Jaguar Announces Major Growth Exploration Initiative Focusing on Brownfield Exploration Pipeline and Mine Life Extension

TSX: JAG

TORONTO, Oct. 27, 2016 /PRNewswire/ -- Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) is pleased to announce that it has commenced an expanded and accelerated growth exploration initiative at its operating underground gold mines Turmalina, Pilar and Roça Grande located in the Iron Quadrangle, Minas Gerais, Brazil. This initiative will be focused on brownfield exploration targets to expand and discover new mineral resources located in and around existing mine infrastructure that have a strong potential to further grow sustainable production, lower unit costs, increase cash flows and extend expected mine life. The Company's current ongoing exploration programs will continue to focus on increasing resources at its core assets through the upgrading of current Measured and Indicated Mineral ("M&I") Resources to Mineral Reserves.

Over the next 12 months, the Company expects to invest up to US$8 million in exploration and growth initiatives. Approximately 75% of the investment will be on underground work at the Company's core operating mines for drilling of step-out and down-dip extensions and targets. The remaining growth exploration investment is expected to be on the high priority targets Pacheca and Cubas located near Pilar Gold Mine.

Rodney Lamond, President and Chief Executive Officer of Jaguar, stated: "Considering our sizable footprint in the prolific greenstone belt of the Iron Quadrangle in Brazil, and the significant exploration potential across all of our operating mines, this accelerated growth exploration initiative is an exciting step towards assisting us in increasing our resources and extending our operating mine life. This program will also allow for the potential discovery of new resources to support our goal of growing our sustainable production profile. To date, we have made excellent progress with our infill resource drilling programs, however we now have the immediate means, to accelerate our resource growth objectives and to execute exploration programs on the numerous target areas that could potentially add significant new resources to the current mineral base."