Placing and Trading Update

Alba Mineral Resources PLC
22 August 2006




                           Alba Mineral Resources plc

                           ('Alba' or 'the Company')



                           Placing and trading update



Alba Mineral Resources plc (AIM: ALBA) announces that it has today agreed to
place 6,307,500 new ordinary shares in the Company with investors at a price of
8p per share to raise £504,600 before expenses for the Company. The monies
raised will provide additional working capital for the Company and enable it to
continue funding current and new exploration projects.



Trading update



The Company announced its results for the year ended 30 November 2005 on 12
April 2006. The Company is developing a diversified exploration portfolio
focused on the Appalachian-Caledonide trend, a zone extending from the eastern
seaboard of North America to Scandinavia including Scotland and Ireland. The
Company's overall corporate and exploration strategy is to develop a series of
well-researched and promising exploration properties which will be pursued
further, either in the Company's own right or in conjunction with other parties.



Whilst the principal objective in the immediate future is to further advance our
nickel-copper-PGE prospect in Scotland in conjunction with our partners Inco
Europe Ltd, we are also aware that potential mineral opportunities exist
elsewhere. We will continue to evaluate individual projects, adding them to our
portfolio where appropriate, whilst at the same time looking to advance the
development of our existing projects.



The funds that have been raised through this placing will provide working
capital for the Company and will also finance the continued exploration of the
Company's existing gold, nickel and base-metal projects and to investigate,
acquire and advance exploration properties as identified elsewhere. As at 30
June 2006 the Company's cash reserves totalled £307,000, with other net current
liabilities of £116,000. Funds of approximately £145,000 have also been set
aside for specific projects, including collaborative nickel sulphide exploration
in Scandinavia with Altius Minerals Corporation of Canada.



The funds raised through the placing will further enable the Company to continue
with its broader exploration programme.



The new ordinary shares will rank pari passu with the existing ordinary shares.
The Company today made application for the new ordinary shares to be admitted to
trading on AIM. Dealings in the new ordinary shares are expected to commence on
25 August 2006.



Following the issue of equity referred to above the enlarged share capital of
the Company will be 66,620,100 shares of 1 pence.



Proposed Board changes



At this stage of the Company's development the Board believes it is now
important to add further resources and appoint a Managing Director to oversee
the continuing expansion of the Company's exploration portfolio. With immediate
effect Wilson Robb, currently Exploration Director, has been appointed acting
Managing Director, in addition to his current role, until a permanent candidate
for Managing Director has been identified.





ENDS



For further information contact:


Lance O'Neill, Chairman
Alba Mineral Resources plc
                                                       Tel: [phone]
Wilson Robb, Exploration/ Managing Director
Alba Mineral Resources plc
                                                       Tel: [phone]
Justine Howarth/ Victoria Thomas
Parkgreen Communications
                                                       Tel: [phone]
Liam Murray

City Financial Associates                              Tel: [phone]



Notes to Editors



Alba Mineral Resources PLC is a junior explorer with a diversified commodity
portfolio, primarily nickel, gold, copper, cobalt and platinum group metals,
focussed on the Appalachian-Caledonide trend, a zone extending from the eastern
seaboard of North America to Scandinavia. Alba currently has interests in a
number of well-researched properties in Scotland and Ireland owned in its own
right or in conjunction with other parties.


                      This information is provided by RNS
            The company news service from the London Stock Exchange