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San Marco Commences Exploration on Oregano

Exploration Programs

San Marco Commences Exploration on Oregano

Vancouver, B.C. – May 24th, 2017: San Marco Resources Inc. (SMN: TSX-V) ("San Marco" or

the “Company”) announces it has commenced exploration on the Oregano project, located

within the Company’s 73,000 hectare Mariana concession (appl.), approximately 240 kilometres

east of Hermosillo, Sonora State, Mexico.

The objective of this exploration program, using saw cut continuous channel samples, will be to

identify anomalous grades of vein mineralization, over greater widths than previously known.

The geological model at Oregano suggests the “boiling zone “, and presumably higher grades of

gold and silver, may be only 150 – 200 metres (“m”) below the veins surface exposure.

San Marco’s CEO, Bob Willis stated; “ We are excited to commence this new phase of

exploration at Oregano and believe a cost-effective, focused program of work has an excellent

chance of encountering higher grade gold mineralization and generating drill targets for further

exploration.” The Oregano mineralized system has been traced for three kilometres and

appears to be open. This is a District scale exploration opportunity for our shareholders.”

The initial phase of exploration will include systematic diamond saw cut channel samples across

the veins and detailed geologi cal mapping of the structures. Five of a proposed 15

channel/trenches have been completed. Of significance, after removing minimal overburden

from flanks of the vein outcrops, true widths of the individual veins appear to be in the 5 – 15 m

range, wider than 2 – 3 m vein widths previously known.

Of a total of 72 sample individual samples (each at least 1 m wide), 25% of the gold assays are

greater than 0.20 g/t (up to 1.1 g/t; and 24% of the silver assays are greater than 10 g/t (up

38.2 g/t).

Assay results from the initial five trenches over 350 m of strike are;

Trench: Z – 01 - anomalous gold/silver

Z – 02 - 23.5 m @ 0.33g/t gold and 9.0 g/t silver including 10.30 m @ 0.52 g/t gold

and 10 g/t silver

Z – 03 - 14.3 m @ 0.31 g/t gold and 5.0 g.t silver

Z – 04 - 31.4 m @ 0.12 g/t gold and 15.0 g/t silver

Z – 05 - 16.6 m @ 0.12 g/t gold and 10.0 g/t silver

The Oregano property is favourably located within the Sierra Madre Occidental belt of

epithermal gold-silver deposits, and hosts a semi-continuous, three kilometre North-South belt

of low sulfidation quartz veins which has only received limited historical exploration.

Vein textures, including well-developed lattice, bladed and cockade features, suggest the

surface exposes of the veins are in the upper levels of the mineralizing system, such that

excellent exploration potential exists along strike and at depth. Quartz varieties include,

chalcedony, opaline, silica replacing calcite, cryptocrystalline, in veins striking north – south and

dipping approximately 73 degrees to the east.

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Host rocks include both felsic (rhyolite, rhyodacite) and intermediate (andesite) compositions,

and occupy a favourable stratigraphic setting near the interface between the regionally

correlative Lower and Upper Volcanic Series.

About San Marco

San Marco Resources Inc. is a Canadian mineral exploration company with a portfolio of

promising projects in mining-friendly Mexico, including the Chunibas, Mariana and 1068

Projects in Sonora State.

San Marco actively pursues strategic project generation program focused on high -caliber, low

acquisition cost opportunities in the North-western Mexico. The Company has a committed

management team with extensive experience in Mexico and a proven track record of building

shareholder value. San Marco currently has 56,051,832 issued and outstanding shares.

On behalf of the Board of Directors,

Robert Willis, P. Eng.

President & CEO

For further information, contact:

Nancy Curry

[email protected]

National Instrument 43-101 Disclosure

This news release has been approved by San Marco's CEO, Robert D. Willis, P. Eng. a "Qualified

Person" as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects of the

Canadian Securities Administrators. He has verified the data disclosed, including sampling, analytical and

test data, underlying such technical information by reviewing the assay reports provided to San Marco by

its independent testing laboratory.

The Company has implemented quality assurance (“QA”) and quality control (“QC”) programs to ensure

sampling and analysis of all exploration work is conducted in accordance with the best possible practices.

All sampling programs are carried out in a careful and diligent manner using scientifically established

sampling practices designed and tested to ensure that the results are representative and reliable. Quality

control programs appropriate to the type of sample and the mineralization are implemented, including

such measures as external blanks, standards and duplicate s amples. The security of samples from

sample acquisition to analysis is a vital component of the sampling process. Procedures include the use

of secure core logging, sampling, storage and preparation facilities as appropriate and the prompt, secure

and direct shipping of samples to the laboratories. Appropriate sample security procedures are employed

given the geographic and topographic conditions and the logistics created by the site location.

Forward Looking Information

Information set forth in this document may include forward-looking statements. While these statements

reflect management's current plans, projections and intents, by their nature, forward-looking statements

are subject to numerous risks and uncertainties, some of which are beyond the control of San Marco

Resources Inc. Readers are cautioned that the assumptions used in the preparation of such information,

although considered reasonable at the time of preparation, may prove to be imprecise and, as such,

undue reliance should not be placed on these forward-looking statements. San Marco's actual results,

programs, activities and financial position could differ materially from those expressed in or implied by

these forward-looking statements.

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Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada

accepts responsibility for the adequacy or accuracy of this release.