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

Alhambra Resources Ltd.

August 28, 2012 08:30 ET

Alhambra Resources Ltd. Announces Board of Director Changes

CALGARY, ALBERTA--(Marketwire - Aug. 28, 2012) - John J. Komarnicki, Chairman and Chief Executive Officer of Alhambra Resources Ltd. (TSX VENTURE:ALH) (PINK SHEETS:AHBRF) (FRANKFURT:A4Y) ("Alhambra" or the "Corporation"), an international gold explorer and producer, on behalf of the Board of Directors, announces both the retirement of Mr. Mike Hriskevich as a Director of the Corporation, and the appointment of Mr. John I. Huhs as Mr. Hriskevich's replacement as a Director of Alhambra, effective August 27, 2012.

Stated John J. Komarnicki, "We would like to thank Mike for his dedication, hard work and contribution to Alhambra. He has been an integral part of the Alhambra organization for many years and we wish him well in his retirement."

Regarding the appointment of Mr. Huhs as a Director of the Corporation, Mr. Huhs is a retired Senior Partner and Special Counsel of Dewey & LeBoeuf, chaired the Firm's International Practice for almost two decades and founded the Firm's practice in the former Soviet Union, including the Moscow and Almaty (Kazakhstan) offices. He has devoted his professional career to the international practice of law, business and finance and teaches International Mergers & Acquisitions at Stanford Law School.

Mr. Huhs has over 40 years of experience in energy, mining, aerospace, hi-tech (including intellectual property) and manufacturing. He has focused on negotiations, concluding and implementing hundreds of international mergers and acquisitions, production sharing agreements, joint operating agreements, financings, joint ventures and other complex transactions worldwide.

He is a lawyer and graduated with honours from both the Stanford Graduate School of Business and Stanford Law School, where he served as Comment Editor of the Stanford Law Review and was awarded the Order of the Coif. He is an honours graduate of the University of Washington, where he majored in International Economics.

Mr. Huhs is fluent in Russian. He spent approximately half of his time in the former Soviet Union from 1970 through 2006 and lived in the Republic of China from 1954 to 1957. His clientele has included the largest multinational corporations, state enterprises and governments, as well as international organizations such as the United Nations, International Monetary Fund, European Bank for Reconstruction and Development and the International Olympic Committee.

Prior to joining Dewey & LeBoeuf, Mr. Huhs was a partner in the multinational law firm Pisar & Huhs for over a decade. He served in the National Security and International Affairs area in the White House during the Nixon and Ford Administrations.

Mr. Huhs served as a member of the Governing Council of the American Bar Association Section of International Law and Practice (1988-91), Chairman of the ABA Committee on International Commercial Transactions (1986-90), Chairman of the New York State Bar Committee on International Investment and Development (1987-91), Chairman of the ABA Committee on Soviet and Eastern European law (1979-86), Representative of the ABA to the Union Internationale des Advocats (1991-93) and a member of the Board of Visitors of Stanford Law School (1996-99; 2004-07). He serves as General Counsel of the International Economic Alliance.

Mr. Huhs is the author of numerous articles on international law, economics, finance and business; and he frequently is invited to address professional groups on these subjects. Further biographical information is published in Who's Who in the World.

Mr. Komarnicki commented saying, "We welcome John into our organization and look forward to his ongoing contributions based on his extensive experience covering numerous business sectors including law, finance and M&A. His understanding of the Kazakhstan culture and political climate through his many years of working in Kazakhstan will also be of significant benefit."

Alhambra also announces that its Board of Directors has approved the granting of a stock option to Mr. Huhs 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$0.22 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 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
    +1 (403) 508-4953

    Alhambra Resources Ltd.
    John J. Komarnicki
    Chairman & CEO
    +1 (403) 228-2855
    www.alhambraresources.com