SOURCE: Tara Gold Resources Corp.

October 12, 2006 08:00 ET

Tara Gold Drills 6.7 g/t Gold Equivalent Over 17.6 Meters and 4.8 g/t Gold Equivalent Over 16.4 Meters at Their San Miguel Project, Mexico

CHICAGO, IL -- (MARKET WIRE) -- October 12, 2006 -- Tara Gold Resources Corp. (PINKSHEETS: TRGD) and (FRANKFURT: T8N) is pleased to release the most recently reported assays from its ongoing drill program at the San Miguel Project near Temoris, Chihuahua, Mexico. The following results are the first five drill holes completed on the La Union zone (San Jose extension) and three additional holes from the San Jose zone. The five La Union holes are step out holes to the South and extend the San Jose zone approximately 275 meters in that direction. In August 2005, Tara Gold Resources signed an agreement with Paramount Gold Mining Corp. giving Paramount the right to earn up to a 70% interest in the project by spending US$2.5 million, delivering 700,000 shares, and making various payments to Tara Gold.

Bill Reed, Manager of Exploration, Mexico stated: "We see increased gold values, as high as 5 g/t in the drill assays received from the La Union area and this adds significantly to the silver values. The good gold and silver assays are contributing to good average grades over significant widths as drill hole LU-02 averaged 51.4 meters of 2.9 g/t gold equivalent. Drilling at La Union has extended the strike length another 275 meters to the south and we have now begun to drill north of the San Jose zone in the San Antonio area in an attempt to identify a continuous 1,400 meters of strike in a zone that is still open in all directions."

Note: Gold Equivalent is calculated at 55 to 1, (55 grams silver equal 1 gram gold)

La Union zone Highlights

LU-01 cut 45.2 meters from 13.80 meters to 59.0 meters averaging 2.25 g/t gold equivalent, including:

     16.40 meters from 13.8 to 30.2 meters of 227 g/t silver with
       0.73 g/t gold, and
     4.25 meters from 54.75 to 59.0 meters of 6.0 g/t silver and
       4.45 g/t gold
LU-02 cut 51.4 meters from 31.5 meters to 82.9 meters averaging 2.9 g/t gold equivalent, including:
     17.60 meters from 31.5 to 49.1 meters of 279 g/t silver with
       1.64 g/t gold, and
     4.40 meters from 78.5 to 82.9 meters of 10.0 g/t silver and
       4.98 g/t gold
LU-03, the best intersect was 2.65 meters from 31.90 to 34.55 of 186 g/t silver with 1.86% zinc

LU-04, the best intersect was 14.5 meters from 87.50 to 103.0 of 22 g/t silver with 1.72 g/t gold

San Jose zone Highlights

SJ-09 cut 73.9 meters from surface with intersects that assayed between 15.0 g/t silver and 126 g/t silver

SJ-10, the best intersect was 3.4 meters from 57.9 to 61.3 of 14 g/t silver, 1.47 g/t gold with 1.07% zinc

SJ-11 cut 22.5 meters from 44.9 meters to 67.5 meters of 10 g/t silver with 1.42 g/t gold and 0.93% zinc

LU-01 is a step out of approximately 275 meters to the south of SJ-08; the most southerly hole drilled to date in the San Jose zone. LU-02 is approximately 50 meters northeast of LU-01 and LU-03 is about 100 meters northeast of LU-01. Hole LU-04 is approximately 40 meters east of LU-02. SJ-09 is approximately 50 meters north of SJ-08 and SJ-10 is approximately 40 meters northeast of SJ-08.

Quality Control Person

Paramount takes detailed photos of the core before it is cut to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QAQC), a blank (sterile) sample is submitted every 20th sample. Later, pulps from a number of intervals will be renumbered and pulps from known standards will be inserted between them in numerical order. These will then be submitted for reanalysis. The results will then be compared to the original values reported, and the known values of the inserted standards. Half-core samples have been retained on site for verification and reference purposes.

C.W. (Bill) Reed, B. Sc. Mineralogy, is acting as qualified person and has prepared the detail and review with respect to this news release.

Drill   From     To     Width   Gold    Silver  Lead    Zinc
Hole    (m)      (m)     (m)    (g/t)   (g/t)   (%)     (%)
SJ-09   0.00    6.60    6.60    0.00    26.00   NSV     NSV
        6.60    14.40   7.80    0.00    126.00  NSV     NSV
        14.40   31.50   17.00   0.00    23.00   NSV     NSV
        31.50   35.60   4.10    0.19    93.00   NSV     NSV
        42.20   49.50   7.20    0.20    106.00  NSV     NSV
        49.50   68.10   18.60   0.07    22.00   NSV     NSV
        68.10   73.90   5.80    0.28    15.00   0.47    1.08
        80.00   92.00   12.00   0.43    0.00    NSV     NSV

SJ-10   0.00    15.50   15.50   0.00    14.00   NSV     NSV
        15.50   24.00   8.50    0.00    41.00   NSV     NSV
        51.70   53.20   1.50    0.14    59.00   0.47    1.27
        57.90   61.30   3.40    1.47    14.00   0.63    1.07
        64.60   65.50   0.90    0.32    54.00   0.18    0.39
        67.15   70.50   3.35    0.16    0.00    0.40    0.95

SJ-11   0.00    11.00   11.00   0.00    14.00   NSV     NSV
        18.20   27.00   8.80    0.01    80.00   0.28    0.63
        44.90   67.50   22.50   1.42    10.00   0.50    0.93
        170.30  171.60  1.30    2.40    0.00    0.17    0.42

LU-01   13.80   30.20   16.40   0.73    225.00  0.85    0.83
        30.20   43.00   12.80   0.06    5.00    0.33    0.67
        43.00   46.25   3.25    0.37    0.00    0.12    0.39
        54.75   59.00   4.25    4.45    6.00

LU-02   31.50   49.10   17.60   1.64    2.79    0.19    0.26
        49.10   74.00   24.90   0.01    11.00   0.15    0.45
        74.00   78.50   4.50    0.57    2.00
        78.50   82.90   4.40    4.98    10.00

LU-03   24.50   31.90   7.40    0.00    18.00
        31.90   34.55   2.65    0.00    186.00  0.60    1.68
        34.55   52.00   17.45   0.00    6.00    0.16    0.46
        52.00   61.50   9.50    0.59    0.00    0.16    0.39

LU-04   63.50   71.00   7.40    0.19    43.00   0.08    0.24
        72.00   83.70   11.70   0.37    0.00    0.11    0.24
        87.50   103.00  15.50   1.72    22.00   0.16    0.29
        109.00  111.00  2.00    0.69    0.00

LU-05   98.90   100.60  1.70    0.00    0.00    0.73    1.98
        100.60  104.70  4.10    0.24    0.00    0.28    0.68
        104.70  110.00  5.30    0.02    6.00    0.31    0.64
        110.00  112.00  2.00    0.00    50.00   0.19    0.43
About San Miguel

San Miguel is currently comprised of 16 concessions covering an estimated 6 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Guazapares mining district, part of the gold-silver belt of the Sierra Madre Occidental. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources, to acquire up to a 70% interest in the San Miguel project.

About Tara Gold Resources Corp.

Tara Gold Resources Corp. is a growth-oriented precious metals exploration and development company with existing production plants. It is management's objective to become a significant gold and precious metals producer by re-initiating and increasing production levels at La Currita, Lluvia de Oro and Picacho, and developing the San Miguel, La Millionaria, and Las Minitas projects in Mexico. We continue to acquire other advanced-stage projects and/or producing mines in one of the most prolific precious metal districts in the world. For more information, please visit the Company's web site at: http://www.TaraGoldResources.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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