San Marco Resources Inc. (TSX VENTURE:SMN), (The Company) has recently commenced
exploration at its 100% owned 8500 ha La Buena property in Zacatecas State,
Mexico. The southern boundary of La Buena is approximately 8 km north of
Goldcorp's world class Penasquito mine and 3 km north of their Noche Buena
resource area currently being explored. Other deposits in the area include the
3000 TPD underground Au/Ag/Zn/Pb Providencia mine 10km to the east and the
Salaverna SX-EW open pit copper property 11 km to the southeast. La Buena is
bordered on the northeast by concessions optioned to Goldcorp and currently
being explored. (La Buena location: to view, click here:
http://www.sanmarcocorp.com/files/la%20buena_location_2.pdf)


Chairman Robert Willis states "With new exploration data in hand, and seeing
results of a few weeks of our own exploration, we intend to ramp up our efforts
to further understand the geology, especially in the areas where magnetic and
radiometric anomalies are coincident with surface precious and base metal
occurrences. We expect that this work and additional detailed geophysics will
help us zero in on potential drill targets."


While alluvium covers about 60% of La Buena, geology of exposed rocks include
the same package of Cretaceous and Jurassic rocks that host the Providencia and
Salaverna deposits. Caracol Formation (limey siltstone) is also widespread and
hosts mineralization at Camino Rojo (50km to the south) and in part at
Penasquito. Intermediate subvolcanics host mineralization at Goldcorp's Noche
Buena resource area, and similar rocks also occur at La Buena.


The Company recently acquired from a major mining company, a helicopter flown
geophysical survey completed in 1997, that included magnetic and radiometrics
readings on 400m north-south line spacing. The data has been reinterpreted by an
independent geophysicist and is now being used to in part, guide initial surface
sampling and mapping. A cluster of strong magnetic anomalies occur around pyrite
rich subvolcanic monzonite intrusive bodies which outcrop in the central portion
of the property. (link, mag: to view, click here:
http://www.sanmarcocorp.com/files/la_buena_mag.pdf) The intrusives have
metamorphosed the surrounding Caracol siltstones to hornfels. Initial sampling
in the area have returned gold values up to 5 grams per tonne from narrow
structures and most importantly, up to 1.25 grams per tonne gold from the
hornfels. Surface sampling has been expanded in this area as well as in the
northern section of the property where scattered old workings occur. Previous
sampling in this area reported gold values in the 0.5 to 3 gram range from
structures and a "chimney" in Cupido Formation limestone.


Of significance, three long narrow magnetic anomalies occur under alluvium in
the south central area of the property, and may represent subvolcanic dykes.
Similar rock types are associated with mineralization at the nearby Noche Buena
mine. In addition, again under alluvium, a cluster of magnetic anomalies occur
along the La Buena southern property boundary and on trend with the Noche Buena
stock.


The technical information contained in this press release has been based on
information reviewed by San Marco's President, Robert D. Willis, P. Eng., a
'qualified person' for the purpose of National Instrument 43-101, Standards of
Disclosure for Mineral Projects of the Canadian Securities Administrators.


The Company is also pleased to report that it has retained Encompass
Communications Inc., a well established Canadian Investor Relations firm
headquartered in Vancouver, to provide investor relations services.


The Company will pay Encompass a monthly fee of $5,000 and will also grant
Encompass a stock option to purchase 100,000 shares for a period of 3 years
exercisable at a price determined at the time of granting. The Company's
agreement with Encompass can be terminated with 30 days notice. In the event of
termination of the agreement, any outstanding portion of the option would also
terminate in accordance the Company's Stock Option Plan.


The Company understands that, prior to the grant of options described above;
Encompass had no interest, direct or indirect, in the Company or its securities.


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