Jaguar enters into letter of intent with Glencore and Majority of Debentureholders on proposed restructuring of Constellation Copper

    TORONTO, July 28 /CNW/ - Jaguar Financial Corporation (TSX: JFC)
("Jaguar") announced it has entered into a letter of intent (the "LOI") with
Glencore International AG ("Glencore") and certain holders of convertible
debentures (the "Debentures") of Constellation Copper Corporation
("Constellation") for the purpose of carrying out a proposed restructuring
(the "Proposed Restructuring") of Constellation. The parties to the LOI are
Jaguar, Glencore and certain holders of Debentures (the "Majority Debholders")
owning in excess of two-thirds of the total principal amount of the
    The material terms of the Proposed Restructuring include a $10 million
equity investment in Units of Constellation by Jaguar and Glencore at a
material discount to the current market price of Constellation's common
shares, and the exchange of Debentures, including all accrued interest, into
Units of Constellation.
    The material terms of the Proposed Restructuring as set out in the LOI
are subject to, among other things, the approval of the Proposed Restructuring
by the board of directors and securityholders of Constellation, the receipt of
all necessary regulatory and Toronto Stock Exchange approvals, completion by
the Debholders, Glencore and Jaguar of satisfactory due diligence, and the
execution of a definitive investment agreement between Glencore, Jaguar and
Constellation and a restructuring agreement between the Majority Debholders
and Constellation.
    In consideration of Glencore and Jaguar committing their time, resources
and funds to the Proposed Restructuring, conducting due diligence
investigations and evaluating Constellation, the Majority Debholders have
agreed to deal exclusively with Glencore and Jaguar on any restructuring or
other transaction concerning Constellation until October 31, 2008, or such
date as the parties may otherwise agree or until the occurrence of certain
named events.
    Glencore, Jaguar and the Majority Debholders have provided a copy of the
LOI to management of Constellation and anticipate that the Proposed
Restructuring could be completed in October 2008.

    About Jaguar

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

    About Glencore

    Glencore, a privately-owned company organised under the laws of
Switzerland, is a leading, diversified natural resources group with worldwide
activity in the mining, smelting, refining, processing and marketing of metals
and minerals, energy products and agricultural products.

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

For further information:

For further information: Vic Alboini, Chairman & Chief Executive
Officer, Jaguar Financial Corporation, (416) 644-8110

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Jaguar Financial Corporation

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