SOURCE: Tara Gold Resources Corp.

Tara Gold Resources Corp.

December 08, 2009 09:00 ET

Tara Gold Exchanges Its Lluvia de Oro Interest for Cash and Equity

CHICAGO, IL--(Marketwire - December 8, 2009) - Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) announces that it has exchanged its 20% Net Cash Flow interest (NCF) in the Lluvia de Oro mining property, located in Sonora, Mexico, for cash and NWM Mining Corporation equity. By eliminating the NCF, NWM is better positioned to secure the resources needed to begin full scale commercial production. NWM has invested a total of CAD $22.5 million into the project and expects to begin commercial gold and copper production in 2010.

Tara has exchanged the NCF for US $200,000 upon signing, 2,500,000 shares of NWM to be issued January 2, 2010 and an additional 2,500,000 shares of NWM to be issued upon NWM producing and selling 3,750 ounces of gold over a 3 month period.

NWM has combined two distinct gold deposits which can be served simultaneously by a central processing facility. The two deposits are the past-producing Lluvia de Oro gold mine and the nearby La Jojoba gold resource. The combined properties currently host 315,210 ounces of Measured and Indicated gold resources and 253,373 ounces of Inferred gold resources. In addition, NWM holds exploration rights to 5,074 contiguous hectares of ground surrounding and along trend of the deposits. The Company's other properties include the Sierra Pinta high-grade past-producing underground gold mine located approximately 25 km northwest of La Herradura, Mexico's largest producing gold mine and the PII Colorado exploration project located 6 km southwest of the historic Llano Colorado gold camp.

Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "This exchange is good for both Tara and NWM shareholders as it moves the project towards commercial production. In place of a 20% interest in just the Lluvia project, we now have an interest in a district level gold development project and NWM's other properties in Sonora State, North West Mexico."

Tara Gold Resources signed an agreement, dated September 12, 2006, with NWM Mining Corporation (formerly known as Columbia Metals Corporation), whereby NWM Mining acquired 100% interest, subject to Tara's ongoing 20% Net Cash Flow interest, by making payments totaling $4,337,500, and issuing 1,000,000 shares to Tara Gold.

About Tara Gold Resources Corp.

Tara Gold is focused on generating revenue from the Don Roman and Lourdes project owned 100% by its subsidiary Tara Minerals Corp. The principal business of Tara Gold Resources Corp. is the acquisition, exploration and development of high-quality precious metals projects with potential for economic commercial value. For more information, please visit the Company's web site at:

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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