SOURCE: Sao Luis Mining, Inc.

July 31, 2006 08:00 ET

Sao Luis Mining, Inc. Announces Formation of Joint Venture Company

LAS VEGAS, NV -- (MARKET WIRE) -- July 31, 2006 -- Sao Luis Mining, Inc. (PINKSHEETS: SAOL) announced today that it has reached an agreement in principle with SL Mineradora Ltda. to modify the joint venture structure of the Sao Luis River Basin Diamond Project located in Juina, Mato Grosso, Brazil. The mineral and exploration rights to a second adjacent property, DNPM Process # 866-117/98, consisting of 889.38 hectares (2197 acres) will be transferred to the joint venture. The property was previously under option and will now be included in the joint venture. The revised structure will provide the Company with a 51% interest in the joint venture company, Comercio e Mineracao Sao Luis Ltda., which will own and operate the mining properties. This changes the Company's original interest from 35% in the original joint venture property and 65% in the option property to 51% in both properties.

Jack Lake, President and Board Chairman said, "With the formation of Comercio e Mineracao Sao Luis Ltda., and the addition of the second property to the joint venture, the Company not only enhances its presence in the region, but significantly simplifies the operating activities to provide us the control we believe is necessary to insure our success. We expect to finalize the agreements and commence operations in Brazil by mid to late August."

About Sao Luis Mining, Inc.

Sao Luis Mining is a diamond and precious metals mining and exploration company. Its strategy is to acquire interests in producing mines and the development of properties that have the promise to be economically viable. Additional information, including a photo gallery and geological report is available at the Company's website www.icemining.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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