Mr. Rodney Lamond reports

JAGUAR MINING REPORTS STRONG GOLD PRODUCTION OF 71,201 OUNCES FOR FIRST NINE MONTHS OF 2016

Jaguar Mining Inc. achieved strong consolidated gold production of 25,782 ounces for the third quarter of 2016 from processing 231,000 tonnes of ore at an average grade of 3.92 grams per tonne and achieved 91.3-per-cent recovery. Year-to-date consolidated gold production to the end of September totalled 71,201 ounces. As a result, the company is well positioned to meet or exceed the top end of its 2016 production guidance of 90,000 to 95,000 ounces.

Rodney Lamond, president and chief executive officer of Jaguar Mining, commented: "To date, our operations have performed extremely well, with our improvement initiatives delivering increased production, average grade, and recoveries that are meeting or exceeding our targets. [Third-quarter] 2016 marked the third consecutive quarter of increased quarter-over-quarter production led by the Turmalina mine, which, despite challenging ground conditions during the quarter, achieved its highest level of production since Q3 2013. This strong operational performance has now positioned us to meet or exceed the top end of our 2016 gold production guidance of 90,000 to 95,000 ounces. I am also very pleased with the continued progress being made at the Pilar mine, where our operations team has refocused their efforts on programs that will drive increased sustainable production and cash flow growth over the coming quarters."

Q3 2016 highlights (all figures are in U.S. dollars unless otherwise indicated):

• Following strong Q3 2016 production and operating performance, the company is on track to meet or exceed the top end of its 2016 gold production guidance of 90,000 to 95,000 ounces.
• Consolidated gold production for Q3 2016 increased 2 per cent year over year to 25,782 ounces based on average consolidated mill head grade of 3.92 grams per tonne (Q3 2015: 3.90 g/t) and recovery of 91.3 per cent (Q3 2015: 89.9 per cent).
• Turmalina led strong Q3 2016 results with 16,304 ounces of gold production, up 17 per cent year over year, based on an average head grade of 4.36 g/t and recovery of 92 per cent.
• Total primary development investment increased 17 per cent year over year to 1,347 metres completed in Q3 2016. Secondary development increased 65 per cent year over year to 1,182 m in Q3 2016.
• Total definition, infill and exploration drilling of 6,749 m completed during Q3 2016 focused on key targets at Turmalina and Caete. A total of 28,127 m of drilling was carried out in the first nine months of 2016.
• To support future growth, the company continued its 2016 capital investment program, which includes investing in development and exploration activities at all mines, a newly designed paste-fill plant, and the rebuild of Mill No. 3, both at Turmalina. The paste-fill plant and Mill No. 3 are expected to be commissioned in fourth quarter 2016.
• Despite a strengthening Brazilian real, the company's increased cost-control measures ensured that it remains on track to achieve 2016 cost guidance.
• Preliminary cash balance of $17.3-million after investing significant capital in development and exploration programs, $400,000 toward the convertible debentures interest, and repaying $1.3-million for principal and interest toward other debt facilities in Q3 2016.

                                 Q3 2016 OPERATING SUMMARY
    
                                                         Q3 2016                      Q3 2015        
                                   Turmalina      Caete    Total  Turmalina    Caete    Total

Tonnes milled (t)                    128,000    103,000  231,000    101,000  122,000  223,000
Recovery (%)                            91.8       90.6     91.3       91.0     89.0     89.9
Average head grade (g/t)                4.36       3.17     3.92       4.77     3.17     3.90
Gold ounces
Produced (oz)                         16,304      9,479   25,782     13,994   11,241   25,235
Sold (oz)                             15,945      9,371   25,316     13,485   10,921   24,406
Development
Primary (m)                              605        748    1,353      1,061       91    1,152
Exploration drift (m)                      -         22       22          -        -        -
Secondary (m)                            623        559    1,182        625       93      718
Definition, infill and
exploration drilling (m)               2,793      3,956    6,749      8,374      720    9,094

                                                        YTD 2016                     YTD 2015
                                   Turmalina      Caete    Total  Turmalina    Caete    Total

Tonnes milled (t)                    380,000    264,000  644,000    306,000  353,000  659,000
Recovery (%)                            91.2       90.6     90.9       90.3     89.3     89.8
Average head grade (g/t)                4.25       3.13     3.86       4.08     3.11     3.53
Gold ounces
Produced (oz)                         47,158     24,043   71,201     36,210   31,043   67,253
Sold (oz)                             47,615     24,552   72,167     36,291   31,527   67,818
Development
Primary (m)                            2,502      1,869    4,371      2,603      205    2,808
Exploration drift (m)                      -         66       66         24        -       24
Secondary (m)                          2,154      1,391    3,545      1,398       93    1,491
Definition, infill and
exploration drilling (m)              12,735     15,392   28,127     18,843   10,635   29,478

Q3 2016 cash balance

Preliminary cash balance was $17.3-million as at Sept. 30, 2016, compared with a cash balance of $15.3-million as at Dec. 31, 2015, while investing in capital activities and maintaining a stable working capital position. Full financial details, and associated all-in sustaining and operating cash cost details will be released in November, 2016.

Capital investments in Q3 2016 were primarily financed through operating cash flows, a trend expected to continue for the remaining part of 2016. In addition to the increase in capital expenditures, Jaguar also paid $400,000 of interest on the convertible debentures, and $1.3-million in other debt principal and interest payments during the third quarter. The strengthening of the Brazilian real in Q3 2016 and the resulting foreign currency losses offset some of the gold price gains during the quarter.

Management update

The company is pleased to announce that it is strengthening its management team with the appointments of Robert (Bob) Gill as vice-president, operations, and Joanne C. Jobin as vice-president, investor relations.

Rodney Lamond, president and chief executive officer of Jaguar Mining, commented: "I am pleased to announce the addition of Bob and Joanne to the Jaguar management team. Bob is a senior mining professional with a strong international background in design and mine operations, while Joanne brings to the company broad experience with investor relations and marketing; her knowledge of the capital markets as well as her existing industry relationships will strengthen Jaguar's exposure within the investment community."

Mr. Gill has over 30 years of expertise in the design and operation of international and domestic, open-pit and underground, base-metal and gold mines. Prior to joining Jaguar, he was with AMEC Americas Ltd.'s mining division in Vancouver, where he held the position of principal engineer and study manager, where he managed prefeasibility studies and preliminary economic assessments, including being the project manager on the Galore Creek prefeasibility study. He has worked at various operations and development projects in North America and South America, and consulted to mines around the world. Mr. Gill holds a bachelor of applied science in geotechnical engineering from the University of British Columbia and completed the international executive program in mining leadership from Queen's University.

Ms. Jobin has over 25 years of investor relations and corporate communications experience, and has been the investor relations consultant to Jaguar Mining since September, 2014. She began her career in the fledgling investor relations industry in 1987 with Barrick Gold, where she worked to develop its early investor relations and marketing programs. Since then, she has worked in the natural resources sector, and managed the investor relations, corporate affairs and communications programs for a number of publicly traded companies, including J.P. Morgan & Co. (Canada), Canadian Tire Corporation, Iamgold Corp., Noront Resources, Excellon Resources and Veris Gold. She co-founded The Firm and founded IR.Inc, international investor relations marketing companies focused on the natural resource sectors.

About Jaguar Mining

Jaguar Mining is a Canadian-listed junior gold mining, development and exploration company operating in Brazil with three gold mining complexes, and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 191,000 hectares. The company's principal operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais, and include the Turmalina gold mine complex (Mineracao Turmalina Ltda. or MTL) and the Caete gold mine complex (Mineracao Serras do Oeste Ltda. or MSOL), which, combined, produce more than 90,000 ounces of gold annually. The company also owns the Paciencia gold mine complex, which has been on care and maintenance since 2012.

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