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San Marco Intercepts Shallow Gold at Buck Property; 91 Metres of 0.80 g/t AuEq Within 156 Metres of 0.63 g/t AuEq and 81 Metres of 0.78 g/t AuEq Within 200.7 Metres of 0.51 g/t AuEq

Drill Results

San Marco Intercepts Shallow Gold at Buck Property; 91

Metres of 0.80 g/t AuEq Within 156 Metres of 0.63 g/t

AuEq and 81 Metres of 0.78 g/t AuEq Within 200.7 Metres

of 0.51 g/t AuEq

Vancouver, British Columbia--(Newsfile Corp. - May 12, 2020) - San Marco Resources Inc. (TSXV: SMN) ("San Marco") is

pleased to announce it has intersected

wide zones of continuous gold mineralization

from its recently completed Phase 1

drill program at its 100% optioned gold/silver/zinc Buck property in north-central B.C.

Highlights of the Phase 1 drill program include:

91 metres of 0.80 g/t AuEq (gold equivalent, gold and silver only) within 156 metres of 0.63 g/t

AuEq, including

33 metres of 1.01 g/t AuEq.

81 metres of 0.78 g/t AuEq within 200.7 metres of 0.51 g/t AuEq, including 44 metres of 1.01 g/t AuEq.

2.15 metres of 6.3 g/t Au and 10.0 g/t Ag, including 0.3 metres of 20.7 g/t Au and 48.9 g/t Ag (within 4 metres of

the bottom of BK20-002).

Mineralization is hosted in highly clay altered, faulted and fractured, brecciated volcanic tuffs, as wide disseminated zones

and high-grade veins.

[*]

Very consistent gold and silver grades intersected at shallow depths, some of which are projected to surface.

San Marco's Executive Director, Bob Willis, states "We are very encouraged to see significant intervals of continuous gold

mineralization at Buck, which confirms our preliminary findings that this is a large, near-surface gold/silver exploration

opportunity. We intend to aggressively ramp up exploration efforts, with our 'boots on the ground' exploration team arriving on

site in about three weeks. Our drill program gave us the first opportunity to see fresh core we could log and tie to gold

mineralization, and to help target the best host rocks, alteration, and structural setting for gold deposition. We will use this new

information to target drilling for Phase 2 and to prioritize numerous attractive, but previously poorly understood, target areas at

Buck."

The 1,806 metre drill program was centered in an area of historically explored mineralization and consisted of a total of five

holes, where three holes were drilled in an area of known mineralization near surface. An additional two short holes were

collared 350 metres to the northwest in an attempt to locate a previously postulated mineralized fault zone. Drill hole locations for

the Phase 1 drill program can be seen in

Figure 1

and were previously announced on

April 8, 2020

.

The primary objective of the Phase 1 campaign was to get fresh drill core to identify styles of mineralization and detailed

analysis of subtle mineralizing controls that could then be applied project-wide. This has been successful, and these

observations will be a key component in the design of the Phase 2 drill program.

Significant shallow drill intersections of gold and silver has shown the robust nature of mineralization, with most of the gold

mineralization hosted as disseminations in the host rock, and as high-grade veins, commonly associated with sphalerite and

pyrite (see

Photo 1

). Most of the mineralized system has been classified as felsic lapilli tuffs (volcanic rocks), with various

degrees of brecciation. Rocks that are highly faulted and clay-altered have the most elevated gold values. Schematic cross

sections can be seen in

Figure 2

and

Figure 3

.

Near-Term Focus

San Marco's plans for the next phase of exploration include:

Continue to compile and analyse drill results and review drill core with assays in hand

Mobilize a field crew to the property in about three weeks

Commence exploration activities to include detailed mapping and sampling, and prospecting new areas radiating out from

current drill location

Re-interpret historical geophysical data to be used to assist in new drill target generation

Complete initial 3-D geological model after all drill core interpretation and field work is complete

Generate Phase 2 drill program

Significant intercepts for the Phase 1 drill program at Buck can be found below.

Hole

From (m)

To (m)

Width* (m)

AuEq (g/t) **

Au (g/t)

Ag (g/t)

Zn

(pct)

BK20-001

29.35

30.35

1

1.93

1.87

6.1

0.5%

and

60.00

62.00

2

1.09

1.06

2.7

0.1%

and

76.50

80.00

3.5

0.54

0.53

1.0

0.1%

and

102.30

303.00

200.7

0.51

0.48

3.7

0.2%

including

120.00

136.00

16

0.56

0.52

4.0

0.2%

and including

123.00

127.45

4.45

0.73

0.68

4.9

0.1%

and including

124.35

125.00

0.65

1.84

1.77

7.6

0.2%

including

153.80

281.00

127.2

0.62

0.58

4.1

0.2%

and including

157.45

238.00

81

0.78

0.73

4.9

0.2%

and including

192.00

236.00

44

1.01

0.96

5.1

0.2%

and including

192.00

202.00

10

1.07

1.00

7.6

0.2%

and including

210.00

212.00

2

1.18

1.13

5.1

0.2%

and including

224.00

234.00

10

1.69

1.65

4.8

0.4%

and including

224.00

228.88

4.88

2.62

2.54

8.3

0.6%

and

343.75

345.00

1.25

0.64

0.61

2.7

0.1%

BK20-002

50.25

56.00

5.75

0.48

0.47

1.8

0.1%

including

50.25

50.60

0.35

2.08

1.93

16.1

1.0%

and

90.20

90.50

0.3

2.43

2.19

25.2

1.0%

and

101.00

257.10

156.1

0.63

0.59

4.3

0.5%

including

111.00

202.00

91

0.80

0.75

5.6

0.5%

and including

111.00

113.00

2

4.19

4.08

11.2

1.2%

and including

132.00

142.00

10

1.01

0.95

6.3

0.2%

and including

146.00

147.50

1.5

1.56

1.50

6.2

0.5%

and including

152.10

153.60

1.5

1.66

1.62

4.5

1.2%

and including

169.00

202.00

33

1.01

0.94

7.4

0.7%

and including

169.00

175.20

6.2

1.05

0.98

6.7

1.1%

and including

169.00

171.00

2

1.55

1.49

6.3

1.0%

and including

173.00

175.20

2.2

1.08

1.00

8.6

1.7%

and including

181.00

202.00

21

1.09

1.02

8.0

0.7%

including

245.20

257.10

11.9

0.88

0.84

3.9

0.9%

and including

248.40

252.00

3.6

2.04

1.99

5.5

1.4%

and

325.00

329.00

4

1.39

1.29

11.1

0.4%

and

335.90

337.00

1.1

5.69

5.55

14.9

0.0%

and

414.50

415.00

0.5

6.21

5.75

49.3

0.2%

and

424.65

426.80

2.15

6.40

6.30

10.0

0.0%

including

426.50

426.80

0.3

21.16

20.70

48.9

0.0%

BK20-003

84.40

85.00

0.6

1.62

1.48

14.9

2.0%

and

134.35

135.60

1.25

1.70

1.56

14.6

1.5%

including

134.35

134.65

0.3

5.75

5.37

40.4

3.6%

BK20-004

101.50

103.00

1.5

0.54

0.52

2.9

0.1%

including

101.50

101.80

0.3

1.47

1.42

5.0

0.2%

and

186.00

188.00

2

0.72

0.70

1.6

0.1%

and

211.10

221.20

10.1

0.49

0.42

7.1

0.5%

including

211.10

212.25

1.15

1.41

1.28

14.2

1.4%

including

220.85

221.20

0.35

2.74

2.61

14.0

2.7%

and

272.00

274.00

2

3.10

3.06

4.5

0.3%

BK20-005

165.80

188.80

23

0.63

0.32

33.2

0.4%

including

165.80

172.10

6.3

1.08

0.46

65.4

0.5%

including

188.50

188.80

0.3

1.30

0.64

70.4

1.0%

Hole

From (m)

To (m)

Width* (m)

AuEq (g/t) **

Au (g/t)

Ag (g/t)

Zn

(pct)

and

208.20

208.50

0.3

1.10

1.01

9.6

2.3%

and

214.00

304.50

90.5

0.35

0.30

5.1

0.4%

including

226.00

230.00

4

0.78

0.66

13.6

0.2%

including

252.00

304.50

52.5

0.39

0.33

6.1

0.5%

and including

262.00

281.00

19

0.51

0.41

10.9

0.6%

and including

302.50

304.50

2

0.66

0.64

1.9

0.0%

and

324.00

326.00

2

0.61

0.58

3.2

0.3%

and

348.00

350.00

2

0.61

0.54

7.4

0.1%

and

418.00

420.00

2

1.09

1.00

9.1

0.1%

Hole

From (m)

To (m)

Width* (m)

AuEq (g/t) **

Au (g/t)

Ag (g/t)

Zn

(pct)

* Widths are drill core length. Insufficient drilling has been undertaken to determine true widths at this time.

Average grades are weighted by width and calculated with uncapped gold assays.

Average widths are calculated using a 0.2 g/t gold equivalent cut-off grade with less than five continuous metres of internal

dilution below cut-off grade.

** Gold equivalent (AuEq) values were calculated using a gold price of US$ 1,600 per ounce and a silver price of US$ 15

per ounce. Gold equivalent values were calculated using the following formula: AuEq = (Au g/t) + (Ag g/t) x (15/1600).

Gold equivalent assumes 100% recoveries.

Quality Assurance

All sample assay results have been monitored through a quality assurance / quality control (QA/QC) program. Industry best

practices were used for defining a QA/QC program where 5% of the sampling stream was controlled by industry recognized

certified reference material (CRM's) and blanks. When necessary, additional QA/QC in the form of 5% of pulp and coarse reject

duplicates were selected for laboratory verification. The drill core was logged in detail by geologists utilizing a logging approach

designed by senior technical managers. Logging and sampling was completed at a secure facility in Smithers, B.C. by Coast

Mountain Geological Ltd. (CMG). Drill core was sawn in half on site and half drill-core samples were securely transported to the

ALS Global prep facility in Terrace, B.C. The samples were dried, crushed to 70% (< 2 mm), split to 250g, and pulverised to

85% (<75 µm). Sample pulps were sent to the ALS Global lab in North Vancouver, B.C., for analysis. Gold analysis was by 30g

Fire Assay with AA finish

and automatically re-analysed with Gravimetric finish if Au >5 g/t. Some samples underwent ore grade

analysis using the Four Acid method. In addition, pulps underwent Multi-Element Analysis by ICP-AES. ALS Global is registered

to ISO/IEC 17025:2017 accreditations for laboratory procedures.

Links to Figures

Figure 1:

http://sanmarcocorp.com/wp-content/uploads/2020/05/Buck_Drilling_Imagery_May2020_NR_sxns.jpg

Figure 2:

http://sanmarcocorp.com/wp-content/uploads/2020/05/Simplified_CrossSection_May2020_SectionA-scaled.jpg

Figure 3:

http://sanmarcocorp.com/wp-content/uploads/2020/05/Simplified_CrossSection_May2020_SectionB-scaled.jpg

Photo 1:

http://sanmarcocorp.com/wp-content/uploads/2020/05/Buck_CorePhotos.pdf

About San Marco

San Marco is a Canadian mineral exploration company actively pursuing world class gold, silver, zinc and copper projects with a

focus in mining friendly jurisdictions in both British Columbia, Canada and Mexico.

The Company's principal focus and asset is the recently optioned Buck Property in north-central British Columbia that has large

tonnage gold-silver-zinc potential in a mining-friendly region that includes many former and current operating mines. In addition,

the Company's portfolio includes the several prospective, early stage exploration properties in Mexico.

San Marco is committed to environmental and social responsibility with a focus on responsible development to generate

positive outcomes for all stakeholders.

Further details are available on the Company's website at

www.sanmarcocorp.com

On behalf of the Board of Directors:

Robert Willis, P.Eng.

Executive Director

For further information, contact:

Nancy Curry

Corporate Communications

Sharyn Alexander, M.Sc.

VP Technical Services

[email protected]

National Instrument 43-101 Disclosure

This news release has been approved by San Marco's Executive Director, 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.

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.

[*]

Widths are drill core length

To view the source version of this press release, please visit

https://www.newsfilecorp.com/release/55698