Alhambra Resources Ltd.


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CALGARY, ALBERTA - Alhambra Resources Ltd. ("Alhambra" or the "Corporation"), announces its financial and operating results for the quarter ended March 31, 2014. All amounts related to the financial results are expressed in thousands of United States dollars unless otherwise indicated.

(in thousands of US$ except per share amounts) Three Months ended March 31

2014 2013
Revenue from gold sales $- $541
Net income/loss (4,519) (561)
     Per share (basic and diluted) (0.04) (0.01)

Weighted average shares outstanding
     (Basic and Diluted) 104,132,059 104,132,059
Shares outstanding at end of period 104,132,059 104,132,059

Due to the suspension of operations, the Corporation did not sell any gold and consequently there was no gold sales revenue in the first quarter of 2014. This compares to $0.5 million in revenue from the sale of 339ounces ("ozs") of gold at an average price of $1,599/ozduring the first quarter of 2013.

Kazakhstan mining operations recorded a net loss of $4.1 million for the first quarter of 2014of which $3.7 million was the result of a large foreign exchange loss due to an approximate 19% devaluation of Kazakhstan's currency in February 2014. This compares to a net loss of $0.1 million for the first quarter of 2013. The Corporation recorded a net loss of $4.5 million ($0.04 per basic and diluted share) for the first quarter of 2014. This compares to a net lossof $0.6 million ($0.01 per basic and diluted share) for the first quarter of 2013.


During the first quarter of 2014, no fresh ore was stacked on its heap leach pads nor was any waste mined during the same period. As of March 31, 2014, the estimated recoverable gold classified as WIP was 30,000ozs.

As previously announced, the Corporation is pursuing a number of financing alternatives. Should a financing be successfully concluded, a portion of the proceeds will go towards resuming the mining of ore.


Despite having suspended operations, the Corporation does incur some fixed operating costs. Under normal operating conditions these costs would be charged to WIP and expensed as per the Corporation's accounting policy. These fixed operating costs totaled $0.2 million for the three months ended March 31, 2014. In the three months ended March 31, 2013 the Corporation expensed $0.4 million in cost of sales or $1,210/oz of gold sold.

The 2013 figure includes $0.1 million ($311/oz) of mining costs charged directly to operating costs for the months in which there was no new ore mined. Also included in cost of sales for the three months ended March 31, 2013, was $0.025 million or $74/oz of costs related to the amortization of the bump-up to fair value from the estimated cost of WIP on re-valuation on September 15, 2009. Cash operating costs were therefore $1,136/oz.


During the three months ended March 31, 2014, no field work was carried out in Kazakhstan. This was as a result of the Corporation's lack of financial resources.


During the three months ended March 31, 2014 the Corporation completed the issue of C$5.4 million in convertible notes (the"Notes") and 5.4 million warrants (the "Warrants"). In consideration for issuing the Notes and Warrants, the Corporation received C$0.4 million in cash and 2,764,500 ordinary shares of Global Resources Investment Trust plc ("GRIT") at a deemed price of 1 per GRIT share. At the time the Corporation sells the 2,764,500 of GRIT ordinary shares, the terms related to C$0.4 million in Notes that were issued for cash require that the Corporation repay any principal balance plus accrued interest outstanding plus C$0.02 million in early redemption fees. Upon repayment, any Warrants then outstanding related to the C$0.4 million in Notes will expire.

The Notes were classified as long-term liabilities on the consolidated statement of financial position with $1.4 million and $0.3 million allocated to the fair value of the conversion feature and the Warrants, respectively. The carrying values of the Notes are being accreted to the original face values of the obligations over the three year term of the Notes.


As of March 31, 2014 there were a number of outstanding creditor actions which had been filed against Saga Creek and there were unpaid salaries which had been securitized by the property of the Corporation.

For details related to these legal challenges, see the Corporation's first quarter 2014 financial statements and MD&A. 2014 OBJECTIVES

Currently Alhambra's efforts are focused on arranging financing, the use of proceeds from which will be directed towards the settlement of outstanding accounts payable, the re-initiation of the stacking of ore on the heap leach pads and the resumption of exploration and development programs. The Corporation has identified a number of exploration targets it wishes to drill once funds have been raised. In addition the Corporation plans to begin a pre-feasibility study directed towards bringing into production the transitional and sulphide zones of Uzboy. However, these programs as well as the Corporation's ability to continue on as a going concern are dependent on Alhambra completing one or more of the financing transactions it is currently investigating. While the Corporation has been successful in the past, there is no guarantee that the Corporation will be successful in the future in raising sufficient funds to continue as a going concern.


The Corporation's first quarter 2014financial statements and MD&A are available on the Corporation's website, can be obtained on application from the Corporation and are available under the Corporation's profile on SEDAR at


Alhambra is a Canadian based international exploration and production corporation in Kazakhstan.

Alhambra common shares trade in Canada on The TSX Venture Exchange under the symbol ALH, in the United States on the Over-The-Counter Pink Sheets Market under the symbol AHBRF and in Germany on the Frankfurt Open Market under the symbol A4Y. The Corporation's website can be accessed at

For further information please contact:
Ihor P. Wasylkiw
VP and Chief Information Officer
+1 (403) 508-4953
Donald D. McKechnie
VP & Chief Financial Officer
+1 (403) 228-2855 (Toll Free)

Forward-Looking Statements

Alhambra Resources Ltd.
Head Office Suite 3, 4015 - 1St Street S.E. Calgary, Alberta, Canada T2G 4X7
Phone: (403) 228-2855 Fax: (403) 228-2865 E-mail: