Jaguar has verbal confirmations from Canadian Royalties Debenture holders
holding $42.33 million that they will not tender to the Jien Offer

TORONTO, Oct. 26 /CNW/ - Jaguar Financial Corporation (TSX: JFC) ("Jaguar") today announced that it has verbal confirmations from holders (the "Debenture Holders") of Canadian Royalties Inc. (TSX: CZZ) ("Canadian Royalties") debentures (the "Debentures") owning in the aggregate $42.33 million or 30.8% of the total principal amount of the Debentures that are not tendering to the revised offer (the "Jien Offer") by Jien Mining Ltd ("Jien"). Based on Canadian Royalties' public disclosure, if an additional $3,045,001 principal amount of Debentures is not tendered, the minimum tender condition in the Jien Offer will not be met.

The Jien Offer is subject to a condition that 66 2/3% of Debentures be tendered. This minimum tender condition is required in order for the indenture to be amended to eliminate the contractual requirement to pay 101% of the principal amount and instead to accept 80% of the principal amount under the coercive Jien Offer.

In order to block the Jien Offer, holders of Debentures representing a minimum of $45,375,001 must not tender. Jaguar believes that based on the non-tender verbal confirmations to date, the minimum tender condition will not be met.

Jien announced today that Jien has entered into agreements with Canaccord Capital Corporation ("Canaccord") and Wolverton Securities Inc. ("Wolverton") to solicit acceptances of the Jien Offer from Debenture Holders. Jaguar believes that this step is a desperate attempt by Jien to solicit Debenture Holders very very late in the take-over bid process. Jien will pay a fee of $10.00 per $1,000 principal amount of Debentures taken up and paid for to the soliciting dealers.

Vic Alboini, Chairman and Chief Executive Officer of Jaguar stated: "The fact that Jien has engaged two brokerage firms one day before the expiry date of its offer is a strong signal that they have not met and very likely will not meet the minimum tender condition. We are very confident that the minimum tender condition for the Debentures will not be met."

About Jaguar Financial Corporation

Jaguar is a Canadian merchant bank that invests in undervalued small capitalization companies in a variety of industry sectors.

    
    The Toronto Stock Exchange does not accept responsibility for the
    adequacy or accuracy of this news release. This news release may contain
    certain forward looking statements which involve known and unknown risks,
    delays, and uncertainties not under Jaguar's control which may cause
    actual results, performances or achievements of Jaguar to be materially
    different from those implied by such forward looking statements.
    

SOURCE Jaguar Financial Corporation

For further information: For further information: on this press release, please contact: Vic Alboini, Chairman & Chief Executive Officer, (416) 644-8110 - or - Kyler Wells, General Counsel & Corporate Secretary, (416) 644-8177

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Jaguar Financial Corporation

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