Mr. Eric Sprott reports

ERIC SPROTT ANNOUNCES ACQUISITION OF SHARES OF JAGUAR MINING INC.

Eric Sprott, on Aug. 19, 2016, acquired 46,978,350 common shares of Jaguar Mining Inc. (representing approximately 27.3 per cent of the outstanding shares). Mr. Sprott acquired the shares upon the conversion of a principal amount of $5.35-million (U.S.) convertible debentures.

Prior to this acquisition, Mr. Sprott beneficially owned 12,776,791 common shares and the debentures, representing approximately 11.5 per cent of the then-outstanding shares, and 37.8 per cent on a partially diluted basis assuming exercise of the debentures. Mr. Sprott now beneficially owns and controls 59,755,141 common shares, representing approximately 34.7 per cent of the outstanding shares.

The shares were acquired for investment purposes. Mr. Sprott has a long-term view of the investment, and may acquire additional shares either on the open market or through private acquisitions, or sell the shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. Jaguar Mining's head office is at 1203, 67 Yonge St., Toronto, Ont., M5E 1J8. A copy of Mr. Sprott's early warning report will appear on Jaguar Mining's profile on SEDAR and may also be obtained by calling 416-362-7172.