Jaguar Mining Provides Q2 Update of Operations



    JAG - TSX/NYSE Arca

    
    Increases Reserves +100% to 2 Million oz; Records First Gold Pour at
           Paciência; Moves Forward with Caeté Project Construction

       NOTICE OF CONFERENCE CALL: Friday, August 1 @ 9:30 a.m. EDT

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                      International:       213-416-2196
                      Replay:
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                      International:       213-416-2185
                      Replay ID:           73108
                      Webcast:             www.jaguarmining.com

    CONCORD, NH, July 31 /CNW/ - Jaguar Mining Inc. ("Jaguar" or "the
Company") (JAG: TSX/NYSE Arca, JAG.NT: TSX) provided a summary today of its
preliminary Q2 2008 operating performance. All figures are in U.S. dollars
unless otherwise indicated.
    As a result of the work completed in connection with the Caeté Project and
Turmalina Expansion feasibility studies, Jaguar estimates it now has proven
and probable mineral reserves of 13,510,474 t with an average grade of 4.69
g/t containing 2,033,501 oz of gold. Jaguar's measured and indicated
resources, which include mineral reserves, are 23,095,096 t with an average
grade of 4.74 g/t containing 3,519,003 oz of gold and 6,704,735 t of inferred
resources with an average grade of 5.15 g/t containing 1,109,142 oz of gold.
Click on the link below to view the complete mineral resources and reserves
tables:

    http://www.jaguarmining.com/s/PressReleases.asp?ReportID=313465#table

    Moving into the construction phase on the Caeté Project represents
development of the third and final underground mining operation to help Jaguar
achieve its annual production target of 700,000 oz of gold by 2014.

    Recent operating highlights include:

      -  In Q2 2008, the Company produced 20,782 oz of gold at an average
         cash operating cost of $455/oz compared to 17,188 oz at an average
         cash operating cost of $328/oz during the same period last year.
         Costs for Q2 2008 were impacted by lower grades at Sabara and
         Turmalina, and the weaker U.S. dollar against the Brazilian real.
         Mining and processing costs at Sabara and Turmalina were essentially
         on budget; however, run-of-mine grades were below expected levels.
         Over half of the increase in average cash operating costs can be
         attributed to the weakness of the U.S. dollar. The average exchange
         rate in Q2 2008 was R$1.66/US$1.00 compared to R$1.98/US$1.00 in
         Q2 2007;

      -  Q2 2008 gold sales totaled 23,537 oz at an average price of
         $900 compared to Q2 2007 figures of 17,177 oz at an average price of
         $665;

      -  In Q2 2008, Turmalina produced 16,321 oz of gold at an average cash
         operating cost of $390/oz compared to 10,583 oz at an average cash
         operating cost of $258/oz in Q2 2007. Costs were higher due
         principally to the weaker U.S. dollar versus the Brazilian real and
         lower feed grades stemming from increased dilution during mining
         operations.

      -  During Q2 2008, the following was achieved at Turmalina:

           -  Ore production totaled 127,892 tonnes at an average grade of
              4.60 g/t.

           -  Ore processed through the mill totaled 122,336 tonnes at an
              average grade of 4.81 g/t.

           -  The average gold recovery grade was 88%, slightly below the
              design rate of 90%. The difference was caused largely by the
              variability of ore feed grades, which have been impacted by
              unplanned dilution during mining operations. As discussed
              below, management has implemented a solution to correct this
              issue.

           -  During Q2 2008, the Company made the decision to transition the
              mining method from sublevel stoping to cut and fill. The
              principal reason for this change is to decrease dilution caused
              by unanticipated rock mechanics issues. The implementation of
              this mining method at other ore bodies at Turmalina, besides
              Ore Body A, has shown significant improvements over sub-level
              stoping.

           -  Mine development totaled 981 meters including approximately
              200 meters in the Satinoco mineralized body.

           -  The Company initiated a drill program to a depth of 850 meters
              on the main ore body at Turmalina to confirm the continuity of
              the mineralization to this depth. It is expected this effort
              will be concluded during August 2008.

           -  A new zone of mineralization in the Satinoco ore body has been
              discovered 100 m to the southwest of the existing resource
              base. Although not considered in the Phase I feasibility study
              for the expansion of Turmalina, these new drill results further
              enhance the economics for this initiative.

      -  In Q2 2008, Sabara produced 4,461 oz of gold at an average cash
         operating cost of $693/oz compared to 6,605 oz at an average cash
         operating cost of $440/oz in the same period in 2007. Cash operating
         costs in the most recent quarter were primarily impacted by lower
         grades and exchange rates. The feed grade of ore processed in
         Q2 2008 averaged 1.43 g/t compared to 2.1 g/t in Q2 2007. The
         Company recently received the permits to commence mining from the
         new higher grade Serra Paraiso mineralized zone. Pre-stripping
         operations have begun and mining will commence in late-Q3 2008;

      -  Commissioning of the Paciência operation was interrupted in Q2 2008
         to repair a seam in the tailings pond liner which was improperly
         installed by a contractor. During the initial charging and testing
         of the tailings facility, a leak was detected by sub-surface
         monitors and ramp-up was delayed. There was no discharge from the
         tailings pond.

           -  It took approximately four weeks to properly repair and test
              the affected portion of the liner. Commissioning operations at
              the Paciência operation have now resumed. As of mid-July, the
              Paciência Plant is processing approximately 1,200 tonnes per
              day averaging 2.2 to 2.4 g/t. The Paciência operation is
              designed to process 1,800 tonnes per day of ore at an average
              run-of-mine grade of 4.4 g/t. Jaguar has achieved the design
              milling rate of 1,800 tonnes per day for a period of time
              during the commissioning. The first gold pour occurred on
              July 24, 2008 for a total of 400 ounces of gold poured into
              doré, which was then shipped to a nearby refinery for further
              treatment and sale.

           -  Given the delay in the commissioning, Jaguar has revised its
              2008 gold production outlook for the Paciência operation to
              between 25,000 to 30,000 oz. The Company had previously
              estimated 2008 production for this new facility could reach
              49,000 oz.

           -  As operations at Paciência are still undergoing commissioning,
              no financial charges to repair the tailings dam liner will be
              recognized during FY 2008.

      -  Due to the issues discussed above, management assessed its FY 2008
         production targets and full year estimated cash production costs.
         Revised production and costs figures are as follows:

                  1ST Half 2008  2nd Half 2008    FY 2008 Est.  FY 2008 Est.
         Operation   Production     Production      Production     Cash Cost
                           (oz)           (oz)            (oz)        ($/oz)

         Turmalina       33,476  41,524-46,524   75,000-80,000      $365-380
         Paciência            -  25,000-30,000   25,000-30,000      $520-535
         Sabara           8,719   9,281-11,281   18,000-20,000      $600-620
                          -----   ------------   -------------      --------
           Total         42,195  75,805-87,805 118,000-130,000      $435-450

         Note: Estimated cash costs based on actual 1st half exchange rate of
         R$1.69/US$1.00 and estimated 2nd half exchange rate of
         R$1.65/US$1.00
    

    Daniel Titcomb, Jaguar's President and CEO stated, "With the completion
of the two feasibilities studies, we double our reserves and substantially
extend our mine life. In addition, with a minor issue at the Paciência
operation now resolved and the commissioning phase back underway, our team is
confident that we will achieve our 2009 and long-term production objectives.
With the approval to proceed on the Caeté Project, we now have the third major
operation underway to reach our objective of producing approximately
700,000 oz of gold by 2014."
    Mr. Titcomb further added, "Looking around the industry at the
geopolitical and economic obstacles many companies are experiencing, we are
confident that Jaguar has the right formula to significantly improve
shareholder value. The reasons for our confidence include: (i) we're situated
in one of the premier geological settings with a robust economy and a strong,
stable political environment; (ii) the local infrastructure is developed and
offers a wide range of personnel, energy and equipment necessary for our
continued growth; (iii) our management team has the experience necessary to
deal with the issues mining companies confront each day; and (iv) our plan
remains fully funded."

    Caeté Feasibility Study

    Jaguar's Board of Directors has approved Phase I (700,000 tpy)
feasibility study of the Caeté Project and construction is underway. During
the development of the feasibility study, Jaguar increased the overall scope
and size of the project from 600,000 tpy to 1.1 million tpy of ore mined and
processed. Jaguar's management elected to extend the timing for the
feasibility study in order to combine two expansion phases, unlike at
Turmalina where the first expansion was done separately. As a result, the
average annual gold production was raised from 93,000 oz/yr to 140,000 oz/yr,
within the scope of the feasibility study. The sizing up of mining and
processing operations extended the completion of the feasibility study, which
the Company expects to file on SEDAR in August 2008.
    Based on the feasibility study and approval by Jaguar's board, the
Company has initiated civil works for the milling and treatment circuits on
the site of Jaguar's previously operated carbon-in-column processing plant.
This regional processing plant will treat ore mined at Jaguar's Pilar and Roça
Grande mines. The Company intends to use a combination of cut and fill and
selective stoping methods at both mines, which contemplates a treated tailings
backfill system. The processing facilities will include crushing and grinding
circuits followed by a gravity separation circuit along with a leaching and
carbon-in-pulp adsorption/desorption/recovery ("CIP-ADR") plant to process.
All necessary permits and licenses for the construction and commissioning
phase have been received. The Company estimates commissioning operations at
the Caeté Project will begin in Q3 2009.
    The feasibility study is being prepared for Jaguar by Ivan C. Machado,
M.Sc., P.E., P.Eng., Principal of Salt Lake based TechnoMine Services, LLC
("TechnoMine"). Based on the results of the feasibility study, the after-tax
net cash flow of the Caeté Project is estimated at $171 million using the
following criteria:

    
    Estimated Mineral Reserves: 6,106,200 t @ 4.57 g/t Au, containing
                                approximately 897,200 oz
    Mill Feed Grade:            4.43 g/t Au
    Mining Rate:                1.1 million tpy (Phase I - 700,000 tpy)
    Process Recovery:           92.6%
    Annual Average Production:  140,000 oz per year (Phase I - 93,000 per
                                year)
    Mine Life:                  7 years
    Begin Commissioning:        Q3 2009
    Total Investment:           $134.8 million (Phase I - $90.5 million)
    Average Cash Cost:          $344 per oz
    Total Production Cost:      $511 per oz, including invested capital
    Exchange Rate:              Construction Period: R$1.69 = US$1
                                Operating Period: R$1.88 = US$1
    Gold Price:                 $834 per oz
    IRR:                        24.2% per year
    NPV at 0%:                  $178.8 million after tax
    

    As the Company continues further development at both Roça Grande and
Pilar Mines, management anticipates additional conversion of existing
identified resources and the discovery of new resources to be brought into the
mine plan, which will further improve the overall economics for the project.

    Turmalina Expansion (Phase I) Feasibility Study

    Jaguar's board has approved the Turmalina Phase I expansion and
construction is underway. A feasibility study to assess the blending and
processing of ore from the Satinoco Target with the ore from the existing
mines adjacent to the Turmalina processing plant is being prepared for Jaguar
by Ivan C. Machado, M.Sc., P.E., P.Eng., Principal of TechnoMine.
    Based on the results of the on-going feasibility study, the Satinoco
Target will add an estimated 1,265,802 t @ 3.12 g/t Au containing 126,879 oz
of proven and probable reserves to the Turmalina mining complex reserve base.

    Exploration Update

    Turmalina

    Jaguar is currently carrying out trenching and in-fill drilling in the
Satinoco area. To-date, 18 drill holes totaling 4,303 m have been completed.
The most relevant drill results, which indicate the mineralization is open at
depth, are shown in the table below:

    
    -------------------------------------------------------------------------
                                       Mineralized Intervals
                    ---------------------------------------------------------
     Hole              From             To             Grade           Thick.
                        (m)             (m)            (g/t)            (m)
    -------------------------------------------------------------------------
    FSN-114           337.80          342.20            1.07            4.40
    -------------------------------------------------------------------------
    FSN-115            64.70           67.80            2.50            3.10
    -------------------------------------------------------------------------
    FSN-116           111.80          113.10            2.24            1.30
    -------------------------------------------------------------------------
    FSN-121            15.45           29.25            3.90           13.80
    -------------------------------------------------------------------------
    FSN-125           109.00          112.50            1.95            3.50
    -------------------------------------------------------------------------
                      311.00          312.00            2.34            1.00
    FSN-129         ---------------------------------------------------------
                      317.00          319.00            4.25            2.00
    -------------------------------------------------------------------------
                      122.00          124.00            9.12            2.00
    FSN-130         ---------------------------------------------------------
                      131.00          133.05            3.85            2.05
    -------------------------------------------------------------------------
    FSN-132            79.00           80.00            6.40            1.00
    -------------------------------------------------------------------------
    FSN-133            83.00           85.00            5.85            2.00
    -------------------------------------------------------------------------
    Note: Not all holes represent true width
    

    Drill holes FSN-115, FSN-132 and FSN-133 led to the discovery of the
previously stated new zone of mineralization in the Satinoco structure.

    Paciência

    During Q2 2008, the Company continued its exploration program in the NW01
and Conglomerates Targets, including drifts for mine development, to further
increase the resource base for the Paciência Project. Jaguar plans to drill
2,000 m at the NW01 Target in 2008. At the Conglomerates Target, the Company
is conducting a 9,000 m in-fill drilling program in order to evaluate a
200,000-oz pre NI 43-101 resource base. To-date, 26 drill holes totaling
6,746 m have been completed. The main results from Jaguar's drilling program
to-date on the Conglomerates Target are presented below:

    
    -------------------------------------------------------------------------
                       From             To             Grade           Thick.
    Hole            ---------------------------------------------------------
                        (m)             (m)            (g/t)            (m)
    -------------------------------------------------------------------------
    FPL-02A           277.95          279.70           20.14            1.75
    -------------------------------------------------------------------------
    FPL-04            202.25          204.80            6.74            2.55
    -------------------------------------------------------------------------
    FPL-05            141.30          142.20            6.12            0.90
    -------------------------------------------------------------------------
    FPL-07            318.20          318.60            1.98            0.40
    -------------------------------------------------------------------------
    FPL-08            219.80          220.30            1.85            0.50
    -------------------------------------------------------------------------
    FPL-09            303.90          304.40            3.38            0.50
    -------------------------------------------------------------------------
    FPL-11            315.90          316.00           20.75            0.10
    -------------------------------------------------------------------------
    FPL-12            336.35          339.05            3.96            2.70
    -------------------------------------------------------------------------
    FPL-14            348.10          348.45            1.53            0.35
    -------------------------------------------------------------------------
    FPL-18            320.90          321.70            1.09            0.80
    -------------------------------------------------------------------------
    FPL-20            286.30          286.70            4.30            0.40
    -------------------------------------------------------------------------
    FPL-23            304.10          305.95            1.44            1.40
    -------------------------------------------------------------------------
    FPL-24            235.90          236.75           10.50            0.85
    -------------------------------------------------------------------------
    FPL-25            228.70          231.55            3.65            2.85
    -------------------------------------------------------------------------
    Note: Not all holes represent true width
    

    Caeté Project

    Jaguar is conducting drilling at three additional targets in close
proximity to the new Caeté treatment and processing plant to identify
additional resources which can be processed at the new site.
    On the first target, Jaguar is conducting drilling to evaluate the
extension of the mineralization at depth. To-date, 19 drill holes totaling
5,900 m have been completed at depths of up to 480 m. The Company expects to
conclude this phase of the drill program in August of 2008. The drilling
results acquired to-date on this first new target are presented below:

    
    -------------------------------------------------------------------------
                                                         Au
    Hole               From             To             Grade          Length
                        (m)             (m)            (g/t)            (m)
    -------------------------------------------------------------------------
                      265.50          266.50            2.93            1.70
    FJV-22          ---------------------------------------------------------
                      269.20          270.15            2.44            0.95
    -------------------------------------------------------------------------
    FJV-23            296.30          299.25            2.49            2.95
    -------------------------------------------------------------------------
    FJV-24            285.75          286.75            2.05            0.95
    -------------------------------------------------------------------------
                      291.85          292.70            1.94            0.85
                    ---------------------------------------------------------
                      295.05          299.10            2.20            4.05
    FJV-25          ---------------------------------------------------------
                      310.55          311.35            3.62            0.80
                    ---------------------------------------------------------
                      349.40          350.95            5.11            1.55
    -------------------------------------------------------------------------
                      227.50          228.45            2.75            0.95
    FJV-26          ---------------------------------------------------------
                      232.20          233.10            2.18            0.90
    -------------------------------------------------------------------------
                      201.05          203.05            3.96            2.00
                    ---------------------------------------------------------
                      324.65          325.50            1.91            0.85
                    ---------------------------------------------------------
                      326.45          327.45            1.60            1.00
                    ---------------------------------------------------------
                      330.45          331.35            5.13            0.90
     FJV-27         ---------------------------------------------------------
                      331.35          336.20            1.24            4.85
                    ---------------------------------------------------------
                      339.15          340.15           14.85            1.00
                    ---------------------------------------------------------
                      342.15          343.15            2.47            1.00
                    ---------------------------------------------------------
                      351.95          354.45            4.58            3.50
    -------------------------------------------------------------------------
                      291.75          295.50            8.17            3.75
    FJV-28          ---------------------------------------------------------
                      299.35          300.25            4.93            0.90
    -------------------------------------------------------------------------
    FJV-29            221.80          222.80            3.35            1.00
    -------------------------------------------------------------------------
                      293.80          297.70            1.56            3.90
                    ---------------------------------------------------------
                      301.45          303.40            5.25            1.95
    FJV-30           --------------------------------------------------------
                      306.30          307.20            1.24            0.90
                    ---------------------------------------------------------
                      309.20          310.15            2.35            0.95
    -------------------------------------------------------------------------
                      318.30          319.20            4.42            0.90
                    ---------------------------------------------------------
                      319.20          321.20            1.23  	         2.00
    FJV-31          ---------------------------------------------------------
                      323.15          324.10            1.45            0.95
                    ---------------------------------------------------------
                      329.85          331.70            7.28            1.85
    -------------------------------------------------------------------------
    FJV-32            392.85          393.85            1.39            1.00
    -------------------------------------------------------------------------
    FJV-33            415.80          416.80            1.00            1.00
    -------------------------------------------------------------------------
                      324.80          325.80            4.80            1.00
    FJV-34          ---------------------------------------------------------
                      327.70          328.55            3.19            0.85
    -------------------------------------------------------------------------
                      311.45          312.45            1.88            1.00
    FJV-35          ---------------------------------------------------------
                      320.05          321.90            2.27            1.85
    -------------------------------------------------------------------------
    FJV-36            266.30          267.30            1.23            1.00
    -------------------------------------------------------------------------
                      305.65          307.50            1.62            1.85
                    ---------------------------------------------------------
                      315.10          316.10            2.69            1.00
    FJV-37          ---------------------------------------------------------
                      323.80          324.80           20.65            1.00
                    ---------------------------------------------------------
                      328.55          333.30            1.16            3.75
                    ---------------------------------------------------------
                      339.10          343.85            2.08            4.75
    -------------------------------------------------------------------------
                      203.65          205.60            1.75            1.95
                    ---------------------------------------------------------
                      208.55          213.40            3.92            4.85
    FJV-38          ---------------------------------------------------------
                      349.55          352.15            4.04            2.60
                    ---------------------------------------------------------
                      354.10          356.00            6.50            1.90
    FJV-39            202.40          206.20            5.38            3.80
                      345.65          348.45            5.61            2.80
    FJV-40            317.10          323.70            6.40            6.60
    -------------------------------------------------------------------------
    Note: Not all holes represent true width
    

    Two additional targets are located in the same host structure as the Roça
Grande ore bodies. Exploration conducted previously in the area by former
owners led to a pre NI 43-101 resource base of 800,000 t @ 2.44 g/t containing
63,000 oz of gold. Jaguar is conducting a 3,000 m drill program at these
targets to delineate a resource to meet NI 43-101 standards. To-date, 18 drill
holes totalling 1,100 m have been completed. The most promising results from
Jaguar's drilling program on these two new targets are presented below:

    
    -------------------------------------------------------------------------
                       From             To             Grade       Thickness
    Hole            ---------------------------------------------------------
                        (m)             (m)            (g/t)            (m)
    -------------------------------------------------------------------------
    FCM-13             20.65           24.20            2.20            3.55
    -------------------------------------------------------------------------
                       16.40           17.10            7.93            0.70
    FCM-14          ---------------------------------------------------------
                       23.10           24.05           13.67            0.95
    -------------------------------------------------------------------------
    FCM-15              7.05            9.10            3.49            2.05
    -------------------------------------------------------------------------
    FCM-18             20.45           26.05            1.26            5.60
    -------------------------------------------------------------------------
    FCM-20             17.35           20.50            2.26            3.15
    -------------------------------------------------------------------------
    FCM-21             21.90           23.85           15.76            1.95
    -------------------------------------------------------------------------
    FCM-24             44.80           49.15            6.00            4.35
    -------------------------------------------------------------------------
    FCM-25             37.40           39.30            4.47            1.90
    -------------------------------------------------------------------------
    FMC-26             36.80           39.15            2.66            2.35
    -------------------------------------------------------------------------
                       67.05           70.05            1.53            3.00
                    ---------------------------------------------------------
                       77.55           82.75            1.37            5.20
    FCM-27          ---------------------------------------------------------
                       91.25           94.00            2.55            2.75
                    ---------------------------------------------------------
                       96.60          105.00            2.27            8.40
    -------------------------------------------------------------------------
    Note: Not all holes represent true width
    

    Sabara

    In order to add oxide resources to feed the Sabara Plant and thereby
increase its mine life, the Company developed an exploration program at Sabara
and Caeté in a 15,000 hectare area. The primary target is called Serra
Paraiso. During 2007, the Company concluded drilling activities at the Serra
Paraiso Target, which included 60 drill holes totalling 4,590 m. The main
results from Jaguar's drilling program are presented below:

    
    -------------------------------------------------------------------------
                  Serra Paraiso Target - Main Drill Results
    -------------------------------------------------------------------------
                                            Intervals
    Hole           ---------------------------------------------------------
                     From (m)         To (m)       Grade (g/t)  Thickness (m)
    -------------------------------------------------------------------------
    FLV-001            57.90           62.15            6.53            4.25
    -------------------------------------------------------------------------
                       78.75           79.70           15.67            0.95
    -------------------------------------------------------------------------
    FLV-003            44.05           47.05            2.70            3.00
    -------------------------------------------------------------------------
                       38.15           45.20            2.10            7.05
    FLV-005         ---------------------------------------------------------
                       47.80           50.70            2.02            2.90
    -------------------------------------------------------------------------
    FLV-006            48.40           49.40            4.25            1.00
    -------------------------------------------------------------------------
                       22.35           27.15            6.32            4.80
    FLV-007         ---------------------------------------------------------
                       49.05           50.35           22.00            1.30
    -------------------------------------------------------------------------
                        9.50           10.50            5.13            1.00
    FLV-011         ---------------------------------------------------------
                       28.90           30.90            2.49            2.00
    -------------------------------------------------------------------------
    FLV-014            19.50           23.90            2.45            4.40
    -------------------------------------------------------------------------
    FLV-018            22.60           29.45            3.12            6.85
    -------------------------------------------------------------------------
                       72.20           74.60            3.25            2.40
    FLV-020         ---------------------------------------------------------
                       87.15           90.05            4.18            2.90
    -------------------------------------------------------------------------
                       81.50           83.80            9.21            2.30
    FLV-023         ---------------------------------------------------------
                       87.95           89.20            7.48            1.25
                    ---------------------------------------------------------
                       95.80           99.10            4.51            3.30
    -------------------------------------------------------------------------
    FLV-024            19.45           23.55            1.89            4.10
    -------------------------------------------------------------------------
    FLV-025            80.80           81.80            8.78            1.00
    -------------------------------------------------------------------------
    FLV-027            96.05           98.45            1.93            2.40
    -------------------------------------------------------------------------
    FLV-029            68.00           70.15            6.60            2.15
    -------------------------------------------------------------------------
    FLV-030            98.45          103.10            2.38            4.65
    -------------------------------------------------------------------------
    FLV-031            96.40           98.75            2.02            2.35
    -------------------------------------------------------------------------
    FLV-033            50.10           51.40            4.75            1.30
    -------------------------------------------------------------------------
    FLV-035            95.95          100.85            1.72            4.90
    -------------------------------------------------------------------------
    FLV-036            58.80           66.45            3.26            7.65
    -------------------------------------------------------------------------
    FLV-040            40.25           41.20            4.30            0.95
    -------------------------------------------------------------------------
    FLV-041            33.50           35.50           27.13            2.00
    -------------------------------------------------------------------------
    FLV-045            28.25           32.10            2.01            3.85
    -------------------------------------------------------------------------
    FSP-002            34.10           40.80            5.38            6.70
    -------------------------------------------------------------------------
    FSP-004            33.30           35.45            5.95            2.15
    -------------------------------------------------------------------------
    FSP-005            57.75           62.75            2.20            5.00
    -------------------------------------------------------------------------
    FSP-006            11.55           13.55            2.58            2.00
    -------------------------------------------------------------------------
    FSP-007            27.40           29.15            2.02            1.75
    -------------------------------------------------------------------------
    FSP-009            11.55           14.70            2.04            3.15
    -------------------------------------------------------------------------
    FSP-013            78.10           81.70            1.86            3.60
    -------------------------------------------------------------------------
    Note: Not all holes represent true width
    

    Jaguar plans to report estimates of resources at the Serra Paraiso Target
during Q3 2008. Results of metallurgical recovery tests have confirmed that
the Serra Paraiso ore can be treated at Jaguar's nearby Sabara Plant. Mining
activities have commenced in the area during late Q2 2008.
    In addition, the Company is conducting channel sampling, soil
geochemistry and trenching at three different targets near the Sabara
operations. Preliminary results are encouraging and have given rise to a
defined drill program.

    Iron Ore Royalty Payment from the Roça Grande Property

    As part of a contract executed in 2006 by Jaguar and a Brazilian iron ore
producer for the purchase of the Roça Grande mineral concessions, Jaguar
agreed to pay a one-time 3.5% royalty for the identified gold resources on the
property, which had been measured through extensive drilling. Jaguar expects
to pay $3.3 million of the purchase price in 2008 and the remaining balance of
$9.9 million in 2009.
    The contract also provided an option, which expires in November of 2008,
for the Brazilian iron ore producer to acquire iron mineral rights on Jaguar's
property. The amount to be paid to Jaguar was deferred until such time the
iron ore producer could conduct drilling and both parties could evaluate the
data from this program. The iron ore producer has carried out this drilling
program during 2008 and the review process by the respective parties is in
process.
    Although still subject to discussion between the parties, the Company
believes it will receive a royalty of between $20 million and $25 million,
possibly more. Payments from this arrangement will be booked after FY 2008 and
are expected to represent between $0.21 to $0.27 per fully diluted share.

    Analyst Meeting and Tour: October 21-24

    Jaguar will hold an analyst meeting and tour of the Company's operations
in Minas Gerais, Brazil, beginning October 21, 2008. Qualified individuals
interested in visiting Jaguar's operations should contact Valéria DioDato for
additional information.

    About Jaguar

    Jaguar is one of the fastest growing gold producers in Brazil with
operations in a prolific greenstone belt in the state of Minas Gerais. Jaguar
is actively exploring and developing additional mineral resources at its
72,000 acre land base in Minas Gerais and on an additional 159,000 acres in
the state of Ceara in the Northeast of Brazil through a joint venture. The
Company has no gold hedges in place thereby providing the leverage to gold
prices directly to its investors. Additional information is available on the
Company's website at www.jaguarmining.com.
    Drill results were reviewed by Ivan C. Machado, M.Sc., P.E., P.Eng.,
Principal of Salt Lake City based TechnoMine Services, LLC. Mr. Machado serves
as Jaguar's independent Qualified Person in accordance with NI 43-101. SGS
Geosol Laboratories of Belo Horizonte, Minas Gerais provided independent
sample preparation and assay services, using standard industry practices.

    Forward Looking Statements

    This press release contains forward-looking statements, within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws, concerning Jaguar's objectives in the
years ahead, the commencement period of production, cash operating costs,
completion dates and economic results of feasibility studies, mineral
resources and reserves estimations, gold production and sales targets.
Forward-looking statements can be identified by the use of words, such as "are
expected", "is forecast", "approximately" or variations of such words and
phrases or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, or performance to be materially different
from any future results or performance expressed or implied by the
forward-looking statements.
    These factors include the inherent risks involved in the exploration and
development of mineral properties, the uncertainties involved in interpreting
drilling results and other ecological data, fluctuating gold prices and
monetary exchange rates, the possibility of project cost delays and overruns
or unanticipated costs and expenses, uncertainties relating to the
availability and costs of financing needed in the future, uncertainties
related to production rates, timing of production and the cash and total costs
of production, changes in applicable laws including laws related to mining
development, environmental protection, and the protection of the health and
safety of mine workers, the availability of labor and equipment, the
possibility of labor strikes and work stoppages and changes in general
economic conditions. The Company also relied on information concerning two
additional targets near the Caeté plant and the Conglomerates Target near
Paciência as accurate and reliable from the previous concession owners and
does not warrant that the information supplied reflects a potential resource.
Although the Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors that
cause actions, events or results to differ from those anticipated, estimated
or intended.
    These forward-looking statements represent our views as of the date of
discussion. The Company anticipates that subsequent events and developments
may cause the Company's views to change. The Company does not undertake to
update any forward-looking statements, either written or oral, that may be
made from time to time by or on behalf of the Company subsequent to the date
of this discussion. For a discussion of important factors affecting the
Company, including fluctuations in the price of gold and exchange rates,
uncertainty in the calculation of mineral resources, competition, uncertainty
concerning geological conditions and governmental regulations and assumptions
underlying the Company's forward-looking statements, see the "CAUTIONARY NOTE"
regarding forward-looking statements and "RISK FACTORS" in the Company's
Annual Information Form for the year ended December 31, 2007 filed on System
for Electronic Document Analysis and Retrieval and available at
http://www.sedar.com and the Company's Annual Report on Form 40-F for the year
ended December 31, 2007 filed with the United States Securities and Exchange
Commission and available at www.edgar.com.

    %CIK: 0001333849




For further information:

For further information: Investors and analysts: Bob Zwerneman, Vice
President Corporate Development and Director of Investor Relations, (603)
224-4800, bobz@jaguarmining.com; Media inquiries: Valéria Rezende DioDato,
Director of Communication, (603) 224-4800, valeria@jaguarmining.com


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