Alhambra Resources Ltd.

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CALGARY, Alberta - Alhambra Resources Ltd. (TSX-V: ALH) ("Alhambra" or the "Corporation") announces that it intends to issue a series of twelve (12%) percent secured debentures due August 11, 2009, in the aggregate principal amount of one million Canadian (C$1,000,000) dollars. The Debentures shall bear interest at a simple rate of twelve (12%) percent per annum calculated annually, not in advance, from and including the date of advancement up to and including the date of maturity. The Debentures shall be secured by way of a first floating charge against all of the assets, property and undertakings of the Corporation. It is anticipated that the entire amount of the Debentures will be subscribed for by officers and directors of the Corporation.

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 seventh 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.