Mr. Luis Tondo reports

JAGUAR MINING INC. EMBARKS ON STRATEGIC 5,000-METER DIRECTIONAL DRILLING PROGRAM AT PILAR MINE IN 2026, TARGETING DISCOVERY OF OVER 500,000 OUNCES OF NEW GOLD ENDOWMENT

Jaguar Mining Inc. plans to conduct a comprehensive 5,000-metre directional diamond drilling program at its high-potential Pilar mine in 2026. This strategic initiative builds on the exceptional high-grade gold intercepts recently reported from the BA zone, at Pilar, and aims to significantly expand the known mineralization at depth, unlocking substantial new gold resources. The program is designed with an ambitious goal of investigating and defining a projected endowment of over 500,000 ounces of gold.

This announcement follows the company's successful exploration update (see press release dated Aug. 5, 2025), which highlighted robust results from the BA zone and underscored the strong geological and structural continuity of the mineralization at depth. The planned drilling represents a natural and aggressive progression of the company's exploration efforts, strategically focused on confirming and extending this continuity even further down-plunge across multiple key orebodies within the Pilar mine.

Luis Albano Tondo, chief executive officer of Jaguar, commented: "The recent achievements at the BA zone have provided compelling evidence of the enduring quality and depth of our Pilar asset. This new directional drilling campaign is a concrete step toward realizing that potential. We are not just exploring; we are systematically targeting the deep extensions of proven high-grade zones. Our objective is clear, to identify and define over half a million ounces of gold, which would represent a transformative addition to our mineral resource base and significantly extend the life-of-mine at Pilar. This initiative reflects our confidence in Pilar's future and our commitment to unlocking its full potential for our stakeholders."

Unlocking down-plunge potential at Pilar

The term down-plunge continuity is central to this program. In simpler terms, it refers to the expectation that the gold-bearing ore zones, which have already delivered strong results closer to the surface, continue consistently deeper within the deposit, maintaining or even increasing in grade and width. Many prolific mineralized systems within Brazil's Iron Quadrangle, where Pilar is located, are renowned for this characteristic, with mineralization persisting for several kilometres along plunge. The program is specifically designed to test this thesis, methodically stepping out from known mineralization to delineate these deeper extensions.

The planned drilling encompasses a total of 4,905 metres, structured into three phases, each targeting specific areas and projected to investigate significant gold endowments. The endowment of the expected ounces per phase was calculated based on the oz/vm (ounces per vertical metre) multiplied by the vertical depth impacted by the planned drill holes.

• Phase 1: BA zone
  • This initial phase will concentrate on the BA zone, a cornerstone of Pilar's production and the focus of recent exploration success. The program aims to investigate a projected approximately 90,000 ounces of gold endowment, further confirming the deep extensions of the zones that recently yielded exceptional intercepts, including 12.80 grams per tonne Au over an estimated true width of 25.00 metres.
• Phase 2: expanding to LPA and BF zones
  • Building on insights from the BA zone, phase 2 will broaden exploration scope to include the LPA and BF zones. This phase is designed to investigate a substantial approximately 375,000 ounces of gold endowment, exploring parallel structures and extensions with significant potential.
• Phase 3: Deep BA zone
  • The final phase will target even deeper extensions of the BA zone and explore potential resources beyond current known zones, aiming to investigate an additional approximately 55,000 ounces. This phase looks further ahead, testing the ultimate limits of Pilar's known geological systems.

Collectively, these three phases are strategically planned to investigate a total of approximately 520,000 ounces of gold endowment, a target that, if realized, would substantially reinforce the Pilar mine's position as a long-term, high-grade, producing asset within Jaguar's portfolio.

Geological confidence and future outlook

Jaguar's confidence in this program is firmly rooted in the detailed geological understanding of the Pilar mine. As highlighted in the previous update, mineralization within the BA zone is hosted in complex, overturned folds of the banded iron formation (BIF) layers, characterized by significant hydrothermal alteration and the consistent presence of sulphide minerals such as pyrrhotite. This structural and mineralogical predictability, combined with the observed down-plunge continuity, provides a strong foundation for the current exploration strategy.

Armando Massucatto, general manager of exploration for Jaguar, commented: "The consistent structural controls and the confirmation of folded ore zones at depth, coupled with characteristic mineral associations, give us high confidence in this program. Directional drilling allows us to precisely target the down-plunge extensions that our geological models indicated have historically delivered significant value. It's about converting our deep geological understanding into tangible resource growth."

The success of this directional drilling program has the potential to significantly enhance Pilar's mineral resource base, reinforcing its continued contribution to the company's overall production profile. With the BA zone already expected to deliver approximately half of the mine's total production going forward, successfully extending these high-grade zones at depth would further solidify Pilar's role as a key growth driver for the company.

Jaguar remains committed to responsible and strategic growth, leveraging its strong technical expertise and long-standing presence in Brazil's renowned Iron Quadrangle region. This drilling program represents a critical step in unlocking additional value from the Pilar mine and strengthening Jaguar's long-term production outlook. The company looks forward to providing updates on the progress and results of this exploration initiative as they become available.

Qualified person

Scientific and technical information contained in this press release has been reviewed and approved by Armando Jose Massucatto, Geo, PhD, FAusIMM, general manager of 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 second-largest gold land position in the Iron Quadrangle with over 46,000 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 MTL complex (Turmalina mine and plant) and Caete complex (Pilar and Roca Grande mines, and Caete plant). The Roca Grande mine has been on temporary care and maintenance since April, 2019. The company also owns the Paciencia complex (Santa Isabel mine and plant), which had been on care and maintenance since 2012 and is under review to restart in 2026.

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