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San Marco Confirms Porphyry Copper-Molybdenum-Gold System at 100% Owned Espiritu SMR Project in Sonora, Mexico

Exploration Programs

San Marco Confirms Porphyry Copper-Molybdenum-Gold

System at 100% Owned Espiritu SMR Project in Sonora,

Mexico

Vancouver, British Columbia--(Newsfile Corp. - January 8, 2019) - San Marco Resources Inc. (TSXV: SMN) ("San Marco" or

"the Company") is pleased to announce it has completed a critical first phase of exploration and evaluation which confirms the

existence of a porphyry copper-molybdenum-gold system at its 100% owned Espiritu SMR property in Sonora State, Mexico. In

addition, work from this phase has identified previously unrecognized vectoring tools to optimize future exploration efforts toward

priority target areas of potential best-grade mineralization.

As part of the Phase I program, San Marco engaged renowned consulting geologist Luciano Bocanegra (see the Company's

news release dated October 18, 2018) to lead the San Marco team in the reinterpretation and consolidation of all previous data

from the Espiritu SMR property. Data utilized in this evaluation included geological mapping, surface rock sampling, re-logging

of historical drill core and review of rock geochemical data. Results and recommendations from Mr. Bocanegra's work included:

-

confirmation of a multi-stage copper-moly-gold porphyry system with a minimum alteration footprint measuring 2.5 km x 1.2

km, open in multiple directions;

-

identification of previously unrecognized vectoring tools that can assist in targeting potential areas of best-grade

mineralization to depth and buried targets under post mineral rocks;

-

indication that copper mineralization may be preserved at depth within the shallower part of the porphyry system(s);

-

confirmation that the best copper mineralization in surface and drill core samples is related to intense quartz-chalcopyrite-

pyrite stockwork in potassic altered rocks; and

-

recommendation to conduct additional deeper penetrating geophysical surveying to assist in locating the potential source of

the mineralization seen in drill holes.

"We are pleased with the results and interpretations of this first phase of work at Espiritu SMR. The important data compilation

and invaluable insights from Luciano Bocanegra has confirmed the porphyry copper-moly-gold potential of the Espiritu SMR

project and heightened our understanding of its ongoing exploration potential. This extensive interpretive work and recent re-

mapping of the project area has better determined the surface extent of the porphyry system(s) and evidenced several of these

zones remain open for ongoing exploration. We are now utilizing this new information, interpretations and recommendations as

a means of optimizing and streamlining our future work which is expected to include the recommended magnetic and ZTEM

surveys to assist in locating a deeper source of the mineralization in advance of possible drilling at the project," said CEO Chris

T. Grijalva.

About the Espiritu SMR Property

The Company was awarded with the Espiritu SMR property through the Mexican government's mineral concession lottery in Q2

2018. Espiritu SMR is located approximately 230 kilometres ("km") east of Hermosillo and 15 km east of the town of Sahuaripa.

The initial land acquisition covered approximately 2,712 hectares and was recently increased to an overall land position of 4697

hectares distributed in two claim applications which are located less than 30 km SE of the Company's Chunibas and 1068

Projects.

Historical drill hole assay data* has indications of widespread gold and copper mineralization. Selected historical drill results

include:

Drill Hole ESP-02-09:

48.00 m @ 0.19 g/ton Au; 0.10% Cu; 2.0 g/ton Ag, including 1.50 m @ 1.80 g/ton Au; 0.07% Cu;

2.0 g/ton Ag

Drill Hole ESP-06-10:

220.50 m @ 0.14 g/ton Au; 0.15% Cu; 1.1 g/ton Ag.

*

The foregoing geological information on the Espiritu property was previously publicly disclosed by (and San Marco

obtained it from) Kootenay Silver Inc. (

www.kootenaysilver.com

) and has not been verified by the Company. Readers are

cautioned not to place undue weight on such information. Details of the sampling methods, handling and quality control

methods used in the generation of the foregoing historical technical data by Kootenay Silver are unknown to San Marco, and

the drill material, assay results, true width of intercepts herein cannot be and have not been verified by the Company's

Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the

Canadian Securities Administrators

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 a strategic project generation program focused on high-caliber, low acquisition cost opportunities in

northwestern Mexico. The Company has a committed management team with extensive experience in Mexico and a proven

track record of building shareholder value.

On behalf of the Board of Directors:

Christian T. Grijalva, B.Sc.

CEO

For further information, contact:

[email protected]

National Instrument 43-101 Disclosure

This news release has been approved by San Marco's Co-Chairman, 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.

San Marco 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 samples. 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. 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.

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

the adequacy or accuracy of this release.