SOURCE: Sao Luis Mining, Inc.

May 30, 2007 05:30 ET

Sao Luis Mining's Latest Bulk Sampling Recovers 4,961 Carats of Diamonds on Its Property 117 and Schedules Production Mining to Begin on Its Property 231 in Brazil

GARDNERVILLE, NV--(Marketwire - May 30, 2007) - Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) (www.saolmining.com), a "conflict free" diamond mining and precious metals exploration company, reports that its joint venture partner SL Mineradora Ltda. has recovered 4,961 carats of diamonds from the bulk sampling program on Property 117 in Brazil. Equally significant, the average grade per cubic meter increased from .38 carats in November 2006 to .86 carats in April 2007, with an average yield of 0.664 carats in May 2007.

"The test pits on Property 117 have all produced significant numbers of diamonds, and demonstrate the potential of the rich diamond bearing alluvial gravels contained on our concession," says Michael J. Dillon, SAOL Mining's President and Chairman. "We expect that this property will mirror the diamond deposits on our adjacent Property 231, which has already defined a surface resource of over 12.7 million carats of diamonds, with an estimated value over $300 million at today's prices.

"With the delivery and installation in late June or early July of our new advanced Extrac-Tec processing plant that is now in transit, we expect to substantially increase the production capacity," continued Mr. Dillon. "At that time, diamond production should reach between 5,000 to 7,000 carats per month, with another sizeable increase up to 25,000 - 30,000 carats per month in the fall of 2007 when the new Dense Media Separation (DMS) plant is delivered and installed.

"Last week, Brazil's Department of National Mineral Production (DNPM) inspected Property 231 in preparation of authorizing a Guia de Utilizacao to commence production mining," said Mr. Dillon. "In early June, SEMA (Secretiatiat Estadual do Meio Ambiente), the environmental agency for the State of Mato Grosso, is scheduled to perform its inspection. The DNPM will then submit its report in Brasília for publication of the License of Operation."

About Sao Luis Mining:

Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) is a "conflict free" diamond mining and precious metals exploration company. Its strategy is to acquire interests in producing mines and develop properties that have the promise to be economically viable. Sao Luis Mining has a 51% joint venture interest in Comercio e Mineracao Sao Luis Ltda., which operates two diamond properties and an existing processing plant in the Sao Luis River Basin with their joint venture partner, SL Mineradora LTDA. The operation is located in the state of Mato Grosso, which is the most productive diamond district in Brazil and responsible for 61% of all the legally mined diamonds in Brazil in 2005. Additional information, including a photo gallery and geological report, is available at the Company's website www.saolmining.com.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, words such as "estimate," "expect," "anticipate," "projected," "planned," "forecasted" and similar expressions are intended to identify forward-looking statements, which are, by their very nature, not guarantees of Sao Luis Mining, Inc.'s future operational or financial performance, and are subject to risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Due to the risks and uncertainties, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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