SOURCE: Tara Gold Resources Corp.

January 09, 2007 09:05 ET

Tara Minerals Corp. Initiates Private Placement Financing

CHICAGO, IL -- (MARKET WIRE) -- January 9, 2007 -- Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) is pleased to announce that it has initiated a financing of its 100% owned subsidiary, Tara Minerals Corp., to advance the company's two Zinc, Silver, Lead projects in Mexico and seek additional projects. Tara Gold has initiated a Private Placement, where it is selling a minority interest in Tara Minerals to various investors. To date, $1,975,000 has already been received and Tara Gold continues to access additional Private Placement interest.

Tara Minerals Corp. was incorporated on May 19, 2006 under the laws of the State of Nevada. It exists as a wholly owned subsidiary of Tara Gold Resources Corp. Tara Minerals currently has two high grade, Zinc, Lead and Silver properties in Mexico. The Pilar De Mocoribo Groupings is comprised of 1,548 hectares and lies within a larger area of hydrothermal alteration that hosts numerous base and precious metal occurrences along the western part of the Northern Sierra Madre Gold Belt. The Don Ramon and Lourdes Groupings is comprised of 309 hectares and lies within the same general area as the Pilar De Mocoribo Groupings. (See news releases dated October 16, 2006 and November 16, 2006)

Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "Our focus on shareholder value has been the guiding principle for systematically and aggressively building the current Tara Gold portfolio. Our management team is positioned to leverage its relationships and experience to similarly focus on building a portfolio of non-precious metals and mineral production and exploration projects under Tara Minerals. In an effort to expedite this process, Tara Gold has taken the initiative in arranging for its organization and financing."

Tara Minerals is currently undertaking an equity financing to raise working capital requirements, fund its planned acquisitions, and carry out exploration and development activities. Tara intends to use a portion of the net proceeds from the current financing towards preliminary engineering, production design, and equipment purchases in an effort to realize revenue from the processing of ore from the above two projects.

In an effort to ensure all projects are fully valued by the market, without additional dilution, Tara Gold intends to spin-off Tara Minerals Corp. into its own public entity upon maturity.

About Tara Minerals Corp.

The principal business of Tara Minerals is the acquisition, exploration and development of high-quality non-precious metals and mineral projects with potential for economic commercial value. Tara Minerals is currently focused on acquiring and developing properties in the natural resource belt of the Sierra Madre Occidental and other prolific areas in the states of Chihuahua, Sonora, and Sinaloa, Mexico.

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:

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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