Jaguar Mining Inc.

Jaguar Mining Inc.

March 28, 2005 09:06 ET

Jaguar Mining Reports 2004 Annual & Fourth Quarter Results




MARCH 28, 2005 - 09:06 ET

Jaguar Mining Reports 2004 Annual & Fourth Quarter

CONCORD, NEW HAMPSHIRE--(CCNMatthews - March 28, 2005) - Jaguar Mining
Inc. ("Jaguar")(TSX:JAG) reports its financial and operational results
for the year and quarter ended December 31, 2004. All figures are in
United States dollars.

2004 Highlights

Measured and Indicated mineral resources: 2.34 million ounces ("oz")

Inferred mineral resources: 831,000 oz

Net loss of $3.8 million or $0.19 per share

Year-end cash balance of $29.5 million

Working capital of $30.1 million

Produced 15,100 oz of gold at a cash cost of $324/oz

Company remains substantially debt and hedge free

Raised $32.6 million, net of expenses, through issuing equity

Iron Quadrangle feasibility program progressing towards 2005 targets

Acquired the Turmalina Property, increasing resources and production

2004 Full-year Results

The net loss for the year ended December 31, 2004 amounted to
$3,802,490, or $0.19 per basic and fully-diluted share, versus a net
loss of $2,225,572, or $0.16 per share, in 2003. Sales revenue in 2004
was $5.63 million from the sale of 13,579 oz of gold at an average price
of $415/oz, net of tolling and marketing costs and gold production was
15,100 oz at a cash operating cost of $324/oz. The comparable figures
were zero in 2003. The per-share calculations for 2004 and 2003 are
based on weighted average shares outstanding of 20,308,047 and
14,648,091 respectively.

Jaguar ended 2004 in a strong financial position with $29.5 million of
cash and $30.1 million of working capital.

Fourth Quarter, 2004 Results

The net loss for the fourth quarter ended December 31, 2004 was
$1,137,000, or $0.04 per basic and fully-diluted share, versus a net
loss of $1,528,000, or $0.08 per share, in 2003. Fourth quarter sales
revenue in 2004 was $2.6 million from the sale of 5,989 oz of gold at an
average price of $433/oz, net of tolling and marketing costs, and
production was 5,910 oz of gold at a cash cost of $301/oz. The
comparable figures were zero in the fourth quarter of 2003. The
per-share calculations for the fourth quarter periods of 2004 and 2003
are based on weighted average shares outstanding of 23,680,922 and
18,352,364 respectively.

Operating Performance

The Company generated its first revenues in 2004, but it is still in the
development phase. 2004 was the first operational year of Jaguar's
Sabara Zone B Mine and Caete Plant. Abnormally heavy rains across Brazil
and much of South America created unusually difficult operating
conditions during the first half of 2004. Ore production of 308,000
tonnes of trucked ore to the Caete plant was achieved in 2004. The
recovery grade achieved in 2004 averaged 1.83 grams/tonne ("g/t"),
ranging from 1.14 g/t to 2.41 g/t. Feed grades are projected to continue
increasing as higher grade material is mined. The metallurgical recovery
rate achieved in 2004 ranged between 79% and 81%. Plant through-put
increased to 1,500 tonnes/day by the end of 2004.

Raised Capital

The Company completed two equity issues in 2004, raising $6.2 million in
May via private placement to institutional investors and $29.1 million
in a December public offering via a long form prospectus issue. The
underwriting syndicate subsequently exercised $1.7 million of the
over-allotment option from the December offering, increasing the total
raised in the public offering to $30.8 million.

Advancing Toward Bankable Feasibility Studies

Jaguar made good progress toward its goals of expanding production and
completing three feasibility studies in 2005. The technical team in
Brazil is very experienced and has built and operated numerous gold
mines. Much of the exploration work in 2004 focused on expanding the
data to be used in the feasibility study program. The program completed
21,000 meters of diamond drilling, 2,000 meters of trenching with 9,400
samples collected.

Acquired Turmalina, a Promising Gold Project

Jaguar acquired the near-by Turmalina gold project from AngloGold
Ashanti. This significant asset fits well with Jaguar's strategy and
existing infrastructure. A feasibility study is underway with the intent
of bringing the project into production as soon as possible. Management
believes the project can increase Jaguar's production profile beginning
in 2007. Turmalina added approximately 13,000 acres of gold concession
with 592,000 oz of measured and indicated gold mineral resources and
196,000 oz of inferred gold mineral resources. Jaguar will pay AngloGold
Ashanti $1.35 million over the next three years for 100% ownership and
operational control of Turmalina. The terms of the acquisition include a
royalty payable by Jaguar to an unrelated third party. The royalty is a
Net Revenue Interest of 5% of annual net revenue up to $10 million and
3% thereafter. No royalty is payable to AngloGold Ashanti.

Generated Significant Exploration Success

The results of the exploration program in 2004 and early 2005 have been
periodically press-released and are available on the company's website
and on SEDAR. Ivan C. Machado, M.Sc., P.E., P.Eng., Principal of Salt
Lake City based TechnoMine Services LLC, serves as Jaguar's Qualified
Person and reviewed all the results in accordance with NI 43-101.

Among the exploration program highlights were:

1. Paciencia Region, July 26, 2004: Non-refractory cut sulfide grades of
18.70 g/t over 8.75 m, 8.06 g/t over 3.60 m, 5.33 g/t over 19.5 m, 4.79
g/t over 10.25 m, 4.52 g/t over 22.0 m and 4.45 g/t over 16.65 m. The
intersections are in separate holes over a strike length exceeding 200
m. The property is open on strike and at depth.

2. Santa Barbara, October 18, 2004: Non-refractory cut sulfide grades of
24.31 g/t over 7.65 m, 21.84 g/t over 1.75 m, 21.51 g/t over 2.20 m,
16.15 g/t over 2.45 m, 16.12 g/t over 3.35 m, 11.73 g/t over 3.4 m, 8.17
g/t over 5.75 m and 6.49 g/t over 10.5 m. The property is open on strike
and at depth and the drill core recovery approached 100%.

3. Santa Barbara, November 18, 2004: An additional hole, to the above
disclosed October 2004 results, contains non-refractory cut sulfide
grades of 15.45 g/t over 14.4 m.

4. Turmalina, February 28, 2005: Non-refractory cut sulfide grades of
15.24 g/t over 19.2 m, 6.56 g/t over 12.95 m and 18.86 g/t over 23.8 m.
Further results are pending. The property is open at depth.

Human Resources in Brazil

The majority of Jaguar's staff is in Brazil, where it employed 101
people at the end of 2004. Rising commodity prices have greatly
increased the demand for experienced mining industry personnel but this
has not been an issue for the Company. The well established nature of
the Company's team in Brazil and the close proximity of all the
Company's operations to Belo Horizonte is a significant advantage. Belo
Horizonte is a major urban center and the mining capital of Brazil,
providing a substantial pool of skilled and experienced labor for Jaguar.

An objective set for 2004 was the implementation of sustainable
community programs in or near Jaguar's Brazilian operations. In 2004
Jaguar's subsidiary Mineracao Serras do Oeste Ltda. ("MSOL") invested
$95,770 assisting municipalities with environmental, health, culture and
athletic programs. MSOL contributed to a waste management facility in
the City of Caete, an ecological park near the city of Sabara, and the
design of a new domestic water system in Pitangui. Ultimately, MSOL's
goal is to develop the local planning departments, assisting the
municipalities in preparing for the long term.

Permitting Timetable

Jaguar continues to make steady progress on permitting and monitors the
situation closely to minimize material delays to the expected start-up
dates of its projects. Permitting is the most significant near term
variable in the Company's production profile. The primary projects are
within legal mineral concessions. These projects are anticipated to be
permitted with industry standard technical work and public hearings.


During 2004, Andrew C. Burns, William E. Dow and Anthony F. Griffiths
joined the Board of Directors. James M. Roller, Certified Public
Accountant, joined the Jaguar management team in November 2004 and
assumed the position of Chief Financial Officer in March 2005.

Listed on the TSX

Jaguar initially listed on the TSX Venture exchange in October 2003 and
graduated to the TSX listing in February 2004. The TSX is Canada's
premier stock exchange. Jaguar has 31,058,389 common shares outstanding
(45,516,410 fully diluted).

Conference Call

Jaguar has scheduled a conference call for Monday, March 28 at 11:00 am
EST to discuss its 2004 annual and fourth quarter interim financial and
operational results. North American participants can access the call
toll-free by dialing 877-885-6386. International participants should
call 706-679-7391. The conference ID is 5050994. An audio replay will be
available approximately two hours after the call ends through April 17,
2005, and can be accessed by calling 800-642-1687 from North America or

The statements that are not historical facts are forward-looking
statements and involve known and unknown risks and uncertainties, which
could cause actual results to vary considerably from these statements.
Readers are cautioned not to put undue reliance on forward-looking
statements. Jaguar's securities have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered, sold or
resold in the United States or to a U.S. person absent registration or
an applicable exemption from the registration requirements.


Contact Information

    Jaguar Mining Inc.
    Daniel Titcomb
    President and Chief Executive Officer
    (603) 224-4800
    Jaguar Mining Inc.
    James Roller
    Chief Financial Officer
    (603) 224-4800
    Jaguar Mining Inc.
    Robert Jackson
    EVP, Corporate Development
    (416) 725-4343