Alhambra Resources Ltd.
TSX VENTURE : ALH
PINK SHEETS : AHBRF
FRANKFURT : A4Y

Alhambra Resources Ltd.

March 22, 2011 08:00 ET

Alhambra Resources Ltd. Announces IFRS Conversion

CALGARY, ALBERTA--(Marketwire - March 22, 2011) - Alhambra Resources Ltd. (TSX VENTURE:ALH)(PINK SHEETS:AHBRF)(FRANKFURT:A4Y) ("Alhambra" or the "Corporation"), an international gold producer and explorer, announces that it has obtained an order from the applicable securities regulatory authorities granting conditional approval for the Corporation to prepare its financial statements beginning on or after January 1, 2010 in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IFRS-IASB"), with a transition date of January 1, 2008.

As background, in February, 2008, the Canadian Accounting Standards Board confirmed that the IFRS will replace Canadian Generally Accepted Accounting Principles ("GAAP") for all publicly accountable enterprises for financial periods beginning on and after January 1, 2011, with the option available for enterprises to early adopt upon receipt of approval from the Canadian Securities regulatory authorities. Based on the granted exemption, the Corporation anticipates that it will early adopt IFRS for Canadian reporting purposes and will prepare its financial statements in accordance with IFRS for financial reporting periods beginning on January 1, 2010, with an adoption date of January 1, 2010 and a transition date of January 1, 2008.

The exemption granted is conditional upon a number of conditions being fulfilled, including but not limited to the following:

  1. the Corporation restates and re-files its interim financial statements for the interim periods beginning on or after January 1, 2010 in accordance with IFRS-IASB at the time of filing its first IFRS-IASB compliant financial statements, together with the related restated interim management's discussion and analysis as well as the certificates required by National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings; and
  1. the Corporation updates the disclosure of relevant information about its conversion to IFRS-IASB as contemplated by CSA Staff Notice 52-320 Disclosure of Expected Changes in Accounting Policies Relating to Changeover to International Financial Reporting Standards previously disclosed in its management's discussion and analysis for the period ended September 30, 2010.

With the assistance of qualified third party consultants, the Corporation is currently preparing its financial statements for the relevant periods as well as all additional required documents in accordance with IFRS-IASB in order to comply with these conditions. In addition, the Corporation is addressing the changes that will be needed in business processes, including current internal and disclosure control processes, to accommodate the adoption of IFRS. The Corporation does not believe that significant modifications will be required as a result of the early conversion. 

ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production corporation celebrating its eighth year of operations in the Republic of Kazakhstan. Alhambra holds exploration and exploitation rights to a 2.7 million acre (11,000 km2), 100% owned, license called the Uzboy Project, located in the Northern Kazakhstan Metallogenic Province which hosts numerous world-class gold deposits. Over 100 gold targets, including five advanced exploration plays 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, statements that Alhambra will fulfill conditions precedent to the early adoption of IFRS and other factors and events described in this news release 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, among others, the ability of the Corporation to complete the work required to complete the applicable financial statements and related documents required to be filed under applicable securities' legislation within the prescribed time limits. 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
    or
    Alhambra Resources Ltd.
    Donald D. McKechnie
    VP Finance & CFO
    +1 (403) 228-2855
    www.alhambraresources.com