Mr. Vern Baker reports

JAGUAR MINING REPORTS SECOND QUARTER 2023 PRODUCTION RESULTS

Jaguar Mining Inc. has released preliminary production results for the second quarter of 2023. Full financial results for the quarter will be reported and filed on SEDAR on or before Aug. 15, 2023. All figures are in U.S. dollars, unless otherwise expressed.

Second quarter operating highlights:

• Consolidated gold production decreased 24 per cent to 16,750 ounces compared with 22,028 ounces in the second quarter of 2022. Tonnes milled decreased to 203,000 tonnes compared with 228,000 in the second quarter of 2022.
  • Pilar gold production decreased 33 per cent to 8,876 ounces compared with 13,212 ounces in the second quarter of 2022;
  • Turmalina gold production decreased 11 per cent to 7,874 ounces compared with 8,816 ounces in the second quarter of 2022.
• Total development metres completed for the quarter were 3,193 metres, an increase of 12 per cent compared with 2,848 metres in the same period of 2022.
• Total definition, infill and exploration drilling for the quarter was 10,419 metres, a decrease of 66 per cent compared with 30,605 metres in the same period of 2022 when a major infill drilling program on the Faina resources was conducted.
• The company ended the quarter with cash of $23.9-million, a decrease from its first quarter cash position of $25.8-million.

Vern Baker, president and chief executive officer of Jaguar Mining, stated: "The company faced another difficult quarter as both mines encountered issues with dynamic orebodies leading to lower grades and tonnes than was expected in the areas we mined.

"At the Pilar mine, the primary orebodies showed a change in geometry that no longer fit our current mining method in portions of the orebody. This created both dilution and extraction issues leading to the loss of some planned mining blocks as well as lower-than-expected grades in mined blocks. By the end of the second quarter, our planning team had adapted plans for modifying the mining system to account for the ore being both narrower and flatter than prior experience.

"At the Turmalina mine, the areas mined in the second quarter showed significantly more variability than was planned, leading to lower-than-expected grades. The Turmalina grade control program is being modified to improve stope design and grade control.

"After due consideration with internal and external professionals, there is no material change to current mineral resource and mineral reserve disclosure.

"During the quarter, development continued at the Faina project with over 300 metres driven. Upgrading of the Faina resource from last year's diamond drilling underpins the project planning. The potential ore zones are expected to be reached in the fourth quarter and development of the resource into a reserve will begin. In 2024, we plan to focus on development of ramps, accesses, raises and other infrastructure to mine effectively in future years.

"Given the challenging quarter and the changes we plan to implement to our mining systems during the second half of the year, we feel it is prudent to temporarily suspend our forward-looking guidance for fiscal 2023 in regard to the company's expected ounces of production and costs so that we can, in the future, provide updated guidance that should reflect the implementation of the aforesaid changes. We also plan on initiating cost-cutting measures to optimize our cash flow in the second half of the year."

The company's previous guidance can be found on page 4 of its first quarter 2023 management discussion and analysis, which is available on SEDAR or the company website.

Qualified person

Scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, BSc (honours) (economic geology -- UCT), FAUSIMM, vice-president, geology and exploration, who is also an employee of Jaguar Mining and is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

The Iron Quadrangle

The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in 1699 to 1701 of 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 third-largest gold land position in the Iron Quadrangle with over 50,000 hectares.

About Jaguar Mining Inc.

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. 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 and Caete mining complex (Pilar and Roca Grande mines, and Caete plant). The company also owns the Paciencia gold mine complex, which has been on care and maintenance since 2012. The Roca Grande mine has been on temporary care and maintenance since April, 2019.

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