Alhambra Resources Ltd.: KGK Drilling at North Balusty Discovers Gold Mineralized Corridors

Alhambra Resources Ltd. (TSX VENTURE:ALH) ("Alhambra" or the "Corporation"), an
international gold producer and explorer, announces that a hydro-core lift
("KGK") drilling program completed in 2010 at its 100% owned North Balusty
project area ("North Balusty") (see Figure 1) has led to the discovery of gold
mineralized corridors.


HIGHLIGHTS



--  Drilling has discovered gold mineralized corridors with an indicated
    length of 1,600 metres ("m"), 
--  Gold grades range from 0.13 to 10.91 grams per tonne gold ("g/t Au"), 
--  The mineralized corridors range in widths from 440 to 520 m with
    individual mineralized zones ranging in thickness from 2 to 8 m, 
--  An expanded second phase of reverse circulation ("RC") drilling is
    planned with the objective of determining the exact shape of the
    mineralization and its continuation to depth. 



DRILLING PROGRAM SUMMARY

The objective of the 2010 exploration program at North Balusty was to determine
the source of a 12.8 kilometre ("km") by 2.5 km zone of gold anomalism in
alluvium and saprolitic rocks as established by trenching in prior years and to
estimate the width of the mineralized zone. 


It was not known whether this gold anomalism was produced by a very big zone of
low grade mineralization, a broad low grade of aureole of a deposit, or was just
a set of transported anomalies in reworked saprolite and alluvium. To test this
anomalism, one 2.5 km long line including 51 KGK holes totaling 2,018 m was
completed. The holes ranged in depth from 7 to 79 m, averaging approximately 40
m (see Figure 2). The samples were taken at 2 m intervals over the entire length
of each hole which amounted to 988 samples. Drill results confirmed that a hard
rock (lode) gold mineralization is indeed present in North Balusty. 


DRILLING RESULTS 

Fourteen of 51 KGK holes showed gold anomalism in one or several 2 m long
samples. The most significant drill intercepts are shown in Table 1. Spatial
distribution of the anomalous holes and the anomalous samples along the hole
indicate that the North Balusty target is a set of in-situ gold mineralized
zones. The mineralized corridors have been estimated to range from 440 to 520 m
in width while the individual zones range in thickness from 2 to 8 m. This is
not representative of true width as the drill line was perpendicular to the
anomalous zone.


It appears that the main mineralized corridor (demonstrating a peak gold grade
of 10.91 g/t Au) is related to the 7.5 km long by 80 to 160 m wide zone of
eruptive breccia as identified by geological mapping. In particular, the highest
gold grades coincide with the 1,500 to 1,600 m long NNE orientated splays of
this zone. This trend is considered, by a number of independent prominent
scientists, to be very prospective for high grade gold mineralization in the
region. A second mineralized corridor is developed along a contact zone between
agglomerate tuff and tuffaceous sandstones and the set of the NW striking faults
following this contact. The gold values here vary from 0.13 to 0.9 g/t.
Relations between the gold anomalism and the geological settings appear to
indicate an epithermal, rather than orogenic style, mineralization.


Table 1 - North Balusty KGK Drilling Results 



----------------------------------------------------------------------------
KGKH#             Length   From (m)     To (m)   Interval (m) Grade Au (g/t)
----------------------------------------------------------------------------
BG44808            66.00     37.00      39.00           2.00           0.31 
----------------------------------------------------------------------------
BG44809            56.00     19.00      23.00           4.00           0.37 
----------------------------------------------------------------------------
                             53.00      56.00           3.00           0.35 
----------------------------------------------------------------------------
BG44820            72.00     51.00      59.00           8.00           0.26 
----------------------------------------------------------------------------
BG44823            52.00     11.00      15.00           4.00           4.13 
----------------------------------------------------------------------------
BG44813            72.00     61.00      69.00           8.00           0.41 
----------------------------------------------------------------------------
BG44828            43.00      5.00       9.00           4.00           0.30 
----------------------------------------------------------------------------
                             27.00      31.00           4.00           0.33 
----------------------------------------------------------------------------
BG44833            42.50     33.00      37.00           4.00           5.51 
----------------------------------------------------------------------------
               including     33.00      35.00           2.00          10.91 
----------------------------------------------------------------------------
BG44829            35.00     25.00      27.00           2.00           0.33 
----------------------------------------------------------------------------



As a result of the successful KGK drilling program, Alhambra is currently
reviewing an expanded second phase 42 hole, 6,300 m RC Drilling program at North
Balusty. The objective of this second phase drilling program is to determine the
exact shape of the mineralization and its continuation to depth. This
anticipated program would include two RC drill lines, 50 m apart of the original
KGK line. 


DRILLING AND SAMPLING PROCEDURES 

Hydro-core lift drilling is a system designed to drill holes for geochemical
sampling and geological mapping of cover sediments and basement rocks. This
method was developed in the Former Soviet Union and is in general similar to
'wet' RC drilling. It is used in the early phases of mineral exploration for a
quick assessment of relatively large areas. In KGK drilling, system rocks are
cut by hard alloy crown bits and the cut chips and drill mud are delivered
through a dual rod by pump to the surface where the material is filtered out and
collected.


The drilled KGK holes had a 9.2 centimeter diameter. The cuttings from the
interval sampled in each hole were mechanically split into two samples. The
samples selected for analysis were placed in a cloth bag and weighed at the
drill site. The weight of the samples ranged between 2 and 5 kilograms. Based on
sample weight, the recovery from the holes is estimated to be between 90 to
100%.


Sample preparation was completed by Stewart Assay and Environmental Laboratories
located in Kyrgyzstan using the following procedure: samples were crushed to
minus 2 mm, mixed and split into two 200 gram sub-samples. One sub-sample was
pulverized to - 200 mesh and the other sub-sample was retained for reference
purposes. A 30 gram sample of the -200 mesh material was used for fire assay
with atomic absorption finish. Stewart Assay and Environmental Laboratories is
independent of Alhambra and has International Standard Organization ("ISO")
17025 accreditation.


QUALITY ASSSURANCE QUALITY CONTROL

The Kyrgyzstan Stewart Assay and Environmental Laboratories, as a part of
Stewart Group, have stringent quality assurance and quality control ("QA/QC")
procedures. Alhambra also follows a rigorous QA/QC program consisting of
inserting standards, blanks and duplicates into the sample stream submitted to
the laboratory for analysis to ensure that the sampling and analysis of all
samples is conducted in accordance with the best possible practices.


Elmer B. Stewart, MSc. P. Geol., a technical consultant, is the Corporation's
nominated Qualified Person as defined by National Instrument 43-101, and has
reviewed the technical information contained in this news release. 


ABOUT NORTH BALUSTY

North Balusty is one of Alhambra's 2011 early stage exploration targets within
the Corporation's 100% owned Uzboy Project located in north central Kazakhstan.
North Balusty is located approximately 90 kms southeast of Alhambra's Uzboy gold
deposit and 70 kms northwest of the City of Stepnogorsk, Alhambra's Kazakhstan
operating base.


ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production
corporation celebrating its eighth year of operations in the Republic of
Kazakhstan. Alhambra holds exploration and exploitation rights to a 2.4 million
acre (9,800 km(2)), 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 plays,
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.  


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 concerning the anticipated
expanded reverse circulation drilling program, 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, actual results of the drilling
program, the availability of capital to fund future exploration programs;
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. 


To view Figures 1 and 2, please visit the following link:
http://media3.marketwire.com/docs/826alh_map.pdf.