Jaguar Mining Provides Update on Strategic Review Process

PRESS RELEASE

January 11, 2012 2012-01 Concord, New Hampshire JAG - TSX/NYSE

Jaguar Mining Provides Update on Strategic Review Process

Concord, New Hampshire, January 11, 2012 - Jaguar Mining Inc. (“Jaguar” or the “Company”) (JAG: TSX/NYSE) is pleased to provide the following update regarding the previously announced strategic review process, which was initiated by the Board of Directors on November 16, 2011.

At the direction of the Special Committee*, JP Morgan Securities LLC has held various discussions with potentially interested parties to solicit their interest regarding a potential change of control or merger transaction with the Company. As a result of such discussions, several parties have been identified and have executed confidentiality agreements. These parties have access to due diligence materials and are continuing to conduct their evaluations of the Company.

There can be no assurance that this strategic review process will result in Jaguar entering into or consummating any change of control or merger transaction.

The Board will provide further updates to shareholders as circumstances warrant.

*The Special Committee was appointed by the Board and is chaired by Gil Clausen and is comprised of Mr. Clausen, Gary German and John Andrews, all independent directors of the Company.

About Jaguar

Jaguar is a gold producer in Brazil with operations in a prolific greenstone belt in the state of Minas Gerais. Jaguar is also engaged in developing the Gurupi Project in the state of Maranhão. Based on its development plans, Jaguar is one of the fastest growing gold producers in Brazil. The Company is actively exploring and developing additional mineral resources at its approximate 256,300hectare land base in Brazil. Additional information is available on the Company’s website at www.jaguarmining.com.

Principal Executive Office: Rua Levindo Lopes, 323 – CEP 30140 Belo Horizonte – MG – Brazil  [email protected]  www.jaguarmining.com Administrative Office: 125 North State Street  Concord, NH 03301 – USA  Phone: (603) 224-4800  Fax: (603) 228-8045

Company Contacts

Investors and Analysts may contact:

Roger Hendriksen Vice President, Investor Relations 603-224-4800 [email protected]

Members of the media may contact:

Valéria Rezende DioDato Director of Communication 603-224-4800 [email protected]

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