Alhambra Announces a C$5.0 Million Financing

Alhambra Resources Ltd. (TSX VENTURE:ALH)(PINKSHEETS:AHBRF)(FRANKFURT:A4Y)
("Alhambra" or the "Corporation"), an international gold explorer and producer,
announces that the Corporation has entered into a financing agreement with
Global Resources Investment Limited ("GRIL") for a C$5.0 million convertible
note financing. 


GRIL is a UK based investment trust established to seek and exploit investment
opportunities in the junior mining and natural resource sectors. GRIL's
investment objective is to generate medium and long term capital growth through
investments in diverse portfolios of primarily small and mid-capitalized natural
resources and mining companies that are listed on various global stock
exchanges.


GRIL is seeking admission of its ordinary shares on the main market for listed
securities on the London Stock Exchange ("LSE"), where it proposes to
re-register as a public company and constitute as a UK investment trust with the
name Global Resources Investment Trust PLC ("GRIT").


Alhambra and GRIL have entered into a convertible secured promissory note
agreement, whereby Alhambra would, assuming successful listing of the GRIT
shares on the LSE, subscribe for 3,080,904 GRIT shares at a deemed value of one
British pound (GBP 1.00) per GRIT share. Alhambra will then sell the GRIT shares
through the facilities of the LSE to realize the private placement proceeds. 


In exchange for the issuance of the GRIT shares, the Corporation will issue to
GRIT, a C$5.0 million convertible secured promissory note (the "Note") and
warrants. The Note will bear interest at an annual rate of 12%, will have a term
of three years and will be secured by the Corporation's work in progress gold in
Kazakhstan if and when required by GRIT. GRIT has the option to convert both the
principal and interest portions of the Note into common shares of the
Corporation at C$0.25 per common share. Alhambra has the option to pay the
interest in either cash or shares of the Corporation. The Note may be repaid at
any time prior to maturity without penalty. The Corporation also has the option
to force conversion during the term of the Note into common shares of Alhambra
at a minimum of US$0.20 per share. In connection with the Note, Alhambra will
issue warrants to purchase 5.0 million common shares of the Corporation (the
"Warrants"). The Warrants have an exercise price of C$0.30 per common share and
are exercisable for three years from the date of issue of the Note. 


John J. Komarnicki, Chairman and Chief Executive Officer of Alhambra Resources
Ltd. stated, "We are delighted with our announced financing as it will achieve
four things. It will strengthen our balance sheet, allow us to deal with our
creditors, advance our exploration and production development strategy and
minimize shareholders' dilution in a market environment which has undervalued
the Corporation's intrinsic value." 


Completion of the financing is subject to receiving approvals from the TSX
Venture Exchange and GRIT successfully listing its shares for trading on the
LSE. 


ABOUT ALHAMBRA

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


Alhambra's 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 Inc.) 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, finalizing the financings detailed
herein, and other factors and events described in this news release 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, finalizing the financings detailed herein;
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. There is no assurance the financing
outlined above will close on such terms, or at all. 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]
[phone] (FAX)
www.alhambraresources.com