Jaguar Mining Reports Operating Performance and Lower Cash Costs for Q2 2017; Revises Full Year Gold Production to 95,000 - 105,000 Ounces

TORONTO, July 18, 2017

TORONTO, July 18, 2017 /PRNewswire/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) today announced second quarter 2017 ("Q2 2017") preliminary operational results for its core assets located in the Iron Quadrangle area of Minas Gerais, Brazil. All figures are in US dollars unless otherwise expressed. Full financial results are expected to be released after August 9, 2017.

Second Quarter 2017 Highlights

• Consolidated operating performance in Q2 2017, including significant progress made at Turmalina, resulted in total H1 2017 consolidated gold production of 42,061 ounces. Q2 2017 consolidated gold production totaled 19,749 ounces, grade was 3.18 g/t, and recovery was 91%.
  
  
• The Company is committed to achieving strong gold production in 2017, and has revised its production guidance to 95,000 - 105,000 ounces compared to the previously announced range of 100,000 - 110,000 ounces reflecting the challenging first half of the year. Management is confident that the improving trend achieved over the course of the second quarter will be sustained, and that production is expected to be at the high end of the range, exceeding the 2016 level. Improved operating performance across all sites is expected to increase production in H2 2017, resulting in continued improvement in cash costs. In particular, production from Turmalina is expected to return to normal production levels as operational challenges previously encountered, are no longer affecting production cycles.
   
  
• Consolidated cash costs improved throughout Q2 2017, including June 2017 cash costs of approximately $797 per ounce sold. Preliminary cash costs for Q2 2017 were $857 per ounce sold compared to Q1 2017 cash costs of $924 and $758 per ounce sold for Q2 2016. Continued Company-wide cost reduction programs and a focus on profitable ounce production and waste reduction resulted in lower unitary costs.
   
  
• Preliminary cash balance of approximately $20.6 million as of June 30, 2017, compared to a cash balance of $18.2 million at March 31, 2017. The cash position includes a secured facility for $5.0 million from Sprott Private Resource Lending (Collector) LP, and a non-brokered private placement for gross proceeds of approximately $5.9 million, which closed on June 15.
  
  
• Growth exploration programs continued to advance during the quarter with the development of exploration drives for deep drilling being completed at Pilar and Turmalina. At Pilar, drilling is targeting Levels 11-16 up to 350 m below current development and 250 vertical m below the current Inferred Resources. At Turmalina, drilling is targeting Levels 12-16 up to 420 m below current development and 300 vertical m below the current Inferred Resources. Drill results are expected to add to the current Mineral Reserves and Mineral Resources.

Rodney Lamond, President and Chief Executive Officer of Jaguar commented, "Consolidated operating performance during the second quarter, included a steady improvement from Turmalina, which contributed to first half 2017 production of 42,061 ounces, and now positions the Company to deliver on its revised 2017 production guidance of 95,000 – 105,000 ounces of gold. Turmalina improved during the quarter and ended Q2 2017 with significantly stronger production in June compared to April following the decision to leave Level 9 and commence development and mining of Level 10 in Orebody A. As expected, the mining of Level 10 performed very well and the isolated ground control issues encountered in an area of Level 9 have been negated. Additionally, in early June, Turmalina physical results included an increase in grade as the mining of higher-grade stopes in Level 10 continued."

"Lower cash costs are a direct result of Company-wide cost reduction programs and a focus on profitable ounce production and waste reduction at the mine level. For the month of June, unit costs were approximately $797 per ounce sold. Lower cash costs for the second quarter is a notable improvement as the decrease in cash costs was achieved despite lower than forecast ounces sold."

"Moving forward into the second half of 2017, we are committed to further performance improvements and cost reductions. We will continue the development of Level 10 and mine the higher-grade ore shoots in Orebody C at Turmalina. At Pilar, we expect to benefit from the past year of development and the mining of the higher-grade BF and BFII Orebodies. Our Growth Exploration Programs continue to advance at both Pilar and Turmalina and we expect to deliver the drilling results of these programs over the second half of the year."

Quarterly Operating Summary