Mr. Rodney Lamond reports

JAGUAR ANNOUNCES MAJOR GROWTH EXPLORATION INITIATIVE FOCUSING ON BROWNFIELD EXPLORATION PIPELINE AND MINE LIFE EXTENSION

Jaguar Mining Inc. has commenced an expanded and accelerated growth exploration initiative at its operating underground gold mines, Turmalina, Pilar and Roca Grande, located in the Iron Quadrangle, Minas Gerais, Brazil. This initiative will be focused on brownfield exploration targets to expand and discover new mineral resources located in and around existing mine infrastructure that have a strong potential to further grow sustainable production, lower unit costs, increase cash flows and extend expected mine life. The company's current continuing exploration programs will continue to focus on increasing resources at its core assets through the upgrading of current measured and indicated mineral (M&I) resources to mineral reserves.

Over the next 12 months, the company expects to invest up to $8-million (U.S.) in exploration and growth initiatives. Approximately 75 per cent of the investment will be on underground work at the company's core operating mines for drilling of step-out and downdip extensions and targets. The remaining growth exploration investment is expected to be on the high-priority targets Pacheca and Cubas, located near the Pilar gold mine.

Rodney Lamond, president and chief executive officer of Jaguar, stated: "Considering our sizable footprint in the prolific greenstone belt of the Iron Quadrangle in Brazil, and the significant exploration potential across all of our operating mines, this accelerated growth exploration initiative is an exciting step towards assisting us in increasing our resources and extending our operating mine life. This program will also allow for the potential discovery of new resources to support our goal of growing our sustainable production profile. To date, we have made excellent progress with our infill resource drilling programs; however, we now have the immediate means to accelerate our resource growth objectives and to execute exploration programs on the numerous target areas that could potentially add significant new resources to the current mineral base."

Growth exploration highlights

• Major growth capital investment primarily focused on increasing mineral resources at its core assets, and discovery of new resources near existing infrastructure at its operating mines;
• Expanded growth exploration program includes approximately 31,000 metres of diamond drilling, including approximately 15,000 metres at deep down-plunge continuities of the orebodies A and C at Turmalina and BFII and BF at the Pilar gold mine;
• 8,500 metres of surface diamond drilling will be dedicated to test the high-priority Pacheca and Cubas targets in the vicinities of the Pilar gold mine and other advanced targets;
• Exploration targets generated, as a result of extensive compilation work from previous exploration campaigns, in and around the current mine sites will be followed up by geophysical surveys and diamond drilling. Subject to the results, an additional 7,750 metres of surface drilling will be dedicated to test those targets;
• Geophysics, soil geochemistry, trenching, and prospecting and mapping will also be conducted to advance additional target areas for future drilling. Fieldwork has already commenced at the Pacheca and Cubas targets, located near the Pilar gold mine.

Turmalina gold mine

An underground drilling campaign of approximately 9,600 metres will be dedicated to the test the down-plunge extension and continuity of orebodies A and C.

Orebody A

Deep diamond drilling of orebody A will be performed after the development of a new exploration horizon is positioned in the hangingwall of the mine. The proposed drilling is intended to reach the 12, 13 and 14 levels, up to 240 vertical metres below the current development and 160 metres below the current inferred resources.

Orebody C

Downdip extension drilling of the southeastern portion of orebody C is expected to generate new mineral resources that are near surface, and to contribute in the near term to the Turmalina throughput profile.

IP (induced polarization) geophysics will test the hangingwall of orebody C and the eastern continuity of orebody A. Following the IP work, a surface diamond drilling program of an estimated 6,000 metres is expected to take place.

Pilar gold mine

An underground drilling campaign of approximately 5,100 metres will be dedicated to test the down-plunge extension and continuity of orebodies BFII, BF and BA.

Deep diamond drilling will be performed after the development of a new exploration horizon is positioned in the hangingwall of the mine. The proposed drilling is intended to reach the 12, 13 and 14 levels, up to 250 vertical metres below the current development and 200 metres below the current inferred resources.

Approximately 3,500 metres of surface diamond drilling on the Pacheca target is planned. The Pacheca target is located three kilometres northeast of the Pilar mine and is characterized by a series of extensive open-pit excavations made by Portuguese explorers during the 18th century. Similarly hosted in the banded iron formation (BIF) encompassing most of the Iron Quadrangle, the Pacheca target is strongly delineated by soil gold geochemistry.

Surface diamond drilling on the Cubas target of approximately 2,500 metres is planned. The Cubas target is identified by a number of deep IP anomalies situated on the southern continuity of the shear zone, which hosts the main Pilar orebodies.

Roca Grande (RG) gold mine

During 2016, the company undertook a compilation program of the available surface information. In light of the revised geological model, a review of the diamond drill hole information will be carried out to consolidate the geological model. Soil geochemistry and a total of 1,750 metres of drilling follow-up are expected to test the orebodies' open continuities.

The Iron Quadrangle

The Iron Quadrangle has been an area of mineral exploration for centuries, dating back to the 16th century. The discovery in 1699-1701 of black gold contaminated with iron and platinum-group metals in the southeastern corner of the Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world-class multimillion-ounce gold deposits such as Morro Velho, Cuiaba and Sao Bento. Jaguar holds the second-largest gold land position in the Iron Quadrangle, with just over 25,000 hectares.

About Jaguar

Jaguar operates 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 and include the Turmalina gold mine complex and the Caete gold mine complex, 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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