Alhambra Resources Ltd.

Alhambra Resources Ltd.

March 09, 2005 18:46 ET

Alhambra Sells Oil and Gas Assets


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ALHAMBRA RESOURCES LTD.

TSX VENTURE SYMBOL: ALH

MARCH 9, 2005 - 18:46 ET

Alhambra Sells Oil and Gas Assets

CALGARY, ALBERTA--(CCNMatthews - March 9, 2005) - Alhambra Resources
Ltd. (TSX VENTURE:ALH) announces that it has entered into an agreement
with a private Canadian corporation to sell 100% of Alhambra's oil and
gas properties. Proceeds on the sale are $2,200,000 and will be used to
fund the continued development of the Corporation's Uzboy property, pay
down debt, and for working capital. The sale is to be effective January
1, 2005 and is expected to close on or before March 31, 2005.

Since 2002, Alhambra has focused its efforts and capital on the
development of its 100% owned Uzboy gold project located in north
central Kazakhstan. The Corporation's oil and gas operations generated
cash flow to offset corporate overhead thus allowing all capital raised
to be used in developing the Uzboy project. With the commencement of
precipitation of gold on resin in December, 2004 and the receipt of cash
from the sale of this gold in January, 2005, together with high market
prices being paid for oil and natural gas production, the Corporation
felt it was an opportune time to solicit offers for its oil and gas
properties and begin to focus all management's attention on the gold
business.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Alhambra Resources Ltd.
    Jim Clarke
    Investor Relations
    Toll Free: 1-888-290-1335
    or
    Alhambra Resources Ltd.
    Don McKechnie
    Vice President Finance and & Chief Financial Officer
    (403) 228-2855
    Website: www.alhambraresources.com
    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.