• Intensive on-going drilling program.
• N.I. 43-101 report confirms substantial potential.
• 8 km long mineralized zone.

The San Miguel project is located in Chihuahua, Mexico and lies in the Temoris mining district, part of the prolific gold-silver belt of the Sierra Madre Occidental. It can be accessed by vehicle and railway and has well-developed infrastructure with a recently constructed 33,000 volt power line. Gold/silver mineralization in the project area occurs as quartz veins and breccias within the west-northwest- and north-northwest-striking faults.

In August, 2005, Tara Gold Resources signed an agreement with Paramount Gold Mining Corp. giving Paramount the right to earn up to a 70% interest in the project by spending US$2.5 million, delivering 700,000 shares, and making various payments to Tara Gold. Paramount Gold is the operator of the project and manages the exploration program.

San Miguel is currently comprised of 16 concessions covering an estimated 8 kms strike of silver and gold mineralization. San Miguel is located adjacent to Palmarejo - TSXV:PJO with a growing 3.0 million oz Au-equivalent resource.

To-date, over 7,300 meters have been drilled and over 1,800 meters of trenching has been completed on just 3.3 kms of the total 8 kms of mineralized strike.

The NI 43-101 compliant report was recently completed by Dana Durgin of Delve Consultants LLC., Sparks, Nevada, USA on behalf of Paramount Gold, the operator. Based on 39 widely spaced shallow drill holes, covering 2.7 km of the 8 km structure, the report calculated an inferred resource of 4.8 million metric tones, grading the US dollar equivalent of 246.6 grams of silver per tonne, or 38 million ounces of silver.

The resources described in the NI 43-101 report remain open along strike to the NNW and SSE, as well as down dip. Few of the drill holes have reached more than 120 meters below the surface. In precious metal systems like this, such as at nearby Palmarejo, ore shoots are known to persist to depths of 300 meters or more down dip. In addition, the drilling program has tested only 2.7 km of the 8 km system strike. There is also a parallel fault zone 2 km to the west with excellent silver/gold mineralization at the surface. This parallel system has not yet been drilled.

The report recommends infill drilling to better define the existing resource, preliminary metallurgical testing and additional exploration along strike. Extensive work is planned during 2007 to carry out the work as recommended by the technical report. The 2007 plan is to drill test the entire 8 km of strike as well as other targets and infill drill to upgrade current resource. The 2007 exploration budget is approximated at $10 million.