IIE:CA V.IIE

RE: o/t about diamonds in brazil

[davie94020]

New Bulk Sampling Reveals Additional Diamond Resources on Another Sector of Sao Luis Mining's 2074 Acre JV Property 117 in Brazil Jun 18, 2007 5:00:00 AM GARDNERVILLE, NV -- (MARKETWIRE) -- 06/18/07 -- Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) (www.saolmining.com), a "conflict free" diamond mining and precious metals exploration company, reports more encouraging results from test mining conducted on another new sector of its Brazilian Joint Venture Property 117, indicating the extraordinary diamond mining potential of the 859.38 hectares (approximately 2074 acres) site. The most recent Bulk samplings on Property 117 processed 320 cubic meters of gravel and recovered 278.87 carats of diamonds, including a 10.2-carat near-gem quality stone. It is consistent with other tests carried out this month that produced grades reaching 1.05 carats per cubic meter, including the recovery of a 6.5-carat gemstone. Property 117 is beginning to mirror Sao Luis Mining's adjacent JV Property 231 that already has a defined diamond surface resource of over 12.7 million carats of diamonds, with an estimated value over $300 million at today's prices. This is exclusive of the additional resources contained below the surface in three primary sources located at lower depths or even the secondary alluvial gravels deposited below the surface. "Bulk sampling results from JV Property 117 demonstrate two significant findings," says Michael J. Dillon, Sao Luis Mining's President and Chairman. "First, it shows that more than enough diamonds can be recovered from processing gravel to justify production mining and second, that the diamond resources appear to run throughout the entire property. If you consider that the two properties encompass 2728.38 hectares, or 6742 acres, this should result in very substantial diamond recovery for the next two decades and probably, far beyond that." "We are expecting to significantly increase the diamond production later this month with the two additional plants that have been installed on Property 231. As early as the third week of June, the Company plans to commence operations," continued Mr. Dillon. "This could bring production figures up to carats per month. With the installation of the Dense Media Separation (DMS) plant in the fall of 2007, we expect to mine about 25,000 to 30,000 carats per month." About Sao Luis Mining: Sao Luis Mining, Inc. (PINKSHEETS: SAOL) (FRANKFURT: F5G) 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 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 [phone] [e-mail] www.saolmining.com