SOURCE: Sao Luis Mining, Inc.

February 06, 2007 10:00 ET

Sao Luis Mining Announces Installation of Second Bulk Sampling Plant on Its Brazilian Property 117

LAS VEGAS, NV -- (MARKET WIRE) -- February 6, 2007 -- Sao Luis Mining, Inc. (PINKSHEETS: SAOL), a diamond mining and precious metals exploration company, will install a second bulk sampling plant on its joint venture Property 117, located in the Sao Luis River Basin in the state of Mato Grosso, which is Brazil's most productive diamond producing region.

As the first bulk sampling plant produced extremely encouraging results, a second sampling plant will be installed in early February. The results from the first test pits recovered 673 carats of diamonds, with gem quality diamonds exceeding 2 carats. Most important, fifty percent of the diamonds recovered from the initial sampling averaged over half a carat per stone, and the grade reached 0.648 carats per cubic meter in one test area. This is considered a very high concentration of coarse diamonds.

The second field processing plant will help determine where to begin production mining in April when a pilot processing plant with a 40 ton per hour capacity will be delivered to start production mining. This processing plant has the capacity to produce over 5,000 carats per month. Once it has proved to be efficient, at least one additional processing plant with a 100 ton per hour capacity will be ordered along with another Sortex electronic diamond sorter. This could increase the production capacity to 15,000 carats per month.

These results are expected to mirror those on the Company's Joint Venture Property 231, located adjacent to Property 117. A geological report submitted to Brazil's Department of National Mineral Production (DNPM) in 2005 defined a surface resource of 12,695,000 carats with an average grade of 1.645 carats per cubic meter. At present market prices this resource could be conservatively valued at approximately $300,000,000. The geological report does not take into account the material contained in three primary sources located at lower depths that may exponentially increase Sao Luis Mining's known resources.

About Sao Luis Mining:

Sao Luis Mining, Inc. 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. 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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