dombraly deposit were completed by Kazmechanobr, located in Almaty, Kazakhstan. The results of the work completed by Kazmechanobr were previously announced in a News Release dated June 27, 2005. A summary of the information contained in that News Release is as follows:

1. the column test indicates that the oxide gold mineralization is suitable for processing using heap leach method;
2. the expected gold recovery from agglomerated oxide gold mineralization crushed to minus 50 mm is estimated to be 74%; and
3. reagent consumption is estimated to be 0.485 kilograms of cyanide consumed per tonne of material leached.

In 2005, hydrogeological, topographical and geotechnical studies were completed as part of the exploration program completed on the Dombraly deposit. The topographic survey showed that the area around the Dombraly deposit is flat with an average rise in elevation of 3 m over a distance of 1,000 m. The hydrogeological study indicated that sufficient ground water exists to support a large scale semi-industrial test and the geotechnical study indicated the bedrock has sufficient strength to support the foundations of a gold recovery plant and camp.

In order to complete the bulk test, Alhambra needs to construct:

1. a gold recovery plant capable of leaching a minimum of 750,000 tonnes of oxide gold mineralization per year,
2. leach pads,
3. a camp including sleeping quarters,
4. dining and sanitation facilities,
5. a power line to provide electricity,
6. fuel and reagent storage areas, and
7. improve the existing road to the site.

An application has been made to obtain a mining allotment over the Dombraly zone. On receipt of the mining allotment, an application will be made to the local Kazakh administrative authorities to acquire a surface lease on which to construct the leach pads, gold recovery plant and camp facilities.

The infrastructure to complete the bulk test has to comply in all respects to the standards set by the government of Kazakhstan and be designed and approved by an engineering company certified by the government of Kazakhstan. It is expected that Kazmechanobr, the same company that designed Alhambra's Uzboy heap leach mine, will be contracted to complete the project design and engineering documents. On completion of this work, Kazmechanobr will advise the estimated cost of the infrastructure related to the bulk test.

The diamond drilling completed by Alhambra in 2005 used a 76 mm diameter core on 40 m spaced profiles over a strike length of 240 m. A total of 2,394 m in 10 diamond drill holes was completed by Alhambra in 2005. The depth of the drilling ranged from 160 m to 240 m depth below surface. Sample intervals were selected based on lithologies, intensity of alteration and style of mineralization. In general, the sample interval and sample weight averaged one metre and 2.0 kilograms respectively.

The trenching program completed on the waste pile generated by the former mining operation was completed along 40 m spaced profiles to a depth of 1.5 m. The length of the trenches completed along the top of the waste pile ranged from 125 m to 265 m. The trenches were mapped and sampled at one-metre intervals over the entire length of each trench. The channel samples were taken at the bottom of the trench and represent a channel that averaged approximately 10 centimetres wide by 5 centimetres deep. Sample weights ranged between four and seven kilograms.

Sample preparation was completed by Chemical and Analytical Laboratory Quartz LLP located in Stepnogorsk using the following procedure: core and trench samples were pulverized in a jaw crusher to minus 1 mm, mixed and split into two 0.75 kilogram sub-samples. One sub-sample is ground to - 200 mesh and the other sub-sample is retained for reference purposes. A 10 gram sample of the -200 mesh material is used for atomic absorption analysis and the balance is retained for fire assaying and reference purposes. Chemical and Analytical Laboratory Quartz laboratory in Stepnogorsk is certified in the Republic of Kazakhstan but does not have an International Standard Organization ("ISO") rating and is independent of Alhambra.

Alhambra follows a rigorous Quality Assurance/Quality Control program consisting of inserting certain gold standards, blanks and sample duplicates into the sample stream submitted to the laboratory for analysis.

Elmer B. Stewart, MSc. P. Geol., a Director of Alhambra, is the Corporation's nominated Qualified Person has reviewed and verified the technical information contained in this news release.

Alhambra is a Canadian based gold exploration and production corporation engaged in the exploration of and production from its 100% owned Uzboy Project. Alhambra is currently in its sixth year of operations in the Republic of Kazakhstan.

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.

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