CHICAGO, August 2, 2006 (MARKETWIRE) – (Other OTC: TRGD.PK and Frankfurt: T8N) Tara Gold Resources Corp. is pleased to disclose the first round of results from its ongoing drill program at the San Miguel project located near Temoris, Chihuahua, Mexico. These first nine drill holes represent initial testing on the San Luis, Montecristo and La Blanca zones, which are three of the over ten known mineralized zones located at San Miguel. Two of the three zones reported very significant intercepts of gold and silver mineralization and included bonanza gold of 35.5 g/t gold with 17 g/t silver over 4.0 meters in hole SL-02 at San Luis and 0.39 g/t gold and 80.62 g/t silver over 19.5 meters in hole MC-01 at Montecristo. Of significance, these intervals contain associated lead, zinc and copper sulfides, however due to backlogs at analytical laboratories, the analysis for these elements has yet to be completed.

Paramount's Exploration Manager for Mexico, Bill Reed, comments "I am very pleased that our initial round of drilling has been this successful. We recently obtained a report by Behre Dolbear & Company for A J Industries, dated 1962, stating "from what can be learned from existing literature, the San Luis deposit contains the highest gold grades in the district". Our initial drilling shows that this gold system can produce high grades and we are only getting started with just a few holes in three zones and have numerous other zones and areas to drill test throughout this large system. With each set of drill results we learn more and will be able to direct our second round of drilling on these targets more effectively. We plan 3 or 4 more holes at San Jose, and then the drill will be moved to the La Union Mine area to test the zone recently defined by 5 trenches. After 5-7 holes have been completed, the drill will be moved to the Santa Clara area to test gold and silver anomalies identified during a recently completed trenching program. Then we will rotate the drill back to previously drilled targets after analytical results have been reported for a second round of drilling."

Further commenting, Chris Crupi, President & CEO stated "These encouraging results have strengthened our commitment to the San Miguel project, evidenced by my recent authorization of an increased budget for further drilling."

San Luis Mine Area: Drill holes: SL-01, SL-02 & SL-03

Paramount Gold has recently completed eight core drill holes in the San Luis Mine area at its San Miguel project. The assay results for the first three drill holes are listed below. DDH SL-01, SL02 and SL-03 were drilled to test un-mined zones adjacent to a N50W striking high grade gold-silver quartz and quartz breccia vein mined by the Alaska Juneau Company between 1958 and 1962. This vein dips 70 to the NE and was mined from the surface to a down dip depth of approximately 250 meters. Old mine maps showing drill holes in the bottom of the shaft that indicate the high grade mineralization continues below the workings.

DDH SL-01 cut 8.9 meters between 84.80 and 93.72 meters averaging 0.64 g/ton gold and 18 g/ton silver and then entered a three and a half meter void were the vein had been previously mined out.

DDH SL-02 cut 4.0 meters between 141.00 and 145.00 meters averaging 35.50 g/ton gold and 17 g/ton silver.

DDH SL-03 cut 28.0 meters between 64.0 and 92.0 meters averaging 0.26 g/ton gold and 38.20 g/ton silver

including 8.0 meters between 64.0 and 72.0 meters averaging 0.05 g/ton gold and 51 g/ton silver;

including 6.0 meters between 79.0 and 85.0 meters averaging 0.26 g/ton gold and 107 g/ton silver, and

including 4.0 meters between 88.0 and 92.0 meters averaging 1.35 g/ton gold and less than 5 g/ton silver.

NOTE: All of the above intervals contain associated lead, zinc and copper sulfides. The analysis for these elements is not yet completed.

The San Luis Mine is located immediately north and adjacent to the San Jose silver zone where detailed rock chip sampling completed earlier outlined an area 250 meters long and up to 50 meters wide that averaged 225 g/t silver {see press release Dec 8th 2005} The San Jose zone is comprised of a series of quartz veins and stockwork quartz veinlets that strike N10-25W and dip 70-90 E. The intersection of the N50W San Luis structure with the San Jose structures controlled the high gold-silver mineralization in the San Luis Vein. Historic documents from the Alaska Juneau Company and recent detailed rock chip sampling by Paramount Gold indicate that other structural intersections host similar high grade gold silver mineralization.

Drill Update: Another six diamond drill holes have been completed in the San Luis zone and are awaiting assay results. Two drill holes have been completed in the San Jose silver zone and a third hole was started yesterday. Trenching across the mineralized zone continues to the south where this zone can be followed for several kilometers. Paramount expects to report further drill results in a more timely fashion now that a steady stream of drill samples has been going out to the assay lab.

Montecristo Area MC-01, MC-02 & MC-03

Located in the NW portion of the Guazapares structural lineament that has a general strike of N20 – 30W, this mineralized zone can be traced more than six kilometers and contains hundreds of ancient mine workings that date as far back as the 1620's. Three diamond drill holes (DDHs) have recently been completed in Montecristo area totaling 798.20 meters. Three vein like structures which strike N30-40E (Montecristo I, II and III), and the Montecristo hydrothermal breccia zone which strikes N30W were intersected in these drill holes.

The Montecristo breccia is a recently recognized hydrothermal structure that was identified in old mine workings and confirmed by new exposures in recently constructed roads to drill sites. On surface, the Montecristo breccia can be recognized for a distance of more than 1000 meters along strike with thickness of 50 to 80 meters. This breccia was intersected at depth by DDHs MC 01 and MC-03

DDH MC-01 intersected 19.5 meters averaging 0.39 g/ton gold and 80.6 g/ton silver between 54.5 and 74 meters, and a 4.4 meters zone between 140.2 and 144.4 meters averaging 116 g/ton silver with low gold values.

DDH MC-03 intersected 29.5 meters averaging 0.61 g/ton gold and 11 g/ton silver between 92.5 and 122.0 meters with lower grade mineralization below. This breccia is considered of great importance because of the potential to develop a large low grade bulk tonnage resource. The vein structures require further drill testing to determine their significance. There is potential to discover structurally-controlled high-grade zones within the breccia.

Below is a summary of drill holes MC-01, MC-02 and MC-03

Mineralization is associated with a rhyodacite intrusive rocks and a hydrothermal breccia developed along the contract with andesite tuffs and flows that host the felsic intrusive complex.

La Blanca Area LB-01, LB-02 and LB-03

Three DDHs [LB-01, LB-02 and LB-03] were drilled to test the historical drill data reported by War Eagle in the early 1990's. Paramount twined three of the better reverse circulation [RC] War Eagle holes that cut the reported mineralization. These three holes did not confirm any of the War Eagle intercepts, but drill hole LB-01 did intersect 19.38 g/t silver at depth and it is possible that it could represent an extension of the Montecristo zone. Paramount is planning further drill testing of this zone during the next round of drilling at Montecristo.

The most significant intercepts are:

In general, the lithology consists of a hydrothermally altered tuff sequence intruded by rhyodacite, rhyolite and andesite. Most drill hole intercepts show strong silicification with disseminated pyrite, and moderate argillic alteration in some zones. Between 150.30 and 166.00 meters traces of galena were reported.

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Paramount has renegotiated its agreement on the La Blanca area concesssions, reported in News Release dated January 3rd 2006. Paramount can earn a 100% interest by making a cash payment of $US180,000 ($110,000 is paid and $70,000 is due by Dec 31 2006) and a work commitment of US$500,000 to be completed before Dec. 31 2007. A royalty of US$1.00 per gold equivalent ounce is payable on any reserves in the proven and probable category based on an independent audit, one to be completed at year end 2007 and year end 2008. Tara Gold, Paramount's JV partner may opt in for 30% interest as per an area of interest agreement.

Quality Control Program

Paramount takes detail photos of all the core before it is cut to half core which is assayed at ALS Chemex's Vancouver laboratory. As part of quality assurance, quality control (QAQC), a blank (sterile)sample is submitted every 20th sample. Later, pulps from a number of intervals will be renumbered and pulps from known standards will be inserted between them in numerical order. These will then be submitted for reanalysis. The results will then be compared to the original values reported, and the known values of the inserted standards. Half-core samples have been retained on site for verification and reference purposes.

C W Reed , B. Sc. Mineralogy, is acting as qualified person and has prepared the detail and review with respect to this news release.

Diamond Drill Hole Information - San Miguel Project

About San Miguel

San Miguel is currently comprised of 16 concessions covering an estimated 6 kms strike of silver and gold mineralization. It is located in Chihuahua, Mexico and lies in the Guazapares Mining District, part of the gold-silver belt of the Sierra Madre Occidental. Paramount signed an agreement in August 2005 with Amermin S.A. de CV, a subsidiary of Tara Gold Resources, to acquire a 70% interest in the San Miguel project.

About Tara Gold Resources Corp.

Tara Gold Resources Corp. is a precious metals exploration and development company with existing production. Management is focused strongly on building the mining production base and becoming a significant gold, silver and mineral producer. Tara gold continues to acquire 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: 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.

Contact Tara Gold Resources Corp., OTC: TRGD.PK, Frankfurt:T8N

Website: www.TaraGoldResources.com
E-mail: president@taragoldresources.com
Corporate Office: 630-462-2079
Investor Relations: 503-465-1983