San Marco Resources Begins Exploration Program at Oregano Project

San Marco Resources Inc. announces it has commenced exploration on the Oregano project, located within the Company's 73,000 hectare Mariana concession, approximately 240 kilometres east of Hermosillo, Sonora State, Mexico.

The objective of this exploration program, using saw cut continuous channel samples, will be to identify anomalous grades of vein mineralization, over greater widths than previously known. The geological model at Oregano suggests the "boiling zone ", and presumably higher grades of gold and silver, may be only 150 - 200 metres ("m") below the veins surface exposure.

San Marco's CEO, Bob Willis stated; "We are excited to commence this new phase of exploration at Oregano and believe a cost-effective, focused program of work has an excellent chance of encountering higher grade gold mineralization and generating drill targets for further exploration." The Oregano mineralized system has been traced for three kilometres and appears to be open. This is a District scale exploration opportunity for our shareholders."

The initial phase of exploration will include systematic diamond saw cut channel samples across the veins and detailed geological mapping of the structures. Five of a proposed 15 channel/trenches have been completed. Of significance, after removing minimal overburden from flanks of the vein outcrops, true widths of the individual veins appear to be in the 5 - 15 m range, wider than 2 - 3 m vein widths previously known.

Of a total of 72 sample individual samples (each at least 1 m wide), 25% of the gold assays are greater than 0.20 g/t (up to 1.1 g/t; and 24% of the silver assays are greater than 10 g/t (up 38.2 g/t).

Assay results from the initial five trenches over 350 m of strike are;

The Oregano property is favourably located within the Sierra Madre Occidental belt of epithermal gold-silver deposits, and hosts a semi-continuous, three kilometre North-South belt of low sulfidation quartz veins which has only received limited historical exploration.

Vein textures, including well-developed lattice, bladed and cockade features, suggest the surface exposes of the veins are in the upper levels of the mineralizing system, such that excellent exploration potential exists along strike and at depth. Quartz varieties include, chalcedony, opaline, silica replacing calcite, cryptocrystalline, in veins striking north - south and dipping approximately 73 degrees to the east.

Host rocks include both felsic (rhyolite, rhyodacite) and intermediate (andesite) compositions, and occupy a favourable stratigraphic setting near the interface between the regionally correlative Lower and Upper Volcanic Series.