Jaguar Commences Drill Programs on Near-Mine Surface Targets at Pilar and Turmalina Mines, Brazil

High-Priority Targets Include Zona Basal, Faina, Pilarzinho and Corrego Brandão

TORONTO, September 15, 2020 - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX:JAG) is pleased to announce the commencement of near-mine surface diamond drilling for high-priority exploration targets located in and around the Turmalina Gold Mine ("Turmalina"), the Pilar Gold Mine ("Pilar") and the Caeté processing facility all located in Minas Gerais, Brazil. The high priority targets include Zona Basal, Faina, Pilarzinho and Corrego Brandão.

Drill Target Highlights

• At the Corrego Brandão Exploration Target, located near Jaguar's Caeté Plant, soil sampling, geological mapping and a recently completed high resolution drone magnetics survey have all significantly extended the area of interest for drill targeting. A gold in soil anomaly (>100ppb Au) has now been defined in an area that includes a greater than 5km strike length.

  • In 2019, an intersection of 21.32 g/t Au over 12.8m (including 60.08 g/t over 3.0m) was reported from reconnaissance phase auger drilling (see press release June 4, 2019). Drilling is expected to commence in Q4-2020 or early 2021 once permitting has been received.

• The Zona Basal Target, located near Turmalina, commenced an initial 10-hole (1,200m) reconnaissance diamond drilling program in early September 2020. Drilling is currently focused on structurally controlled, bed-rock mineralized sources reported from trench sampling within an extensive 3km x 0.5km (plus pathfinder elements Arsenic and Antimony) gold in soil anomaly (>100 ppb Au) coincident with geophysical (magnetics) anomalies.

• At the Faina Deposit, also located near Turmalina, four large-diameter (PQ) diamond drill-holes were completed during August 2020 (547.10m) in order to provide representative samples of mineralized material for new metallurgical test work benefiting from modern advancements in extractive metallurgy subsequent to work completed at Faina prior to 2005. Historically, this resource was considered to have refractory characteristics resulting in low metallurgical recoveries. Faina currently has a NI 43-101 compliant Resource (M+I+I) of 418koz at a weighted average grade of 7.21 g/t Au. (Turmalina Technical Report dated April 20th, 2020).

• At the Pilarzinho Project, located 1.5km along strike to the south-west of the Pilar Mine, a diamond drill rig has been mobilized to complete a series of surface diamond holes targeting sheared Banded Iron Formation ("BIF") related mineralization, previously intersected in trenches and old workings. The targeted mineralization is associated with the south-western limb of the same regional fold structure which hosts the mineralization currently being mined at the Pilar Mine.

Vern Baker, CEO, Jaguar Mining commented: "This is a very exciting time for Jaguar, we are not only building a sustainable production base in our mines, but we are now funding significant exploration efforts in and around our producing mines. The exploration team has done an outstanding job over the last several years with very little investment as we have continued to replace and replenish our resource base and reserves at our mines. Now the team is ready to take on a strategic, expanded regional exploration program, targeting new resources that will utilize our current infrastructure and capacity, leading to production growth for the company and strengthening of the exploration team. We now have a significant queue of quality targets beyond our current programs and we look forward to moving ahead on the exploration properties in the recently announced Iron Quadrangle Agreement with Iamgold. We are confident that our exploration portfolio will be a key value driver for our shareholders and stakeholders as we move forward."

Jon Hill, Vice President, Geology and Exploration, Jaguar Mining commented: "Growth exploration continues to be one of the major value drivers for the company, as the exploration team is now focused on high-quality exploration targets within Jaguar´s extensive Iron Quadrangle portfolio. The time and effort expended by the team over the past two years on systematic, on-the-ground exploration has greatly enhanced the effectiveness of integration and interpretation of geological mapping, structural and geochemical data. Coupled with the recent, high-resolution drone magnetics data and specialist geophysical processing and interpretation, it is clear that Jaguar is committed to increasing its exploration investment going forward and is adding capacity and resources to support these enhanced, drill based, exploration programs.

Corrego Brandão Target-Caeté Plant

• The Corrego Brandão Exploration Target located near Jaguar´s Caeté plant facility was generated by soil sampling over a regional conceptual target identified in late 2018.

• Anomalous gold in soil sampling results (> 100ppb Au) over a strike length of some 400m were followed up in Q1-2019 with geological mapping, trenching and shallow auger drilling with very encouraging initial results.

  • In 2019, an intersection of 21.32 g/t Au over 12.8m (including 60.08 g/t over 3.0m) was reported from reconnaissance phase auger drilling at this target (see press release June 4, 2019).

• In late 2019 and 2020, additional on-strike soil sampling, geological mapping along with a recently completed high resolution (50m line spacing) drone magnetics survey has significantly extended the area of interest for drill targeting.

• The gold in soil anomaly (>100ppb Au) has now been defined in an area that includes a greater than 5km strike length and is believed to be importantly coincident with the highly anomalous pathfinder elements arsenic, antimony and tellurium. The anomaly is closely associated with a mafic lithological signature, evident in the radiometrics images and spatially associated with regional scale folding and thrust faulting.

• Processing, interpretation and inversion modelling of high resolution (50m spaced) drone magnetics flown in Q2-2020 has defined a series of distinct targets for drill testing along the trend of the host structure.

• The permitting process for drilling the Corrego Brandão Exploration Target and related priority targets is in progress and it is expected that drilling will commence in Q4-2020 or early 2021.

Figure 1 (A-F), Corrego Brandão Project Images showing Gold in Soil (A Top Left), Arsenic in Soil (B Top Right), Antimony in Soil (C Middle Left), Tellurium in soil (D Middle Right), Radiometrics Ternary Image (U-Th-K) (E Bottom Left) and Geological - Structural Interpretation (F Bottom Right).

Figure 2 Corrego Brandão Project Magnetic Image showing initial targets generated from preliminary Inversion modeling.

Zonal Basal Target -Turmalina Mine

• Mineralized zones defined in trenching are associated with sericite-chlorite-silica altered BIF, Metasedimentary and Metavolcanic rocks and quartz veining. The best trench results reported in 2019 (see press-release dated June 4, 2019) were 1.28 g/t Au over 17.61m including 3.1 g/t Au over 4.05m and 18.60 g/t Au over 1.44m.

• A high resolution drone magnetics survey at 50m line spacing was completed over the Turmalina Mine and Exploration Licenses in Q1-2020. This survey has generated a series of high-quality targets for follow-up exploration including priority targets coincident with the strong soil anomalism and trench-results at the Zona Basal Project.

• The magnetics data has defined an area, which both covers and extends the Zona Basal target, and displays distinct similarities to the geophysical signature over known surface expressions of mineralization currently being mined at Turmalina. Importantly these targets extend under recent cover soil where soil geochemistry is ineffective for detecting bedrock mineralization sources. Several drill holes in the initial reconnaissance program are targeting these covered areas. (Please see figures 3 and 4 for the location of the Zonal Basal target).

Figure 3 - Reduced to Pole (RTP) Magnetics Image showing the relative location of the Zona Basal Targets relative to known mineralized occurrences at Turmalina and Au in Soil anomalism > 100ppb Au.

Figure 4 - Geological Map (left image) and surface geochemistry with trenching results at the Zona Basal Targets relative. Au in soil anomalism is presented at > 100ppb Au.

Faina Deposit -Turmalina Mine

• The shallow oxide portion of the Faina Deposit was previously mined by Jaguar via an open pit, however due to the refractory nature of the sulphide mineralization, it was never exploited. Metallurgical Testwork completed prior to 2005 reported low recoveries of approximately 50% via the conventional processing currently applied to the free-milling material from the Turmalina mine.

• Advances in metallurgical processes for extraction of gold from refractory ores like Faina, along with excess crushing and milling capacity at the Turmalina Plant and current favourable economic conditions have justified an investment in reviewing the feasibility of the Faina Deposit, including a full review of new metallurgical test-work.

  • To obtain representative samples for this testwork, four large diameter (PQ) diamond drill holes were completed during August 2020 with a total combined meterage of 547.10m. The holes targeted and intersected representative sulphide mineralization.

  • Sampling of this core is in process after which some 200kgs will be submitted to the laboratory for test-work. Please see figures 5, 6 and 7 for the location of the Metallurgical drill holes and a cross-sectional view through the Faina Resource Model.

Figure 5 - Location of Large Diameter Diamond (PQ) Drill Holes completed at the Faina Deposit for Metallurgical Testwork Samples.

Figure 6 - Figure showing Faina Resource Model and Oz per vertical meter profile.

Figure 7 Cross - section through the Faina Deposit showing a high grade intersection open at depth (10.2 g/t Au over 9.7m* (*drilled width - true width unknown)).

Pilarzinho Project - Pilar Mine

• At Pilarzinho, a project located 1.5km along strike to the south-west of the Pilar Mine, a total of 12 reconnaissance phase surface diamond holes (1,400m) have been planned to target sheared BIF related mineralization intersected in trenches and within extensive old workings present in the area. Drilling is expected to commence in September 2020.

• The targeted mineralization is associated with the south-western limb of the same regional fold structure which hosts the mineralization currently being mined nearby at the Pilar Mine. (Please see figure 8).

• The best result from surface trenching reported on April 21^st 2020 (Jaguar AIF), was 2.67 g/t Au over 8.56m (including 9.46 g/t Au over 2m).

Figure 8 Analytical Signal (AS) Magnetics image showing location of Pilarzinho Project (left image) and Geological setting relative to the Pilar Mine structure (right image).

Qualified Person

Scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, BSc (Hons) (Economic Geology - UCT), FAUSIMM, Vice President Geology and Exploration who is an employee of Jaguar Mining Inc., and is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Quality Control

Jaguar continues to use 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. 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) and a Reflex Gyrosmart 642.

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. Auger, trench and drill core samples from exploration drillholes, auger holes and trenches are transported in securely sealed bags and sent for physical preparation to the independent ALS Brazil (subsidiary of ALS Global) laboratory located in Vespasiano, Minas Gerais, Brazil.

The analysis is conducted at ALS Global's respective facilities (fire assay are conducted by ALS Global in Lima, Peru, and multi-elementary analysis are 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.

The drilling results presented on this news release are from drill holes completed by Jaguar Mining Inc.´s own drilling machines. The infill 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. 10 - 15% of samples are submitted to ALS for check assay analysis. Please refer to Appendices 2 and 3 for check-assay results.

For a complete description of Jaguar's sample preparation, analytical methods and QA/QC procedures, please refer to the "Technical Report on the Roça Grande and Pilar Operations, Minas Gerais State, Brazil", a copy of which is available on the Company's SEDAR profile at www.sedar.com.

The Iron Quadrangle

The Iron Quadrangle has been an area of mineral exploration dating back to the 16th century. The discovery in 1699-1701 of gold contaminated with iron and platinum-group metals in the southeastern corner of the Iron Quadrangle gave rise to the name of the town Ouro Preto (Black Gold). The Iron Quadrangle contains world-class multi-million-ounce gold deposits such as Morro Velho, Cuiabá, and São Bento. Jaguar holds the second largest gold land position of a gold producer in the Iron Quadrangle with just over 25,000 hectares.

About Jaguar Mining Inc.

Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 64,000 hectares. The Company's principal operating assets are located in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais and include the Turmalina Gold Mine Complex and Caeté Mining Complex (Pilar and Roça Grande Mines, and Caeté Plant). The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. The Roça Grande Mine has been on temporary care and maintenance since April 2018. Additional information is available on the Company's website at www.jaguarmining.com.

For further information, please contact:

Vern Baker
President and Chief Executive Officer
Jaguar Mining Inc.
Vern.baker@jaguarmining.com
416-847-1854

Hashim Ahmed
Chief Financial Officer
Jaguar Mining Inc.
hashim.ahmed@jaguarmining.com
416-847-1854

Forward-Looking Statements

Certain statements in this news release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements and information are provided for the purpose of providing information about management's expectations and plans relating to the future. All of the forward-looking information set forth in this news release is qualified by the cautionary statements below and those made in our other filings with the securities regulators in Canada. Forward-looking information contained in forward-looking statements can be identified by the use of words such as "are expected", "is forecast", "is targeted," "approximately," "plans," "anticipates," "projects," "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. All statements, other than statements of historical fact, may be considered to be or include forward-looking information. These forward-looking statements are made as of the date of this news release and the dates of technical reports, as applicable. This news release contains forward-looking information regarding potential and, among other things, expected future mineral resources, potential mineral production opportunities, geological and mineral exploration statistics, ore grades, current and expected future assay results, and definition/delineation/exploration drilling at the Pilar Gold Mine and the Turmalina Gold Mine in Brazil, as well as forward-looking information regarding costs of production, capital expenditures, costs and timing of the development of projects and new deposits, success of exploration, development and mining activities, capital requirements, project studies, mine life extensions, and continuous improvement initiatives. The Company has made numerous assumptions with respect to forward-looking information contained herein, including, among other things, assumptions about the estimated timeline and for the development of the drill program at the Pilar Gold Mine (and its expanded exploration footprint) and the Turmalina Gold Mine; its mineral properties; the supply and demand for, and the level and volatility of the price of, gold; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; the receipt of necessary permits; market competition; ongoing relations with employees and impacted communities; and political and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, the impact of any potential power rationing, tailings facility regulation, exploration and mine operating licenses and permits being obtained and renewed and/or there being adverse amendments to mining or other laws in Brazil and any changes to general business and economic conditions. Forward-looking information involves a number of known and unknown risks and uncertainties, including among others: the risk of Jaguar not meeting its plans regarding its operations and financial performance; uncertainties with respect to the price of gold, labor disruptions, mechanical failures, increase in costs, environmental compliance and change in environmental legislation and regulation, weather delays and increased costs or production delays due to natural disasters, power disruptions, procurement and delivery of parts and supplies to the operations; uncertainties inherent to capital markets in general (including the sometimes volatile valuation of securities and an uncertain ability to raise new capital) and other risks inherent to the gold exploration, development and production industry, which, if incorrect, may cause actual results to differ materially from those anticipated by the Company and described herein. In addition, there are risks and hazards associated with the business of gold exploration, development, mining and production, including without limitation environmental hazards, tailings dam failures, industrial accidents and workplace safety problems, unusual or unexpected geological formations, pressures, cave-ins, flooding, chemical spills, and gold bullion thefts and losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Although we have 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, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

SOURCE: Jaguar Mining Inc.