Latin American Minerals Discovers Diamonds in Paraguay and Secures 1,650 Square Kilometre Land Position

Toronto, Canada, July 16, 2008, Latin American Minerals Inc. (LAT: TSX-V) reports the discovery of 10 diamonds, ranging in size from 0.002 to 0.04 carats on its Capiibary Diamond Exploration Property in north-eastern Paraguay.  Photographs of the recovered diamonds are attached to this press release.  Additional photographs are posted on the Latin American Minerals website at www.latinamericanminerals.com

The Capiibary Diamond Exploration Property, located approximately 100 km north of Latin American�s Paso Yobai Gold Project, covers approximately 165,000 hectares (1,650 square kilometres).  The majority 160,000 hectares are 100% owned by Latin American Minerals.  On the remaining 5,000 hectares, Latin American has an option to earn a 70% interest by making escalating cash payments totalling $1.5 million over 4 years and, subject to standard dilution provisions, Latin American can earn up to a 100% interest with the vendor retaining a 3% gross sales royalty.

Diamonds were initially found in the Capiibary region by local prospectors panning for gold in the 1960s. Some years later, De Beers collected 4 stream samples from the region, of which one contained 6 diamonds and all contained kimberlite indicator minerals (�KIMs�).  Recently, Latin American collected 16 samples at various locations in the region of the initial discovery; four samples contained diamonds and 14 contained KIMs which include chrome spinels and garnets.  The diamonds are champagne to brilliant white, slightly abraded and several exhibit exceptional crystal structures suggesting minimal alluvial transport.  Microprobe work has been completed on the chrome spinels and they were found to fall within the kimberlite stability field.  Microprobe work on the garnets is being scheduled. 

Latin American�s diamonds were recovered during reconnaissance sampling of two small streams, within 3 km of the headwaters defining the small drainage basin covering approximately 25 square km.  The source area for the streams covers a north-westerly trending area measuring 12 km long and 1.5 km wide and defines the south-western limit of the drainage basin (see Capiibary Exploration Project map attached to this press release).  Locally, this north-westerly trend defines a regionally structural corridor which is known to contain mafic intrusive complexes and linear magnetic features identified by regional airborne magnetics.  Regionally, this area is part of the Diamond rich Alto Paranaiba Igneous Province (�APIP�) of Southern Brazil.

�This discovery demonstrates Latin American�s commitment to regional exploration and our ability to find new exciting exploration plays in remote parts of South America,� commented Dr. Waldo Perez, Senior VP Exploration.

David Wahl, President and CEO, reports, �Stream sampling is continuing and a ground magnetometer survey will commence shortly to cover the 18 square kilometre area defining the south-western limits of the Capiibary drainage basin, which may be the source area for the diamonds.�

Geology of the Region is composed of Jurassic sandstones intruded by the Alto Paranaiba Igneous Province that extends from Brazil into Paraguay (see map of Mafic Complexes attached to this press release). The APIP is one of the largest ultramafic potassic igneous provinces in the world.  In Brazil, these rocks generated the source of diamonds in the Alto Paranaiba and Ipora region, which are being explored and developed by a number of companies.

Patricia Sheahan, a well-known Diamond expert and a Director of Latin American Minerals since 2007, indicated that, �The Capiibary property and surrounding area show considerable promise. There are many excellent Diamond projects - mining and developing - nearby in Brazil.  Uruguay has seen exploration activity too, so it is timely for Latin American Minerals to concentrate on Paraguay's promise.�

Waldo Perez, P.Geo is Latin American Minerals Inc.�s internal Qualified Person under the requirements of National Instrument 43-101 and is responsible for this press release.

Latin American Minerals Inc. is a mineral exploration company focused on the acquisition and development of properties of significant merit in under-explored but highly prospective countries of Latin America.

For more information please contact: David Wahl at (416) 363-0841 or visit www.latinamericanminerals.com

Sampling and Analytical Protocols:  The sampling and analytical protocols were established, implemented and supervised by or under the direction of Dr. Waldo Perez, the Company�s internal Qualified Person as defined by National Instrument 43-101. Stream Sediment samples were collected from the river in traps under logs, deep holes and river banks. The samples were sieved in the field into three fractions: fine (0.3-0.4 mm), medium (0.4-0.71 mm) and coarse (0.71-1.0 mm). The sieves are similar to those used by De Beers. The three fractions for each sample were sent to SGS Geosol Lab in Brasilia (Brazil). Each fraction was sieved again in the lab and minerals where separated and inspected by visual analysis under microscope. KIM and diamonds were photographed and reported as total number of grains found. Probe analysis of Chrome-Spinels was performed by De Beers in Johannesburg, South Africa.

Note: The TSXV has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. This news release contains forward-looking statements, which can be identified by the use of statements that include words such as �could�, �potential�, �believe�, �expect�, �anticipate�, �intend�, �plan�, �likely�, �will� or other similar words or phrases. These forward-looking statements, including statements regarding the Corporation�s beliefs in potential mineralization, are based on current expectations, assumptions and projections about future events and entail various risks and uncertainties that are beyond the Corporation�s ability to control or predict. Actual results may materially differ from expectations as more information regarding a property is gathered or if the Corporation�s estimates or assumptions prove inaccurate. Factors that may materially affect actual results include, but are not limited to, political, business and economic conditions in jurisdictions where the Corporation conducts business, and risks associated with mineral exploration and production. The Corporation does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The results described herein are exploratory in nature and there can be no assurance that they are indicative of Mineral Resources as defined in accordance with National Instrument 43-101. Historic estimates contained herein do not meet the definition of Mineral Resources as contained in National Instrument 43-101 of the Canadian Securities Administrators.  Furthermore, neither the Corporation nor the Qualified Person has reviewed any of the reports or exploration results underlying such estimates and accordingly, such estimates (and any assumptions underlying such estimates) have not been independently verified. As a result, there can be no assurance that such historic estimates are reliable, or that such estimates are indicative of any mineralization which would meet the criteria of Mineral Resources as defined in accordance with National Instrument 43-101.  Consequently, no reliance should be placed upon these historical estimates.  However, the Corporation believes that these historical estimates may be indicative of the potential for mineralization on these properties.