Tara Gold Resources (fka TRGD)

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nice update

Tara Gold - Exploration and Production Project Updates
Tuesday January 8, 9:55 am ET


CHICAGO, IL--(MARKET WIRE)--Jan 8, 2008 -- (Other OTC:TRGD.PK - News) (Frankfurt:T8N.F - News) -- Tara Gold Resources Corp. is pleased to provide an update on its current projects. Tara Gold is positioned to realize value from a pipeline of nine production and exploration projects in Mexico, an aggressive acquisition strategy, and dedicated management.
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Tara Gold is currently producing gold and silver from La Currita and expects production start-up from Picacho and Lluvia de Oro during the first half of 2008. In addition, Tara Minerals, an 82% owned subsidiary, expects to be producing from its Don Roman Lead Zinc, Silver project during the first half of 2008. Exploration and development risk is managed through partnerships. These partnerships have resulted in partner option agreements totaling US $40+ million in investments towards Tara Gold projects. Option interests are earned by partners in exchange for cash, shares, property payments and development costs, thus advancing many properties simultaneously.

Mr. Francis Biscan Jr., President of Tara Gold Resources, stated, "Tara Gold's growth is accelerating at the same time Gold and Silver are making new highs. Cash flow from production is expected to increase substantially as Picacho and Lluvia de Oro are scheduled to see production startups in the first half of 2008. Tara offers investors excellent value and exposure to growth with a diversified portfolio of both precious metals (through Tara Gold) and base metals (through 82% ownership of Tara Minerals Corp.) properties. With multiple multi-million ounce targets and additional near term production scenarios, Tara Gold's is positioned to continue to deliver strong growth while limiting its risk exposure."

Management continues to be focused on delivering shareholder value by completing financial audits, listing on a senior exchange, growing production, enhancing exposure and acquiring additional advanced projects. A complete project update is provided below.



La Currita, Temoris, Mexico
Gold and Silver Mine - in production, expansion under assessment

Tara is currently producing mill tailings at a rate of approximately 300 t/d with an operating profit of U.S.$42.00 per tonne. Plans have been initiated to shift production to mined ore which should deliver head grades of approximately 3 times the value of the mill tailings. Additionally, plans are being made to expand the plant to 500 t/d. Two parallel mineralized vein systems have been identified -- the Sulema I and Sulema II. The head grade from the underground clean-up and Sulema II vein averages 200 g/t silver and 1.2 g/t gold while the open pit grades are significantly higher, reaching 750 g/t silver and 12 g/t gold and higher. Sampling has already shown the Sulema I vein to be at least 1,000 m long and is currently open in all directions. La Currita is located adjacent to Palmarejo (recently sold for US$1.1 billion) with some of the same vein systems continuing into La Currita. Given the consistency of the veins, the potential for significantly increasing the tonnage at La Currita is excellent.

Shareholder value will be enhanced through expanded production, an aggressive exploration program and a 43-101 resource estimate. Raven Gold Corp. has an option to earn up to 60% interest in the La Currita Groupings by making certain payments to Tara Gold, issuing 1,500,000 shares, making all remaining property payments (which have been made) and spending a minimum of $4.25 million by Nov. 2009. $1,375,000 of this is required to be spent, on exploration, by May 10, 2008. Tara is generating positive cash flow from La Currita and does not expect expenditures directly during 2008. All costs are the responsibility of the partner.



Lluvia de Oro, Sonora, Mexico
Gold Mine - scheduled to be in production by Q2 2008

Tara is working with its partner to quickly bring the former producing mine back to commercial production at an initial rate of 3,000 ounces/month during the first half of 2008. A Pre-Feasibility report confirmed economic and technical viability of the 286,948 ounces of NI 43-101 compliant gold with an increase possible through drilling. Mineralization is open along strike in both directions.

Shareholder value will be enhanced as 20% of the Net Cash Flow from the processing plant begins to flow to Tara Gold. Tara Gold signed an agreement with Columbia Metals Corporation, whereby Columbia can acquire 100% interest, subject to Tara's ongoing 20% Net Cash Flow interest from any revenue generated from the processing plant, by making payments totaling $4,337,500, and issuing 1,000,000 shares to Tara Gold. Tara expects to generate positive cash flow from Lluvia de Oro and does not expect expenditures directly during 2008. All production start-up costs are the responsibility of the partner.



Picacho, Sonora, Mexico
Gold and Silver Mine - plan to aggressively explore and produce in 2008

The Picacho Gold and Silver Mine includes rolling stock and an extensive processing facility currently capable of 250 t/d. The previous owners mined an up to 5 m wide vein structure for 3 years by driving a 5 m by 5 m ramp declining 8% extending over 1 km in length. Production came from several working faces averaging 4-6 m in width. Phase I drilling in June 2007 yielded 11.28 m of 15.57 g/t gold and 32.41 g/t silver. The work confirmed and expanded upon historic data derived from 22 previous holes. It also identified the potential for parallel zones with a combined length of 8.5 km.

Tara Gold signed at agreement with La Camera Mining Inc. whereby Camera can purchase a 70% undivided interest in Picacho with Tara Gold retaining a 30% carried interest once Camera earns its 70%. Shareholder value will be enhanced as La Camera plans to determine the best economics to optimize production, upgrade the mill and increase the resource from well defined targets.

La Camera is considering a 10,000 m drill program to define resources and test new targets. Production is also expected to commence during the first half of 2008 at an initial rate of 550 t/d which is equivalent to approximately 30,000 ozs Au/yr and 145,000 ozs of Ag/yr. The partnership will share the revenue at 30% to Tara Gold and 70% to La Camera. La Camera will provide production start-up capital and invest $6 million towards exploration over the next 3.5 years. Tara expects to generate positive cash flow from Picacho and does not expect expenditures directly during 2008.



San Miguel, Chihuahua, Mexico
Significant Silver Discovery - 2 drills currently drilling

To date, more than 24,000 m have been drilled and more than 1,800 m of trenching has been completed on just 5 km of the more than 8 km long mineralized structure. Structural, 3D modeling, geophysics and other survey work is currently being completed to help define deeper targets and potentially additional parallel systems. In January 2007, an NI 43-101 report outlined an inferred resource of 35M oz silver equivalent.

Shareholder value is being enhanced significantly through the ongoing US$10 million, 50,000 m drilling program. 47 of the last 53 drill holes intersected economic grades of silver, gold, zinc and lead. 30 holes are pending assay. The partnership has considerably enhanced the project technical team in an effort to systematically, and with the highest level of confidence, drill the growing resource. Tara Gold has a 30% / 70% joint venture agreement with Paramount Gold Mining Corp. Under the joint venture agreement, Tara Gold has 90 days to review all exploration expenditures prior to making its proportional payment. Tara Gold is current with its proportion of the payments and expects its proportions of the 2008 exploration costs to be approximately $250-$400,000 per month. Tara Gold has budgeted for these costs.



Las Minitas, Sonora, Mexico
Gold and Silver Target

A gold-silver system has been uncovered at the Las Minitas property in southwestern Sonora State, Mexico. The mineralization corridor is believed to cover a minimum 3 km strike length and is approximately 100 m wide. The El Negro target intersected 3.12 g/t gold and 43.80 g/t silver over 24.5 m, including a 1 m section grading 26.07 g/t gold, 273.50 g/t silver. Historical information indicates that 3 zones of interest are present.

Tara Gold is currently in a dispute with its previous partner regarding the Las Minitas Option Agreement and is assessing its options to advance the property. Tara Gold has budgeted for legal fees and property payments.



La Millonaria, Chihuahua, Mexico
Gold and Silver Target - exploration start-up in 2008

La Millonaria is a 20-30 meter wide silicified and stockwork veined, east-west trending structure that can be traced on surface for a minimum distance of 600 m, with additional workings present up to 2 km along strike. Scattered prospects and adits are present along the structure and selective historical mining has reported recoveries of 10 g/t gold on average.

Tara Gold signed at agreement with La Camera Mining Inc. whereby Camera can purchase a 70% undivided interest in La Millonaria with Tara Gold retaining a 30% carried interest once Camera earns its 70%. Shareholder value will be enhanced as La Camera plans to systematically and aggressively explore the defined structure and conduct a regional survey towards testing the larger potential as illustrated by the close proximity of Millonaria to both the Palmarejo and the El Sauzal mines. The structure appears to be strongly mineralized and hosts the potential to significantly expand the current zone. It also has the potential to generate cash flow in a relatively short to intermediate timeframe by processing the approximately 30,000 t of material on the property.

For Millonaria, La Camera will spend $3.75 million over the next 3.5 years and make all underlying property payments. Tara does not expect expenditures directly during 2008.



Curcurpe, Northern Sonora State, Mexico
Gold Target - exploration start-up in 2008

Curcurpe is located in the Curcurpe Mining District which hosts Carlin type gold deposits. The Curcurpe Project covers 6,000 hectares with multiple targets and historic mining over 1.5 km. There are high concentrations of gold-silver bearing vein deposits in the central and eastern parts of the Curcurpe District. Within Curcurpe, a vein structure has been traced for 3 km with grades between 1-8 g/t gold. Disseminated mineralization outside the main vein has shown grades of 1-2 g/t gold. Curcurpe is in close proximity to projects owned by Meridian and Penoles.

Tara Gold signed at agreement with La Camera Mining Inc. whereby Camera can purchase a 70% undivided interest in Curcurpe with Tara Gold retaining a 30% carried interest once Camera earns its 70%. Shareholder value will be enhanced as La Camera plans to systematically and aggressively explore the defined structure and conduct a regional survey towards testing the larger potential.

For Curcurpe, La Camera will spend $3.75 million over the next 3.5 years and make all underlying property payments. Tara does not expect expenditures directly during 2008.



Tara Minerals Corp., Mexico
Base and Industrial Metals - engineering study currently under way towards
production

Tara Gold established Tara Minerals Corp. to hold all base and industrial metal projects. The separation maximizes shareholder value and reduces dilution of precious metal holdings. Subsequently, Tara Minerals raised US$2.5 million by selling 5,039,200 shares priced at $0.50 per share. Tara Minerals currently controls 100% of 3 lead, zinc and silver properties. Tara Gold owns 82% (30 million shares) of Tara Minerals.

Tara Minerals has filed an SB2 towards obtaining a public listing in 2008. It has also begun installing equipment at the Don Ramon and Lourdes project towards production start-up by Q2 2008. Cash flow from production will be used to start aggressive exploration programs in an effort to establish NI 43-101 compliant resources. Tara Minerals has 36,539,200 shares issued. Tara Gold does not expect expenditures directly during 2008.

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, Las Minitas and Curcurpe 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.

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