SOURCE: Tara Gold Resources Corp.

October 31, 2006 08:00 ET

Tara Gold Partners La Millonaria for Production and Exploration

CHICAGO, IL -- (MARKET WIRE) -- October 31, 2006 -- Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) is pleased to announce that it has entered into an Option Agreement on the La Millonaria property with Gold and Silver Minerals Corp. to earn up to a 55% interest in the La Millonaria property by making certain payments to Tara Gold, issuing 7,000,000 restricted shares, making all underlying property payments, and by spending a minimum of $3.0 million over the next 30 months.

The La Millonaria property consists of four mining concessions that total 875 hectares, including formerly producing gold mines. The property is located in SW Chihuahua in the Sierra Madre Occidental gold-silver belt where other gold/silver exploration projects are ongoing. The area has numerous mines and recent substantial discoveries. About 8 miles to the SE is the 170,000 ounce/year El Sauzal mine, Glamis Gold's newest and largest gold mine. Gammon Lake Resource's Ocampo Gold-Silver Project is approx. 48 miles to the North projecting annual production of 270,000 ounces gold-equivalent ounces. 12 miles away Palmarejo Silver & Gold is developing the nearby Palmarejo mine and has acquired ground surrounding San Miguel. Palmarejo has announced an inferred resource of 3.1 million ounce gold equivalent on their property.

La Millonaria is a 20-30 meter wide, intensely silicified and stockwork veined, east-west trending structure that can be traced on surface for a minimum distance of 600 meters, with additional workings present up to 2 kilometers along strike. Scattered prospects and adits are present along the structure and selective historical mining has reported recoveries of 10 g/ton gold on average. In 1993, Direccion General de Fomento Economico, a state agency, undertook a study of the waste dumps at La Millonaria and estimated an average grade of 9.702 g/t gold and 23 g/t silver.

The structure at La Millonaria appears to be strongly mineralized and hosts the potential to significantly expand the current mineralized zone and merits further sampling and exploration to further quantify the distribution of precious metals. It also has the potential to generate cash flow in a relatively short to intermediate timeframe by processing the approximately 30,000 tonnes of mineralized ore material already on the property.

Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "We are excited to have a partner that recognizes the potential at La Millonaria. The property will now begin to see the advancement it warrants to define the many areas of mineralization that exist on the property."

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 Millonaria, Pilar De Mocoribo 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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