Jaguar Mining Closes Previously Announced Offering of Senior Convertible Notes Including an Additional US$13,500,000 of Notes Following Exercise of Over-Allotment Option

CONCORD, NH, Feb. 9 /CNW/ --
JAG - TSX/NYSE

CONCORD, NH, Feb. 9 /CNW/ - Jaguar Mining Inc. ('Jaguar' or the
'Company') (JAG: TSX/NYSE) announced today that it has successfully
closed the previously announced offering of US$103.5 million aggregate
principal amount of its 5.5% senior convertible notes due 2016 (the
'notes'), which includes the issuance of US$13.5 million aggregate
principal amount of notes following the exercise in full of the
over-allotment option granted by Jaguar to the initial purchasers. The
net proceeds of the offering, including the over-allotment, is
approximately US$99.3 million.

Commenting on the transaction, Mr. Daniel R. Titcomb, Jaguar's President
and CEO stated, 'We are very pleased by the strong demand we received
for these senior convertible notes, which we expect will principally
fund our new Gurupi Project. We believe this new project has the
potential to significantly increase Jaguar's production and cash flow
profile when completed, which is expected to occur in early-2013.'

In addition to funding the Gurupi Project, the balance of the net
proceeds will be used for working capital and general corporate
purposes.

Bank of America-Merrill Lynch acted as Sole Book-Running Manager and RBC
Capital Markets acted as Co-manager for the offering.

The notes and the common shares issuable upon conversion of the notes
have not been and will not be registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the U.S. Securities Act of 1933, as
amended. Offers and sales of the notes in Canada will be made only
pursuant to exemptions from the prospectus requirements of applicable
Canadian provincial or territorial securities laws. This press release
does not constitute an offer to sell or the solicitation of an offer to
buy any security.

About Jaguar


Jaguar is a junior gold producer in Brazil with operations in a prolific
greenstone belt in the state of Minas Gerais and is developing the
Gurupi Project in northern Brazil 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 575,000-acre land base
in Brazil.  Additional information is available on the Company's
website at www.jaguarmining.com.

Forward Looking Statements

This press release contains forward-looking statements regarding the use
of proceeds, funding needed for the Gurupi Project and the completion
date for the Gurupi Project. These forward-looking statements can be
identified by the use of words such as 'will,' believe,' 'expect' and
'expected.' These forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the use of
proceeds, and the cost and timing to advance the Gurupi Project to be
materially different from those expressed by the forward-looking
statements. Such statements are only predictions and the assumptions
upon which they are based may not materialize as a result of those
risks and uncertainties, including risks related to the use of proceeds
from the offering and the ability of Jaguar to advance the Gurupi
Project.

These forward-looking statements represent our views as of the date of
this press release. Subsequent events and developments could cause the
Company's views to change. 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 press release, unless required by law.

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/February2011/09/c9229.html