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San Marco field crews expands Gold-Copper-Molybdenum porphyry system on the 1068 Project

Exploration Programs

San Marco field crews expands

Gold-Copper-Molybdenum porphyry system on the 1068 Project

Vancouver, B.C. – May 2nd, 2017: San Marco Resources Inc. (SMN: TSX-V) ("San Marco" or

the “Company”) announces that results from ongoing geological mapping and prospecting have

confirmed and expanded the size potential of Target #1068 in Sonora State, Mexico, elevating

the target to project status.

San Marco field crews completed geological and alteration mapping, stream sediment and rock

chip sampling and petrographic analyses of select samples on the 1068 Project, a porphyry

Gold-Copper- Molybdenum system identified by the Company’s generative program (see News

Release January 19th, 2017).

Program Highlights:

• Mapping increased the phyllic alteration (quartz, sericite, pyrite) halo surrounding the

potassic alteration core to 1000m X 450 m, and defined an internal zone of strong phyllic

stockwork developed in the volcanic lithocap.

• The primary target remains hypogene (sulphide) copper-gold-molybdenum

mineralization hosted in feldspar/quart/biotite porphyry.

• Initial exploration program complete

• Surface access rights secured over main targets

• Application for drilling approval from the Mexican Ministry of Environment and Natural

Resources (SEMARNAT) in process.

• Project is deemed to be drill ready.

Surface exposures of the potassic altered feldspar-quartz-biotite porphyry core, exhibit multi-

directional to sheeted quart sulphide veinlets (chalcopyrite, pyrite and molybdenite) with rock

chip samples up to 0.59% copper, 0.4 g/t gold and 276 ppm molybden um The Company

believes that the 1068 Project is a classic zoned porphyry system with a broad envelope of

quartz-sericite-pyrite alteration surrounding a potassic altered core . Recent mapping and

sampling to the north and east of the overlying volcanic lithocap, extended the footprint of

alteration and anomalous copper/gold geochemistry, suggesting the mineralized system will

extend under the lithocap and beyond the limit of current exposure.

San Marco’s CEO, Bob Willis stated; “We are very fortunate to have discovered a copper, gold,

moly porphyry environment so early in our regional generative exploration program. Phase I

exploration at Project 1068 is complete, however, ongoing detailed geological and structural

mapping, additional petrographic analysis will continue. The system is large and robust but

complete testing requires sampling below the lithocap. Drilling is the next logical step to confirm

if 1086 is the significant new porphyry discovery it currently appears to be.”.

San Marco is currently evaluating options for further exploration on the 1068 Project, including

discovery drilling of mineralized exposures on a 100% basis. The Company is also entertaining

joint venture discussions with third parties. Due to the strength of the 1068 Project, any deal

offered will have to be substantially accretive to San Marco shareholders to outweigh th e

favourable risk-reward management thinks is presented by the Company carrying out Phase I

drilling itself. A final decision will be made while drill permits with SEMARNAT are being

processed.

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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 c ontrol 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.