Mr. Vernon Baker reports

JAGUAR MINING REPORTS THIRD QUARTER 2023 RESULTS

Jaguar Mining Inc. has released its financial and operating results for the third quarter ended Sept. 30, 2023. All figures are in United States dollars, unless otherwise expressed.

Third quarter highlights

Financials:

• The company ended the quarter with $20-million of cash on hand.
• Net income was $3.8-million compared with $6.5-million in Q3 2022. The year-over-year drop in net earnings mainly reflects lower revenues, partly offset by lower operating costs, lower income-tax expense and other offsetting variances.
• Cash flow from operations was $6.3-million compared with $13.3-million in Q3 2022. The change reflects lower net earnings combined with the timing of income tax payments compared with Q3 2022.
• Revenue was $31.6-million compared with $37.8-million in Q3 2022, driven by lower gold production and fewer ounces sold, partially offset by higher average realized gold price of $1,916 per ounce compared with $1,711 per ounce in Q3 2022.
• Operating costs totalled $19.6-million compared with $22.1-million in Q3 2022. The 11-per-cent cost reduction is due to improved cost efficiency and the volume benefit of 4 per cent fewer ore tonnes mined. The company has a continuing program to reduce unit costs by lowering headcount, reducing use of contractors and a more efficient truck fleet, with higher haul speeds up the ramps and reduced fuel consumption.
• Free cash flow was $1.5-million compared with $8.4-million in Q3 2022. The reduction mainly reflects the $6.9-million variation in operating cash flow, with offsetting changes in sustaining capital expenditures and asset retirement obligation expenditures between Q3 last year and this year.

Operations:

• Consolidated gold production was 17,316 ounces compared with 21,161 ounces produced in Q3 2022 (although 3 per cent higher than Q2 2023). Average head grade decreased to 2.95 grams per tonne (g/t) from 3.46 g/t in Q3 2022. Tonnes milled decreased to 208,000 tonnes compared with 216,000 in Q3 2022.
• Cash operating costs per ounce sold were $1,188 compared with $999 in Q3 2022, mainly reflecting the volume impact of 25 per cent fewer gold ounces sold in Q3 2023, partly offset by lower operating costs, driven by 5 per cent fewer tonnes mined and processed. Gold sales were 16,502 ounces compared with 22,121 ounces sold in Q3 2022.
• All-in sustaining costs per ounce sold were $1,704 compared with $1,331 per ounce sold in Q3 2022, driven by the increase in cash operating costs per ounce sold, combined with 18 per cent higher sustaining capital expenditures. Sustaining capital expenditures increased mainly in relation to brownfield exploration at Pilar where 6,238 metres were drilled, an increase of 41 per cent over the 4,427 metres drilled in Q3 2022. Exploration drilling at Pilar in 2022 was lower due to a loss of ventilation at the bottom of the mine, which has been corrected. In the current year, catch-up drilling has been performed to increase the flexibility of access to more stopes at a time.
• Total development completed in the quarter was 2,967 metres, in line with the 3,000 metres developed in Q3 2022. These development rates provide sustainable progress on the ramp, ore development and exploration drives. The exploration development metres in 2023 reflect ramp development toward the Faina resources.

Corporate updates:

• Successfully closed the acquisition of the Pitangui project and the remaining interest in the Acurui project from a subsidiary of Iamgold Corp. for 6.3 million shares.
• Announced an agreement with a subsidiary of AngloGold Ashanti Ltd. to exchange a non-cash royalty payable with an equal and offsetting royalty receivable. The result of this exchange was to cancel out a royalty obligation previously attached to the company's Paciencia gold mine complex (CPA) under an historical accord.
• Development to reach the Faina resource from the Turmalina mine continued, with the dual accesses reaching the boundary of the Faina resource by the end of Q3. This positions the company to extend development into the heart of the Faina resource in Q4 and to begin developing within the better-grade zones in 2024. Year-to-date investment in the Faina project was $6.7-million through Q3.
• Initiated changes in the mining methods and cost-reduction plans at both of the company's mines during the quarter.
• Announced the appointment of Alfred Colas, CPA, CA, as chief financial officer.

Vern Baker, president and chief executive officer of Jaguar, stated: "It was a busy quarter for us on the corporate side as we successfully completed the acquisition of Iamgold's Brazilian assets (the Pitangui project and the remaining interest in the Acurui project), and announced an agreement with a subsidiary of AngloGold Ashanti Ltd. to exchange a non-cash royalty payable with an equal and offsetting royalty receivable.

"We exited the quarter in a strong position. We have almost no debt, $20-million in the bank, two mines that are seeing a steady improvement, a new mining area (Faina) being accessed and a follow-up project (Pitangui) to continue our next phase of growth. Going forward, we are continuing our efforts to ensure strong margins and consistent improvement in production in the fourth quarter and beyond."

Alfred Colas, chief financial officer of Jaguar, stated: "I have been with Jaguar for almost two months and am excited to be part of the company's strong management team. During the third quarter, we focused on the integration of Iamgold Brazil, which I am pleased to report is now complete. We were also able to increase production slightly over the second quarter, a trend we hope to continue.

"With two new growth assets and a steady focus on execution, we aim to build up credibility with our shareholders over the coming quarters."

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, an employee of Jaguar Mining, and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101).

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 25,000 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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