Alhambra Resources Ltd. - Third Quarter Operational Updates

    CALGARY, Nov. 19 /CNW/ - Alhambra Resources Ltd. (TSX-V: ALH) ("Alhambra"
or the "Corporation") is pleased to provide a number of operational updates on
its Uzboy Project located in north central Kazakhstan for the period ending
September 30, 2007. These updates include:

    -   Stacking Operations - on target to achieve the 2007 plan
    -   Production and Sales - record sales achieved in the third quarter;
        yearly production forecast reduced due to stacking of lower grade ore
    -   Exploration Program Overview - on target to achieve yearly drilling
        and trenching forecast
    -   Preliminary Assessment/Scoping Study - anticipated to be completed by
        year end 2007
    -   2008 Capital and Operating Budgets - in the process of being prepared


    The main mining and stacking parameters for the third quarter and year to
date, along with comparative information for 2006, are set out in the table
below. At the end of the third quarter 2007, mining and stacking operations
are on schedule to achieve the previously announced 2007 plan. This plan is to
stack 1.0 million tonnes of oxide ore ("ore") on the heaps in 2007. All ore
mined during the third quarter 2007 came from the East zone. Mining operations
completed in the West zone was related to pushing back the bank wall to reduce
the slope angle of the pit walls as required by applicable regulations.

    Stacking Operations       Q3/07  Nine months/07     Q3/06  Nine Months/06
    Ore mined (tonnes)        328,000      660,650      261,500      461,380
    Waste mined (tonnes)      566,945    1,137,995      299,936      693,060
    Waste: Ore ratio             1.73         1.72         1.15         1.50
    Ore Stacked (tonnes)      328,000      660,650      261,500      442,308
    Grade of ore stacked
     (grams/tonne)               0.84         0.98         1.42         1.28
    Gold stacked on heaps
     (grams)                  274,602      648,920      371,330      564,163
     Gold stacked (grams)(*)  192,221      454,244      259,931      394,914
    (*)  Recoverable gold stacked estimated to be 70% over life of mine.

    Beginning in May 2007, Alhambra began stacking ore from the East zone.
Prior to this time, substantially all of the ore stacked came from the West
zone where higher grade ore occurs.
    The Corporation had mined ore from the West zone to depths where the ore
became harder. Mining from the West zone has been suspended until a crushing
unit can be installed. A crusher is required to ensure optimal fragmentation
of the ore to ensure maximize gold recovery. This installation is planned for
    The increasing percentage of lower grade ore stacked from the East zone
has resulted in a lower reported ore grade and a higher waste ore ratio.
Mining will continue from the East zone while the Corporation conserves the
higher grade ore which will be stacked once the crushing unit is installed.
    During the third quarter 2007, Alhambra stacked 328,000 tonnes of ore
from the East zone at an average gold grade of 0.84 grams per tonne ("g/t").
This is a 56% increase over that achieved during the second quarter when
209,500 tonnes at an average gold grade of 1.09 g/t were stacked. Ore stacked
from January to the end of September 2007 totalled 660,650 tonnes at an
average gold grade of 0.98 g/t.


    Alhambra defines gold production as the sum of gold sales plus or minus
the change in the recoverable gold contained in work in progress.
    As discussed previously in "Stacking Operations", the Corporation has
implemented a strategy whereby higher grade ore from the West zone is being
conserved until a planned crushing system has been installed in 2008. With the
stacking of lower grade ore from the East zone, the forecast gold production
for year 2007 is being reduced to 20,000 ounces ("ozs") from the 25,000 ozs
originally forecast.
    In the third quarter of 2007, Alhambra sold 5,843 ozs of gold which
represents the highest quarter of gold sales achieved by the Corporation since
it declared commercial production in May 2006.
    Gold sales for the year 2007 are forecast to be 18,500 ozs, an increase
of 10% over the 2006 actual gold sales of 16,850 ozs.
    The following table summarizes the gold sales for the third quarter and
year to date for 2006 and 2007.

    Production and Sales      Q3/07  Nine months/07     Q3/06  Nine Months/06
    Gold Sales (ozs)            5,843       14,193        5,011       11,763
    Change in work in
     progress (ozs)               337          415        3,358        2,123
                                  ---          --- ------------ ------------
    Gold production (ozs)       6,180       14,608        8,369       13,886

    During the third quarter 2007, precious metals sales amounted to 5,843
ozs of gold and 1,705 ozs of silver. Silver is recovered as a by-product of
the gold production process. As such, the revenue received from the sale of
silver is credited against the cost to produce an ounce of gold. Gold sales
during the third quarter 2007 increased by 1,005 ozs or 21% compared to the
second quarter 2007 and 832 ozs over that sold in the third quarter 2006. For
the nine months ended September 2007, total gold sales amounted to 14,193 ozs.
    The Corporation began the quarter with 21,220 ozs of recoverable gold in
work in progress. After stacking 6,180 ozs of recoverable gold and selling
5,843 ozs, the Corporation exited the third quarter with 21,557 ozs of
recoverable gold in work in progress, up 337 ozs.
    With the change in the recoverable gold contained in work in progress
being 337 ozs for the third quarter 2007, production for the third quarter was
6,180 ozs. This compares to 3,287 and 5,141 ozs produced in the first and
second quarters of 2007 respectively. As of the end of the third quarter 2007,
Alhambra's total gold production amounted to 14,608 ozs.


    The main focus of the 2007 exploration program has been to continue
delineation of the gold mineralization in the Uzboy gold deposit and to
diamond drill five other zones of gold mineralization. The main components of
the 2007 exploration program consist of diamond drilling, reverse air blast
circulation ("RAB") drilling, hydro-core lift ("KGK") drilling and trenching.
The exploration statistics for the third quarter 2007 and nine month year to
date are set out below.

                 Exploration               Q3/07  Nine months/07
                 Diamond Drilling (m)        4,305       11,185
                 RAB Drilling (m)           38,018       43,251
                 KGK Drilling (m)           10,537       10,537
                                            ------ -------------
                 Total drilling (m)         52,860       64,973
                 Trenching (m(3))           36,101       41,633

    During the third quarter 2007, diamond drilling concentrated on the West
and Central zones of the Uzboy gold deposit and at the Kirtoge zone located 15
kilometres ("kms") northeast of the Uzboy gold deposit. The area between the
Uzboy gold deposit and the Kirtoge zone is referred to as the Uzboy Extension.
RAB drilling was completed on the Uzboy Extension and at Aygabak. KGK drilling
was completed in the Uzboy Extension where overburden and wet ground
conditions prevented RAB drilling. Trenching operations were completed on the
Taskaduk zone.
    Diamond, RAB and KGK drilling operations as well as trenching are
underway in the fourth quarter. Contingent on weather conditions, the
Corporation estimates that it is on target for the year 2007 to drill a
combined total of approximately 76,500 m of diamond, RAB and KGK drilling and
50,000 m(3) of trenching.


    ACA Howe International Ltd., an independent consultant, has been retained
to complete a Scoping Study of the sulphide portion of the Uzboy gold deposit.
The result of the Scoping Study will be the first step towards assessing the
production potential of the Uzboy sulphide gold mineralization. Results will
be used to identify additional work necessary to complete a pre-feasibility
study on the sulphide portion of the Uzboy gold deposit.
    During the third quarter 2007, operating assumptions and estimated
operating and capital costs to be used in the Scoping Study were finalized.
The Scoping Study is expected to be completed by the end of the year.


    Alhambra is currently in the process of reviewing and preparing its 2008
capital and operating budgets. The Corporation anticipates to be able to
provide shareholders with year 2008 budget guidance in January, 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 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 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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