Alhambra Resources Ltd. - Second Quarter 2008 Operational Updates

    CALGARY, July 22 /CNW/ - Alhambra Resources Ltd. (TSX-V: ALH) ("Alhambra"
or the "Corporation") is pleased to provide an operational update for the
second quarter ending June 30, 2008 on its Uzboy Project located in north
central Kazakhstan. These updates include:

    -   Stacking operations - up in the 2nd quarter and ahead of 2007 levels
    -   Production - 2nd quarter production up 22% to 4,116 ozs from 3,376
        ozs in the 1st quarter 2008
    -   Sales - 2nd quarter sales up 4% to 3,272 ozs from 3,140 ozs in the
        1st quarter 2008
    -   Crushing unit - delivered, assembled and operating
    -   Exploration - located three new large gold anomalies at Shirotnaia

    Mining and stacking parameters for the second quarter of 2008 along with
comparative information for 2007 are set out in the table below.

    Stacking Operations                   Q2/08    Q2/07  6 Months  6 Months
                                                          YTD 2008  YTD 2007
    Waste Mined (t)                     510,128  432,620   963,925   571,050
    Waste to Ore Ratio                     2.40     2.07      2.34      1.72
    Ore Stacked (t)                     212,250  209,500   411,750   332,750
    Grade of Ore Stacked (g/t)             0.86     1.09      0.81      1.12
    Gold Stacked on Heaps (g)           182,908  228,426   332,915   374,318
    Recoverable Gold Stacked (g)        128,036  159,898   233,041   262,023
    Recoverable gold estimated to be 70% over life of mine

    In the 2nd quarter, Alhambra stacked 212,250 tonnes of oxide ore ("ore")
on its heaps compared to 209,500 tonnes of ore stacked in the 2nd quarter
2007. Of the total amount of ore stacked in the quarter, 64% (136,500 tonnes)
came from the East pit, 24% (51,250 tonnes) came from the West pit and 12%
(24,500 tonnes) came from the low grade stockpile.
    Waste mined during the 2nd quarter increased by 18% to 510,128 tonnes
compared to 432,620 tonnes in the corresponding quarter of 2007 mainly due to
pushing back the southeast pit wall of the West zone to access higher grade
oxide gold mineralization. The amount of waste mined during the 6 months ended
June 30, 2008 totalled 963,925 tonnes, an increase of 392,875 over the 571,050
tonnes in the same corresponding period in 2007. The increase in waste mined
was due to the pre-stripping of waste on the East zone in the 1st quarter 2008
and pushing back the pit wall in the West zone during the 2nd quarter to
access higher grade oxide ore. These activities resulted in an increase in the
waste to ore ratio for the 2nd quarter 2008 to 2.40, 16% higher than in the
2nd quarter 2007 and 6% higher than that experienced in the 1st quarter 2008.
    The gold grade of ore stacked in the 2nd quarter 2008 averaged 0.86 grams
per tonne ("g/t"), a 15% increase relative to the 1st quarter 2008 when the
gold grade averaged 0.75 g/t. The average grade of oxide ore stacked in the
2nd quarter 2007 was 1.09 g/t gold.
    The amount of ore stacked from the West and East pits in the 2nd quarter
2008 decreased 3% versus that achieved during the 2nd quarter 2007 when
193,500 tonnes at an average grade of 1.12 g/t gold were stacked. The reason
why the average grade was lower in the 2nd quarter 2008 compared to the 2nd
quarter 2007 was because a larger percentage of the total ore stacked in 2008
(64%) came from the lower-grade East pit. In the 2nd quarter 2007 only 46% of
the total ore stacked came from the East pit.
    For the 6 months ended June 30, 2008, the amount of ore stacked from the
West and East pits was up 31% versus the comparable period in 2007. The
increase in ore stacked was offset by a 28% decrease in average grade from
1.16 g/t to 0.84 g/t. The lower average grade in 2008 was the result of 70% of
the ore mined in 2008 coming from the East pit as compared to only 32% in the
first 6 months of 2007.
    During the 2nd quarter 2008, 72,000 tonnes were added to the low grade
stockpile for additional sampling to determine if the grade was sufficient to
warrant stacking and leaching. After further sampling, 24,500 tonnes (34%) of
material that had an average grade of 0.72 g/t gold was transferred to the
heaps. During the 2nd quarter 2007, a total of 32,000 tonnes of material was
stockpiled of which 16,000 tonnes (50%) at an average grade of 0.76 g/t gold
were transferred to the heaps.
    A crushing unit with a capacity of 400 tonnes per hour was delivered and
commissioned for operations in mid-June 2008. Oxide ore mining operations that
were temporarily suspended in the West pit during the 3rd quarter 2007 are
anticipated to attain full capacity during the 3rd quarter 2008. Crushing of
the oxide ore from the West pit to -50 millimetres is required to ensure
maximum gold recovery. With the availability of the crushing unit, it is
anticipated that the average grade of the oxide ore stacked during the 3rd
quarter should increase due to blending the lower-grade oxide ore from the
East pit with the higher-grade oxide ore from the West pit.

    A table summarizing production and sales follows:

    Production and Sales                  Q2/08    Q2/07  6 Months  6 Months
                                                          YTD 2008  YTD 2007
    Gold Sales (ozs)                      3,272    4,838     6,412     8,350
    Change in Work in Progress (ozs)        844      304     1,080        78
    Gold Production (ozs)                 4,116    5,142     7,492     8,428
    Gold production is defined as sales + the change in Work in Progress

    During the 2nd quarter 2008, precious metals sales amounted to 3,272
ounces ("ozs") of gold and 990 ozs of silver. Silver is recovered as a
by-product of the gold production process. Revenue from silver sales is
credited against the cost to produce an ounce of gold. Gold sales during the
2nd quarter 2008 increased by 132 ozs or 4% when compared to the 1st quarter
2008, however, gold sales decreased by 1,566 ozs when compared to that sold in
the 2nd quarter 2007.
    Alhambra began the 2nd quarter 2008 with 23,280 ozs of recoverable gold
in work in progress. After stacking 4,116 ozs of recoverable gold and selling
3,272 ozs, the Corporation exited the 2nd quarter 2008 with 24,124 ozs of
recoverable gold in work in progress, up 844 ozs.
    With the change in the recoverable gold contained in work in progress
being 844 ozs as of the end of the 2nd quarter 2008, production for the 2nd
quarter 2008 was 4,116 ozs. This compares to 3,376 ozs produced in the 1st
quarter 2008 and 5,142 ozs of gold produced in the 2nd quarter 2007.
    The financial results for the 2nd quarter 2008 are in the process of
being prepared and Alhambra anticipates that this information will be
disclosed on or around August 29, 2008.

    Alhambra temporarily suspended diamond drilling at the end of the 1st
quarter 2008 to allow for completion of geophysical surveys, the receipt of
all outstanding analytical results and to compile the technical information
for the Uzboy, Dombraly and Shirotnaia areas prior to commencement of further
diamond drilling activities. Due to the gold-pyrite mineral association in all
three areas, it is anticipated that the geophysical surveys should allow more
cost effective exploration of these areas. Contingent on completion of the
geophysical surveys, diamond drilling is expected to resume in the 3rd quarter

    a) Shirotnaia
    During the 2nd quarter 2008, exploration consisted of completing a deep
bedrock geochemical program at the Shirotnaia zone (see news releases dated
February 7, 2008 and July 11, 2008), Reverse Air Blast ("RAB") drilling and
geophysical surveys at Aygabak and the commencement of an RAB drilling program
at Kirtoge.
    In 2007, Alhambra announced a significant gold discovery at the
Shirotnaia zone (see news releases dated March 21 and April 26, 2007)
approximately 3 kilometres ("kms") north of the KazakhGold Group Limited
mining allotment which hosts the Aksu and Quartzite Hills gold mines.
    The bedrock geochemical sampling program resulted in the discovery of
three new gold anomalies, the centres of which are located approximately 6
kilometres ("kms") east of the Shirotnaia gold discovery announced in 2007.
These gold geochemical anomalies were outlined using a 0.05 g/t cutoff and are
interpreted to be located on and cover approximately 6 kms of the northwest
trending Atansorsky Fault zone. The maximum width of the main anomaly is
approximately 1.5 kms. Several shorter and narrower parallel gold anomalies
occur to the north and south of the main anomaly. Gold values within these
anomalies range from 0.05 g/t to a maximum of 1.65 g/t.
    This bedrock sampling program also further defined the surface dimensions
of two anomalies (see news release dated February 7, 2008) located northwest
of the Quartzite Hills gold deposit. Gold values within these two anomalies
range from 0.05 to 1.45 g/t. The locations of these anomalies show good
correlation with two northwest trending faults that host the Quartzite Hills
gold deposit. One anomaly, consisting of two areas of anomalous gold values,
has a strike length of approximately 2 kms long and a maximum width of 0.5
kms. A second anomaly is estimated to be 2 kms long with a maximum width of
0.5 kms.
    The next phase of exploration planned for the Shirotnaia zone consists of
electromagnetic and total field magnetometer surveys. The electromagnetic
survey is expected to locate areas of pyrite alteration that is associated
with the gold mineralization in the Shirotnaia zone and the total field
magnetometer survey is expected to detect lithologic contacts and map bedrock
structures such as faults and shear zones.

    b) Aygabak
    At Aygabak, ground geophysical surveys consisting of electromagnetic and
total field magnetometer surveys and a RAB drilling program commenced in the
2nd quarter. It is expected that these surveys should be completed during the
3rd quarter 2008.

    c) Kirtoge
    At Kirtoge, a RAB program commenced during the 2nd quarter to test
coincident strong electromagnetic and total field magnetometer anomalies for
their gold potential. Results of this program are expected during the 3rd
quarter 2008.

    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 seventh 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., a director of the Corporation and a
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 forward - looking information including but
not limited to comments regarding the timing and content of upcoming work
programs, geological interpretations and potential mineral recovery processes.
Forward - looking information includes disclosure regarding possible future
events, conditions or results of operations that is based on assumptions about
future economic conditions and courses of action, and therefore, involves
inherent risks and uncertainties. For any forward looking information given,
management has assumed that the analytical results it has received are
reliable, and has applied geological interpretation methodologies which are
consistent with industry standards. Although management has a reasonable basis
for the conclusions drawn, actual results may differ materially from those
currently anticipated in such statements. 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, (888) 290-1335 (Toll Free)

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