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Alhambra Resources Commences Drilling at North Balusty Project

Alhambra Resources Ltd. (TSX VENTURE:ALH)(PINK SHEETS:AHBRF)(FRANKFURT:A4Y) has announced that it has begun its fall drilling program on its 100% owned North Balusty Project Area.

The objective of the 2010 exploration program at North Balusty is to check the origin of the gold anomalies established by trenching completed in 2005 and 2007 and to estimate the entire width of the mineralized zone.

Mr. John J. Komarnicki, Alhambra's Chairman and Chief Executive Officer stated, "Given the close proximity of North Balusty to our 2010 priority project area of Dombraly which is located only 7 kilometres away, we are excited about continuing our drilling program which will help us to understand the significant gold trend that extends from the gold mineralization exposed on the southern flank of our license area at Shirotnaia, through Kerbay, Dombraly, and up to the gold mineralization exposed at North Balusty."

The drilling program at North Balusty will consist of approximately 2,000 meters ("m") of hydro-core lift ("KGK") drilling focused on the most promising of three target areas.

As a result of previously conducted exploration programs in 2005 through 2007, a 12.8 kilometre ("km") long and up to 2.5 km wide zone of gold anomalism in alluvium and saprolitic rocks was established. It consists of numerous wide individual anomalies ranging from several metres to tens of metres where the gold grade exceeds 0.1 grams per tonne gold ("g/t Au"). In three potential target areas the concentration of anomalies is higher and the gold grades reach 0.5 g/t in rotary air-blast ("RAB") holes. Trenching in the same areas have returned the best intercepts of 30 m @ 0.4 g/t Au, 9 m @ 0.76 g/t Au and 6 m @ 0.36 g/t Au.

Contingent on drill results, approximately 900 m of reverse circulation ("RC") holes are planned for 2011 with the objective to check possible mineralized zones established by KGK drilling.

Alhambra will announce the results of this drill program upon receipt and interpretation of drill assays.

As a part of Alhambra's 11,000 square kilometre ("km2"), mineral license, the Corporation controls at least 50 kms of a rapidly emerging significant gold trend that extends from the gold mineralization exposed at North Balusty in the north to Shirotnaia in the south and includes the Dombraly gold deposit and gold mineralization exposed at Kerbay. This gold trend extends south of Alhambra's license and hosts the multi-million ounce Aksu and Quartzite Hills gold deposits held by KazakhGold Group Limited located approximately 3 kms southeast of Alhambra's Shirotnaia Project.

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.


Alhambra Resources Ltd.


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