Jaguar Mining Provides Q4 and FY 2008 Update of Operations



    
    JAG - TSX/NYSE Arca

    FY Gold Output Totals 115,348 oz, Up 65% over 2007 Production;
    Company Reaffirms 2009 Production Outlook at Lower Cash Operating Costs
    

    CONCORD, NH, Jan. 21 /CNW/ - Jaguar Mining Inc. ("Jaguar" or "the
Company") (JAG: TSX/NYSE Arca, JAG.NT: TSX) provided a summary today of its
preliminary Q4 2008 operating performance. All figures are in U.S. dollars
unless otherwise indicated. See recent operating highlights below.

    
    Consolidated Operations (Turmalina, Paciência and Sabara)

    -   In Q4 2008, the Company produced a record 37,916 oz of gold at an
        average cash operating cost of $396/oz compared to 20,463 oz at an
        average cash operating cost of $405/oz during the same period last
        year. This represents a production increase of 85% over the
        comparable quarter in 2007.

    -   Cash operating costs for Q4 2008 were 14% below the Q3 2008 average
        cash operating cost due to improved plant and mine efficiencies and a
        stronger U.S. dollar against the Brazilian real. The December cash
        operating cost of $364/oz reflects the effect of improved grades and
        mining costs incorporating the impact of more favorable exchange
        rates.

    -   Q4 2008 gold sales rose to 35,138 oz at an average price of $793/oz,
        87% above the comparable Q4 2007 gold sales of 18,742 oz at an
        average price of $796/oz. Revenue in Q4 2008 also increased 87% to
        $27.8 million from $14.9 million in Q4 2007.

    -   For FY 2008, the Company produced a record 115,348 oz of gold at an
        average cash operating cost of $429/oz compared to 70,113 oz at an
        average cash operating cost of $346/oz in 2007. This represents a
        production increase of nearly 65%.

    -   Cash operating costs for FY 2008 were US $429/oz, 24% above the FY
        2007 figure of US $346/oz. Costs were primarily higher due to the
        commissioning of the Paciência operation and exchange rates, which
        were unfavorable on balance.

    -   For FY 2008, the Company's gold sales totaled 108,944 oz at an
        average realized price of $860/oz compared to gold sales of 67,350 oz
        at an average realized price of $710/oz for FY 2007. Revenue for FY
        2008 increased 96% to $93.7 million from $47.8 million in FY 2007.

    Turmalina

    -   In Q4 2008, Turmalina produced 19,987 oz of gold at an average cash
        operating cost of $330/oz compared to 14,019 oz at an average cash
        operating cost of $346/oz in Q4 2007.

    -   During Q4 2008, the following was achieved at Turmalina:

           -  Mine production totaled 126,777 tonnes of ore at an average
              grade of 6.01 g/t. The average grade produced during December
              2008 was 6.75 g/t.

           -  Ore processed through the mill totaled 128,438 tonnes at an
              average feed grade of 5.93 g/t.

           -  The plant recovery averaged 89%.

           -  Mine development totaled 1.16 km.

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

           -  Mine production totaled 497,122 tonnes of ore at an average
              grade of 5.31 g/t compared to 286,607 tonnes at an average
              grade of 5.75 g/t for FY 2007.

           -  Ore processed through the mill totaled 480,814 tonnes at an
              average feed grade of 5.46 g/t.

           -  The plant recovery averaged 88%.

           -  Mine development totaled 4.06 km.

    -   Based on the successful conclusion of Jaguar's deep drilling program
        at Turmalina recently announced by the Company, management expects
        additional inferred mineral resources will be added between the 500-
        meter and 800-meter level delineated during the recent drill program.
        Jaguar's present statement of mineral resources for Turmalina is
        based on drill data to a depth of approximately 500 meters.

    Paciência

    -   In Q4 2008, Paciência produced 13,423 oz of gold at an average cash
        operating cost of $413/oz. Commissioning operations at Paciência were
        initiated in Q3 2008 and the operation was deemed commercial during
        the latter part of Q4 2008 based on throughput rates. The following
        was achieved at Paciência during Q4 2008:

           -  Mine production totaled 114,785 tonnes of ore at an average
              grade of 3.29 g/t, which includes 7,014 tonnes at an average
              grade of 5.43 g/t from the Pilar mine.

           -  Ore processed through the mill totaled 146,666 tonnes with an
              average feed grade of 3.43 g/t.

           -  The plant recovery averaged 92%.

           -  Mine development at St. Isabel totaled 1.06 km.
    

    As part of management's evaluation to temporarily place the Caeté Project
on hold, which was announced by the Company on November 6, 2008, ore from the
fully-developed Pilar mine began shipping to Paciência in December to blend
with ore from the St. Isabel mine and utilize the plant's spare capacity.
Management anticipates this practice will continue throughout 2009 or until a
decision is reached to re-start the Caeté Project where the ore mined at Pilar
will be transported to the new regional Caeté plant.

    
    -   For FY 2008, the following was achieved at Paciência:

           -  Mine production, primarily at the St. Isabel mine and a small
              portion from the Pilar mine, totaled 283,245 tonnes of ore at
              an average grade of 3.29 g/t.

           -  Ore processed through the mill totaled 277,431 tonnes with an
              average feed grade of 3.28 g/t.

           -  The plant recovery averaged 92%.

           -  Mine development at St. Isabel totaled 2.86 km.

    Sabara

    -   In Q4 2008, Sabara produced 4,506 oz of gold at an average cash
        operating cost of $641/oz compared to 6,444 oz at an average cash
        operating cost of $534/oz in the same period in 2007. Ore from the
        newly developed Serra Paraiso mineralized body accounted for
        approximately 19% of the tonnage processed at the Sabara operation
        during Q4 2008.

    -   For FY 2008, Sabara produced 18,199 oz of gold at an average cash
        operating cost of $667/oz compared to 24,586 oz of gold at an average
        cash operating cost of $462/oz in FY 2007.
    

    Daniel Titcomb, Jaguar's President and CEO stated, "Jaguar's team
continues to enhance the production profile of our operations in Brazil and we
reached a significant milestone during November surpassing 100,000 oz of gold
produced in any year. As we move into 2009, we continue to find new resources,
which will assist us in our future growth plans, and we are very pleased with
our progress. The expansion of Turmalina is underway and our cash flow from
operations continues to grow."

    2009 OUTLOOK

    Jaguar reaffirms its production outlook for 2009 provided in early
November 2008 and has reduced the expected total cash operating costs based
in-part on a further weakening of the Brazilian real versus the U.S. dollar.
The Company's 2009 production and cash operating cost estimates are as
follows:

    
                                     Estimated                     Estimated
                                       FY 2009                       FY 2009
    Operation                       Production           Cash Operating Cost
                                           (oz)                        ($/oz)
    Turmalina                    80,000-85,000                      $354-387
    Paciência                    65,000-70,000                      $362-398
    Sabara                              20,000                      $374-411
                               ---------------
      Total                    165,000-175,000                      $360-394

    Note: Estimated cash costs based on R$2.00 to R$2.20 per US$1.00.
    Previously the Company had expected total cash operating costs for FY
    2009 to average between $405 - 460/oz based on a R$1.85 to R$2.00 per
    US$1.00 exchange rate.

    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.

    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 the Company's expansion at
Turmalina and production and cash cost estimates for the Company's operations
for 2009. These forward-looking statements can be identified by the use of the
words "intends", "plans", "expects", "expected" and "will". 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 addition of inferred mineral resources at Turmalina
is subject to interpretation applying NI 43-101 standards. 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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