SOURCE: Sao Luis Mining, Inc.

June 05, 2007 05:00 ET

Sao Luis Mining Receives Brazilian State Authorization to Begin Production Diamond Mining on JV Property 231; Bulk Sampling Rises to 1.05 Carats per Cubic Meter on JV Property 117

GARDNERVILLE, NV--(Marketwire - June 5, 2007) - Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) (, a "conflict free" diamond mining and precious metals exploration company, today announced two significant milestone events for its Joint Venture properties: the approval by the Brazilian State agency to begin production diamond mining on Property 231, and the latest bulk sampling results on Property 117, which dramatically increased to 1.05 carats per cubic meter.

The environmental agency for Brazil's State of Mato Grosso, SEMA (Secretiatiat Estadual do Meio Ambiente), has completed its site inspection and authorized production diamond mining to begin on Property 231. Up to this time Bulk Sampling was being performed and a variety of geological studies and reports filed with Brazil that defined a surface resource of 12,695,000 carats with an average grade of 1.645 carats per cubic meter -- without considering the additional resources contained below the surface.

To coincide with the production mining approval, two additional mobile plants have been installed on Property 231, which will begin mining immediately upon the publication of the License of Operation in Brasilia, expected this week. In addition, the new advanced Extrac-Tec processing plant is scheduled to be installed later this month. The company expects that with these plants, diamond production may reach between 5,000 to 7,000 carats per month. Another sizeable increase, up to 25,000 - 30,000 carats per month, is anticipated for the fall of 2007 when the new Dense Media Separation (DMS) plant it ordered is delivered and installed.

Sao Luis Mining's Joint Venture partner, SL Mineradora Ltda., also reported that the latest bulk sampling results for Property 117 have dramatically increased from 0.664 carats in May 2007 to 1.05 carats per cubic meter this month. The bulk sampling included processing 427 cubic meters of gravel that produced 448 carats of diamonds, including a 6.5-carat gemstone. The recent results are not unexpected since this Property is adjacent to its Property 231 that has a defined average grade of 1.645 carats per cubic meter with a surface resource estimated to exceed $300 million at today's prices.

About Sao Luis Mining:

Sao Luis Mining, Inc. (PINKSHEETS: SAOL) is a "conflict free" 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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