San Marco Further Increases Flow-Through Private Placement to $4,000,000

Vancouver, British Columbia--(Newsfile Corp. - June 30, 2020) - San Marco Resources Inc. (TSXV: SMN) is pleased to announce that, due to strong investor demand, it is increasing the size of its non-brokered private placement offering to $4,000,000 consisting of: (i) "charity flow-through" Units at a price of $0.34 each (the "Charity FT Unit Offering") and (ii) "flow-through" Units at a price of $0.26 each (the "FT Unit Offering" and, together with the Charity FT Unit Offering, the "Offering"). Eventus Capital Corp. has been appointed as a finder in connection with the Offering and will be paid a 7% cash fee and issued that number of compensation warrants (having the terms described below) equal to 7% of the Units sold.

Bob Willis, CEO & Director, stated, "San Marco very much appreciates the strong support from the institutional investor community. We are looking forward to continue a very expanded drill program at the Buck Property as soon as possible."

Each Unit will consist of one 'flow-through' common share and one half of a common share purchase warrant. Each whole warrant (a "Warrant") will entitle the purchase of one (non-flow-through) common share for 24 months at a price of $0.34. If the closing price of the Company's common shares ("Common Shares") is greater than $0.70 for 10 consecutive trading days, San Marco will have the right to accelerate the expiry date of the Warrants by giving notice, via a new release, to the Warrantholders that the Warrants will expire 30 days after the issuance of the news release. The compensation warrants will be exercisable for two years at a price of $0.26 per share and will not be subject to the acceleration provision.

Common Shares comprising part of the Units issued under the Charity FT Unit Offering and FT Unit Offering will qualify as 'flow through shares' ("Flow Through Shares") under the Income Tax Act (Canada). The gross proceeds from the Offering will be used to incur 'Canadian exploration expenses' that will qualify as 'flow through mining expenditures' under the Income Tax Act and will be renounced to the initial purchasers of the Flow Through Shares.

Proceeds of the Offering will be used for funding exploration of the Company's Buck Property. Closing of the Offering is expected on or about July 21, 2020. All the securities issued pursuant to the Offering will be subject to a four month restricted resale period. Completion of the placement is subject to the approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirement is available

About San Marco

San Marco is a Canadian mineral exploration company actively pursuing world class gold, silver, zinc and copper projects with a focus in mining friendly jurisdictions in both British Columbia, Canada and Mexico.

The Company's principal focus and asset is the recently optioned Buck Property in north-central British Columbia that has large tonnage gold-silver-zinc potential in a mining-friendly region and includes many former and current operating mines. The Company's portfolio also includes several prospective, early stage exploration properties in Mexico.

San Marco is committed to environmental and social responsibility with a focus on responsible development to generate positive outcomes for all stakeholders.

Further details are available at www.sanmarcocorp.com

For further information, contact:

Sharyn Alexander, M.Sc.
VP Technical Services

Nancy Curry
Corporate Communications

info@sanmarcocorp.com

Tel. 778-588-9606

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 statements are subject to numerous risks and uncertainties, some of which are beyond the control of San Marco Resources Inc. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on these forward-looking statements. San Marco's actual results, programs, activities and financial position could differ 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/58910

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