San Marco Resources Plans Share Consolidation and Financing and Reduces Property Holdings in Order to Focus on Cuatro de Mayo

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 24, 2014) - The Board of Directors of San Marco Resources Inc. (TSX VENTURE:SMN) ("San Marco" or "the Company") reports that as a result of extensive discussions with various financial advisors, it believes it is in the best interest of the Company to consolidate its common shares on the basis of one (1) post-consolidation common share for every five (5) pre-consolidation common shares. Subsequent to this consolidation, which is subject to regulatory and shareholder approval, San Marco intends to raise approximately $500,000 by way of a private placement financing on the terms set out below.

San Marco will use the new funds raised to further advance the very prospective Cuatro de Mayo project in Sonora State, Mexico (http://www.sanmarcocorp.com/s/CuatroDeMayo.asp) and for general working capital purposes. Initial investigations by the Company at Cuatro de Mayo have already resulted in the identification of two exciting targets and the majority of the property, known to comprise numerous mineral showings, remains open to additional discoveries. In order to focus its resources on this well-located and low-opportunity cost project, San Marco has elected to reduce its other property holdings as described below.

Consolidation

San Marco currently has 61,418,560 common shares issued and outstanding, and warrants and options to purchase a further 15,150,000 shares. Following the 5:1 consolidation, there will be 12,283,712 shares outstanding, and warrants and options to purchase a further 3,030,000 shares at an exercise price equal to five times the original exercise price.

The Company will hold a special meeting of shareholders on December 22, 2014 to seek the approval necessary to carry out the consolidation, which will also be subject to TSX Venture Exchange approval. San Marco does not propose to change its name in connection with the share consolidation although its CUSIP number and ISIN will change.

The Board of Directors is recommending shareholders approve the share consolidation to assist the Company in obtaining equity financing and increase its flexibility with respect to potential business transactions. If the consolidation is approved, the Board of Directors will have the authority to implement the consolidation or abandon it without further approval from, action by, or prior notice to shareholders.