Alhambra Resources Ltd. Announces Financial and Operating Results for First Quarter Ending March 31, 2013

Alhambra Resources Ltd. ("Alhambra" or the "Corporation") (TSX
VENTURE:ALH)(PINKSHEETS:AHBRF)(FRANKFURT:A4Y) announces its financial and
operating results for the quarter ended March 31, 2013. All amounts related to
the financial results are expressed in thousands of United States dollars unless
otherwise indicated.


HIGHLIGHTS FOR THE QUARTER:



--  Revenue from gold sales amounted to $1.6 million based on the sale of
    339 ounces ("ozs") at an average price of $1,599/oz 
--  Cash operating costs were $1,136 per oz of gold sold 
--  Kazakhstan mining operations recorded a net loss of $0.1 million
    ($0.00/share)  
--  The Corporation recorded net cash used in operating activities of $1.0
    million ($0.01/share) and a net loss of $0.6 million ($0.01/share) 
--  The suspension of mining operations continued in the quarter; no fresh
    ore was stacked on the heaps 
--  Gold sales were realized from the drawdown of recoverable gold inventory
    from work in progress ("WIP") 
--  The estimated recoverable gold in WIP as of March 31, 2013 was 37,418
    ozs 
--  No field work was carried out in the quarter due to financial
    constraints 
--  Continued pursuing various financing alternatives  
--  Assay results on 2,593 drill samples were pending 
--  6,755 drill and soil samples were prepared for export for analysis 



FINANCIAL HIGHLIGHTS



----------------------------------------------------------------------------
(in US$000 except per share                              Three Months ended 
amounts)                                                           March 31 
----------------------------------------------------------------------------
                                                          2013         2012 
----------------------------------------------------------------------------
Revenue from gold sales                                  $ 541      $ 3,127 
----------------------------------------------------------------------------
Net income (loss)                                         (561)        (160)
----------------------------------------------------------------------------
  Per share (basic and diluted)                          (0.01)       (0.00)
----------------------------------------------------------------------------
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 
----------------------------------------------------------------------------



For the first quarter of 2013, the Corporation recognized $0.5 million in
revenue from the sale of 339 ozs of gold at an average price of $1,599/oz. This
compares to $3.1 million in revenue from the sale of 1,846 ozs of gold at an
average price of $1,694/oz during the first quarter of 2012.


Kazakhstan mining operations recorded a net loss of $0.1 million for the first
quarter of 2013. This compares to net income of $1.8 million for the first
quarter of 2012. The Corporation recorded a net loss of $0.6 million ($0.01 per
basic and diluted share) for the first quarter of 2013. This compares to net
income of $0.2 million ($0.00 per basic and diluted share) for the first quarter
of 2012. 


OPERATING HIGHLIGHTS 

During the first quarter of 2013, no fresh ore was stacked on its heap leach
pads (2012 - 28,420 tonnes ("t')) nor was any waste mined during the same period
(2012 - 321,953 t). Gold sales were realized from the drawdown of recoverable
gold inventory from WIP. As of March 31, 2013, the estimated recoverable gold
classified as WIP was 37,418 ozs. 


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. 


The decrease in sales volume for the first quarters of 2013 was as a result of
the Corporation not mining any fresh ore to stack on the heaps plus the
inability to maintain optimum operating conditions (such as ripping and fluffing
of leach pads, maintenance of optimum levels of cyanide and resin) due to the
Corporation's current financial constraints described above. Revenues from gold
sales were also negatively impacted by a 6% decline in the average price of gold
in the first quarter of 2013 as compared to the first quarter of 2012. 


OPERATING EXPENSES

Operating expenses consist of all costs associated with the production of gold,
(including direct costs incurred in the mining, leaching and resin stripping
processes ("process operating costs"), Mineral Extraction Tax ("MET")),
transportation and refining of the cathodic sediment. Except in periods in which
no new ore is being mined, all process operating costs are charged to work in
progress and are expensed on the basis of the quantity of gold sold as a
percentage of total recoverable gold mined. In those periods in which no new ore
is being mined, certain direct mining costs and depreciation of mining equipment
are expensed directly and not charged to work in progress.


Operating costs for the three months ended March 31, 2013 were $0.4 million or
$1,210/oz of gold sold as compared to $1.6 million or $889/oz of gold sold for
the three months ended March 31, 2012. 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. There was no comparable amount for the three
months ended March 31, 2012. Included in the three months 2013 operating cost
amount is $0.03 million or $74/oz related to the amortization of the bump-up to
fair value from the estimated cost of work in progress on re-valuation on
September 15, 2009. Cash operating costs for the first quarter were therefore
$1,136/oz (compared to $828/oz for the first quarter of 2012). 


The $1.2 million decrease in operating costs in the first quarter of 2013 as
compared to the first quarter of 2012 is due to the reduction in the quantity of
recoverable gold mined and sold during 2013. The $321/oz increase in per unit
operating costs for the first quarter of 2013 as compared to the first quarter
of 2012 is primarily the result of the $311/oz of mining costs charged directly
to operating expenses instead of flowing such costs through WIP. 


CAPITAL EXPLORATION PROGRAMS

During the three months ended March 31, 2013, no field work was carried out in
Kazakhstan. This was as a result of the Corporation's lack of financial
resources. Proposed 2013 drilling and soil sampling locations were prepared. 


As of March 31, 2013, there were 2,593 Shirotnaia assay results pending (2,586
core and 7 QA/QC core re-sampling) from the laboratory, and in addition, 6,755
samples (including 887 QA/QC samples) were prepared for export as follows:




--  Shirotnaia - 2,871 (RC samples), 
--  Zhusaly - 386 (RC samples) and 650 (soil samples), 
--  Vasilkovskoe East - 959 (soil samples) and 2 (rock chip samples), 
--  Dombraly East - 1,887 (soil samples). 



GOVERNMENT OF KAZAKHSTAN PRE-EMPTIVE RIGHT 

Alhambra's original application to the relevant Kazakhstan authority (MINT)
included a floor price for the issuance of common shares at $0.60 per share.
Unfortunately, during the time period that MINT was considering the
Corporation's application, the trading price of Alhambra's common shares dropped
below that floor. The Corporation applied to MINT to have that floor price
reduced to $0.20 per share. The Corporation received the approval effective
December 25, 2012 and it is effective until June 25, 2013. As provided for under
Kazakhstan legislation, the Corporation has applied for an extension.


2013 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 the Uzboy gold deposit. However, these programs as well as the
Corporations ability to continue on a going concern are dependent of Alhambra
completing one or more of the financing deals 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.


UNAUDITED FINANCIAL STATEMENTS AND MANAGEMENT DISCUSSION AND ANALYSIS ("MD&A")

The Corporation's first quarter 2013 financial 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
www.sedar.com. 


ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production
corporation with NI 43-101 gold resources as per ACA Howe International UK and
Micromine Consulting Services UK as noted below:




----------------------------------------------------------------------------
                                Measured (M)                   Indicated (I)
----------------------------------------------------------------------------
Project                     Grade                            Grade          
----------------------------------------------------------------------------
                 Tonnes     (g/t)     Ounces       Tonnes    (g/t)    Ounces
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Uzboy (1)    14,317,200      1.52    700,000    7,009,500     1.22   275,500
----------------------------------------------------------------------------
Dombraly (2)          -                    -      559,000     1.22    22,000
----------------------------------------------------------------------------
Shirotnaia                                                                  
 (3)                  -                    -    2,900,000     0.76    71,000
----------------------------------------------------------------------------
TOTAL        14,317,200      1.52    700,000   10,468,500     1.09   368,500
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                       M + I                        Inferred
----------------------------------------------------------------------------
Project                     Grade                            Grade          
----------------------------------------------------------------------------
                 Tonnes     (g/t)     Ounces       Tonnes    (g/t)    Ounces
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Uzboy (1)    21,326,700      1.42    975,500   11,258,200     1.17   421,700
----------------------------------------------------------------------------
Dombraly (2)    559,000      1.22     22,000    9,317,000     1.01   301,000
----------------------------------------------------------------------------
Shirotnaia                                                                  
 (3)          2,900,000      0.76     71,000   34,577,000     0.58   645,000
----------------------------------------------------------------------------
TOTAL        24,785,700      1.34  1,068,500   55,152,200     0.77 1,367,700
----------------------------------------------------------------------------
(1) Effective as of Dec 31/07 as per ACA Howe per news release dated Apr   
    8/08 at a 0.40 g/t cut-off.                                            
(2) Effective as of Nov 27/11 as per ACA Howe per news release dated Feb   
    7/12 using natural cut-off grades of 0.13 g/t, 0.1 g/t and 0.2 g/t for 
    the low grade stockpile, pit infill and in-situ mineralized zones      
    respectively.                                                          
(3) Effective as of Jan 9/12 as per ACA Howe per news release dated Feb    
    28/12 using cut-off grades of 0.1 g/t for oxide gold mineralization and
    0.2 g/t for transitional and primary gold mineralization respectively. 



Alhambra holds exploration and exploitation rights to a 2.4 million acre (9,800
km2), 100% owned license called the Uzboy Project, located in the Northern
Kazakhstan Metallogenic Province which hosts numerous world-class gold deposits.
Over 100 mineral targets, including three advanced exploration areas, are
contained within the Uzboy Project.


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.


Elmer B. Stewart, MSc. P. Geol., a technical consultant, is the Corporation's
nominated Qualified Person. 


Neither the TSX Venture Exchange Inc. 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, statements regarding the formalization
of a financing, re-initiation of the stacking of ore on the heap leach pads, the
resumption of exploration and development programs, initiating the Uzboy
pre-feasibility study, availability of capital to fund ongoing projects 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, uncertainties and other factors which may cause the actual
results, performance or achievements of the Corporation to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such risks and other factors
include, among others, the formalization of a financing, the re-initiation of
the stacking of ore on the heap leach pads, the resumption of exploration and
development programs, initiating the Uzboy pre-feasibility study, the
availability of capital to fund exploration and production development;
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. 


This news release contains forward-looking statements based on assumptions,
uncertainties and management's best estimates of future events. When used
herein, words such as "intended" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are based on
assumptions by and information available to the Corporation. Investors are
cautioned that such forward-looking statements involve risks and uncertainties.
Actual results may differ materially from those currently anticipated. The
forward-looking statements contained herein are expressly qualified by this
cautionary statement.


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


Donald D. McKechnie
VP Finance & Chief Financial Officer
[phone]