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CdM South Concession Shows Alteration Patterns Consistent with High-Sulfidation Epithermal Gold Deposits

San Marco Resources Inc. has discovered the presence of alteration patterns consistent with high sulfidation epithermal-type gold deposits at its CdM South concession in the Cuatro de Mayo Project, Sonora State, Mexico. Furthermore, stream sediment sampling, using the bulk leach extractable gold ("BLEG") technique, indicates the presence of gold coincident with this alteration.

In conjunction with its early reconnaissance work at CdM Central, San Marco geologists prospected at the CdM South concession where they discovered indications of high-sulfidation epithermal-style alteration including massive silicification and locally vuggy silica. Approximately 20% of the property was traversed, primarily along 3 creek drainages. Anomalous gold was detected in stream sediments over an 800 meter section of one stream in particular that occurs below highly silicified outcrops. Drainage flow indicates the origin of the gold is from the central area of the 3,336 hectare concession. In addition, fine gold was recovered locally from panning creek bed material. Although the Company's collection of rock chip samples was very limited due to the rainy season, in the northern area of CdM South, chip sampling of a highly altered silicified outcrop returned 0.43 g/t gold.

The CdM South concession lies approximately 20 km from both the La India and Mulatos gold operations (owned by Agnico Eagle and Alamos Gold respectively), each of which are producing gold from high sulfidation epithermal deposits. CdM South is approximately 50 km southwest of the CdM Central block of concessions and the El Valle shear zone, which was the subject of a separate San Marco news release issued on September 29, 2014. A map showing the location of concessions comprising the Cuatro de Mayo property is available at www.sanmarcocorp.com.

Robert Willis, CEO of San Marco states, "CdM South shows alteration patterns consistent with high sulfidation epithermal gold deposits, has returned anomalous gold in regional first-pass stream sediment sampling, and is in the vicinity of two operating mines producing gold from high sulfidation epithermal deposits. Our first pass evaluation of CdM South clearly indicates follow up work is warranted. This is the second highly prospective target we have identified within the CdM group of concessions over the last few months. San Marco has a top notch exploration team who continue to methodically field proof and prioritize targets."

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