Alhambra Resources Ltd. Financial and Operating Results for First Quarter ending March 31, 2014

Alhambra Resources Ltd. (TSX VENTURE:ALH) ("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.


HIGHLIGHTS FOR THE QUARTER:



--  The suspension of mining operations continued in the quarter; no fresh
    ore was stacked on the heaps 
--  No gold sales were realized in the quarter 
--  Kazakhstan mining operations recorded a net loss of $4.1 million
    ($0.04/share)  
--  The Corporation recorded a net loss of $4.5 million ($0.04/share)
    primarily the result of a $3.7 million foreign exchange loss
    attributable to mining operations 
--  The estimated recoverable gold in work in progress ("WIP") as of March
    31, 2014 was 30,000 ounces 
--  No field work was carried out in the quarter due to financial
    constraints 
--  Continued pursuing various financing alternatives 



FINANCIAL HIGHLIGHTS



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                                                   Three Months ended       
(in US$000 except per share amounts)                    March 31            
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                                                   2014            2013     
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Revenue from gold sales                                   $ -         $ 541 
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Net income (loss)                                      (4,519)         (561)
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  Per share (basic and diluted)                         (0.04)        (0.01)
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Weighted average shares outstanding                                         
----------------------------------------------------------------------------
  (Basic and Diluted)                             104,132,059   104,132,059 
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Shares outstanding at end of period               104,132,059   104,132,059 
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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 339 ounces ("ozs") of gold
at an average price of $1,599/oz during the first quarter of 2013.


Kazakhstan mining operations recorded a net loss of $4.1 million for the first
quarter of 2014 of 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 loss of $0.6
million ($0.01 per basic and diluted share) for the first quarter of 2013. 


OPERATING HIGHLIGHTS 

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 30,000 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. 


OPERATING EXPENSES

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.


CAPITAL EXPLORATION PROGRAMS

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. 


FINANCING

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 GBP 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. 


OUTSTANDING LEGAL CHALLENGES

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.


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

The Corporation's first quarter 2014 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 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
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, 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: 
Alhambra Resources Ltd.
Ihor P. Wasylkiw
VP & Chief Information Officer
[phone]


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