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Sao Luis Mining Updates Investors As Diamond Production Nears

Posted on: Thursday, 10 May 2007, 06:00 CDT

Michael J. Dillon, President and Chairman of Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (Frankfurt: F5G) (www.saolmining.com), is updating investors with current information on the "conflict free" diamond mining and precious metals exploration company.

"Recently Sao Luis Mining has had so many extremely positive developments," says Mr. Dillon, "I want to highlight them so our investors know what our company has accomplished and plans to do. Here is a brief overview of some of the more significant events."

Mining Operations

We expect production to reach a minimum 3,000 carats per month within the next 45 days using three of the Company's bulk sampling plants that are presently onsite. One is operating, the second will commence operations the week of May 13, and the third plant is scheduled to be in production by the week of May 27. We are also expecting the arrival and installation of an additional 10-ton per hour Extrac-Tec bulk sampling plant that was purchased and will ship May 11, 2007.

The geological surface report estimates Property 231 contains 12.7 million carats of diamonds with an approximate value in excess of $300 million, exclusive of the additional diamond resources at lower depths. To maximize production we will modify the order from a 40-ton per hour capacity plant to a significantly larger one. We have decided to upgrade the order to a state-of-the art DMS (Dense Media Separation) plant with an effective 100-ton per hour feed capacity. This plant can produce up to 1,000 carats a day based on the initial bulk sampling results from Property 117.

Bulk Sampling on Property 117 is continuing and new results are anticipated by the end of May. The extremely encouraging samplings done early in 2007 produced 673 carats of diamonds, including three gem quality diamonds exceeding 2 carats. Fifty percent of the diamonds recovered from this sampling weighed approximately half a carat per stone, with the grade reaching 0.648 carats per cubic meter in one test area.

In April 2007, an artesian miner recovered a 9.41-carat diamond from Property 117 that sold for $1,250 per carat. This is indicative that larger, more valuable diamonds are contained on the concessions. This can greatly increase the value of the mine's production to over $40 per carat.

Financing

The two private placement agreements were just entered into to fund up to US $1.5 million from the sale of restricted shares. It has been well received by investors. We expect to continue to receive proceeds from the sale of our restricted securities that we will primarily use to help accelerate our mining activities with the purchase of additional mining equipment.

Reporting Status and Audit

We engaged Kabani & Company, one of the nation's leading CPA/Consulting firms, to prepare our audits to become a fully reporting company. The audit of our mining operations is scheduled to begin the end of May onsite in Brazil. Our plan is to rapidly advance to a higher stock exchange and raise our visibility among institutional and retail investors alike to broaden and deepen the market for our shares.

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. 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.

 Contact:  Michael J. Dillon (775) 782-9157 mdillon@saolmining.comhttp://www.saolmining.com

SOURCE: Sao Luis Mining, Inc.

Source: MARKET WIRE

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