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San Marco Prioritizes Drill Targets on Chunibas, Raises $717,475 from Warrants Exercised and Launches New Website

Share Capital & Compensation Marketing Announcement

San Marco Prioritizes Drill Targets on Chunibas, Raises $717,475 from Warrants

Exercised and Launches New Website

Vancouver, B.C. March 2 nd , 2017: San Marco Resources Inc. (SMN: TSX-V) ("the Compa ny"

or "San Marco") provides an exploration update on t he Chunibas Property located in Sonora

State, Mexico and an update on corporate activities.

Chunibas Property Update

Exploration results from the recently completed pro perty wide soil sampling grid (approximately

1,000 samples) have confirmed the existence of the primary gold target, 600 metres X 800

metres. Historical data has been incorporated with the Company’s recent exploration work,

resulting in field evidence that the north-south trending shear/vein structures coalesce in various

zones along strike. This has reinforced the geologi cal model that wider zones of gold

mineralization, flanking the high-grade shear structures, some of which continue to be mined by

local gambosinos (miners), where grades appear to b e in the 15 g/t gold range, exist. The

Company’s sampling of the one to two metre-wide structures has resulted in grades up to 46 g/t

gold.

Mineralized structures have been identified in the western sector of the property as well,

however, additional exploration is required, since alluvial cover minimizes meaningful surface

exploration beyond the one to two metre wide structures exposed at surface.

Drilling is anticipated to be the next phase of exp loration such that field crews are planning and

spotting drill hole locations. Since the Chunibas P roperty’s primary mineralized area is open in

all directions, drilling is expected to probe deepe r and on-strike mineralized zones not explored

in previous drilling.

All drill permits, surface access agreements and dr ill contract proposals are in place, such that

drilling could commence quickly. Partnership opport unities are being investigated to fund the

drilling, however, the Company is funded to support this program as required.

Warrants Exercised

During the period of November 1 st , 2016 to February 15 th , 2017, the Company received

$717,475 from the voluntary exercise of 7,570,750 w arrants. Over the period, June 1 st , 2016 to

February 15 th , 2017, the Company’s outstanding warrants have been reduced from 24,524,000

to 8,740,250.

Launch of new Corporate Website

As part of the Company’s continuing commitment to s hareholder communication, San Marco

has launched a new responsive website to enable eas e of use for shareholders to view the

Company’s website information across multiple platf orms, including mobile devices. The

website address remains the same: http://www.sanmarcocorp.com/s/Home.asp .

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Prospectors and Developers Association Convention 2017 (PDAC)

Company representatives will be attending the upcom ing PDAC conference held at the Metro

Toronto Convention Centre March 5 th to 8 th , 2017, in Toronto, Ontario. If you wish to arrange a

meeting with management, please email [email protected].

About San Marco

San Marco Resources Inc. is a Canadian mineral expl oration company with a portfolio of

promising projects in mining-friendly Mexico, inclu ding the Chunibas and Mariana Projects in

Sonora State.

San Marco actively pursues strategic project genera tion 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 53,851,832 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 co nducted in accordance with the best possible practi ces.

All sampling programs are carried out in a careful and diligent manner using scientifically establishe d

sampling practices designed and tested to ensure th at the results are representative and reliable. Qua lity

control programs appropriate to the type of sample and the mineralization are implemented, including

such measures as external blanks, standards and dup licate samples. The security of samples from

sample acquisition to analysis is a vital component of the sampling process. Procedures include the us e

of secure core logging, sampling, storage and prepa ration facilities as appropriate and the prompt, se cure

and direct shipping of samples to the laboratories. Appropriate sample security procedures are employe d

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 statemen ts

are subject to numerous risks and uncertainties, so me of which are beyond the control of San Marco

Resources Inc. Readers are cautioned that the assum ptions used in the preparation of such information,

although considered reasonable at the time of prepa ration, may prove to be imprecise and, as such,

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undue reliance should not be placed on these forwar d-looking statements. San Marco's actual results,

programs, activities and financial position could d iffer 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.