Suite #330, 700 - 6th Avenue S.W. Calgary, Alberta, Canada T2P 0T8Telephone (403) 228-2855 Fax: (403) 228-2865
FOR IMMEDIATE RELEASE - October 16, 2008
FOR: Alhambra Resources Ltd.
SUBJECT: Updated Status Regarding Claim Filed Against Alhambra
CALGARY, Alberta - Alhambra Resources Ltd. ("Alhambra" or the "Corporation") announces that thecourt hearing scheduled for October 15, 2008 in Kazakhstan which was to have dealt with a legal claimfiled in Kazakhstan that seeks to invalidate the original Partnership Unit Purchase and Exchange Agreementdated March 21, 2002 (the "Agreement") whereby Alhambra purchased Saga Creek Gold Company LLP(see Alhambra News Release dated October 6, 2008) was held.Alhambra"s motion to dismiss the litigation for lack of jurisdiction in favor of arbitration in Stockholm,Sweden in accordance with the United Nations" Commission on International Trade Law arbitration rulesfor international arbitration as provided for under the Agreement was dismissed by the Kazakhstan court.Alhambra is now appealing this ruling. The court has adjourned this case until October 29, 2008 at whichtime the court will review Alhambra"s motion that the applicant"s claim should not proceed for reasons ofprocedural irregularities and the court may also hear the applicant"s claim at that time.Alhambra disagrees with the claim and will continue to take all possible measures to vigorously defend itsposition.
ABOUT ALHAMBRAAlhambra is a Canadian based gold exploration and production corporation engaged in the exploration ofand production from its 100% owned Uzboy Project. Alhambra is currently in its seventh year of operationsin the Republic of Kazakhstan.Alhambra common shares trade on The TSX Venture Exchange under the symbol ALH and in Germany onthe Frankfurt Open Market under the symbol A4Y. The Corporation"s website can be accessed at />The TSX Venture Exchange Inc. has neither approved nor disapproved the information contained herein.For further information please contact:This news release contains forward - looking information including but not limited to comments regarding the timing andcontent of upcoming work programs and potential mineral recovery processes. Forward - looking information includesdisclosure regarding possible future events, conditions or results of operations that is based on assumptions and courses ofaction, and therefore, involves inherent risks and uncertainties. For any forward looking information given, management hasassumed that the analytical results it has received are reliable and the metallurgical testing methodologies applied areconsistent with industry standards. Although management has a reasonable basis for the conclusions drawn, actual resultsmay differ materially from those currently anticipated in such statements. For such statements, we claim the safe harbor forfuture.
Ihor P. WasylkiwChief Information Officer+1 (403) 508-4953Don McKechnieVice President Finance and CFO+ 1 (888) 522-8285 (Toll Free)NEWS RELEASE