SOURCE: Sao Luis Mining, Inc.

March 05, 2008 10:00 ET

Bulk Sampling Program Reported That 8423 Carats of Diamonds Were Recovered in 2007 on Property 117; In February 2008 a Sample Parcel of 2305 Carats Was Sent to an American Based Diamond Cutter for Evaluation

GARDNERVILLE, NV--(Marketwire - March 5, 2008) - Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) (www.saolmining.com), a diamond mining and precious metals exploration company, reports that the bulk sampling program on Property 117 produced a total of 8423 carats of diamonds in 2007. 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 the bulk sampling produced, together with extensive geologic documentation, the Company filed for the permanent mining permit on October 19, 2007.

In February of 2008 the Company exported a 2305 carat parcel to an American based diamond cutter for evaluation. The lot contained a 3.05 carat gem including some smaller pink diamonds, along with the run of mine production. President and Chairman Michael Dillon commented, "We are very pleased with the results from property 117 considering the quantity, quality, and size of the diamonds recovered in the bulk sampling program. We know the Company will be recovering larger and high-quality diamonds based on our initial results that are consistent with other tests carried out this year on Property 117."

The bulk sampling reached grades up to 1.05 carats per cubic meter including the recovery of a 6.5-carat gemstone and a 10.2-carat near-gem quality diamond. Other large diamonds recovered on the property weighed 7.33, 6.98, 4.76 and 4.45 carats. Results from the test mining conducted on the Company's Joint Venture Property 117 further validates the viable diamond mining potential of the 859.38 hectares (approximately 2074 acres) site.

Property 117 is adjacent to Sao Luis Mining's JV Property 231 that already has a defined diamond surface resource of over 12.7 million carats of diamonds, exclusive of the additional resources contained below the surface. These two properties encompass 2728.38 hectares, or 6742 acres, that the company anticipates should result in substantial diamond recovery for the next two decades and probably far beyond that.

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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