Alhambra Resources Reports Financial and Operating Results for Third Quarter ending September 30, 2011 December 1, 2011

CALGARY, Alberta – Alhambra Resources Ltd. (“Alhambra” or the “Corporation”) announces its financial and operating results for the quarter ended September 30, 2011. All amounts related to the financial results are expressed in thousands of United States dollars unless otherwise indicated.

For the full earning release, please visit Alhambra’s Investor Relations page or download the full PDF version here.

HIGHLIGHTS FOR THE QUARTER:

• Due to a positive Kazakhstan court ruling, the Corporation reversed the provision recorded on its balance sheet of $13.8 million, being the discounted value of the total Historical Cost liability of $15.8 million, and interest and penalties charged against earnings totalling $2.5 million
• Gold production was estimated at 4,665 ounces (“ozs”)
• Revenue from gold sales amounted to $7.0 million based on the sale of 3,858 ozs
• Gold sales were lower than anticipated as the gold being mined is from the deeper East pit which is harder than experienced in prior years resulting in leaching taking longer and hence lower gold sales
• Cash operating costs were $622 per oz of gold sold
• Stacked 257,003 tonnes (“t”) of ore on the heaps at an average grade of 0.87 grams/tonne (“g/t”)
• The estimated recoverable gold in work in process (“WIP”) as of September 30, 2011 was 39,184 ozs
• Mining operations at Saga Creek generated a net income of $3.45 million ($0.03/basic share)
• The Corporation recorded net income of $2.55 million ($0.02/basic share)
• 4,272 metres (“m”) of exploration drilling was completed
• Exploration expenditures were $0.7 million

FINANCIAL HIGHLIGHTS