Jaguar Mining Reports Strong Gold Production of 71,201 Ounces for First Nine Months of 2016

TORONTO, Oct. 11, 2016

TORONTO, Oct. 11, 2016 /PRNewswire/ -- Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) today announced that the Company achieved strong consolidated gold production of 25,782 ounces for the third quarter of 2016 ("Q3 2016") from processing 231,000 tonnes of ore at an average grade of 3.92 grams per tonne ("g/t") and achieved 91.3% recovery. Year-to-date ("YTD 2016") consolidated gold production to the end of September totaled 71,201 ounces. As a result, the Company is well positioned to meet or exceed the top end of its 2016 production guidance of 90,000 to 95,000 ounces.

Rodney Lamond, President and CEO of Jaguar Mining commented, "To date, our operations have performed extremely well, with our improvement initiatives delivering increased production, average grade, and recoveries that are meeting or exceeding our targets. Q3 2016 marked the third consecutive quarter of increased quarter-over-quarter production led by the Turmalina mine, which, despite challenging ground conditions during the quarter, achieved its highest level of production since Q3 2013. This strong operational performance has now positioned us to meet or exceed the top end of our 2016 gold production guidance of 90,000 to 95,000 ounces. I am also very pleased with the continued progress being made at the Pilar mine, where our operations team has refocused their efforts on programs that will drive increased sustainable production and cash flow growth over the coming quarters."

Q3 2016 Highlights (All figures are in US dollars unless otherwise indicated)

• Following strong Q3 2016 production and operating performance, the Company is on track to meet or exceed the top end of its 2016 gold production guidance of 90,000 to 95,000 ounces.
  
  
• Consolidated gold production for Q3 2016 increased 2% year-over-year to 25,782 ounces based on average consolidated mill head grade of 3.92 g/t (Q3 2015 – 3.90 g/t) and recovery of 91.3% (Q3 2015 – 89.9%).
  
  
• Turmalina led strong Q3 2016 results with 16,304 ounces of gold production, up 17% year-over-year, based on an average head grade of 4.36 g/t and recovery of 92%.
  
  
• Total primary development investment increased 17% year-over-year to 1,347 metres ("m") completed in Q3 2016. Secondary development increased 65% year-over-year to 1,182 m in Q3 2016.
  
  
• Total definition, infill, and exploration drilling of 6,749 m completed during Q3 2016 focused on key targets at Turmalina and Caeté. A total of 28,127 m of drilling was carried out in the first nine months of 2016.
  
  
• To support future growth, the Company continued its 2016 capital investment program, which includes investing in development and exploration activities at all mines, a newly designed paste-fill plant, and the rebuild of Mill #3, both at Turmalina. The paste-fill plant and Mill #3 are expected to be commissioned in Q4 2016.
  
  
• Despite a strengthening Brazilian Real, the Company's increased cost control measures ensured that it remains on track to achieve 2016 cost guidance.
  
  
• Preliminary cash balance of $17.3 million after investing significant capital in development and exploration programs, $0.4 million towards the convertible debentures interest, and repaying $1.3 million for principal and interest towards other debt facilities in Q3 2016.

Q3 2016 Operating Summary