SOURCE: Sao Luis Mining, Inc.

December 20, 2006 09:00 ET

Sao Luis Mining Orders Processing Plant for the Company's Brazilian Diamond Properties

LAS VEGAS, NV -- (MARKET WIRE) -- December 20, 2006 -- Sao Luis Mining, Inc. (PINKSHEETS: SAOL), a diamond mining and precious metals exploration company, has announced today that the Company has ordered a 40 ton per hour mobile pilot processing plant for its joint venture diamond properties in Juina, Brazil. Delivery is scheduled for late March 2007. The processing capabilities of the new plant, along with an additional diamond laser sorter, increases the production capacity to over 5000 carats per month, dependent on the grade of the diamond gravels being processed. Upon installation and test mining, the Company intends to order at least one additional 100 ton per hour plant.

The Extrac-TEC Heavy Particle Concentration (HPC) technology allows for cost-effective gravity separation of materials of differing densities. The new patented transverse spiral belt separator boasts recovery rates of 95%-98%. Trials run using diamonds tracers have shown a recovery rate of 100%. The mobile plant is self contained, allowing for easy transportation and set up within hours. It utilizes a continuous process with a simple, secure and highly efficient final recovery stage which is environmentally friendly with no chemicals and reduced water use.

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 São Luis River Basin. The operation is located in the state of Mato Grosso, which is the most productive diamond district in Brazil. 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 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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