Mineral Reserves & Mineral Resources

Jaguar Mining Mineral Resources and Mineral Reserves (“MRMR”) estimates as at December 31, 2017 for Pilar Gold Mine (“Pilar”) and Interim Mineral Resources for Turmalina Gold Mine (“Turmalina”), each prepared in accordance with CIM definitions (2014) as in National Instrument 43-101 (“NI 43-101”) are presented below:

The MRMR estimates were prepared by Jaguar Mining under the supervision of Reno Pressacco, P.Geo., and Jeff Sepp, P.Eng. of Roscoe Postle Associates Inc. (“RPA”). RPA is an independent mining consultant and Mr. Pressacco and Mr. Sepp are Qualified Persons within the definition of NI 43-101. The effective date of the estimates is December 31, 2017.

Pilar Gold Mine Mineral Resource and Mineral Reserve Estimates as at December 31, 2017

  • Proven & Probable Reserves: 0.97 million tonnes grading 3.99 g/t Au, containing 125,000 oz. Au
  • Measured & Indicated Resources: 3.79 million tonnes grading 4.37 g/t Au, containing 532,000 oz. Au
  • Inferred Resources: 2.38 million tonnes grading 5.69 g/t Au containing 433,000 oz. Au

Pilar Gold Mine Mineral Reserves Summary December 31, 2017, compared to December 31, 2016:

Pilar Gold Mine – Change in Mineral Reserves

Gold Ounces (000’s)

Gold Grade (g/t Au)

As at December 31

2017

2016

Change (%)

2017

2016

Change (%)

Proven Reserves

81

2

3,950%

3.78

2.47

53%

Probable Reserves

44

140

(69%)

4.45

4.62

(4%)

Total

125

142

(12%)

3.99

4.56

(13%)

Table 2

Pilar Gold Mine Mineral Resources Summary December 31, 2017, compared to December 31, 2016:

Pilar Gold Mine – Change in Mineral Resources

Gold Ounces (000’s)

Gold Grade (g/t Au)

As at December 31

2017

2016

Change (%)

2017

2016

Change (%)

Measured Resources

317

84

277%

4.47

4.14

8%

Indicated Resources

216

399

(46%)

4.22

4.62

(9%)

Total – M&I Resources

532

482

10%

4.37

4.53

(4%)

Inferred Resources

433

212

104%

5.69

5.45

4%

Table 3

Pilar Gold Mine Mineral Reserves Summary as at December 31, 2017, by Orebody:

Pilar Gold Mine - Mineral Reserves, December 31, 2017

Orebody

Proven Reserves

Probable Reserves

Proven and Probable Reserves

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

Orebody BA

93

2.47

7

102

5.39

18

195

3.99

25

Orebody BF

263

4.07

34

15

4.12

2

278

4.07

36

Orebody BFII

285

3.98

37

157

4.23

21

442

4.07

58

Orebody LFW

6

3.02

1

7

2.51

1

13

2.73

1

Orebody LPA

19

3.49

2

-

-

-

19

3.49

2

Orebody Torre

-

-

-

26

2.78

2

26

2.78

2

Total

666

3.78

81

307

4.45

44

974

3.99

125

Notes:

  1. CIM (2014) definitions were followed for Mineral Reserves
  2. Mineral Reserves were estimated at a break-even cut-off grade of 2.33 g/t Au
  3. Mineral Reserves are estimated using an average long-term gold price of US $1,250 per ounce
  4. Mineral Reserves are estimated using an average long-term foreign exchange rate of 3.5 Brazilian Reais: 1 US Dollar
  5. A minimum mining width of 2 m was used
  6. Numbers may not add due to rounding

Table 4

Pilar Gold Mine Mineral Resources Summary at December 31, 2017, by Orebody:

Pilar Gold Mine – Mineral Resources, December 31, 2017

Orebody

Measured Resources

Indicated Resources

Total Measured
& Indicated Resources

Inferred Resources

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

Orebody BA

457

4.53

67

187

5.28

32

644

4.75

98

57

4.50

8

Orebody BF

635

4.72

96

74

4.73

11

709

4.72

108

1,360

6.71

293

Orebody BFII

488

4.73

74

259

4.56

38

747

4.67

112

828

4.38

117

Orebody Torre

231

4.93

37

233

4.41

33

464

4.67

70

62

4.15

8

Orebody LFW (200’s)

208

3.18

21

34

3.19

3

242

3.18

25

-

-

-

Orebody LHW

74

2.89

7

7

2.85

1

81

2.89

8

-

-

-

Orebody LPA

110

4.17

15

-

-

-

110

4.17

15

-

-

-

Orebody SW

-

-

-

795

3.82

98

795

3.82

98

60

3.46

7

Total

2,203

4.47

317

1,589

4.22

216

3,792

4.37

532

2,367

5.69

433

Notes:

  1. CIM (2014) definitions are followed for Mineral Resources
  2. Mineral Resources were estimated at a break-even cut-off grade of 1.93 g/t Au
  3. Mineral Resources are estimated using an average long-term gold price of US $1,400 per ounce
  4. Mineral Resources are estimated using an average long-term foreign exchange rate of 3.8 Brazilian Reais: 1 US Dollar
  5. A minimum mining width of 2 m was used
  6. Gold grades are estimated by the Ordinary Kriging interpolation algorithm using capped composite samples
  7. Mineral Resources are inclusive of Mineral Reserves
  8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  9. Numbers may not add due to rounding

Interim Turmalina Gold Mine Mineral Resources

Turmalina Mineral Resources highlights are shown on Tables 5 and 6 below:

Table 5

Turmalina Gold Mine Mineral Resources Summary December 31, 2017, compared to December 31, 2016:

Turmalina Gold Mine – Change in Mineral Resources

                     Gold Ounces (000’s)

Gold Grade (g/t)

As at December 31

2017

2016

Change (%)

2017

2016

Change (%)

Measured Resources

265

246

8%

5.7

5.36

6%

Indicated Resources

155

174

(11%)

3.86

4.12

(6%)

Total – M&I Resources

420

420

0%

4.86

4.77

2%

Inferred Resources

305

118

158%

5.49

4.81

14%

Table 6

Turmalina Gold Mine Mineral Resources Summary as at December 31, 2017, by Orebody:

Turmalina Gold Mine Mineral Resources, December 31, 2017

Orebody

Measured Resources

Indicated Resources

Total Measured
& Indicated Resources

Inferred Resources

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

Tonnes

Grade

Gold oz.

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

(000's)

(g/t Au)

(000's)

Orebody A

905

7.22

210

99

5.94

19

1,004

7.09

229

659

5

107

Orebody B

350

3.32

37

182

4.33

25

533

3.67

63

24

5

4

Orebody C

190

2.91

18

961

3.57

110

1,152

3.46

128

1,044

6

194

Total

1,446

5.70

265

1,243

3.86

155

2,689

4.86

420

1,727

5.49

305

Notes:

  1. CIM (2014) definitions are followed for Mineral Resources
  2. Mineral Resources were estimated at a break-even cut-off grade of 2.1 g/t Au
  3. Mineral Resources are estimated using an average long-term gold price of US $1,400 per ounce
  4. Mineral Resources are estimated using an average long-term foreign exchange rate of 3.8 Brazilian Reais: 1 US Dollar
  5. A minimum mining width of 2 m was used
  6. Gold grades are estimated by the Inverse Distance Cubed interpolation algorithm using capped composite samples
  7. Mineral Resources are inclusive of Mineral Reserves
  8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  9. Numbers may not add due to rounding

Figure 1

The distribution of Mineral Resources at Pilar Gold Mind as at December 31, 2017, (left) and December 31, 2016, (right) seen from the hanging wall looking south

Figure 2

The distribution of Mineral Resources at Turmalina Gold Mine as at December 31, 2017, (left) and December 31, 2016, (right) seen from the hanging wall (looking south)

Qualified Persons

The scientific and technical information contained in this press release has been reviewed and approved (i) in respect of the estimated Mineral Reserves and the Life of Mine Plan (LOMP) by Jeff Sepp, P.Eng., of Roscoe Postle Associates Inc. ("RPA"), and (ii) in respect of the estimated Mineral Resources by Reno Pressacco, P.Geo., of RPA. RPA is an independent mining consultant and Mr. Sepp and Mr. Pressacco are each Qualified Persons within the definition of NI 43-101.

Quality Control

All sampling and samples utilized at Jaguar for mineral resource and or mineral reserves estimation uses a quality-control program that includes insertion of blanks and commercial standards in order to ensure best practice in sampling and analysis.

HQ, NQ, and BQ size drill core is sawn in half with a diamond saw. Samples are selected for analysis in standard intervals according to geological characteristics such as lithology and hydrothermal alteration. Rock channel sampling of the underground development follows the same standard intervals as for the drill core. All diamond drill hole collars are accurately surveyed using a Total Station instrument, and down-hole deviations are surveyed using non-magnetic equipment (SPT Stockholm Precision Tools with GyroMaster™ Solid State North Seeker).

Mean grades are calculated using a variable lower grade cut-off (generally 0.5g/t Au). No upper gold grade cut has been applied to the data.

Half of the sawed sample is forwarded to the analytical laboratory for analysis while the remaining half of the core is stored in a secure location. The drill core and rock chip samples for resource-reserve conversion and grade control samples are transported for physical preparation and analysis in securely sealed bags to the Jaguar in-house laboratory located at the Roça Grande Mine, Caeté, Minas Gerais. Growth exploration samples are sent to the independent ALS Brazil (subsidiary of ALS Global) laboratory located in Vespasiano, Minas Gerais, Brazil. The analysis of these exploration samples is conducted at ALS Global’s respective facilities (fire assay is conducted by ALS Global in Lima, Peru, and multi-elementary analysis is conducted by ALS Global in Vancouver, Canada). ALS has accreditation in a global management system that meets all requirements of international standards ISO/IEC 17025:2005 and ISO 9001:2015. All major ALS geochemistry analytical laboratories are accredited to ISO/IEC 17025:2005 for specific analytical procedures.