Alhambra Announces a C$1.0 Million Financing

Alhambra Resources Ltd. (TSX VENTURE:ALH)(PINKSHEETS:AHBRF)(FRANKFURT:A4Y)
("Alhambra" or the "Corporation") announces that it intends to borrow up to
C$1.0 million by way of convertible secured promissory notes (the "Notes").


The Notes will bear interest at an annual rate of 12% and will mature in three
years after the date of advance. The Notes will be convertible into common
shares of the Corporation at C$0.25 per common share and may be repaid at any
time prior to maturity at the fair market value of the notes at that time. The
Corporation will have the option to force conversion during the term of the
Notes at a minimum of US$0.20 per share. In connection with the Notes, Alhambra
will issue non-transferable warrants to purchase up to 1.0 million common shares
of the Corporation (the "Warrants"). The Warrants will have an exercise price of
C$0.30 per common share and will be exercisable for three years from the date of
issue of the Notes. If the weighted average trading price of Alhambra's shares
for any five trading days within ten consecutive trading days equals or exceeds
C$0.35 per share, any outstanding balance owing on the Notes will be
automatically converted to common shares. Similarly, the outstanding Warrants
will be required to be converted at the same time and under the same conditions.


The purpose of this loan is to provide the Corporation with general working
capital and for exploration and development activities. At this time, the
Corporation has commitments for C$400,000.


Completion of this financing is subject to satisfaction of usual requirements,
including completion of documentation and regulatory body approval, including
approval from the TSX Venture Exchange.


ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production
corporation focused on gold 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
www.alhambraresources.com.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the Policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


Forward-Looking Statements

Certain statements contained in this news release constitute "forward-looking
statements" as such term is used in applicable Canadian and US securities laws.
These statements relate to analyses and other information that are based on
forecasts of future results, estimates of amounts not yet determinable and
assumptions of management. In particular, there is no assurance that Alhambra
will raise the C$1.0 million, or how the realized funds will be used. These
statements should be viewed as forward-looking statements to the extent that
they involve estimates thereof. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "expects" or "does not expect", "is
expected", "anticipates" or "does not anticipate", "plans, "estimates" or
"intends", or stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved) are not statements of
historical fact and should be viewed as "forward-looking statements". Such
forward looking statements involve known and unknown risks including, political,
social and other risks inherent in carrying on business in a foreign
jurisdiction and such other business risks as discussed herein and other
publicly filed disclosure documents. Although the Corporation has attempted to
identify important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements, there may
be other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could vary or differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements contained in this
news release.


Forward looking statements are made based on management's beliefs, estimates and
opinions on the date the statements are made and the Corporation undertakes no
obligation to update forward-looking statements and if these beliefs, estimates
and opinions or other circumstances should change, except as required by
applicable law.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Alhambra Resources Ltd.
Ihor P. Wasylkiw
VP & Chief Information Officer
[phone]


Alhambra Resources Ltd.
Donald D. McKechnie
VP & Chief Financial Officer
[phone]
www.alhambraresources.com