SOURCE: Sao Luis Mining, Inc.

October 31, 2007 08:46 ET

Update: Sao Luis Mining Applies for a Permanent Diamond Mining License on Its Second Brazilian JV Concession, Having Been Awarded It on Its First Property

GARDNERVILLE, NV--(Marketwire - October 31, 2007) - Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) (www.saolmining.com), a diamond mining and precious metals exploration company, has filed the final exploration report with Brazil's Department of National Mineral Production (DNPM), which is necessary to receive a permanent mining license to commence production mining on its Joint Venture Property 117 on October 19, 2007. Upon approval of the Guia de Utilizacão or Operating License, production mining will commence.

The final report was filed within just a year of the Company receiving government approval to conduct experimental mining to validate the economic viability of Property 117. Based on the amount and quality of diamonds that bulk sampling produced, together with extensive geologic documentation, the Company filed for the permanent permit on October 19, 2007.

In June 2007, after demonstrating the diamond mining viability of its adjacent Property 231, a former DeBeers concession, Sao Luis Mining was granted a permanent production-mining permit. These two concessions encompass 2728.38 hectares, or 6742 acres.

Based on geological surveys and test mining of both properties, the company expects to recover substantial amounts of diamonds for the next two decades and probably, far beyond that. Geological surveys on Property 231 defined a surface resource of 12,695,000 carats with an average grade of 1.645 carats per cubic meters. The report did not take into account diamonds below the surface in three primary sources at lower depths, or even the secondary alluvial gravels deposited below the surface.

When Property 117 receives its permanent mining permit, and both Properties are in full production, the Company expects that significant economies of scale will occur. The Company will be operating an additional state-of-the-art Dense Media Separation (DMS) Plant such as it has ordered from South Africa on Property 231, as well as the ancillary equipment on Property 117.

About Sao Luis Mining:

Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) is a 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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