Mr. Gary German reports

JAGUAR MINING REPORTS FIRST QUARTER 2012 FINANCIAL RESULTS

Jaguar Mining Inc. had net income of $2.8-million or three cents per fully diluted share for the quarter ended March 31, 2012. This result compares with net income of $3.7-million or four cents per fully diluted share in the first quarter of 2011. The first quarter 2012 result includes a $14.3-million unrealized non-cash gain on the conversion option embedded in convertible debt and a $3.2-million gain from changing foreign exchange rates. Excluding these items, Jaguar's first quarter result was a net loss of $14.7-million or 17 cents per fully diluted share.

Commenting on the company's results and operations, Gary German, Jaguar's chairman, stated: "We were clearly dissatisfied with our operations in the first quarter, especially at Paciencia, where production has continued well below plan. This operation has now been placed on temporary care and maintenance, and this will immediately result in improvements in our average cash cost per ounce of gold produced. We are moving aggressively forward with the implementation of our restructuring and turnaround plan, which we expect to have a positive impact on our cash generation."

Summary of key operating results

Jaguar sold 30,138 ounces of gold at an average realized price of $1,691 per ounce in the three months ended March 31, 2012, compared with 39,794 ounces of gold at an average realized price of $1,386 per ounce in the three months ended March 31, 2011. Average cash operating cost per ounce was $1,268 and cash operating margin was $423 per ounce. This compared with average cash operating cost per ounce of $727 and a cash operating margin of $659 per ounce in the three months ended March 31, 2011. The increase in the company's average cash operating cost during the three months ended March 31, 2012, as compared with the same period in 2011, was attributable to higher mining dilution, lower total production which resulted in higher fixed-cost absorption per ounce, and increased costs for labour, services, equipment maintenance and mining materials.

Turmalina

During the three months ended March 31, 2012, Turmalina produced 10,014 ounces of gold at a cash operating cost of $1,342 per ounce, as compared with 15,855 ounces at a cash operating cost of $755 per ounce during the three months ended March 31, 2011. Production was lower quarter over quarter due to the instability of the hangingwall and poor ground conditions at level 5 of Turmalina's orebody. The increase in Turmalina's cash operating cost during the quarter, as compared with the same period last year, was attributable to higher mining dilution, higher fixed-cost absorption per ounce, and increased costs for labour, services, equipment maintenance and mining materials.

Development at the Turmalina mine totalled 2.1 kilometres during the three months ended March 31, 2012.

Caete

During the three months ended March 31, 2012, Caete produced 13,881 ounces of gold at a cash operating cost of $1,118 per ounce, as compared with 13,480 ounces at a cash operating cost of $850 per ounce during the three months ended March 31, 2011. The increase in Caete's cash operating cost during the quarter, as compared with the same period last year, was attributable to higher mining dilution, and increased costs for labour, services, equipment maintenance and mining materials.

Development at the Pilar and Roca Grande mines totalled 2.2 kilometres during the three months ended March 31, 2012.

Paciencia

During the three months ended March 31, 2012, Paciencia produced 7,338 ounces of gold at a cash operating cost of $1,451 per ounce, as compared with 12,114 ounces at a cash operating cost of $555 per ounce during the three months ended March 31, 2011.

Production was lower quarter over quarter at Paciencia due to continued challenges with adapting mining methods and properly scaled equipment to match the narrow vein geology. In addition, a collapse of the hangingwall and rock mechanics issues at the Santa Isabel mine resulted in lack of mining flexibility at the operation during the quarter. Excessive rain also contributed to lower production levels.

The increase in Paciencia's cash operating cost during the quarter, as compared with the same period last year, was attributable to higher mining dilution, higher fixed-cost absorption per ounce, and increased costs for labour, services, equipment maintenance and mining materials.

Combined development for the mines supplying the Paciencia plant totalled 2.0 kilometres during the three months ended March 31, 2012.

Subsequent to the conclusion of the first quarter 2012, the Paciencia operations were placed on a care and maintenance program associated with a comprehensive restructuring and turnaround program as previously announced. The operations will continue on care and maintenance while a remediation plan is implemented. The remediation plans for Paciencia include an adaptation of the narrow vein overhand stoping methods, a changeover to smaller-scale equipment, smaller development headings, reduced stope dimensions and building the developed reserve inventory prior to restarting the plant. Implementation of the plan is expected to result in improved productivity per ounce, reduced mining dilution, reliable and predictable production forecasts, and significant reductions in cash costs per ounce when the mines return to production.

Gurupi project

During the three months ended March 31, 2012, Jaguar received the installation licence which authorizes the construction of the processing plant for the Gurupi open-pit project. The licence was a critical step in the development of the project and brings the company closer to being able to realize the full value of its assets in northern Brazil.

The licensing decisions for the project's mining operations, tailings management facilities and other infrastructure are pending subject to the company's acquisition of surface land rights. The company is engaging in negotiations with landholders.

Jaguar continued exploration and development during the quarter at Gurupi, with a drilling program to further expand the resource base. An updated feasibility study for the Gurupi project is due for submission to management and the board in the third quarter of 2012. The board anticipates that it will make a decision on the development plan, its timing and its financing plan following the receipt of that study.

Exploration

Jaguar's exploration activities during the quarter ended March 31, 2012, focused on completion of the 30,000-metre drilling program at the Gurupi project, as well as the expansion of resources and reserves, laterally and at depth, on targets in and around existing operations.

Southern Brazil

Turmalina

Orebodies A and B

As part of a drilling program to test the continuity at depth of the 60-degree-dipping and northeast-plunging mineralized structure, underground drilling was conducted from a 370-metre-long exploration drift located on mine level 4. The drilling was completed during the three months ended March 31, 2012, and the results confirmed the continuity of the orebodies at depth, down to mine levels 9 and 10.

Paciencia

Santa Isabel mine and NW1 target

The drilling program at the Santa Isabel mine continued from the 530-metre-long underground exploration drift developed on mine level 4. The objective of this program is to confirm the extension of the orebodies to mine levels 6 and 7.

Drilling results have confirmed the continuity of the mineralized structures in all the above mentioned targets, including locally high-grade gold mineralization.

Northern Brazil (Gurupi project)

During the quarter ended March 31, 2012, Jaguar continued with the 30,000-metre drilling program at the Gurupi project. The goal is to upgrade inferred mineral resources to indicated mineral resources in the lateral and deeper portions of the project's Cipoeiro and Chega Tudo deposits, as well as to add mineral resources in targets around the future Cipoeiro plant.

The results to date confirm the potential to significantly increase gold indicated mineral resources at the Gurupi deposits. The infill drilling at Cipoeiro and Chega Tudo confirms that the mineralization is consistent with the grade and width indicated from previous drilling programs, and the step-out drilling demonstrates that the mineralization is open downdip in both orebodies as a pervasive pyrite-gold assemblage associated with northwest-southeast shear zones. At Chega Tudo, six deep drill holes intercepted the extension of the mineralization to a vertical depth of at least 300 metres. Previous resource drilling campaigns at the project had delineated the mineralization down to depths of 130 to 150 metres.

During the quarter, the company completed the exploration program at the Cipoeiro deposit, and initiated a program consisting of infill and exploratory drill holes at the Mandiocal and Santa Paz targets, which are part of 12 identified targets within the project's concession package in addition to Cipoeiro and Chega Tudo. These 12 additional targets have not been included in any of the company's resource estimates or feasibility studies related to the Gurupi project. These targets have been identified as high potential by favourable geology, structures, old artisan mine works, soil and channel sampling anomalies, and exploration drilling.

2012 estimated production and cash operating cost

Based on the planned implementation of the restructuring and turnaround plan, Jaguar is revising its outlook for both production and cash operating costs in 2012. The company now expects 2012 gold production in the range of 120,000 to 130,000 ounces. On this new volume, cash operating costs are expected to be in the range of $900 to $1,000 per ounce (based on an assumed exchange rate of 1.75 reais per $1 (U.S.)) as the planned benefits of the turnaround plan will not be fully realized until 2013. Looking to mid-2013 and beyond, the company's revised preliminary annual targets for its southern operations (excluding any Gurupi potential production) is 170,000 to 190,000 ounces at cash operating costs in the range $700 to $800 per ounce.

2012 estimated year-end cash and cash equivalents

As the company starts to implement its previously announced restructuring and turnaround plan, management is closely monitoring its cash position and cash needs. Based on the planned implementation and the expected significant resulting cost savings, the company expects to have cash or cash equivalents of approximately $40-million at the end of 2012.

     CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
          (expressed in thousands of U.S. dollars, except per-share amounts) 

                                                              Three months ended March 31,
                                                                      2012           2011

Gold sales                                                        $ 50,972       $ 55,140
Production costs                                                   (41,399)       (33,057)
Stock-based compensation                                                43              5
Depletion and amortization                                         (13,293)       (11,120)
Gross profit (loss)                                                 (3,677)        10,968
Operating expenses
Exploration                                                             45            334
Stock-based compensation                                              (808)        (2,691)
Administration                                                       6,315          5,256
Management fees                                                         30            162
Amortization                                                           289            357
Other                                                                  401            836
Total operating expenses                                             6,272          4,254
Income (loss) before the following                                  (9,949)         6,714
Gain on derivatives                                                      -           (287)
Loss (gain) on conversion option embedded in convertible debt      (14,325)         1,340
Foreign exchange gain                                               (3,175)        (3,089)
Accretion expense                                                      595            570
Interest expense                                                     7,123          5,682
Interest income                                                     (1,858)        (1,466)
Gain on disposition of property                                       (278)          (719)
Other non-operating expense recoveries                                 (27)             -
Total other expenses (income)                                      (11,945)          2,031
Income before income taxes                                           1,996           4,683
Income taxes
Current income taxes                                                   319             504
Deferred income taxes (recoveries)                                  (1,132)            455
Total income taxes (recoveries)                                       (813)            959
Net income and comprehensive income for the period                   2,809           3,724
Basic and diluted earnings per share                              $   0.03       $    0.04

We seek Safe Harbor.