Mr. Roger Hendriksen reports

JAGUAR MINING PROVIDES UPDATE ON STRATEGIC REVIEW PROCESS

Jaguar Mining Inc. is providing an update on the review process that it previously announced was initiated by its board of directors on Nov. 16, 2011.

The board has appointed a special committee comprised solely of independent directors to review and evaluate any proposals received as part of the review process and to assess whether any such proposal may be more desirable than the continued operation of the company on a stand-alone basis and to make recommendations to the board thereon. The special committee is chaired by Gil Clausen and is composed of Mr. Clausen, Gary German and John Andrews.

The company has retained JP Morgan Securities LLC as its financial adviser and Davies Ward Phillips & Vineberg LLP as legal counsel to assist the board and the special committee.

Over the past several weeks, through JP Morgan, the company has solicited interest regarding a potential change of control or merger transaction with the company.

Any proposal that may be received will be assessed relative to the inherent value of the company's unique asset portfolio to determine the most effective means of delivering value to the shareholders of Jaguar. There is no assurance that this review process will result in a change of control or merger transaction.

"For a number of months, Jaguar's share price has been disconnected from the inherent value of the company's unique asset portfolio," said Mr. German, chairman of the board. "The special committee has been formed to explore alternatives. Our board will not support a transaction that does not deliver adequate value to our shareholders."

The board intends to provide a further update to shareholders as circumstances warrant, likely in early 2012.

We seek Safe Harbor.