Alhambra Resources Ltd. - 2008 Objectives, Preliminary Capital Program & Operational Targets

    CALGARY, Jan. 18 /CNW/ - Alhambra Resources Ltd. (TSX-V: ALH) ("Alhambra"
or the "Corporation") is pleased to announce its preliminary 2008 capital
budget related to its Uzboy Project located in north central Kazakhstan. The
Uzboy Project covers 11,000 km(2) (2.7 million acres). Within the Uzboy
Project, the Corporation has identified 125 exploration targets, six being
advanced exploration areas.
    Stated John J. Komarnicki, Alhambra's Chairman and CEO, "The year 2008
will be a year in which Alhambra will continue to lay the foundation for
continued growth."

    A number of the Corporation's more important 2008 objectives include:

    -   Updating the current NI 43-101 compliant resource and reserve report
        for the Uzboy gold deposit before the end of the first quarter of
        2008. The update is being done by the Corporation's independent
        geological consultant, A.C.A. Howe International Limited ("Howe").
        The current Howe report is effective as of January 1, 2007. In 2007,
        four successful drilling campaigns were completed on the Uzboy gold
        deposit. The drill results from these drilling campaigns are being
        incorporated into the updated report which will be effective
        January 1, 2008.
    -   Advancing the Uzboy Scoping Study to a pre-feasibility study. Howe
        has been retained to complete a Scoping Study of the Uzboy gold
        deposit. The result of the Scoping Study will be the first step
        towards assessing the economic potential of the Uzboy sulphide gold
        mineralization and will be used to identify additional work necessary
        to complete a pre-feasibility study on the Uzboy gold deposit.
    -   Completing a NI 43-101 compliant resource estimate for the Dombraly
        gold deposit. Howe has been provided with technical information for
        the Dombraly gold deposit and has been requested to confirm if the
        data will enable Howe to generate a NI 43-101 compliant resource
        estimate in 2008.
    -   Installing a crushing unit at the Uzboy heap leach mine to maximize
        gold recovery. Alhambra currently produces gold from two open pits,
        the West and East pits. The West pit has been in operation since
        2004. As the West pit reached a depth of approximately 30 metres,
        mining operations were suspended on a temporary basis in the third
        quarter of 2007. This action was taken as at this depth, the ore was
        harder and could not be optimally fragmented by drilling and blasting
        operations alone. To ensure optimal fragmentation to maximize gold
        recovery, crushing of the ore from the West pit is required. Hence a
        crushing unit is anticipated to be installed in 2008. Once the
        crushing unit is operational, ore from both pits will be stacked on
        heap leach pads and it is expected that the blended ore will be of
        higher grade than the lower-grade East pit.
    -   Drilling advanced exploration targets. Alhambra currently has
        approximately 125 mineral targets within its Uzboy Project license
        area. Of these targets, six are categorized as advanced exploration
        areas. In 2008, the Corporation will be focused on continuing to
        drill out the zones of gold mineralization at the Uzboy and Dombraly
        deposits and at the same time, advancing the work of getting a
        NI 43-101 compliant resource estimate completed for the Shirotnaia
        zone in 2009.

    Alhambra's preliminary 2008 capital budget is C$6.0 million. Of this
amount, approximately C$3.5 million will be spent on exploration and the
remaining C$2.5 million on capital items, including a crushing unit.
    John J. Komarnicki stated, "At this time we are only introducing a
preliminary budget for 2008. We are still awaiting three very important pieces
of information which will impact our final expenditures in 2008. Those
outstanding items include an updated NI 43-101 Uzboy resource and reserve
report, the Uzboy Scoping Study and the outstanding test results for the 2007
drilling programs. Once these items have all been received, then we will be in
a position to analyze and reassess our capital budget for the remainder of
    Operationally, Alhambra is anticipating that 1.1 million tonnes of oxide
ore will be stacked for leaching, up marginally from 2007. Gold production and
sales from the Uzboy heap leach mine are forecasted to be 20,000 and 18,500
ounces ("ozs"), respectively in 2008. This forecast is in line with the 2007
actuals of 20,665 and 18,762 ozs, respectively.

    Alhambra is a Canadian based gold exploration and production corporation
engaged in the exploration of and production from its 100% owned Uzboy
Project. Alhambra is currently in its sixth year of operations in the Republic
of Kazakhstan.
    Alhambra common shares trade on The TSX Venture Exchange under the symbol
ALH and in Germany on the Frankfurt Open Market under the symbol A4Y. The
Corporation's website can be accessed at
    Elmer B. Stewart, MSc. P. Geol., technical consultant, is the
Corporation's nominated Qualified Person responsible for monitoring the
supervision and quality control of the programs completed within the Uzboy
Project. Mr. Stewart has reviewed and verified the technical information
contained in this news release.

    The TSX Venture Exchange Inc. has neither approved nor disapproved the
    information contained herein.

    This news release contains statements about expected or anticipated
results that are forward looking in nature and, as a result, are subject to
certain risks and uncertainties, such as technical issues, new legislation,
competitive and general economic factors and conditions, uncertainties
resulting from potential delays, changes in plans, the occurrence of
unexpected events and the Corporation's capability to execute and implement
its future plans. Actual results may differ materially from those projected by
management. For such statements, we claim the safe harbor for future.

For further information:

For further information: Ihor P. Wasylkiw, Chief Information Officer,
(403) 508-4953; Jim Clarke, Investor Relations, 1-888-290-1335 (Toll Free)

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