Alhambra Resources Ltd. Completes Oversubscribed Financing

    CALGARY, Oct. 4 /CNW/ - Alhambra Resources Ltd. (TSX-V: ALH) ("Alhambra"
or the "Corporation") is pleased to announce that it has successfully
completed a non brokered private placement of 4,666,667 units for aggregate
proceeds of $7,000,000.
    Due to this over subscription, and to accommodate it, the Corporation
increased the offering to $7,000,000 from the previously announced $5,000,000.
    The offering price was $1.50 per unit. Each unit is comprised of one (1)
common share of Alhambra and one half (1/2) of a common share purchase
warrant. Each whole warrant shall entitle the holder to purchase one
additional common share of Alhambra at an exercise price of $2.00 per common
share on or before October 3, 2008. The units, together with any securities
into which the units will be converted are subject to a four (4) month hold
period expiring on February 4, 2008.
    Proceeds from this private placement will be used for the continuing
exploration and development of Alhambra's Uzboy Project in Kazakhstan and for
general working capital.

    About Alhambra

    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

    The TSX Venture Exchange Inc. has in no way passed upon the merits of the
    proposed transaction.

    This news release contains forward-looking information. Forward-looking
information includes disclosure regarding possible future events, conditions
or results of operations that is based on assumptions 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 the metallurgical testing methodologies
applied 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: Elmer B. Stewart, President & Chief Operating
Officer, (403) 228-2855; Ihor P. Wasylkiw, Chief Information Officer, (403)
508-4953; Jim Clarke, Investor Relations, 1-888-290-1335 (Toll Free)

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