SOURCE: Sao Luis Mining, Inc.

October 25, 2006 05:00 ET

Sao Luis Mining Commences Diamond Mining on Its Joint Venture Property 117 in Brazil

LAS VEGAS, NV -- (MARKET WIRE) -- October 25, 2006 -- Sao Luis Mining, Inc. (PINKSHEETS: SAOL), a diamond mining and precious metals exploration company, has announced today that it has commenced mining on its joint venture Property 117 in Brazil. A detailed work program will evaluate the diamond-bearing gravels contained on the property. Phase One, initiated on October 19, 2006, is performing an 18,000 cubic meter bulk sampling of the alluvial deposits along with a detailed drilling program to determine the grade and define the resource. Geomagnetic surveys and satellite imagery will be employed to locate potential primary kimberlite deposits that may be contained on the property.

Jack Lake, Sao Luis Mining's President and Board Chairman, stated, "We anticipate that the bulk sampling results will be similar to Property 231 which is located adjacent to Property 117. A geological report submitted to the 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. Most important, this geological report represents work that was performed on less then 10% of the property. It does not take into account the material contained in three primary sources located at lower depths which should exponentially increase our known resources."

Sao Luis Mining's joint venture partner in Property 231, SL Mineradora Ltda., has been ranked as Brazil's top diamond producer for 2005 in the state of Mato Grosso according to a recent government report. The state of Mato Grosso was responsible for 61% of all the legally mined diamonds in Brazil in 2005. The largest gem quality diamond recovered to date from Property 231 was a 32-carat stone. The Juina region is well known for diamonds of 100 carats in size.

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 will operate 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 considered the most productive diamond district in Brazil. 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 US 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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