Jaguar Mining Reports Q4 and Full Year 2017 Production and Provides 2018 Outlook

TORONTO, Jan. 17, 2018

Rodney Lamond, President and CEO, Jaguar Mining commented: "In 2017, we made meaningful progress at our core producing assets Turmalina and Pilar mines in terms of production, exploration and managing cash costs company-wide. Turmalina delivered improved fourth quarter results compared to the previous two quarters in both head grade and gold production following accelerated development and stoping activities into new high-grade mining areas of Orebodies A and C. As head grades continue to increase at Pilar, we expect lower cash operating costs and increasing gold production in 2018, potentially at new record levels".

"Our core producing assets are benefitting from significant investments during 2017, including 48.5 kilometres of diamond drilling, 7.76 kilometres of underground development, sustaining capital expenditures and equipment purchases. The exploration success achieved during 2017 at Turmalina and Pilar will allow the Company to begin realizing the upside potential of creating long-term sustainable value through increasing near-mine Ore Reserves and Mineral Resources."

2017 Key Milestones and Exploration Success

• Invested total capital of approximately $23M in 2017, which yielded positive results with approximately $5M invested in exploration drilling. Increased definition, infill and exploration drilling metres by 28% to 48,498 m compared to 2016.
• Completed more than 48,000 m of targeted diamond drilling for exploration and growth programs across our core assets focusing on upgrading and converting resources and adding new resources. Currently 9 drills are in operation at Jaguar's core assets.
• Significantly increased exploration drilling year-over-year, 28.5 km (61% increase) drilled at Turmalina Mine ("Turmalina") and 18.8 km (68% increase) at Pilar Mine ("Pilar"). Secondary development at Pilar increased 64% year-over-year.
• Exploration success at Pilar (see press releases August 16 and September 20, 2017) and Turmalina (see press releases February 8 and November 28, 2017). Identified high-grade mineralization on the significant down plunge extensions to main producing ore bodies. Pilar drill results demonstrated expected continuity of high-grade mineralized structures well beyond current mine plans and provided the potential for adding substantial new resources to significantly extend mine life.
• Completed the rebuild and dry commissioning of the paste fill plant at Turmalina. Final commissioning and start-up of the plant to be completed in the beginning of 2018.
• Turmalina purchased 35.9 hectares of private land over its Zona Basal deposit, which the Company plans to test mine in 2018.

Fourth Quarter and Full Year 2017 Operating Highlights

• Total gold production in 2017 was 84,151 ounces, reflecting 22% increase year-over-year in production at Pilar to 34,017 ounces, the highest production since 2012.
• Increased total gold production to 21,311 ounces in Q4 2017, up 2.5% compared to 20,780 ounces in
  Q3 2017; however, lower compared to 25,408 ounces in Q4 2016. Improved progress at Turmalina: 12,245 ounces of gold produced in Q4 2017, 27% higher over Q3 2017.
• Turmalina average grade recovered significantly in Q4 2017, up 42% to 4.41 g/t Au over Q3 2017 reflecting mining from higher-grade area of Orebody A. Mining volumes continue to increase from higher grade Orebody A with more working stopes.
• Pilar average head grade of 3.46 g/t Au in FY 2017 was the highest annual average grade since the start-up of the mine. Year-over-year head grade increased 14% in Q4 2017 and 5% for full year 2017 ("FY 2017").
• Completed 13,973 m or 41% more definition, infill and exploration drilling metres in Q4 2017, compared to 9,914 m in Q4 2016 and 21% more metres than Q3 2017.

        Definitions: g/t Au – grams per tonne gold

Improving Cash Operating Costs