Jaguar Mining and Xstrata Form Joint Venture to Explore Promising Greenstone Belt in Northern Brazil

    JAG - TSX

    Preliminary Exploration Effort Reveals Significant Mineralization

    CONCORD, NH, March 12 /CNW/ - Jaguar Mining Inc. ("Jaguar" or "the
Company") (JAG-TSX) reports that it has entered into a formal agreement with
Xstrata plc ("Xstrata") for Jaguar to explore the Pedra Branca Gold Project
("Project") in the State of Ceara in Northern Brazil. Under the terms of the
agreement, Jaguar and Xstrata will form a joint venture company or companies
to mine economic gold deposits in the Project. For an aggregate fee of
US$150,000 over the next two years, Jaguar will have the option to hold a
51 percent ownership interest in the new enterprise by investing an aggregate
US$3.85 million in exploration expenditures within the next four years. Jaguar
is subject to annual exploration expenditure targets for each year in which it
maintains the option. Jaguar has the opportunity to increase its ownership
interest in certain gold deposits to 60 percent through a further investment
of US$3.0 million by the fifth anniversary of the agreement, subject to the
rights of Xstrata to return to their 49 percent interest through additional
contributions to the joint venture, for certain properties which have gold
deposits of two million ounces or more. Certain properties within the Project
that are dominated by base metal deposits, or which have gold deposits of less
than one million ounces, may be held in different ownership percentages and be
subject to different conditions, or removed from the joint venture.
    The Jaguar-Xstrata joint venture has mineral rights to 37 concessions
totaling approximately 159,000 acres in a 65-km shear zone. The concessions
are located in and around municipal areas with excellent infrastructure. The
area is characterized by relatively dry weather, facilitating year-round
    Xstrata's exploration team has performed preliminary work on two large
anomalies referred to as Coelho and Mirador. The initial exploration work on
these two targets include:

    a. Geophysical mapping
    b. Drainage geochemistry: 625 samples
    c. Soil geochemistry: 6,570 samples
    d. Trenches: 2,822m
    e. Channel and ship samples: 2,249 units

    The relatively shallow work to-date on the Coelho and Mirador targets has
provided some promising results with respect to gold mineralization averaging
between 2.3-2.5 g/t observed in the 21 surface samples taken by Xstrata. Based
on this information, which was provided to Jaguar in greater detail, Jaguar
intends to conduct further exploration at the Project to determine the extent
of the gold resources at Pedra Branca. If mineralization is determined to
exist in commercial quantities, Jaguar intends to prepare and file a technical
report consistent with National Instrument 43-101 at the appropriate time.
    For the most part, the mineralized formations uncovered by Xstrata's
preliminary efforts are open along the extremity and lead both companies'
geologists to believe the area has significant potential for gold
mineralization, which could include the presence of both oxide and sulfide
formations in large structures.
    The preliminary exploration program carried out by Xstrata only covered
25 km of this zone, with 10 km of soil anomalies identified. Jaguar intends to
develop and execute a comprehensive exploration program at the Project during
2007 and 2008 to further delineate and measure the gold mineralization through
further trenching and diamond core drilling.
    Commenting on the venture with Xstrata, Daniel R. Titcomb, Jaguar's
President and CEO stated, "We are very pleased and excited to be partnering
with Xstrata in a separate greenstone belt geological setting that could
contain large gold-bearing structures. We take pride that Xstrata sought to
partner with Jaguar on this exciting venture, further strengthening our belief
that Jaguar has one of the finest exploration and operating teams in the

    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. Additional information is available on the Company's
website at

    Forward Looking Statements

    This press release contains forward-looking statements concerning
Jaguar's ownership in the Project and its intention to develop and execute an
exploration program. Forward-looking statements can be identified by the use
of words, such as "are expected", "is forecast", "intend", 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. 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, 2005 filed on System
for Electronic Document Analysis and Retrieval ("SEDAR") and available at

For further information:

For further information: Investors and analysts: Bob Zwerneman, Director
of Investor Relations, (603) 224-4800,; Media inquiries:
Valéria Rezende DioDato, Director of Communication, (603) 224-4800,

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