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SAOL..42x.45 vol 218,439

São Luis Mining Inc. (SAOL.PK)

The Market:

• The US consultant, Rapaport Research recently reported that prices in the $8.2 billion market for uncut diamonds have jumped by more than one-third since 2003.
• In 2003, the World Diamond Council reported that rough diamond mining companies produce annually some 114 million carats of rough, worth some $6.8-$7 billion.
• It is expected that by the year 2005 world production may increase to over 120 million carats worth some $8.9-$9.2 billion.
• Finally, Tacy Ltd., Diamond Intelligence Briefs issued a report for the diamond pipeline of 2004 where rough diamond production was estimated at US$11.8 billion.


The Company:

Property 1:

• São Luis Mining Inc. has entered into an agreement to acquire a 35% Joint Venture Interest with SL Mineradora Ltda in its São Luis River Basin diamond mining operation.
• The 1,889 hectare (4,666 acres) property has been in production since 2000 and has produced over 175,000 carats.
Property 2:
• The Company has also entered into an Option Agreement, which provides for the Company to acquire a 65% joint venture interest in another undeveloped diamond property of São Luis's choice.
• The property is part of a 30,000 hectare (74,000 acres) diamond mining portfolio located in Juina, Mato Grosso Brazil.

Distribution/Sales of Rough Diamonds
The Company has an existing and mature distribution network of Buyers. This network includes buyers in the United States, Belgium, Israel, India, and the Republic of South Africa.