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San Marco Engages Geological Consultant; Commences Evaluation of 100% Owned Espiritu SMR Au-Cu-Mo Project

Exploration Programs

San Marco Engages Geological Consultant;

Commences Evaluation of 100% Owned

Espiritu SMR Au-Cu-Mo Project

VANCOUVER

,

Oct. 18, 2018

/CNW/ - San Marco Resources Inc. (SMN: TSX-V) ("San Marco" or

"the Company") is pleased to announce it has commenced exploration on its 100% owned Espiritu

SMR property. Exploration work will include geological mapping, surface rock sampling and

assessment of historical drillhole and rock data. The porphyry gold-copper-moly mineralized area of

Espiritu SMR will be the primary focus of this exploration program.

San Marco

has engaged

Luciano Bocanegra

to lead the exploration team to re-map geology; re-log

drill core; and generate a geological model to define vectors toward additional mineralized areas of

Espiritu. Mr. Bocanegra, currently Manager of Petra Gaia Consulting, a spectroscopy and

exploration mining consulting company headquartered in

Chile

, has previously consulted for

companies such as Hochschild Mining plc and Rio Tinto plc, and over the last five years worked in

Latin America

as a technical advisor and consultant for many mining exploration companies. As well,

Mr. Bocanegra completed the detailed geological evaluation of

San Marco's

1068 porphyry Cu -Mo -

Au project.

Chris T. Grijalva

, CEO stated, "Preliminary property assessment has allowed us to recognize the

porphyry gold-copper-moly potential for Espiritu SMR, the magnitude of which is unknown. The area

will be re-mapped to determine the surface extent of the system(s). Our first pass review suggests

the mineralized zones are open in all directions. We still need to understand the zoning and other

possible controls of the mineralization in order to best target future drilling.

San Marco

is taking the

Espiritu potential very seriously and, for this reason, has engaged an experienced, high calibre

expert who immediately will create and execute an aggressive and systematic exploration program.

We are targeting late November for completion of this first-pass program."

Espiritu SMR is located approximately 230 kilometres ("km") east of Hermosillo and 15 km east of

the town of Sahuaripa. Espiritu SMR (acquired through the recent Mexican Government mineral

concession lottery), covers approximately 2,712 hectares and is located less than 30 km southeast

of the Company´s Chunibas and 1068 Projects. The property hosts porphyry gold-copper and

polymetallic silver-lead-zinc mineralization. The gold-copper-moly porphyry system is located over

the eastern section of the property, covering an area of 1200 x 1800 metres underlain by a zoned

alteration sequence and quartz vein stockwork marked by strong quartz-sericite overprinting earlier

potassic alteration.

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.

For further detail historical information please see Company´s news release dated

May 15, 2018

.

Early indications suggest the porphyry-related alteration and mineralization footprint is widespread

with large scale potential. Detailed mapping should give a more accurate indication of the lateral and

depth extensions of porphyry driven mineralization.

San Marco

has noted that mineralized and

altered zones remain partially untested and will be subject of systematic exploration works to be

conducted during the upcoming winter season and through the spring of 2019.

Preliminary indications from an historical data review and field validation by

Luciano Bocanegra

,

suggest the past drill hole collar locations, azimuths and depth of the completed ten-hole historical

program were, essentially random in relation to the geometry and zoning of the Espiritu SMR

porphyry gold-copper-moly system (s). The Company recognizes that a much larger scale potential

exists; hence exploration will concentrate on defining and targeting mineralized zones.

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 Grijalva

, B.Sc.

President & CEO

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.

SOURCE

San Marco Resources Inc.

View original content:

http://www.newswire.ca/en/releases/archive/October2018/18/c2348.html

%SEDAR: 00025537E

For further information:

[email protected]

CO: San Marco Resources Inc.

CNW 08:30e 18-OCT-18