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San Marco Discovers Copper, Gold, Moly Porphyry System

Exploration Programs

San Marco Discovers Copper, Gold, Moly Porphyry System

Vancouver, B.C. – January 19th, 2017: San Marco Resources Inc. (SMN: TSX-V) ("San

Marco" or the “Company”) announces updated exploration results from the Company’s

generative exploration program in Sonora state, Mexico.

Several targets have been evaluated using the GlobeTrotters /San Marco Partnership database

resulting in the identification of alteration patterns ranging from porphyry to high sulphidation

systems.

Of particular interest are the results of geologic traverses, prospecting and rock chip sampling

on Target #1068, which has identified a nest of previously unmapped porphyritic intrusions

along the northeastern contact of a much larger batholith. Preliminary geologic mapping

indicates a large, zoned alteration system with a potassic (biotite-magnetite) altered core and a

large phyllic (quartz-sericite) altered envelope.

One of these intrusions, a quartz-feldspar-biotite porphyry, exhibits quartz-chalcopyrite-pyrite-

molybdenite bearing "B" veins, which are indicative of a porphyry Cu-Mo-Au system. Adjacent

dacite porphyry and the overlying volcanic lithocap are phyllic altered and contain stockwork

quartz-sericite-pyrite "D" veins.

Exposures of mineralized rock are very limited by topography and the size of the mineralized

system remains to be determined. Multiple continuous chip samples have been taken which are

anomalous in copper (up to 0.59%), gold (up to 0.4 ppm) and molybdenum (up to 273 ppm).

These results – although preliminary – are solid evidence that the GlobeTrotters/San Marco

Partnership can successfully identify and acquire high quality greenfield projects. Geological

mapping and prospecting will continue for Q1 2017.

Generative exploration activities during Q1 2017 will also include the field investigation of at

least four additional Partnership targets, data review and exploration planning for the

Company’s 100% owned, 72,820 hectares, Mariana concession. San Marco currently has three

separate crews in the field completing target generation and ranking for new acquisitions, as

well as advancing currently owned exploration projects. Management expects to report updated

results from ongoing work at Chunibas shortly.

Robert Willis, San Marco’s President and CEO noted “we consider our Target #1068 as “proof

of concept” for the highly time and cost efficient targeting JV we created with GlobeTrotters.

Our crews have partially mapped in a classic porphyry alteration system of substantial size.

Most surface exposures are high-level lithocap, which generally doesn’t display anomalous

geochemistry. However, we have been able to find scattered exposure in arroyos where

erosion has exposed underlying rock units and mineralization. All the sampling done at these

exposures has reported anomalous to highly anomalous copper and gold values. We view

Target #1068 as a legitimate new porphyry discovery and look forward to rapidly advancing it.

We have scores of other targets in the region to investigate and rank and that work will be

carried on simultaneously”.

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As the Company’s property portfolio grows, management will seek partners to fund additional

exploration.

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 and Mariana Projects in

Sonora State.

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

acquisition cost opportunities in the 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,

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.

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.

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

Canada accepts responsibility for the adequacy or accuracy of this release.