San Marco Raises $1.785 Million in Private Placement

Vancouver, B.C.—October 21, 2010: San Marco Resources Inc. (SMN: TSX-V) announces that it has closed its private placement of 5,100,000 units at $0.35 per unit for gross proceeds of $1,785,000.

Each unit consisted of one common share and one-half of a non-transferable warrant, each whole warrant exercisable to purchase a further share for 18 months at a price of $0.55. If the closing price of the Company’s shares on the TSX Venture Exchange for 10 consecutive trading days after February 22, 2011 equals or exceeds $1.00 per share, the Company may accelerate the expiry of the Warrants to 20 trading days after notice thereof to the warrant holders.

Finders’ fees of 6% were paid (in cash) to eligible finders and brokers for introducing some of the investors to the placement.

The proceeds of the placement will be used for continued exploration on its Mexican gold/silver properties Tecomate and La Buena, and for general working capital.

For further information contact:

Robert D. Willis Mike Mallard Chairman & CEO V.P. Corporate Communications 604-813-2606 604-506-3776 [email protected] [email protected]

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.