Mr. Vern Baker reports

JAGUAR MINING REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER 2024

Jaguar Mining Inc. has released its financial and operating results for the third quarter ended Sept. 30, 2024. All figures are in U.S. dollars, unless otherwise expressed.

Third quarter highlights:

• Gold production was 16,912 ounces, marginally lower than the 17,316 ounces produced in the third quarter of 2023. The net reduction reflects 16 per cent fewer tonnes processed, substantially offset by 24-per-cent-higher head grades.
• Gold sold was 15,726 ounces, representing a 5-per-cent decrease from the 16,502 ounces sold in the third quarter of 2023, mainly reflecting the slightly lower year-over-year production. Realized gold prices for the quarter were $2,474 per ounce, an increase of 29 per cent over the $1,916 per ounce realized in the third quarter of 2023.
• Cash operating costs per ounce sold decreased by 7 per cent to $1,101 per ounce of gold sold from $1,188 per ounce of gold sold in the third quarter of 2023, reflecting a 12-per-cent reduction in operating costs.
• All-in sustaining costs (AISC) per ounce increased by 7 per cent to $1,831 per ounce of gold sold from $1,704 per ounce of gold sold in the third quarter of 2023. The increase mainly reflects higher sustaining capital investments in the Faina zone at the Turmalina mine, which became operational in the second quarter of 2024 and is still in the process of ramping up production.
• As the Faina zone had its first production and gold sales during the second quarter of 2024, its continuing development costs were reclassified from growth capital to sustaining capital. Over $2.0-million of growth capital incurred during the second quarter was reclassified in the current quarter to sustaining capital, which generated a negative figure for reported mine site non-sustaining capital at the Turmalina mine.
• The elevated rate of development capital invested in the Faina zone during the quarter was to support the planned ramp-up of production in 2025 from this zone. Low production volume of 1,819 ounces from the Faina zone, combined with high levels of sustaining capital, which included the catch-up of second quarter 2024 sustaining capital, resulted in the Turmalina mine's AISC per ounce sold being elevated this quarter.
• Revenue for the quarter was $38.9-million, representing a 23-per-cent increase from the $31.6-million in revenue in the third quarter of 2023. This increase was driven by higher realized gold prices year over year and was partially offset by fewer ounces sold.
• Operating costs for the quarter were $17.3-million, a reduction of 12 per cent compared with operating costs of $19.6-million in the third quarter of 2023.
• Net income for the quarter was $2.3-million, a decrease of $1.5-million compared with a net income of $3.8-million in the third quarter of 2023. Adjusted net income for the quarter, excluding the impact of $6.0-million in provisions for civil and labour litigations, was $8.3-million (10 cents per share).
• Free cash flow for the quarter was $4.8-million, an increase of $3.3-million compared with free cash flow of $1.5-million in the third quarter of 2023. Free cash flow per ounce sold for the quarter was $306 per ounce, compared with $92 per ounce in the third quarter of 2023. Free cash flow is defined as operating cash flow less asset retirement obligation expenditures and sustaining capital expenditures.

Cash position and working capital:

• As of Sept. 30, 2024, the company had cash and cash equivalents of $41.6-million, compared with a balance of $22.0-million at Dec. 31, 2023. Cash and cash equivalents increased by approximately $19.6-million during the first nine months of the year, mainly reflecting the impact of higher realized gold prices and the receipt of other accounts receivable of $4.0-million from BHP in March, 2024.

Vern Baker, president and chief executive officer of Jaguar, stated: "Results for this quarter reflect our continued focus on the development of new mining areas at both of our operations. We are encouraged by the Faina zone at the Turmalina mine, which contributed 1,819 ounces to our production from a combination of development ore and our first stoping block. Overall grades were at an average head grade of 4.39 g/t. The stoping tonnes were less than half the total tonnage processed at average grades of over 5.0 g/t. Development of this area is going well and, in the fourth quarter, we expect to increase both development metres and diamond drilling metres at the Faina zone. In 2025, we plan to continue developing at higher rates and expect to see an increase in production to full rates starting in 2026.

"Development of the BA zone at the Pilar mine also continued. Accesses reaching or progressing towards five separate sublevels of the BA zone continued during the quarter for the purposes of test stoping in several levels starting in the fourth quarter. Diamond drilling also continued and our next MRMR update should reflect ounces in this part of the BA zone.

"The focus on development of new sublevels for the purpose of future production at both mines led to limited work in historical mining areas during the quarter, resulting in lower tonnes processed and higher waste tonnes moved. Efforts to maximize production grades combined with the addition of the higher-grade Faina ore led to improved head grades. Our average head grade increased significantly year over year from 2.95 g/t to 3.67 g/t.

"On the cost side, our cash operating costs per ounce were 7 per cent lower, the result of the higher grades, while our AISCs increased due to the inclusion of development expenditures as sustaining capital at the Faina zone rather than as growth capital as in prior quarters. The elevated AISC per ounce seen this quarter is expected to improve as production at Faina increases.

"During the quarter, we continued to benefit from a strong realized gold price. We added over $4-million in cash and ended the quarter with approximately $42-million, almost doubling our cash position over the past nine months. This positions us to continue investing in the development of our ore zones, which will grow ounce production. It also allows us to invest in additional projects which support our growth plan to significantly increase production over the next five years."

Non-GAAP (generally accepted accounting principles) performance

The company has included the following non-GAAP performance measures in this document: cash operating costs per ounce of gold sold, all-in sustaining costs per ounce of gold sold, average realized gold price (per ounce of gold sold), sustaining capital expenditures, non-sustaining capital expenditures, adjusted operating cash flow, free cash flow, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, and working capital. These non-GAAP performance measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with similar measures presented by other companies.

Qualified person

Scientific and technical information contained in this news release has been reviewed and approved by Jonathan Victor Hill, BSc (honours) (economic geology -- UCT), FAusIMM, adviser, exploration and geology, to Jaguar Mining, and 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 42,000 hectares.

About Jaguar Mining Inc.

Jaguar 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 mining complex (Turmalina mine and plant) and Caete mining 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 mining complex (Santa Isabel mine and plant), which had been on care and maintenance since 2012, and is planned to restart in early 2025. Additional information is available on the company's website.

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