It's not in the command line that gets run, so where ever you defined it, isn't the right place.
i686-w64-mingw32-g++.exe -LC:\SFMLbuild\lib -o bin\Release\sfmlLinkingTest.exe obj\Release\main.o -s -lsfml-graphics-s -lsfml-window-s -lsfml-system-s -lfreetype -ljpeg -lopengl32 -lgdi32 -lwinmm
Make sure that it gets applied for the release settings as well.