SOURCE: Tara Gold Resources Corp.

January 12, 2007 07:00 ET

Technical Report for Lluvia de Oro Gold Mine Confirms Resource and Additional Exploration Potential

CHICAGO, IL -- (MARKET WIRE) -- January 12, 2007 -- Tara Gold Resources Corp. (PINKSHEETS: TRGD) (FRANKFURT: T8N) is pleased to announce it has received the NI 43-101 technical compliant report for the Lluvia de Oro gold mine located in Sonora, Mexico. The report confirms a substantial in-situ gold-silver-copper resource with excellent potential for increasing the mineral resources. Tara Gold Resources signed an agreement with Columbia Metals Corporation, whereby Columbia can acquire 100% interest, subject to a 20% Net Cash Flow interest, by making payments totaling of $4,337,500, and issuing 1,000,000 shares to Tara Gold.

Columbia has also indicated that their project financing arrangements for start-up of the Lluvia mine, based on the existing resources, are well advanced. Additionally, plant cleanup and refurbishment has been completed and a small amount of doré derived from the plant cleanup (53.319 ounces) was shipped to Johnson Matthey Inc. in Salt Lake City, Utah for storage and eventual refining.

Columbia has also reached an agreement in principle with BioteQ whereby BioteQ will build, own and operate a copper recovery and cyanide regeneration plant to remove and recover soluble copper from the gold-silver-copper Lluvia leach pad solution. BioteQ will recover its capital costs plus an appropriate interest through a metals revenue sharing agreement.

In addition, D.E.N.M. (Engineering) Ltd. has indicated to Columbia that their feasibility study concerning start-up capital and operating costs respecting re-leaching of the existing pad and the upper zone material is nearing completion and should be available soon.

The NI 43-101 compliant report was completed by R. A. Blakestad, J.D., C.P.G., Q. P., on behalf of Columbia. The report has been reviewed and approved by the TSX-V exchange. The analysis confirms the measured and indicated resource as 70,060 ounces of gold, the inferred resource as 197,060 ounces of gold, and a resource analysis of the existing leach pad indicates that 30,100 ounces of gold remain on the pad.

The data support recommendations to consider near-term production scenarios for a crush and re-leach plan regarding the northeast end of the leach pad, continued exploration and definition of resources for the in-situ mineralization defined for the Upper Zone mineralized envelope, and for additional exploration of the potentially larger and higher-grade Lower Zone mineralization. The recovery plant at Lluvia de Oro is in good condition, and additional improvements and rehabilitation are warranted.

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:

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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