Alhambra Announces That MINT Approves a Lower Financing Floor Price

CALGARY, ALBERTA -- (Marketwire) -- 01/29/13 -- Alhambra Resources Ltd. (TSX VENTURE: ALH)(PINKSHEETS: AHBRF)(FRANKFURT: A4Y) ("Alhambra" or the "Corporation"), an international gold explorer and producer, announces that the Corporation has received formal notification from the Government of Kazakhstan's Ministry of Industry and New Technology ("MINT") that MINT has approved the Corporation's request to reduce the floor price for a potential future equity financing. The approval which is for the reduction of the floor price from US$0.60 per common share (see News Release dated September 13, 2012) to US$0.20 per common share has been extended to June 25, 2013 as stipulated under the Kazakhstan Subsoil and Use Act.

Alhambra announced on September 13, 2012 that the Corporation had executed a non-binding term sheet which met the terms of the original MINT approval (with the US$0.60 per common share floor price). The Corporation is currently completing the due diligence process related to that financing and is optimistic that it will close the financing in the near term according to the term sheet.

Stated John J. Komarnicki, Chairman and Chief Executive Officer of Alhambra Resources Ltd., "We are very pleased to have received MINT's approval to reduce the floor price to US$0.20 per common share in such an expeditious time period given that our request was made to MINT in the fourth quarter of 2012. Upon successful completion of a financing we anticipate being able to proceed with the acceleration of exploration and production development of Alhambra's gold mineral license."

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:

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                        Measured (M)                  Indicated (I)
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Project                        Grade                          Grade
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                     Tonnes    (g/t)   Ounces       Tonnes    (g/t)   Ounces
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Uzboy (1)        14,317,200     1.52  700,000    7,009,500     1.22  275,500
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Dombraly (2)              -                 -      559,000     1.22   22,000
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Shirotnaia (3)            -                 -    2,900,000     0.76   71,000
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TOTAL            14,317,200     1.52  700,000   10,468,500     1.09  368,500
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                           M + I                         Inferred
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Project                       Grade                          Grade
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                     Tonnes   (g/t)    Ounces       Tonnes   (g/t)    Ounces
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Uzboy (1)        21,326,700    1.42   975,500   11,258,200    1.17   421,700
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Dombraly (2)        559,000    1.22    22,000    9,317,000    1.01   301,000
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Shirotnaia (3)    2,900,000    0.76    71,000   34,577,000    0.58   645,000
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TOTAL            24,785,700    1.34 1,068,500   55,152,200    0.77 1,367,700
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(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 of0.1 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, finalizing the details of a financing scenario within six months of MINT approval, 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, finalizing the details of a financing scenario within six months of MINT approval; 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.

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.

Contacts:

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