Mr. Vernon Baker reports

JAGUAR MINING PROVIDES UPDATE ON PROGRESS SINCE THE PREVIOUSLY ANNOUNCED INCIDENT AT THE SATINOCO TAILINGS PILE

Jaguar Mining Inc. has provided an update on its remediation efforts and progress made since a slump occurred in the north wall of the Satinoco dry-stack (waste rock and tailings) pile at its Turmalina mine, as initially announced by the company on Dec. 9, 2024. Operations at the Turmalina mine remain temporarily suspended while the company works constructively with the Brazilian National Mining Agency and other authorities. The Turmalina mine is part of the company's MTL mining complex located in the state of Minas Gerais, Brazil, approximately 130 kilometres northwest of the city of Belo Horizonte. The company's Pilar mine in Brazil remains operational.

Within hours of the slump, the company installed geological radars to monitor the Satinoco pile. Within two days, additional radars were installed to track any movement of the full pile. Four sumps were also constructed to manage water runoff around the slumped material, which is important given the start of the rainy season in the region. Despite recent heavy rainfall, no significant movement has been detected in the pile.

The lateral extension of the slumped material damaged seven houses in the adjacent Casquilho community, which was evacuated ahead of the slide occurring. As a result, approximately 85 families have been relocated to temporary accommodations. The company will continue to support these families until they can return to their homes or other permanent arrangements have been made. To ensure the adjacent community is protected from potential further movement of the slumped material, the company has constructed a 400-metre-long containment barrier. This barrier was constructed within seven days of the slide, using waste rock that was stockpiled nearby. The return of residents to their homes will be dependent on assuring the future safety of the area.

As previously announced, there were no reported injuries. The company also reports that waterways in the area have not been impacted. The company continues to work diligently to minimize the impact to the environment and local communities and to ensure the safety of all personnel working to stabilize the pile. Planning efforts are focused on ensuring long-term stability of the pile. All actions and future plans are being co-ordinated between Jaguar personnel, multiple national and state agencies, and third party specialists hired by the company.

The company is still evaluating the timing and cost to resume operations. Next steps will include removing the material that slumped off the pile as well as beginning the process of removing material from the remaining pile to ensure its long-term stability. The Turmalina mines infrastructure is reparable, and resumption of operations will be based on ensuring future stability and safety of the area as well as the repair to affected infrastructure.

The company has reduced expenses at the MTL complex, which are trending toward care-and-maintenance levels. The company is also developing plans to relocate some personnel and equipment from the Turmalina mine to its other two nearby mines -- the operating Pilar mine and the Santa Isabel mine (where a test mining project is planned). The Jaguar team remaining at the MTL complex will continue to focus on managing community relations, engaging with government agencies, planning, and the maintenance of the plant, mine and equipment for a smooth restart.

It is possible that both civil and criminal lawsuits could arise from this incident and historic precedents indicate that fines are likely to be imposed. The company does not know what the scale of these fines could be but believes that its rehabilitation efforts in the area to date, including its pro-active, responsible work with local communities and agencies, may potentially impact the level of any future fines. Based on prior incidents involving other companies in Brazil, the company anticipates that any fines imposed on it, if applicable, would likely be paid in instalments over an extended time frame.

Vern Baker, chief executive officer of Jaguar Mining, stated: "Our team is working diligently to ensure the safety and comfort of all community members affected by this incident. We are thankful for the help and support of our local, state and federal agencies and will continue to work in partnership with all authorities to resume operations at the mine as soon as it is safe to do so. While we recognize the social impacts of this incident on our neighbours and community, we are extremely grateful that there were no injuries and that there have been no significant impacts to the environment. We also thank the affected community members for working in collaboration with our team.

"We were entering 2025 with plans for significant growth. While these growth plans will now be delayed, we expect to fully recover and be back on track for significant growth looking ahead to the next five years. At the Pilar mine, we are confident we can expand additional development and diamond drilling capacity as we reallocate resources and equipment from the Turmalina mine. Pilar is a lower-cost operation and therefore, we aim to produce more profitable ounces to offset overall lower production levels in 2025.

"We are starting the new year in a solid position with a strong inventory of resources and reserves. These include a new ore zone, Faina, which is partially developed and ready to come on line, as well as the recently acquired Oncas de Pitangui project, where we continue with permitting and development. In addition, we have a new ore zone at Pilar, the BA zone, which is being opened up and will contribute higher-grade ounces to our production. We continue to benefit from strong gold prices and a beneficial exchange rate and have a cash position that has grown since the end of the third quarter where our balance was approximately $42-million (U.S.). We expect that all of these factors will help us recover and build a stronger company going forward."

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 41,000 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 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.

We seek Safe Harbor.