Jaguar Mining Reports Q4 and FY 2009 Earnings

FY 2009 Adjusted Net Income of $0.37/share and Adjusted Operating Cash Flow of $41.1 Million

JAG - TSX/NYSE

CONCORD, NH, March 22 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE) reports its financial and operational results for the period ended December 31, 2009. All figures are in U.S. dollars unless otherwise indicated.

FY 2009 Highlights

    
    -   Net loss of $8.0 million or ($0.10) per basic share and fully diluted
        share for the year ended December 31, 2009 compared to a net loss of
        $4.3 million or ($0.07) per basic and fully diluted share for the
        same period in 2008. Adjusted net income for FY 2009, excluding
        special non-operating and non-recurring charges totaled $28.0 million
        or $0.37 per share (See Non-GAAP Performance Measures).

    -   FY 2009 gold sales rose to 143,698 ounces at an average price of $979
        per ounce yielding revenue of $140.7 million compared to gold sales
        of 108,944 ounces at an average price of $860 per ounce and revenue
        of $93.7 million for the same period in 2008.

    -   FY 2009 gold production totaled 155,102 ounces of gold at an average
        cash operating cost of $468 per ounce compared to 115,348 ounces at
        an average cash operating cost of $429 per ounce during FY 2008 (see
        Non-GAAP Performance Measures).

    -   Gross profit for FY 2009 increased to $42.6 million from $27.4
        million in FY 2008.

    -   Cash provided by operating activities during FY 2009 totaled $32.5
        million compared to ($1.4) million during FY 2008. Adjusted cash flow
        from operating activities for FY 2009 totaled $41.1 million,
        excluding special non-operating and certain non-recurring cash
        charges that do not reflect on-going costs in Jaguar's operations or
        administrative costs.

    -   Invested $85.5 million in growth projects during FY 2009, down
        slightly from the $89.3 million invested in FY 2008.

    -   Exceeded underground development targets and achieved 14.9 km for FY
        2009 and since the inception of the Company to over 45 km.

    -   On-schedule and on-budget for the construction of the Caeté plant and
        mines, the Company's third major project. The Company expects to
        commission during Q2 2010.

    Q4 2009 Highlights

    -   A Q4 2009 net loss of $29.4 million or ($0.36) per basic and fully
        diluted share compared to a net loss of $3.4 million or ($0.05) per
        basic and fully diluted share in Q4 2008. The Company recognized
        special and non-recurring charges of $30.5 million in Q4 2009,
        including: (a) $16.9 million for charges related to the repurchase or
        redemption of all Cdn.$86.25 million of the Company's then
        outstanding 10.5% secured notes that were issued pursuant to an
        indenture in March 2007, which notes were repurchased or redeemed
        early in November 2009; (b) $3.5 million to write-down the asset
        value of the Sabara operation, a non-core facility which has remained
        idle since August 2009; (c) $0.8 million of charges related to
        strategic asset reviews during the year, which management believed
        did not merit further analysis or an investment; (d) stock
        compensation expense of $7.0 million, the largest portion of which
        was related to the strengthening of the Company's stock value as well
        as charges associated with changes imposed by Jaguar's Board related
        to vesting schedules for previous awards; (e) additional depletion
        related to unconverted resources of $1.0 million and (f) other
        charges of $1.3 million (See Non-GAAP Performance Measures).

    Excluding these special and non-recurring charges, Jaguar posted an
adjusted Q4 2009 net income of $1.1 million or $0.01 per share.

    -   Q4 2009 gold sales rose to 35,944 ounces at an average price of
        $1,099 per ounce yielding revenue of $39.5 million compared to Q4
        2008 gold sales of 35,138 ounces at an average price of $793 per
        ounce and revenue of $27.9 million. This represents a 42% increase in
        gold sales revenue.

    -   Q4 2009 gold production totaled 39,891 ounces at an average cash
        operating cost of $539 per ounce compared to 37,916 ounces at an
        average cash operating cost of $396 per ounce during the same period
        last year, a production increase of 5% (see Non-GAAP Performance
        Measures).

    -   Q4 2009 gross profit increased to $10.4 million from $7.1 million in
        Q4 2008, a gross profit increase of 46%.

    -   Q4 2009 cash generated by operating activities totaled $1.2 million
        compared to ($5.5) million in Q4 2008. Excluding the cash portion of
        the special non-operating and non-recurring charges noted above,
        which totaled approximately $8.3 million, adjusted operating cash
        flow totaled $9.5 million in Q4 2009.

    -   Jaguar invested $32.6 million in growth projects in Q4 2009, up 134%
        from the $13.9 million invested in Q4 2008.

    -   In early-Q4 2009, the Company completed the construction of the Phase
        I expansion at Turmalina to boost annual gold production capacity at
        Turmalina from 80,000 ounces per year to 100,000 ounces per year and
        the mill operated at design levels during the quarter.

    -   Repurchased all outstanding Cdn.$86.25 million principal amount of
        the Company's 10.5% Secured Notes due March 23, 2012.

    -   Jaguar acquired Mineração Chega Tudo Ltda. ("MCT") from Companhia
        Nacional de Mineração ("CNM"), an indirect, wholly-owned subsidiary
        of Kinross Gold Corporation ("Kinross") in Q4 2009 for $42.5 million,
        which includes $3.5 million adjustment to reflect the fair value for
        accounting purposes on the closing date. Jaguar issued 3,377,354
        common shares to satisfy the purchase price of $39 million. MCT holds
        the minerals licenses for the Gurupi Project, which the Company is
        moving forward to develop.
    

Subsequent to the closing of the MCT transaction, the Company filed a technical resource statement on SEDAR compliant with National Instrument ("NI") 43-101 for the Gurupi Project, which contains measured and indicated resources of approximately 2.52 million ounces of gold and additional inferred resources of 0.62 million ounces.

A feasibility study for the Gurupi Project was initiated by the Company prior to the closing with Kinross and is scheduled to be completed in early-April 2010.

    
    -   As of December 31, 2009 the Company held cash, cash equivalents and
        short-term investments of approximately $121.3 million.
    

Commenting on the 2009 accomplishments, Daniel R. Titcomb, Jaguar's President and CEO stated, "As we began 2009, given the state of credit, financial and commodity markets, we made some tough decisions. We had placed our Caeté Project on-hold, slashed operating and exploration budgets and trimmed staff to preserve capital. Fortunately, capital markets improved and we were able to raise the funds to re-take the Caeté Project at a critical time and place Jaguar's production plans back on-track. As the year progressed, our operations continued to perform well and a buoyant gold market allowed us to streamline our capital structure with the elimination of the 10.5% secured notes through funds raised in a convertible offering. The elimination of those secured notes allowed us to regain valuable collateral which we intend to put to work to further grow our asset base."

Mr. Titcomb added, "During the fourth quarter, our production assets performed as expected, even though sequencing at the mines changed temporarily. The result was lower grade ore was used to feed the mill. Within the next 30 to 45 days, we expect to commission our third major operation at Caeté. Completion of this new project achieves an important step in our plan to reach the mid-tier status within the next 18 months."

    
    Summary of Key Operating Results

    The following is a summary of key operating results.


                              Three Months Ended            Year Ended
                                 December 31               December 31
                          ---------------------------------------------------
                              2009         2008         2009         2008
                          ---------------------------------------------------
    (unaudited)
    ($ in 000s, except
     per share amounts)
    Gold sales            $    39,497  $    27,874  $   140,734  $    93,657
    Ounces sold                35,944       35,138      143,698      108,944
    Average sales price
     $/ounce                    1,099          793          979          860
    Gross profit               10,363        7,103       42,583       27,354
    Net loss                  (29,381)      (3,443)      (7,992)      (4,256)
    Basic loss per share        (0.36)       (0.05)       (0.10)       (0.07)
    Diluted loss per share      (0.36)       (0.05)       (0.10)       (0.07)
    Weighted avg. No.
     of shares outstanding
     - basic               80,738,919   63,982,281   76,410,916   62,908,676
    Weighted avg. No.
     of shares outstanding
     - diluted             80,738,919   63,982,281   76,410,916   62,908,676
    

Additional details are available in the Company's filings on SEDAR and EDGAR, including Management's Discussion and Analysis of Financial Condition and Results of Operations and Interim Consolidated Financial Statements for the period ended December 31, 2009.

Non-GAAP Performance Measures

The Company has included the non-GAAP performance measures discussed below in this press release. These non-GAAP performance measures do not have any standardized meaning prescribed by Canadian GAAP ("GAAP") and, therefore, may not be comparable to similar measures presented by other companies. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, these non-GAAP measures provide investors with additional information that will better enable them to evaluate the Company's performance. Accordingly, these Non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.

The Company has included cash operating cost per tonne processed, cash operating cost per ounce processed and cash operating margin per ounce because it believes these figures are a useful indicator of a mine's performance as they provide: (i) a measure of the mine's cash margin per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the mine matures; and, (iii) an internal benchmark of performance to allow for comparison against other mines. Additionally, the Company has provided Adjusted Net Income and Adjusted Cash Flow information which reflect the elimination of special non-operating and certain non-recurring charges that do not reflect on-going costs in Jaguar's operations or administrative costs. The definitions for these performance measures and reconciliation of the non-GAAP measures to reported GAAP measures are set out in the following tables.

    
    Adjusted Net Income
    ($000s)
                                                  ---------------------------
                                                   Three Months         Year
                                                          Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
                                                  ---------------------------
    Net (loss) as reported                          $   (29,381) $    (7,992)
    Adjustments:

    Note payable redemption                              16,902       16,902
    Stock based compensation(1)                           6,981       11,080
    Write-down of Sabara operation                        3,522        3,522
    Strategic asset review                                  838          838
    Additional depletion related to unconverted
     resources                                              963        1,858
    Other                                                 1,293        1,763
    Adjusted net income                             $     1,118  $    27,971

    (1) Stock based compensation excludes $57 and $164 from options for the
        three months and year ended.


    Adjusted Cash provided by operating activities
    ($000s)
                                                  ---------------------------
                                                   Three Months         Year
                                                          Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
                                                  ---------------------------
    Cash provided by operating activities as
     reported                                       $     1,189  $    31,923
    Adjustments:
    Note payable redemption                               4,082        4,082
    Stock based compensation                              3,283        3,283
    Additional depletion related to unconverted
     resources                                              963        1,858
    Adjusted cash provided by operating activities  $     9,517  $    41,146


    -------------------------------------------------------------------------
    Cash Operating Margin per oz of gold           Three Months         Year
                                                          Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Average sales price per oz of gold              $     1,099  $       979
      less
    Cost per oz of gold produced                            539          468
      equals
    Cash operating margin per oz of gold            $       560  $       511


    -------------------------------------------------------------------------
    Summary of Cash Operating Cost per             Three Months         Year
     tonne processed                                      Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production costs per statement of
     operations(1)                                  $19,306,000  $70,117,000
    Change in inventory(2)                            2,548,000    2,396,000
    Operational cost of gold produced(3)             21,854,000   72,513,000
      divided by
    Tonnes processed                                    357,000    1,403,000
      equals
    Cost per tonne processed                        $     61.20  $     51.70

    -------------------------------------------------------------------------
    Turmalina Cash Operating Cost per              Three Months         Year
     tonne processed                                      Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production costs                                $ 9,291,000  $33,029,000
    Change in inventory(2)                            1,970,000    2,016,000
    Operational cost of gold produced(3)             11,261,000   35,045,000
      divided by
    Tonnes processed                                    179,000      588,000
      equals
    Cost per tonne processed                        $     63.00  $     59.60

    -------------------------------------------------------------------------
    Paciência Cash Operating Cost per              Three Months         Year
     tonne processed                                      Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production costs                                $10,015,000  $33,667,000
    Change in inventory(2)                              578,000     (612,000)
    Operational cost of gold produced(3)             10,593,000   33,055,000
      divided by
    Tonnes processed                                    178,000      646,000
      equals
    Cost per tonne processed                        $     59.30  $     51.20

    -------------------------------------------------------------------------
    Sabara Cash Operating Cost per                 Three Months         Year
     tonne processed                                      Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production cost                                 $         -  $ 3,421,000
    Change in inventory(2)                                    -      992,000
    Operational cost of gold produced(3)                      -    4,413,000
      divided by
    Tonnes processed                                          -      169,000
      equals
    Cost per tonne processed                        $         -  $     26.10

    -------------------------------------------------------------------------
    Summary of Cash Operating Cost per oz of       Three Months         Year
     gold produced                                        Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production costs per statement of
     operations(1)                                  $19,306,000  $70,117,000
    Change in inventory(2)                            2,195,000    2,471,000
    Operational cost of gold produced(3)             21,501,000   72,588,000
      divided by
    Gold produced (oz)                                   39,890      155,102
      equals
    Cost per oz of gold produced                    $       539  $       468

    -------------------------------------------------------------------------
    Turmalina Plant Cash Operating Cost per        Three Months         Year
     oz produced                                          Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production costs                                $ 9,291,000  $33,029,000
    Change in inventory(2)                            1,798,000    1,767,000
    Operational cost of gold produced(3)             11,089,000   34,796,000
      divided by
    Gold produced (oz)                                   21,184       82,070
      equals
    Cost per oz of gold produced                    $       523  $       424

    -------------------------------------------------------------------------
    Paciência Plant Cash Operating Cost per        Three Months         Year
     oz produced                                          Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production costs                                $10,015,000  $33,667,000
    Change in inventory(2)                              397,000     (200,000)
    Operational cost of gold produced(3)             10,412,000   33,467,000
      divided by
    Gold produced (oz)                                   18,707       66,671
      equals
    Cost per oz of gold produced                    $       556  $       502

    -------------------------------------------------------------------------
    Sabara Cash Operating Cost per                 Three Months         Year
     oz produced                                          Ended        Ended
                                                       December     December
                                                       31, 2009     31, 2009
    -------------------------------------------------------------------------
    Production costs                                $         -  $ 3,421,000
    Change in inventory(2)                                    -      904,000
    Operational cost of gold produced(3)                      -    4,325,000
      divided by
    Gold produced (oz)                                        -        6,360
      equals
    Cost per oz of gold produced                    $         -  $       680

    (1) Production costs do not include cost of goods sold adjustment of
        approximately $1.5 million for the three months ended December 31,
        2009 and $4.2 million for the twelve months ended December 31, 2009.
    (2) Under the Company's revenue recognition policy, revenue is recognized
        when legal title passes. Since total cash operating costs are
        calculated on a production basis, this change reflects the portion of
        gold production for which revenue has not been recognized in the
        period.
    (3) The basis for calculating cost per ounce produced includes the change
        to gold in process inventory, whereas the cost per tonne processed
        does not.

    The following tables are included in Jaguar's audited financial statements
as filed on SEDAR and EDGAR. Readers should refer to those filings for the
associated footnotes which are an integral part of the tables.

    JAGUAR MINING INC.

    Consolidated Balance Sheet
    (Expressed in thousands of U.S. dollars)

    -------------------------------------------------------------------------
                                                    December 31, December 31,
                                                           2009         2008
    -------------------------------------------------------------------------
    Assets
    Current assets:
      Cash and cash equivalents                     $   121,256  $    20,560
      Inventory                                          36,986       19,946
      Prepaid expenses and sundry assets                 19,050        5,351
      Unrealized foreign exchange gains                   1,280            -
    -------------------------------------------------------------------------
                                                        178,572       45,857

      Prepaid expenses and sundry assets                 35,837       26,164
      Net smelter royalty                                 1,006        1,006
      Restricted cash                                       108        3,106
      Property, plant and equipment                     205,329      148,422
      Mineral exploration projects                      129,743       79,279

    -------------------------------------------------------------------------
                                                    $   550,595  $   303,834
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity
    Current liabilities:
      Accounts payable and accrued liabilities      $    22,892  $    13,416
      Notes payable                                       5,366        4,319
      Income taxes payable                               15,641        8,626
      Asset retirement obligations                          510        1,337
      Unrealized foreign exchange losses                      -        2,421
    -------------------------------------------------------------------------
                                                         44,409       30,119

      Deferred compensation liability                     8,616          434
      Notes payable                                     126,784       69,729
      Future income taxes                                11,821            -
      Asset retirement obligations                       12,331        6,828
      Other liabilities                                     738            -
    -------------------------------------------------------------------------
      Total liabilities                                 204,699      107,110

    Shareholders' equity
      Common shares                                     365,667      245,067
      Stock options                                      14,762       19,059
      Contributed surplus                                42,028        1,167
      Deficit                                           (76,561)     (68,569)
    -------------------------------------------------------------------------
                                                        345,896      196,724
      Commitments
    -------------------------------------------------------------------------
                                                    $   550,595  $   303,834
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    JAGUAR MINING INC.

    Consolidated Statements of Operations and Comprehensive Loss
    (Expressed in thousands of U.S. dollars, except per share amounts)

    -------------------------------------------------------------------------
                                        Year Ended   Year Ended   Year Ended
                                       December 31, December 31, December 31,
                                              2009         2008         2007
    -------------------------------------------------------------------------
    Gold sales                         $   140,734  $    93,657  $    47,834
    Production costs                       (74,287)     (53,610)     (28,313)
    Stock-based compensation                  (600)         (24)           -
    Depletion and amortization             (23,264)     (12,669)      (5,232)
    -------------------------------------------------------------------------
    Gross profit                            42,583       27,354       14,289
    -------------------------------------------------------------------------

    Operating expenses:
      Exploration                            3,079        3,536        2,365
      Stock-based compensation              10,644        1,238       10,750
      Administration                        16,411       12,571        9,617
      Management fees                        1,604          854          747
      Amortization                             452          264            -
      Accretion expense                        786          490          138
      Other                                  2,440          379        2,782
    -------------------------------------------------------------------------
      Total operating expenses              35,416       19,332       26,399
    -------------------------------------------------------------------------

    Income (loss) before the following       7,167        8,022      (12,110)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Loss on forward derivatives                  -          318        9,908
    Loss (gain) on forward foreign
     exchange derivatives                   (2,642)       2,623       (3,690)
    Foreign exchange gain                  (17,307)      (2,477)      (2,280)
    Amortization of deferred financing
     expense                                     -            -            -
    Interest expense                        28,847       11,584       11,170
    Interest income                         (4,203)      (3,850)      (4,601)
    Gain on disposition of property         (2,043)        (452)        (381)
    Write down on Sabara property            3,522            -            -
    Other non-operating expenses               145            -          230
    -------------------------------------------------------------------------
    Total other expenses                     6,319        7,746       10,356

    Income (loss) before income taxes          848          276      (22,466)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income taxes
      Current income taxes                   4,979        6,172        3,519
      Future income taxes (recovered)        3,861       (1,640)       1,675
    -------------------------------------------------------------------------
    Total income taxes                       8,840        4,532        5,194
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net loss and comprehensive loss for
     the year                               (7,992)      (4,256)     (27,660)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted net loss
     per share                         $     (0.10) $     (0.07) $     (0.52)

    Weighted average number of common
     shares outstanding (Note16)        76,410,916   62,908,676   53,613,175


    JAGUAR MINING INC.

    Consolidated Statements of Cash Flows
    (Expressed in thousands of U.S. dollars)

    -------------------------------------------------------------------------
                                        Year Ended   Year Ended   Year Ended
                                       December 31, December 31, December 31,
                                              2009         2008         2007
    -------------------------------------------------------------------------
    Cash provided by (used in):
    Operating activities:
      Net loss and comprehensive loss
       for the year                    $    (7,992) $    (4,256) $   (27,660)
      Items not involving cash:
        Unrealized foreign exchange
         (gain) loss                        (3,227)      (3,471)       7,907
        Stock-based compensation             7,962        1,262       10,750
        Non-cash interest expense           15,320        1,982        2,953
        Accretion expense                      786          490          138
        Future income taxes (recovered)      3,861       (1,640)       1,675
        Depletion and amortization          23,716       12,933        5,232
        Write down on Sabara property        3,522            -            -
        Amortization of net smelter
         royalty                                 -          219          310
        Unrealized loss on forward sales
         derivatives                             -            -        4,284
        Unrealized loss (gain) on foreign
         exchange contracts                 (3,701)       4,102         (972)
        Gain on disposition of property          -            -         (381)
      Reclamation expenditure                 (328)           -         (157)
    Change in non-cash operating working
     capital
        Accounts receivable                      -            -        1,742
        Inventory                          (11,106)      (4,361)      (2,624)
        Prepaid expenses and sundry
         assets                            (13,612)     (14,200)     (11,659)
        Accounts payable and accrued
         liabilities                         9,707          423        6,991
        Current taxes payable                7,015        5,107        2,928
    -------------------------------------------------------------------------
                                            31,923       (1,410)       1,457
    Financing activities:
      Issuance of common shares, special
       warrants and warrants, net          114,294      105,803       30,138
      Shares purchased for cancellation          -       (6,381)      (2,089)
      Settlement of forward derivatives          -      (14,500)           -
      Decrease (increase) in restricted
       cash                                  2,998           (4)       2,925
      Repayment of debt                    (84,614)     (18,654)      (6,086)
      Increase in debt                     118,204        3,848       64,604
      Other long term liabilities              738            -            -
    -------------------------------------------------------------------------
                                           151,620       70,112       89,492
    Investing activities
      Mineral exploration projects         (25,200)     (37,087)     (27,233)
      Purchase of property, plant and
       equipment                           (60,300)     (52,210)     (35,859)
    -------------------------------------------------------------------------
                                           (85,500)     (89,297)     (63,092)

    Effect of foreign exchange on
     non-U.S. dollar denominated
     cash and cash equivalents               2,653       (4,556)       3,095
    Increase (decrease) in cash and cash
     equivalents                           100,696      (25,151)      30,952
    Cash and cash equivalents, beginning
     of year                                20,560       45,711       14,759
    -------------------------------------------------------------------------
    Cash and cash equivalents, end
     of year                           $   121,256  $    20,560  $    45,711
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Outlook

    The Company's production and cash operating costs for the year ended
December 31, 2009 and 2010 estimates are as follows:

    -------------------------------------------------------------------------
                     Actual        Actual           Estimated      Estimated
    -------------------------------------------------------------------------
                                     2009                            FY 2010
                                     Cash                               Cash
                       2009     Operating             FY 2010      Operating
                 Production         Costs          Production          Costs
    Operation           (oz)        ($/oz)                (oz)         ($/oz)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Turmalina        82,070          $424     95,000 - 101,000    $480 - 490
    -------------------------------------------------------------------------
    Paciência        66,671          $502      75,000 - 81,000    $495 - 510
    -------------------------------------------------------------------------
    Caeté                 -             -      30,000 - 35,000    $500 - 510
    -------------------------------------------------------------------------
      Total         148,742          $459    200,000 - 217,000    $489 - 500
    -------------------------------------------------------------------------
    Sabara            6,360          $680                    -
    -------------------------------------------------------------------------
      Total         155,102          $468    200,000 - 217,000
    -------------------------------------------------------------------------

    Notes
    -----
    1.  Estimated 2010 cash operating costs based on R$1.75 per $1.00.
    2.  The 2009 exchange rate was R$2.04 per $1.00.
    3.  Sabara is a non-core/idle facility.
    

Conference Call Details

The Company will hold a conference call tomorrow, March 23 at 10:00 a.m. EDT, to discuss the results.

    
                    From North America:     800-218-5691
                    International:          213-416-2192
                    Replay:
                    From North America:     800-675-9924
                    International:          213-416-2185
                    Replay ID:              32310
                    Webcast:                www.jaguarmining.com
    

A presentation will be available prior to the call on the Company's homepage at www.jaguarmining.com.

About Jaguar Mining

Jaguar is one of the fastest growing gold producers in Brazil with operations in a prolific greenstone belt in the state of Minas Gerais and has plans to develop the Gurupi Project in northern Brazil in the state of Maranhão. Jaguar is actively exploring and developing additional mineral resources at its approximate 575,000-acre land base in Brazil. 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 objectives, such as estimated 2010 gold production and cash operating costs, steadily gain of the Company's financial performance, including operating cash flow and earnings, commissioning of the Caeté Project in Q2 2010 and completion of the Gurupi Project feasibility study in early-April 2010. 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 geological 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. 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 except as required by law. 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, 2009 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, 2009 filed with the United States Securities and Exchange Commission and available at www.sec.gov.

%CIK: 0001333849

SOURCE Jaguar Mining Inc.

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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