Mr. R.S. Angus reports

ACQUISITION OF SHARES & WARRANTS OF SAN MARCO RESOURCES INC.

R.S. (Tookie) Angus has acquired ownership of two million common shares (representing 7.84 per cent of the outstanding common shares) and warrants to purchase an additional two million common shares of San Marco Resources Inc. of Vancouver, B.C., pursuant to a private placement at a price of five cents per unit (each unit consisting of one common share and one warrant to purchase a further common share).

Mr. Angus now has ownership of 3,255,400 common shares (representing 12.77 per cent of San Marco's outstanding common shares), warrants to purchase an additional 2,552,000 common shares and options to purchase an additional 260,000 common shares. If the warrants and options were exercised, Mr. Angus would have ownership of 6,067,400 common shares of San Marco (representing 21.43 per cent of the common shares then outstanding).

The shares and warrants were acquired for investment purposes under the exemption set out in Section 2.5 of National Instrument 45-106 -- Prospectus and Registration Exemptions of the Canadian Securities Administrators for directors and officers of an issuer. Presently, Mr. Angus does not have any intention of acquiring any further securities of San Marco, but may acquire ownership of, or control over, further securities in the future depending upon market circumstances.

Mr. Angus has filed an early warning report with the British Columbia and Alberta securities commissions in respect of the acquisition. Copies of the report may be obtained from SEDAR.