Mr. John Zang reports

MORRO BAY RESOURCES LTD. APPOINTS ANDREW DANIELS AS CHIEF OPERATING OFFICER AND RETAINS PALISADE CAPITAL AS IR CONSULTANT

Morro Bay Resources Ltd.'s board of directors has appointed Andrew Daniels, PGeo, as chief operating officer of Morro Bay.

Mr. Daniels has over 30 years international experience in the mining industry with some of the world's leading companies. This experience includes 4.5 years in capital markets and mining finance as a consultant and later as director, global finance, at Deutsche Bank. Prior relevant experience includes vice-president of exploration for Riverside Resources Inc. (Canada and Mexico, including the Penoles project), group consulting geologist for European Nickel PLC (global), vice-president of exploration for Chariot Resources Inc. (Peru), project manager for Jaguar Nickel (Guatemala) and consultant geologist for Anglo American. Mr. Daniels is a graduate of Acadia University (Nova Scotia), where he obtained a BSc in geology.

John Zang, chief executive officer of Morro Bay, states: "It is very exciting to add Mr. Daniels to our team. He brings with him a great deal of knowledge both in regard to financial assessment of assets and has expertise on conducting exploration operations. Mr. Daniels's prior exploration work on the Penoles project will serve as valuable experience in the advancement of the project." Mr. Daniels comments, "I am very happy to work with Morro Bay as I believe that the upside potential of the Penoles project is quite large and I look forward to pursuing that potential on behalf of Morro Bay."

As well, Carl von Einsiedel has ceased to be an officer of Morro Bay. Mr. von Einsiedel will remain with the company as a director. The board of directors wishes to sincerely thank Mr. von Einsiedel for his efforts during his tenure as vice-president of exploration, which included detailed oversight of the 2014 exploration program.

In addition, the company has granted 150,000 share purchase options at an option price of five cents to Mr. Daniels pursuant to the company's option plan.

The company has retained Palisade Capital Corp. as an independent consultant to provide investor relations and marketing services, setting up marketing teleconferences and road shows for the European, Canadian and U.S. investment community, and assisting in the distribution of news releases. Collin Kettell and Sean Zubick, the principals of Palisade, will be primarily responsible for providing the marketing services to the company.

Palisade Capital is an offshore merchant banking group, specializing in high-growth, small-cap investments. Through its global network of private equity groups, fund managers, high-net-worth and retail investors, Palisade is able to create strategic relationships to drive increased liquidity and source financing.

Effective immediately, the services agreement for investor relations and market making is for a term of 12 months. Under the terms of the agreement, Palisade will receive $8,500 on a monthly basis in fees and reimbursement of approved expenses. Palisade has been granted 300,000 options exercisable at five cents. The options vest quarterly over 12 months and have a three-year term. Upon termination of the services agreement, any vested options will be cancelled after 30 days, as is required by the TSX Venture Exchange.

Prior to the grant of options outlined above, Palisade had no direct or indirect interest in the company or its securities.

We seek Safe Harbor.