Jaguar Mining Reports Third Quarter 2017 Financial Results; Reports Increasing Operating and Free Cash Flow

TORONTO, Nov. 7, 2017

TORONTO, Nov. 7, 2017 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) today announced details of the Company's financial and operating results for the third quarter ended
September 30, 2017 ("Q3 2017"). Complete Financial Statements and Management's Discussion and Analysis are available on SEDAR and on the Company's website at www.jaguarmining.com. All figures are in US dollars, unless otherwise expressed.

Q3 2017 Financial Highlights

• Focused efforts on delivering the highest profitable ounce production and company-wide expense reduction programs, despite strong Brazilian currency, have resulted in decreasing cash operating costs ("COC") to $809 per ounce sold, a 6% reduction compared to $857 in Q2 2017 and a 12% reduction compared to $924 in Q1 2017.
  
  
• All in sustaining costs ("AISC") decreased 7% to $1,169 per ounce sold compared to $1,262 per in Q2 2017, up compared to $1,011 during Q3 2016, reflecting increased exploration drilling programs in 2017.
  
  
• Significantly increased operating cash flow quarter over quarter, to $7.5 million compared with $0.2 million in Q2 2017, but was lower compared with $9.4 million in Q3 2016 mainly due to lower production.
  
  
• Sustaining capital expenditures of $4.6 million and total capital expenditures of $5.8 for Q3 2017, compared with $6.4 and $7.5 million respectively in Q3 2016. Total capital expenditures of $18.6 million year-to-date to the end of Q3 2017.
  
  
• Free cash flow turns positive for first time in 2017 with $2.2 million in Q3 2017, based on operating cash flow less sustaining capital expenditures, compared to $2.9 million in Q3 2016.
  
  
• Net loss of ($7.7 million), or ($0.02) per share reflecting the impact of non-cash adjustments, primarily the impairment write-down on the sale of Jaguar's non-core asset, Gurupi Project, and changes in some legal and tax provisions; this compares to net loss of ($31.6 million), or ($0.22) per share for Q3 2016.
  
  
• Ended the quarter with a strong cash balance of $19.2 million and stable adjusted working capital. Initial $2 million instalment received from Avanco for the Gurupi Project's Accelerated Earn-in Agreement was used to make an additional $2 million payment towards reducing higher cost Brazilian bank debt.

Rodney Lamond, President and CEO of Jaguar, commented: "We continued to see improving performance throughout Q3 2017 with a focus on generating the highest level of operating cash flow in 2017, through profitable ounce production. Increased operating cash flow of $7.5 million in the third quarter allowed the company to continue to invest in sustaining capital, as committed, priority growth exploration programs and pay down debt. Cost reduction initiatives combined with strong production results from Pilar contributed to significantly improved consolidated cash costs of $809 per ounce sold compared to the first half of 2017 of $895. In particular, Pilar and Roca Grande reduced cash costs 22% and 17%, respectively, in Q3 2017 compared to Q2 2017."

"As of the end of Q3 2017, we have invested total capital of approximately $19 million year to-date 2017, with $15.2 million invested in sustaining expenditures and exploration drilling that has yielded significantly positive results. Recent drill results at Pilar are extremely encouraging and we are becoming increasingly confident in the resource upside at Pilar which we expect to report with a mineral resource update in early 2018."

"We ended the quarter with a solid cash balance of $19.2 million and repaid $5.2 million on our credit facilities which included an additional $2 million of proceeds from an initial instalment of the Accelerated Earn-in Agreement signed for the Gurupi Project. Moving forward, our first priority will be to deliver profitable ounce production and generate higher operating cash flow that can be redeployed towards higher priority near-mine sustaining and growth exploration projects, and paying down debt."

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