Alhambra Announces Maiden NI 43-101 Gold Resource Estimate for Dombraly

CALGARY, Feb. 7, 2012 - Alhambra Resources Ltd. (TSX VENTURE: ALH) ("Alhambra" or the "Corporation"), an international gold explorer and producer, announces that the Corporation has received the results of an initial independent National Instrument ("NI") 43-101 gold resource estimate (the "Estimate") for Alhambra's 100% owned Dombraly gold deposit ("Dombraly"). Dombraly is one of three advanced exploration project areas Alhambra is exploring within its 9,800 square kilometre ("km2") (2.4 million acre) Uzboy Gold Project located in north central Kazakhstan (see location map, Figure 1).

The Estimate was prepared by ACA Howe International UK ("ACA Howe") and Micromine Consulting Services UK ("MCS"). The Estimate includes all exploration data up to December 31, 2010. The final technical report will be filed within the regulatory required 45 days on SEDAR at www.sedar.com and will be posted on the Corporation's website.


HIGHLIGHTS

- The Estimate represents the maiden NI 43-101 gold resource estimate for the Dombraly project,

- 301,000 ounces ("ozs") of Inferred current mineral resources contained in 9.3 million tonnes grading 1.01 grams per tonne gold ("g/t Au") have been identified (see Table 1),

- An additional 22,000 ozs of Indicated current mineral resources contained in 0.60 million tonnes grading 1.22 g/t Au were identified (see Table 1).

The Estimate, as summarized in Table 1, includes the results of 23 diamond drill holes (5,835 metres ("m")) and 37 reverse circulation ("RC") holes (880 metres). Due to the timing of the Estimate, the Estimate does not incorporate the analytical results for the 32 hole (5,528 m) core drilling program which was completed at the end of October 2011. These drill samples are in the process of being assayed at the Stewart laboratory in Kyrgyzstan and will be news released once assayed and interpreted.

Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer stated, "We are pleased with the result of this initial resource estimate given that it is based on limited drilling data. Once the assay results from the 2011 drilling program have been received, we will then be able to formalize our next steps in identify additional resources at Dombraly."


RESOURCE ESTIMATE HIGHLIGHTS

The reader's attention is drawn to the following Canadian Institute of Mining and Metallurgy ("CIM") definitions:

'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

NI 43-101 requires it to be stated that mineral resources that are not mineral reserves do not have demonstrated economic viability.

The Estimate was prepared by ACA Howe International UK ("ACA Howe") and Micromine Consulting Services UK ("MCS") and has an effective date of November 27, 2011. Contributors to the preparation of the Estimate included Mr. J.N. Hogg MSc., MAIG, Senior Geologist with MCS and Mr. L. McGarry BSc., FGS, Geologist with ACA Howe. Inputs for economic cut-off calculations for resource reporting were prepared by Mr. B. S. Brady, P.Eng., Senior Associate Mining Engineer with ACA Howe, in consultation with his senior colleagues.

The in-situ gold mineralization at Dombraly is hosted in a sequence of volcanics and sediments that have been oxidized to an average depth of 90 metres ("m") which is underlain by primary sulphide hosted gold mineralization. A thin transition zone, which also hosts gold mineralization, occurs between the oxide and primary (being un-oxidized sulphide) zones of gold mineralization. Due to the various styles of gold mineralization, ACA Howe estimated the natural cut-off grade for the oxide and primary styles of gold mineralization.

Table 1 - Dombraly Resource Estimate (using natural cut-off grades of 0.13 g/t Au, 0.1 g/t Au and 0.2 g/t Au for the low grade stockpile, pit infill and in-situ mineralized zones respectively):

Resource Category 	Tonnes 		Grade (g/t) 	Ounces 	
Indicated 	559,000 		1.22 		22,000 	
Inferred 	9,317,000 		1.01 		301,000

ACA Howe and MCS completed studies according to NI 43-101 and best practice guidelines. Resource modeling and estimations being completed used the industry accepted Micromine 2012, 3d modeling software package.

Indicated category resources are reported to be contained in the low grade stockpile and pit infill. Of the 301,000 ozs in the Inferred resource category, 143,000 ozs (48%) are reported to be contained in the oxide material. Primary material accounts for 132,000 ozs (44%) while the remaining 24,000 ozs (8%) is transitional material.

Dombraly mineralization is comprised of a low grade stockpile, pit infill zone and in-situ structurally controlled mineralization types. Mineralization was modeled using natural cut-off grades of 0.13 g/t Au, 0.1g/t Au and 0.2g/t Au for the low grade stockpile, pit infill zone and in-situ mineralized zones respectively.

Several mineralized domains were modeled for this Estimate, namely:

- Low grade stockpile
- Pit infill material
- In-situ near surface oxide Au domain
- Ten in-situ mineralized structure domains

For this Estimate, grade interpolation was performed using the inverse distance weighted method. Resources are reported using an economic marginal cut-off, determined by use of simple block revenue factor methodology and a two year trailing average gold input price.

Tables 2 and 3 as noted below set out the Dombraly Estimate for oxide, transitional and primary gold material types by category and material type as reported by ACA Howe and MCS at various cut-offs.

Table 2 - Dombraly Resource Estimate (at various cut-off grades for oxide, transitional and primary zones respectively):

		Tonnes 	Au 	Au 	Au
CUT-OFF 	MATERIAL 	t 	g/t 	g 	Oz
0.3 	Oxide 	4,404,000 	1.14 	5,006,000 	161,000
0.3 	Transitional 	588,000 	1.25 	735,000 	24,000
0.3 	Primary 	3,410,000 	1.18 	4,036,000 	130,000
0.3 	TOTAL 	8,402,000 	1.16 	9,777,000 	315,000
0.2 	Oxide 	4,829,000 	1.06 	5,112,000 	164,000
0.2 	Transitional 	646,000 	1.16 	749,000 	24,000
0.2 	Primary 	3,671,000 	1.12 	4,099,000 	132,000
0.2 	TOTAL 	9,146,000 	1.09 	9,960,000 	320,000
0.1 	Oxide 	5,158,000 	1.00 	5,160,000 	166,000
0.1 	Transitional 	715,000 	1.06 	758,000 	24,000
0.1 	Primary 	4,003,000 	1.04 	4,143,000 	133,000
0.1 	TOTAL 	9,876,000 	1.02 	10,061,000 	323,000

Table 3 - Dombraly Resource Estimate (using cut-off grades of 0.10 g/t Au and 0.20 g/t Au for the low grade stockpile, pit infill and in-situ mineralized zones respectively):

Low grade stockpile Total Resources

			Tonnes 	Au3 	Au 	Au
CUT-OFF1 	MATERIAL 	CLASS2 	t 	g/t 	g 	Oz
		Indicated 	473,000 	1.26 	597,000 	19,000
0.10 g/t 	Oxide 	Inferred 	963,000 	1.07 	1,033,000 	33,000
Pit Infill Total Resources
			Tonnes 	Au3 	Au 	Au
CUT-OFF1 	MATERIAL 	CLASS2 	t 	g/t 	g 	Oz
		Indicated 	86,000 	0.97 	83,000 	3,000
0.20 g/t 	Oxide 	Inferred 	908,000 	0.82 	747,000 	24,000
In-situ Total Resources
			Tonnes 	Au3 	Au 	Au
CUT-OFF1 	MATERIAL 	CLASS2 	t 	g/t 	g 	Oz
0.10 g/t 	Oxide 	Inferred 	2,700,000 	0.99 	2,700,000 	87,000
0.20 g/t 	Transitional 	Inferred 	646,000 	1.16 	750,000 	24,000
0.20 g/t 	Primary 	Inferred 	3,671,000 	1.12 	4,099,000 	132,000
0.10 g/t 	Total 	Inferred 	7,446,000 	1.02 	7,601,000 	244,000	

1 Cut-off value used here represents economic cut-off determined from block revenue factor calculation methodology and input gold price of US$1,394/oz.
2 Class represents resource category under CIM and Joint Ore Reserves Committee ("JORC") reporting guidelines.
3 Top cuts of 10 g/t Au and 6 g/t Au have been applied to in situ domains A and F gold assay data respectively. Top cuts of 10 g/t Au and 5 g/t Au applied to waste dump (lower), and pit infill domains respectively.

ACA Howe and MCS reported resources using economically derived cut-off grades from simple block revenue factor methodology. Cut-off grades used for reporting are 0.1 g/t Au for oxide material, and 0.2 g/t Au for transitional and primary material types respectively.

Inputs for oxide material are based upon actual mining cost data from Alhambra's nearby 100% owned Uzboy open pit operation audited by ACA Howe, and estimated costs for transitional and primary material taken from recent Preliminary Economic Assessment ("PEA") studies undertaken on Uzboy.
Key input data for cut-off calculation include:

- Gold price - US$1,394/oz
- Mining Method - open pit
- Oxide processing method - heap leach
- Transitional and primary processing method - gravity carbon in leach ("CIL")
- Recovery - Oxide 70%; Transitional/Primary 85%
- Oxide mining cost - US$1.00/tonne (low grade stockpile and pit infill)/US$1.70/tonne (in-situ)
- Transitional and Primary mining costs - US$1.95/tonne
- Processing costs - US$3.85/tonne (oxide), US$6.47/tonne (transitional and primary)

Based on the geological model, exploration grid, search ellipsoid ranges, composite sizes and mining method, the data used in the Estimate was block modeled with a block size of 5 metres ("m") x 10 m x 5 m for the in-situ mineralization and 5 m x 5 m x 5 m for pit infill and low grade stockpile.

The gold grade was interpolated into the block model on a domain basis as the assay results for Dombraly were composited to 1 m intervals. Top cuts were applied and inverse distance weighted method of interpolation technique was used at different search radius until all blocks with each domain received an interpolated grade.

At the end of 2011, the gold mineralization at Dombraly was open in all directions. Extensions of the zones were drilled in 2011 and the assay results are pending.

Saga Creek Gold Corporation LLP ("Saga Creek"), a 100% owned subsidiary of the Corporation, is responsible for the exploration activities conducted on Dombraly. Saga Creek employs approximately 320 people in its exploration and mining related activities and contributes significantly to the local economy.

Mr. J.N. Hogg, MSc., MAIG, Senior Geologist and Qualified Person with MCS and Mr. J.G. Langlands, BSc, FGS, FIMMM, CEng., Principal Geologist and Qualified Person with ACA Howe, have reviewed and approve the technical information contained in this news release.

Elmer B. Stewart, MSc., P. Geol., a technical consultant, is the Corporation's nominated Qualified Person. Mr. Stewart has reviewed the technical information contained in this news release.

*United States investors are advised that current Mineral Resources are not current Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate and in keeping with "best practice principles".


ABOUT ALHAMBRA

Alhambra is a Canadian based international exploration and gold production corporation with operations in the Republic of Kazakhstan. 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 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, there is no certainty that the additional assays from the 2011 drilling program or the formalizing next steps will identify additional resources 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 differentfrom any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, identifying additional resources, availability of capital to fund exploration projects; political, social and other risks inherent in carrying on business in a foreign jurisdiction and such other business risks as discussed herein 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.

To view Figure 1 - Uzboy Project - Location Map, please visit the following link: http://media3.marketwire.com/docs/207alh_fig1.pdf


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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