SOURCE: Tara Gold Resources Corp.

January 16, 2007 07:00 ET

Mining Commences as Mill Expansion Nears Completion at La Currita

CHICAGO, IL -- (MARKET WIRE) -- January 16, 2007 -- Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) and Raven Gold Corp are pleased to announce that contract miners have begun producing and stock piling ore for processing at the La Currita project located in Temoris, Chihuahua, Mexico. In May 2006, Tara Gold signed a Joint Venture Agreement with Raven Gold Corp giving Raven the option to earn up to 60% interest in the La Currita Groupings by making certain payments to Tara Gold, issuing 750,000 shares, making all remaining property payments, spending a minimum of $3.5 million over the next 36 months, and reaching increased production levels.

The miners are currently working the faces of an approximately 14 meter wide vein, where they are producing an estimated 160 tonnes per day from two 4.5 meter wide by 3 meter high faces. A second shift is scheduled to begin by next week, bringing total daily production to 320 tonnes per day. Concurrently, miners are cross cutting the vein to expose two additional faces, which can then provide another 320 tonnes per day of ore for the expanding Mill.

The expansion of the La Currita Mine and Mill has been ongoing and is now nearing completion. The plant has seen the addition of a 6' x 12' Ball Mill, a 6" Cyclone Classifier, an additional bank of Floatation Cells, and various other upgrades. Production from the plant is anticipated to begin before the end of January 2007.

Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "Our phase one goals at La Currita are nearly completed. We look forward to the commencement of production from the plant, the generation of revenues, and quickly beginning phase two expansion plans."

About La Currita

The La Currita Groupings includes 4 mines, a 150 ton/day operating floatation mill and stockpiled ore. The La Currita mine was in steady production from 1983 until 1998. A diamond drilling exploration program conducted in 1998 indicated grades of 2.59 g/t Au and 200 g/t Ag. Existing mines and mineralized structures hold potential to increase tonnage through systematic exploration. The area surrounding La Currita has numerous mines and recent substantial discoveries. Adjacent to the La Currita holdings, Palmarejo has announced an inferred resource of 3.1 million ounce gold equivalent on their property. In addition, about 20 miles to the SE is the 170,000 ounce/year Glamis Gold's El Sauzal gold mine and 40 miles to the North is Gammon Lake Resource's Ocampo Gold-Silver Project with a projected 270,000 gold-equivalent ounces/year.

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, 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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