Alhambra Resources Ltd.
TSX VENTURE : ALH
PINKSHEETS : AHBRF
FRANKFURT : A4Y

Alhambra Resources Ltd.

October 18, 2012 08:30 ET

Alhambra Resources Ltd. Announces Appointment of a New Director

CALGARY, ALBERTA--(Marketwire - Oct. 18, 2012) - John J. Komarnicki, Chairman and Chief Executive Officer of Alhambra Resources Ltd. (TSX VENTURE:ALH) (PINKSHEETS:AHBRF) (FRANKFURT:A4Y) ("Alhambra" or the "Corporation"), on behalf of the Board of Directors, announces the appointment of Mr. Patrick Highsmith as a Director of the Corporation effective October 17, 2012.

Mr. Highsmith has over 22 years of experience in the international mining industry. He has worked in approximately 25 countries, including Kazakhstan. Mr. Highsmith has been involved in the areas of exploration, operations and business development. He is a professional geologist holding a Bachelor's of Science degree in Geological Engineering and a Master's of Science degree in Economic Geology and Geochemistry from the Colorado School of Mines in the United States.

After technical positions in mine operations and exploration with Rio Tinto and BHP Billiton during the 1990's, Mr. Highsmith managed exploration business development for Newmont Mining from 2004 until 2008. Since then he has been actively engaged in the junior mining sector, co-founding three other companies including Intuitive Exploration Inc. (now part of Orestone Mining), Copper One Inc., and Lithium One Inc. (now part of Galaxy Resources).

From 2009 to 2012, Mr. Highsmith was President of Lithium One where he helped grow the Corporation's lithium project in Argentina from discovery to one of the largest and highest quality lithium brine resources in the world. Earlier this year, he also helped engineer the friendly takeover of Lithium One by Galaxy Resources.

Since February of 2012, Mr. Highsmith has served as Chief Executive Officer of Bellhaven Copper & Gold Inc. during which time Bellhaven's gold resources in Colombia have increased by 60%.

Mr. Komarnicki commented saying, "We are very pleased to welcome Patrick to our team. The significant technical and business experience he has obtained through his successful career in the mining industry will contribute to Alhambra's corporate growth through the development and implementation of its exploration and production development strategies."

Alhambra also announces that its Board of Directors has approved the granting of a stock option to Mr. Highsmith to purchase up to 300,000 common shares of the Corporation. This stock option is subject to the appropriate regulatory approvals. Such stock option shall have an exercise price of C$0.34 per common share, shall have a term of five years from the date of grant, and shall vest as to twenty-five percent (25%) immediately and thereafter as to twenty-five percent (25%) on dates which are six (6) months, twelve (12) months and eighteen (18) months from the date of grant.

ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production corporation with NI 43-101 gold resources as per ACA Howe International UK and Micromine Consulting Services UK as noted below:

Measured (M) Indicated (I) M + I Inferred
Project Grade Grade Grade Grade
Tonnes (g/t) Ounces Tonnes (g/t) Ounces Tonnes (g/t) Ounces Tonnes (g/t) Ounces
Uzboy (1) 14,317,200 1.52 700,000 7,009,500 1.22 275,500 21,326,700 1.42 975,500 11,258,200 1.17 421,700
Dombraly (2) - - 559,000 1.22 22,000 559,000 1.22 22,000 9,317,000 1.01 301,000
Shirotnaia (3) - - 2,900,000 0.76 71,000 2,900,000 0.76 71,000 34,577,000 0.58 645,000
TOTAL 14,317,200 1.52 700,000 10,468,500 1.09 368,500 24,785,700 1.34 1,068,500 55,152,200 0.77 1,367,700

(1) Effective as of Dec 31/07 as per ACA Howe per news release dated Apr 8/08 at a 0.40 g/t cut-off.

(2) Effective as of Nov 27/11 as per ACA Howe per news release dated Feb 7/12 using natural cut-off grades of 0.13 g/t, 0.1 g/t and 0.2 g/t for the low grade stockpile, pit infill and in-situ mineralized zones respectively.

(3) Effective as of Jan 9/12 as per ACA Howe per news release dated Feb 28/12 using cut-off grades of 0.1 g/t for oxide gold mineralization and 0.2 g/t for transitional and primary gold mineralization respectively.

Alhambra holds exploration and exploitation rights to a 2.4 million acre (9,800 km2), 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 areas, 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, receiving the appropriate regulatory approvals 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 receiving the appropriate regulatory approvals, 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.

Neither the TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Alhambra Resources Ltd.
    Ihor P. Wasylkiw
    VP & Chief Information Officer
    (403) 508-4953

    Alhambra Resources Ltd.
    John J. Komarnicki
    Chairman & CEO
    (403) 228-2855