Sao Luis Mining, Inc. Orders State-of-the-Art Dense Media Separation Diamond Processing Plant With up to 1,000 Carat per Day Capacity

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Sao Luis Mining, Inc., a "conflict free" diamond mining and precious metals exploration company, has ordered a state-of-the-art Dense Media Separation (DMS) plant with a feed capacity up to 100-tons of virgin gravels per hour. Based on the historical grade of the concession, the production could increase up to 1,000 carats a day working 20 hours a day. The upgraded DMS plant will take the place of a 40-ton per hour processing plant the Company previously ordered.

Michael J. Dillon, President and Chairman of Sao Luis Mining, says that "based on the enormous potential of bulk sampling, together with other geological surface reports for our Joint Venture Properties 231 and 117, we decided to accelerate our investment in processing equipment to rapidly begin full scale mining and generate significant revenue."

ProMet Engineers Africa (Pty) Ltd. (www.promet.co.za), a worldwide leader in DMS technology, is custom building the half million-dollar plant for Sao Luis Mining. Completion and shipping is expected within 90 days. A ProMet technician will be inspecting the existing equipment on site in Brazil and coordinate the construction of the pre-wash stages to ensure the optimum recovery of diamonds from the DMS. The modular plant will be constructed and tested in South Africa prior to being shipped. Upon arrival, the plant requires less then 2 weeks to remount and become operational.

DMS plants provide the most efficient recovery levels for diamonds. The technology relies on the difference in densities between separate materials. The mixed solids are placed in a dense liquid solution. The diamonds and other heavy minerals, which are denser than the soil and gravel in which they are found, sink while the less dense material floats. The diamonds fall to the bottom where they enter a secured laser diamond sorter for further classification..

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.com
www.saolmining.com

Published May. 15, 2007
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