Jaguar Mining Revises Terms of Previously Announced Offering of Senior Secured Convertible Debentures

PRESS RELEASE

May 4, 2015 2015-12 For Immediate Release TSX-V: JAG

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Jaguar  Mining  Revises  Terms  of  Previously  Announced  Offering  of  Senior  Secured  Convertible   Debentures  

(All  figures  are  in  US  dollars  unless  otherwise  expressed)

Toronto,  Canada  –  May  4,  2015  –  Jaguar  Mining  Inc.  (“Jaguar”  or  the  “Company”)  (TSX-­‐V:  JAG)  provided an   update   and   revision   today   to   its   previously   announced   offering   of   senior   secured   convertible debentures  (the  "Debentures")  (see  press  release  dated  February  27,  2015).

CONVERTIBLE  DEBENTURE  REVISION  

As  a  result  of  the  current  market  conditions,  the  Company  has  amended  certain  terms  of  the  offering, including   the   conversion   price   and   the   term   to   maturity.   Based   on   the   amended   terms,   the   new conversion  price  will  be  C$0.25  and  the  maturity  date  of  the  Debentures  will  be  reduced  to  two  years (the  "Offering").

The  Offering  continues  to  be  on  a  non-­‐brokered  private  placement  basis  pursuant  to  exemptions  under applicable  securities  laws.    The  Company  plans  to  use  the  net  proceeds  of  the  Offering  to  repay  the outstanding  $10.4  million  credit  facility  held  by  Renvest  Global  Resource  Fund  c/o  Renvest  Mercantile Bancorp  Inc.  ("Renvest  Credit  Facility")  and  for  general  corporate  purposes.    The  Offering  is  expected  to close  in  May  2015,  and  is  subject  to  receipt  of  all  required  regulatory  approvals  and  applicable  third party  consents,  including  the  approval  of  the  TSX  Venture  Exchange  (the  "TSX-­‐V").

The  Debentures  will  be  senior  secured  obligations  of  Jaguar  and  it  is  intended  that  the  holders  of  the Debentures  will  assume  the  senior  security  package  currently  held  under  the  Renvest  Credit  Facility.  The Debentures  will  mature  two  years  from  closing  of  the  Offering.

The   Debentures   will   bear   interest   at   a   rate   of   12%   per   annum,   payable   in   US   dollars   semi-­‐annually commencing  six  months  from  the  closing  date  of  the  Offering.  The  Debentures  will  be  convertible  into Jaguar  common  shares  at  a  conversion  price  of  C$0.25  per  share,  representing  a  39%  premium  to  the closing  price  of  Jaguar  common  shares  ("Common  Shares")  on  May  1,  2015  and  a  conversion  rate  of 4,870  Common  Shares  per  $1,000  principal  amount  of  Debentures,  based  on  Canadian  dollar  exchange rate  of  0.8214.  Upon  conversion,  holders  will  be  entitled  to  receive  accrued  and  unpaid  interest  up  to, but  excluding,  the  date  of  conversion.

The  Debentures  will  be  redeemable  following  a  period  of  six  months  from  closing  of  the  Offering.    On and  after  such  date  and  prior  to  the  date  that  is  two  years  from  the  closing  date  of  the  Offering,  the Debentures  may  be  redeemed  by  Jaguar,  in  whole  or  in  part  from  time  to  time,  with  30  days  written notice,  at  a  price  of  110%  of  the  principal  outstanding  in  the  first  year  and  105%  in  year  two,  plus  any accrued  and  unpaid  interest.

Jaguar  does  not  intend  to  list  the  Debentures  on  the  TSX-­‐V.  The  Debentures  and  the  Common  Shares issuable  on  conversion  of  the  Debentures  will  be  subject  to  a  four  month  and  one  day  hold  period  under Canadian  securities  laws  from  the  date  of  issue  of  the  Debentures.

This  press  release  shall  not  constitute  an  offer  to  sell  or  the  solicitation  of  an  offer  to  buy  any  securities in  any  jurisdiction.

About  Jaguar  Mining  Inc.  

Jaguar   is   a   gold   producer   with   mining   operations   in   a   prolific   greenstone   belt   in   the   state   of   Minas Gerais,  Brazil.  Additionally,  Jaguar  wholly  owns  the  large-­‐scale  Gurupi  Development  Project  in  the  state of   Maranhão,   Brazil.   In   total,   the   Company   owns   mineral   claims   covering   an   area   of   approximately 197,000-­‐hectares.   Additional   information   is   available   on   the   Company's   website   at www.jaguarmining.com  .

FOR  FURTHER  INFORMATION  PLEASE  CONTACT:  

Derrick  Weyrauch Chief  Financial  Officer 416-­‐628-­‐9601 [email protected]

FORWARD-­‐LOOKING  STATEMENTS  

Certain   statements   in   this   press   release   constitute   "Forward-­‐Looking   Statements"   within   the   meaning   of   the   U.S.   Private   Securities  Litigation  Reform  Act  of  1995  and  applicable  Canadian  securities  legislation.  Forward-­‐looking  statements  include,  but   are  not  limited  to,  management's  assessment  of  Jaguar’s  future  plans  and  operation.  Certain  statements  throughout  this  press   release  constitute  forward-­‐looking  statements  (forecasts)  under  applicable  securities  laws  relating  to  future  events  or  future   performance.   Forward-­‐Looking   Statements   can   be   identified   by   the   use   of   words   such   as   "are   expected",   "is   forecast",   "is   targeted",  "approximately",  “plans”,  “anticipates”  "projects",  "anticipates",  "continue",  "estimate",  "believe" or  variations  of   such  words  and  phrases  or  statements  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  the  success  of  closing  this  transaction  on  the  projected  timeline,  that  regulatory   approval  will  be  obtained,  the  final  terms  of  the  Debentures  that  will  be  issued  in  connection  with  the  Offering.  Forward-­‐looking   information  is  based  on  current  expectations,  estimates  and  projections  that  involve  a  number  of  risks  and  uncertainties  which   could   cause   actual   results   to   differ   materially   from   those   anticipated   by   Jaguar   and   described   in   the   forward-­‐looking   information.   The   forward-­‐looking   information   contained   in   this   press   release   is   made   as   of   the   date   hereof   and   Jaguar   undertakes  no  obligation  to  update  publicly  or  revise  any  forward-­‐looking  information,  whether  as  a  result  of  new  information,   future  events  or  otherwise,  unless  required  by  applicable  securities  laws.  The  forward-­‐looking  information  contained  in  this  press   release  is  expressly  qualified  by  this  cautionary  statement.  

Forward-­‐Looking  Statements  involve  known  and  unknown  risks,  uncertainties  and  other  factors  may  cause  the  actual  results,   performance  or  achievements  to  be  materially  different  from  those  expressed  or  implied  by  the  forward-­‐looking  statements.   Such  risk  factors  include,  among  others  the  risk  of  Jaguar’s  not  the  success  of  closing  this  transaction  on  the  projected  timeline,   that  regulatory  approval  will  be  obtained,  the  final  terms  of  the  Debentures  that  will  be  issued  in  connection  with  the  Offering,   as   well   as   those   factors   disclosed   in   the   Company's   current   Annual   Information   Form   and   Management's   Discussion   and   Analysis,   as   well   as   other   public   disclosure   documents,   available   on   SEDAR   at   www.sedar.com.   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   statements,   there   may   be   other   factors   that   cause   actions,   events   or   results   not   to   be   as   anticipated,  estimated  or  intended.  There  can  be  no  assurance  that  forward-­‐looking  statements  will  prove  to  be  accurate.  The   forward-­‐looking   statements   contained   herein   are   presented   for   the   purposes   of   assisting   investors   in   understanding   the   Company's  plan,  objectives  and  goals  and  may  not  be  appropriate  for  other  purposes.  Accordingly,  readers  should  not  place   undue  reliance  on  forward-­‐looking  statements.  These  Forward-­‐Looking  Statements  represent  the  Company's  views  as  of  the   date  of  this  press  release.  The  Company  anticipates  that  subsequent  events  and  developments  may  cause  the  Company's  views   to  change.  Factors,  which  could  cause  results  or  events  to  differ  from  current  expectations,  include,  among  other  things,  actions   taken   against   the   Company   by   governmental   agencies   and   securities   and   other   regulators   and   other   factors   not   currently   viewed  as  material  that  could  cause  actual  results  to  differ  materially  from  those  described  in  the  Forward-­‐Looking  Statements.   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  except  as  required  by  law.