SOURCE: Sao Luis Mining, Inc.

November 29, 2007 07:00 ET

Diamond Mining Begins With Permanent License at Sao Luis Mining's JV Property 231 in Brazil

7 Large Diamonds Recovered in the First Week of Production With Largest Stone Weighing 12.01 Carats

GARDNERVILLE, NV--(Marketwire - November 29, 2007) - Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) has begun limited production diamond mining on its Joint Venture Property 231, after having been issued the Guia de Utilização on October 30, 2007 from the Department of National Mineral Production (DNPM). The Guia allows the Company to operate under its Portaria De Lavra, which is a permanent mining license.

The Portaria and the environmental license of operation (LO) were approved earlier this year from the DNPM and SEMA. Mining began during the first week of November with the Company's mobile plants. Seven large gem and near-gem diamonds that weighed 1.89 carats or more were recovered in the first week of operation. The largest stones weighed 1.89, 1.90, 2.07, 3.63, 4.12, 6.44, and 12.01 carats respectively.

"The recovery of larger, more valuable diamonds will enhance the overall value of our ore and should significantly increase our bottom line," says Michael J. Dillon, Sao Luis Mining's President and Chairman. "With the formal receipt of our permits from Brazil's government agencies, we will be able to rapidly accelerate to full production with the arrival and installation of our Dense Media Separation plant."

Dense Media Separation (DMS) Plants provide the most efficient recovery levels for diamonds. Sao Luis Mining's DMS plant is being custom built in South Africa with a feed capacity up to 150 tons per hour. Based on the historical grade of Property 231, the Company anticipates that diamond production should increase up to 1,000 carats a day working 20 hours a day.

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

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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