ex994.htm

JAGUAR MINING INC.

Annual Information Form

for the year ended December 31, 2009

Dated March 23, 2010

TABLE OF CONTENTS

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS	3
CORPORATE STRUCTURE	4
GENERAL DEVELOPMENT OF THE BUSINESS	5
DESCRIPTION OF THE BUSINESS	22
JAGUAR GOLD OPERATIONS AND PROJECTS	27
RISK FACTORS	57
DIVIDENDS	65
DESCRIPTION OF CAPITAL STRUCTURE	66
MARKET FOR SECURITIES	67
DIRECTORS AND EXECUTIVE OFFICERS	68
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	74
TRANSFER AGENTS AND REGISTRAR	75
MATERIAL CONTRACTS	76
INTERESTS OF EXPERTS	77
ADDITIONAL INFORMATION	78
APPENDIX A CHARTER OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS	79

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained herein and in the documents incorporated by reference herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan”, “goal”, “strategy”, “budget”, “estimates”, “schedule”, “expect”, “project”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may”, “could”, “might”, or “will” occur. Statements relating to “mineral reserves” or “mineral resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the mineral reserves and mineral resources described can be profitably produced in the future. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, political risks and other factors described in this annual information form under the heading “Risk Factors”.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this annual information form. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: that there is no material deterioration in general business and economic conditions; that there is no unanticipated fluctuation of interest rates and foreign currency exchange rates; that the supply and demand for, deliveries of, and the level and volatility of prices of gold as well as oil and petroleum products develop as expected; that Jaguar Mining Inc. (“Jaguar”) receives regulatory and governmental approvals for its development projects and other operations on a timely basis; that Jaguar is able to obtain financing for its development projects on reasonable terms; that there is no unforeseen deterioration in Jaguar’s costs of production or Jaguar’s production and productivity levels; that Jaguar is able to procure mining equipment and operating supplies in sufficient quantities and on a timely basis; that engineering and construction timetables and capital costs for Jaguar’s development and expansion projects are not incorrectly estimated or affected by unforeseen circumstances; that costs of closure of various operations are accurately estimated; that unforeseen changes to the political stability or government regulation in the country in which Jaguar operates do not occur; that there are no unanticipated changes to market competition, that Jaguar’s reserve estimates are within reasonable bounds of accuracy (including with respect to size, grade and recoverability) and that the geological, operational and price assumptions on which these are based are reasonable; that Jaguar realizes expected premiums over London Metal Exchange cash and other benchmark prices; and that Jaguar maintains its ongoing relations with its employees and business partners and joint venturers; as well as those risk factors set out in this annual information form under the heading “Risk Factors”.

All of the forward-looking information in this annual information form, and the documents incorporated by reference herein, is qualified by these cautionary statements. Forward-looking information contained herein is made as of the date of this annual information form and Jaguar disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by law. There can be no assurance that the forward-looking information will prove to be accurate as actual results and future events could differ materially from those anticipated in making such statements containing forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.

CORPORATE STRUCTURE

Jaguar was incorporated on March 1, 2002 pursuant to the Business Corporations Act (New Brunswick). On March 30, 2002, Jaguar issued initial common shares to Brazilian Resources, Inc. (“Brazilian”) and IMS Empreendimentos Ltda. (“IMS”) in exchange for property. In that transaction, Brazilian contributed to Jaguar all of the issued and outstanding shares in Mineração Serras do Oeste Ltda. (“MSOL”), a Brazilian mining company that controlled the mineral rights, concessions and licenses to certain property located near the community of Sabará, east of Belo Horizonte in the state of Minas Gerais, Brazil (the “Sabará Property”), and IMS contributed to Jaguar a 1,000-tonne per day production facility also located east of Belo Horizonte near the community of Caeté (the “Caeté Plant”) and the mineral rights to a nearby property related to National Department of Mineral Production (“DNPM”) Mineral Exploration Request no. 831.264/87 and DNPM Mineral Exploration Request nos. 830.590/83 and 830.592/83 (the “Rio de Peixe Property”). Jaguar was continued into Ontario in October 2003 pursuant to the Business Corporations Act (Ontario) and is currently a corporation existing under the laws of Ontario. Jaguar’s head office is located at 125 North State Street, Concord, New Hampshire (USA) 03301, and its registered office is located at 1 First Canadian Place, 100 King Street West, Suite 4400, Box 63, Toronto, Ontario, Canada M5X 1B1.

On October 9, 2003, pursuant to an amalgamation agreement dated July 16, 2003, Jaguar amalgamated with Rainbow Gold Ltd. (“Rainbow”), a New Brunswick corporation and a then inactive reporting issuer listed on the TSX Venture Exchange (the “TSX-V”), through a reverse take-over. The amalgamated entity adopted the name “Jaguar Mining Inc.” Jaguar was approved for listing on the TSX-V on October 14, 2003 and began trading on October 16, 2003. Jaguar subsequently graduated from the TSX-V to the Toronto Stock Exchange (the “TSX”) and began trading on the TSX on February 17, 2004 under the symbol “JAG”. On July 23, 2007, trading of Jaguar’s common shares commenced on the NYSE Arca Exchange (“NYSE Arca”) under the symbol “JAG”. In July 2009, Jaguar received approval from the New York Stock Exchange (“NYSE”) to transfer the trading of its common shares from the NYSE Arca to the NYSE. Trading on the NYSE began on July 6, 2009 also under the symbol “JAG”.

Jaguar has three wholly-owned direct subsidiaries, MSOL, Mineração Turmalina Ltda. (“MTL”) and Mineração Chega Tudo Ltda. (“MCT”), all incorporated under the laws of the Republic of Brazil. The registered and head office of each of MSOL, MTL and MCT is located at Rua Fernandes Tourinho, 487, 7th Floor, Bairro Savassi, Belo Horizonte, Minas Gerais, CEP 30.112-000, Brazil.

GENERAL DEVELOPMENT OF THE BUSINESS

Mining Exploration and Production History

Mining Properties Generally

Jaguar is a gold mining company currently engaged in gold production and in the acquisition, exploration, development and operation of gold mineral properties in Brazil. In addition, Jaguar may consider the acquisition and subsequent exploration, development and operation of other gold properties.

Jaguar’s three producing properties, Turmalina, Paciência and Sabará, are located in or adjacent to the Iron Quadrangle region of Brazil, a greenstone belt located east of the city of Belo Horizonte in the state of Minas Gerais. Jaguar has a fourth property in the Iron Quadrangle, the Caeté Project, which is currently under development. In addition, Jaguar recently acquired the Gurupi Project in the state of Maranhão from Kinross Gold Corporation (“Kinross”). Jaguar has also entered into a joint venture agreement with Xstrata plc. (“Xstrata”) to explore the Pedra Branca Project located in the state of Ceará, in northeastern Brazil.

Jaguar commissioned TechnoMine Services, LLC (“TechnoMine”) and Pincock Allen & Holt (“PAH”) to prepare technical reports in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Properties (“NI 43-101”) to set forth the mineral resources and reserves of all Jaguar’s properties. All of the NI 43-101 compliant technical reports prepared on behalf of Jaguar can be found at www.sedar.com. Additional information regarding each property, including the development of such property over the past three years, is set forth below.

Turmalina

Turmalina is an underground mine utilizing the “sublevel stoping” and the “cut and fill” mining methods with paste fill. Turmalina is currently processing 1,800 tonnes per day of ore in the carbon-in-pulp (“CIP”) plant (the “Turmalina Plant”).

In 2009, Turmalina produced 82,071 ounces of gold at an average cash operating cost of US$424 per ounce compared to 72,785 ounces at an average cash operating cost of US$364 per ounce during 2008. Mine production during 2009 totaled 621,467 tonnes at an average ROM grade of 5.03 grams per tonne compared to 497,122 tonnes at an average ROM grade of 5.31 grams per tonne during 2008. Ore processed through the mill during 2009 was 587,949 tonnes at an average feed grade of 4.81 grams per tonne compared to 480,814 tonnes at an average feed grade of 5.46 grams per tonne during 2008. The average plant recovery rate for 2009 was 89%, nearly achieving the design rate of 90%, compared to 88% in 2008.

On September 30, 2004, Jaguar acquired MTL and the 13,183-acre Turmalina gold project located in Minas Gerais, Brazil from AngloGold Ashanti Limited (“AngloGold Ashanti”). Jaguar, through MSOL, agreed to pay US$1.35 million over three years for 100 percent ownership and operational control of the Turmalina concessions, which amount has been paid in full.

The Turmalina concessions are subject to a participation interest as follows: (i) for production obtained as a result of washing of dragline-mined placers, open pit hydraulic mining or other similar method, MSOL shall pay a royalty to AngloGold Ashanti equal to (a) ten percent of annual net revenue up to US$500,000, (b) five percent of annual net revenue between US$500,000 and US$1,000,000, and (c) two and a half percent of annual net revenue over US$1,000,000; and (ii) for production obtained as a result of in situ mineral reserves, in fresh or altered rocks, via underground or open pit mining, MSOL shall pay a royalty to AngloGold Ashanti equal to (a) two percent of net revenue for the first six operational months, (b) two percent of net revenue during the 7th through 48th operational months (however, at least US$200,000 shall be paid every twelve months after the seventh month of production), (c) five percent after the first four years of production sale up to and including US$10,000,000, and (d) three percent after the first four years of production sale in excess of US$10,000,000.

In October 2004, TechnoMine completed a NI 43-101 technical report on the Turmalina gold project, which included resources for the Main and Northeast Targets (Ore Bodies A and B, respectively), as well as Faina and Pontal Targets. This technical report was revised in December 2004.

During 2005, Jaguar completed a feasibility study on Turmalina and commissioned Scott Wilson Roscoe Postle Associates Inc. (formerly Roscoe Postle Associates Inc.) (“Scott Wilson RPA”) to audit it and issue a technical report in compliance with NI 43-101. Scott Wilson RPA issued its report on September 16, 2005, revised it on March 10, 2006, supplemented it on March 14, 2006 and, upon the completion of Phase II of the Turmalina exploration program in Ore Bodies A and B, further updated the report on July 31, 2006. The Scott Wilson RPA report is no longer current and was replaced by the TechnoMine September 2008 technical report discussed below.

Commissioning at Turmalina began in November 2006 and the first gold pour was conducted in January 2007.

Additional exploration efforts by Jaguar in 2007 in the area surrounding Ore Bodies A and B led to the discovery of a third mineralized area, referred to as the Satinoco Target, where three new areas of mineralization have been identified. The Satinoco Target is located approximately 300 meters from Ore Body A at the Turmalina Mine.

Jaguar initially completed a two-phase diamond drilling program at the Satinoco Target and commissioned TechnoMine to prepare a resource estimate technical report. A technical report was issued in October 2007, based on exploration data achieved until July 2007. Jaguar completed an additional, Phase III exploration campaign in December 2007. The results generated during Phase III program were integrated to the previous exploration database and gave rise to a re-evaluation of the Satinoco Target resource base. In February 2008, Jaguar filed a technical report in accordance with NI 43-101 in connection with the upgrade of inferred to measured and indicated resources at the Satinoco Target.

During the fourth quarter of 2007, Jaguar completed the underground crosscut to access the Satinoco mineralization through the existing ramp developed by Jaguar to mine Ore Bodies A and B at Turmalina. The crosscut has been completed and is now utilized to transport ore from the Satinoco Target out the Turmalina Mine entrance. During the excavation process of the crosscut to the Satinoco Target, economic grades of gold were discovered in channel samples. During 2008, Jaguar conducted a complementary 12,000 meter in-fill diamond drill program as part of the feasibility work in an effort to convert resources to reserves to expand Turmalina’s operation.

In September 2008, TechnoMine completed the NI 43-101 compliant feasibility study technical report on the Turmalina Phase I Expansion, which converted the Satinoco mineral resources to reserves. The Phase I Expansion at Jaguar’s Turmalina operation was completed during the third quarter of 2009, increasing Turmalina’s annual gold production capacity from 80,000 ounces per year to 100,000 ounces per year. As a result, grinding and milling capacity has been increased to 1,800 tonnes per day of ore in the Turmalina Plant, from its previous designed operating level of 1,500 tonnes per day.

Jaguar’s reported mineral resources for Turmalina are to a depth of approximately 500 meters where the mineralized structure is open at depth and along strike. As part of a drill program to prove the continuity of the mineralization at Ore Body A, Jaguar drilled four holes to depths ranging from 850 meters to 1,100 meters. Two of these drill holes intersected the mineralized structure in the Ore Body A to a depth of approximately 800 meters. A grade of approximately seven grams per tonne was encountered in a narrow zone at depth thereby confirming the extension of the mineralized structure. Jaguar’s team believes the size of the mineralized structure and mineralization is similar to the existing reserve base in this ore body to the depth of 500 meters. This is also consistent with the characteristics of other gold mines in the Iron Quadrangle, some of which have operated to depths of 2,400 meters.

As part of the surface exploration to estimate resource potential in a newly discovered oxide zone at Ore Body B, several trenches were opened in the outcropping to expose and sample the mineralized zone. Channel samples revealed two separate mineralized areas with average surface grades ranging from 3 grams per tonne to 5 grams per tonne. Jaguar’s team intends to update the geological model to incorporate this new data into the overall mine model. Jaguar intends to blend the oxide ore from this new zone with sulfide ore and process such blended ore through the Turmalina Plant, which it expects would provide additional lower cost ore.

At the Satinoco Target (referred to as Ore Body C) and the Satinoco Extension (referred to as Zone D), additional gold bearing oxide ore has been identified in the weathered rock above the sulfide zone. During 2008, 11,698 meters of drilling for a total of 62 drill holes were drilled in the Satinoco structure to estimate oxide and sulfide mineral resources. During 2009, Jaguar continued drilling in the Satinoco structure to estimate oxide and sulfide mineral resources. A total of 5,017 meters of drilling in 31 drill holes were completed. Mining of these oxide resources commenced in the fourth quarter of 2009.

The following table provides 2009 drill results from Zone D sulfide zone for the most significant intersections.

Zone D - Main Surface Drilling Results (cut-off = 1 g/t)
Hole	From (m)	To (m)	Grade (g/t)	Thickness (m)
FSN-178	70.00	75.00	21.47	5.00
FSN-180	203.30	205.60	3.23	2.30
FSN-181	34.90	38.90	3.63	4.00
FSN-185	23.00	27.05	4.24	4.05
FSN-187	68.70	69.75	3.06	1.05
FSN-188	28.70	33.00	15.37	4.30
FSN-191	53.50	55.50	4.48	2.00
FSN-193	166.50	167.50	3.37	1.00
FSN-194	38.20	40.20	3.64	2.00
Note: Not all holes represent true width.

Jaguar intends to conduct additional underground exploration as part of the development of Turmalina’s Ore Bodies A, B and C, and Zone D with a goal of increasing resources and reserves and expanding Turmalina’s annual production beyond the current plan of 100,000 ounces.

Jaguar has also discovered a new target at the Turmalina mining complex, the Fazenda Experimental Target. Management believes this new structure has significant potential and is unrelated to the mineralized on-strike zone associated with Ore Bodies A, B and C and Zone D. The Fazenda Experimental Target is located approximately five kilometres from the Turmalina Plant in a structure parallel to the existing ore bodies and zones. Some limited mining at this target was carried out at shallow depths but it was not significant. Over the past two years, Jaguar has conducted work in the area, including soil sampling, trenching and 668 meters of drilling in four drill holes. Drill results confirmed continuity of the mineralization along strike.

During 2009, drilling activity was also focused on the Faina/Pontal Zone, which contains 280,000 ounces of measured and indicated gold resources to an average depth of 350 meters. Drilling activities at the Faina Target, north and up-strike from current mining location at Ore Bodies A, B and C and Zone D, included the use of four drill rigs to evaluate (a) the oxide zone of the mineralized bodies and (b) oxide extensions in the fresh rock (infill drilling in the refractory mineralization). During 2009, a total of 17,319 meters of drilling in 72 drill holes were completed, with very encouraging preliminary assay results. Jaguar expects to provide a resource estimate for the Faina/Pontal Zone consistent with NI 43-101 standards during the second quarter of 2010.

Available results are summarized in the table below:

Faina - Main Surface Drilling Results (cut-off = 1 g/t)
Hole	From (m)	To (m)	Grade (g/t)	Thickness (m)
FUH-27	126.00	135.00	4.40	9.00
FUH-28	137.40	146.40	2.73	9.00
FUH-29	116.50	121.50	3.33	5.00
FUH-30	68.00	69.00	17.25	1.00
FUH-34	132.50	136.50	5.76	4.00
FUH-37	192.00	204.00	10.71	12.00
FUH-38	179.50	185.50	4.06	6.00
	190.50	204.50	4.94	14.00
FUH-39	160.00	168.20	2.24	8.20
FUH-42	191.00	194.00	8.83	3.00
FUH-43	58.65	62.65	4.08	4.00
FUH-44	122.00	125.00	9.94	3.00
FUH-46	257.50	267.50	5.53	10.00
FUH-48	212.40	220.40	3.32	8.00
FUH-50	217.00	223.00	2.82	6.00
FUH-51	56.50	61.65	3.73	5.15
	114.40	116.40	7.29	2.00
FUH-54	295.90	298.90	5.89	3.00
FUH-55	175.70	180.70	3.43	5.00
	208.00	221.00	9.65	13.00
FUH-57	171.00	178.00	5.75	7.00
FUH-58	212.40	214.40	6.58	2.00
FUH-60	162.80	165.90	8.73	3.10
	253.00	255.00	14.18	2.00
FUH-65	64.25	69.25	5.40	5.00
FUH-66	77.00	82.00	6.81	5.00
FUH-69	46.60	48.60	4.84	2.00
FUH-73	7.15	12.90	5.92	5.75
FUH-74	42.30	53.30	15.10	11.00
FUH-75	206.50	211.50	5.84	5.00
	216.90	220.90	4.00	4.13
	284.00	287.00	4.66	3.00
FUH-76	6.00	17.00	4.40	11.00
FUH-77	23.50	30.50	7.07	7.00
FUH-83	302.50	310.50	4.50	8.00
FUH-86	56.70	64.90	3.14	8.20
FUH-87	174.50	177.50	2.43	3.00
FUH-91	275.60	277.80	2.70	2.20
FUH-92	285.80	288.30	3.00	2.50
Note: Not all holes represent true width.

Paciência

Paciência’s Santa Isabel Mine is an underground mine utilizing the “cut and fill” mining method and a treated tailings backfill system. Ore produced at the Santa Isabel Mine is transported to the adjacent 1,800 tpd CIP processing plant (the “Paciência Plant”).

During 2009, Paciência produced 66,671 ounces of gold at an average cash operating cost of US$502 per ounce compared to gold production of 24,364 ounces at an average cash operating cost of US$443 per ounce in 2008, the inaugural year for operations at Paciência. Mine production during 2009 totaled 665,243 tonnes at an average ROM grade of 3.59 grams per tonne compared to 283,245 tonnes at an average ROM grade of 3.29 grams per tonne during 2008. Ore processed through the mill during 2009 was 645,556 tonnes at an average feed grade of 3.42 grams per tonne compared to 277,431 tonnes at an average feed grade of 3.28 grams per tonne during 2008. The average plant recovery rate for 2009 was 93% as compared to 92% in 2008.

Jaguar acquired the original Paciência concessions (Paciência/Santa Isabel, Bahú and Marzagão) from AngloGold Ashanti in November 2003. In March 2004, TechnoMine completed a NI 43-101 technical report on Jaguar’s Iron Quadrangle properties, which included resources in these concessions. This technical report was revised in September 2004 and further revised in December 2004.

In 2005, Jaguar acquired rights from IAMGold with respect to properties located on approximately 2,307 acres in the aggregate in Rio Acima and Itabirito, Brazil. These concessions, known as the “Conglomerates Target”, are located approximately 12 kilometers east of the Paciência Plant and represent an opportunity for Jaguar to eventually further explore, upgrade and expand Paciência’s aggregate mineral resources and overall production. The property’s previous owners, the Anschutz Group and Western Mining, carried out exploration campaigns between 1985 and 1990, which included underground development and channel sampling, surface and underground diamond drilling and geological mapping. Based on their efforts, a pre NI 43-101 gold resource of approximately 110,000 ounces was estimated. Jaguar has been conducting exploration work at the Conglomerates Target since 2007.

During 2007, Jaguar successfully concluded a land swap agreement with another gold producer whereby Jaguar expanded the concession package at the Paciência mining complex to a contiguous 20 kilometers area adjacent to the São Vicente lineament. This land area was first mined in the 17th century by the Portuguese and the old works are highly visible, even from satellite photography. Jaguar’s exploration efforts today are along this same strike at depths deeper than the Portuguese could access without modern mining equipment.

In August 2007, TechnoMine completed a NI 43-101 compliant feasibility study for the Paciência Project Santa Isabel Mine and processing plant. Construction of the Paciência Plant began immediately after the completion of the feasibility study. Mining operations at the Santa Isabel Mine commenced in April 2008 as the new Paciência Plant entered the commissioning phase. On July 24, 2008, Paciência reported its first gold pour and operations were deemed commercial during the latter part of the fourth quarter of 2008 based on throughput rates.

During 2008, Jaguar conducted extensive underground development and exploration activities at the NW1 Target (Marzagão) and the Conglomerates Target (Palmital) to add additional tonnes vertically as well as horizontally in an effort to increase the resource base for the Paciência operation. As part of the exploration effort at these two targets, a total of 9,152 meters was drilled in 42 drill holes during 2008.

Overall, the grades and mineralization observed at the NW1 Target are similar to those measured at the Santa Isabel Mine. The access ramp, which is 5 meter x 5 meter in size, was completed early in 2008. A total of 2,393 meters of ramp and drifts have been developed at the NW1 Target, which is located two kilometers northwest of the Santa Isabel Mine. This cross cut is expected to intersect the second level of the Santa Isabel Mine during the second quarter of 2010.

During 2009, Jaguar continued its exploration program in the NW1 and Conglomerates Targets, as well as other targets, including drifts for mine development, in an effort to increase the resource base for the Paciência operation.

A total of nine surface drill holes totaling 1,450 meters were completed at the NW1 Target to better define mineralization detected during the underground drifting process. Results of these holes were quite positive and are summarized below. Underground activities continue with development, drilling and sampling of the drift’s face and roof.

NW1 - Main Surface Drilling Results (cut-off = 1 g/t)
Hole	From (m)	To (m)	Au Grade (g/t)	Thickness (m)
FMZ-039	86.15	88.15	3.50	2.00
	115.60	121.60	4.26	6.00
FMZ-040	94.50	98.50	2.04	4.00
	102.50	104.15	43.88	1.65
FMZ-041	127.20	128.20	2.35	1.00
FMZ-042	120.75	121.75	8.55	1.00
	148.05	150.05	2.86	2.00
FMZ-043	119.10	126.10	3.95	7.00
	129.10	130.10	2.72	1.00
FMZ-044	91.00	92.00	13.67	1.00
FMZ-045	110.75	112.75	1.12	2.00
	115.75	116.75	1.90	1.00
	137.80	138.80	2.17	1.00
Note: Not all holes represent true width.

During 2009, Jaguar also completed 2,812 meters of drilling in 13 drill holes at the Paciência Shear Zone between the NW1 Target and the Santa Isabel Mine. Drill hole results confirmed the continuity along strike of the structure between these two areas.

At the Bahú Target, located approximately 6.5 kilometers northwest of the Santa Isabel Mine, a review of the work done by previous owners (1983-1984) showed at least three potential levels of gold mineralization in a large area approximately 300-meter wide. The rocks in this area present visible evidence of hydrothermal alteration in a shear zone which hosts the Santa Isabel Mine, NW1, Chamé and other promising targets.

Thus far in the Bahú exploration drift, a total of 610 m2 of mineralization has been identified with an average grade of 6.18 grams per tonne. In addition, a separate mineralized zone estimated at 520 m2 with an overall average grade of 7.96 grams per tonne was intercepted to the south of the Bahú drift. Several other mineralized intersections were identified by the drilling effort. The following table provides the most significant intersections.

Bahú - Main Surface Drilling Results (cut-off = 1 g/t)
Hole	From (m)	To (m)	Grade (g/t)	Thickness (m)
FSV-01	118.95	121.60	11.18	2.65
FSV-09	49.10	53.06	13.53	3.96
FSV-11	66.45	68.25	7.96	1.80
	158.99	166.07	7.01	7.08
FBA-03	34.79	35.20	15.38	0.41
FBA-06	65.30	66.61	9.62	1.31
FBA-07	86.93	88.36	3.86	1.43
FBA-08	73.75	76.14	10.96	2.39
FBA-09	55.35	59.25	7.89	3.90
Note: Not all holes represent true width.

Additional analysis of this data is required to estimate the resource base. However, early indications suggest the target has structure, size and ore characteristics similar to the producing Santa Isabel Mine. During late 2009, Jaguar started a complementary diamond drill program at the Bahú Target. To date, a total of 1,272 meters of drilling in seven drill holes has been completed. Jaguar intends to conduct additional drilling in 2010 to estimate the resource base at this location.

A third area referred to as the Jatobá Target is located some 800 meters southeast of the Bahú Target. The Jatobá Target is of great interest given the historical surface mining which has taken place above the identified structure. Despite the surface disruption, channel sampling yielded results ranging between 1.00 grams per tonne and 9.00 grams per tonne over the mass of microcrystalline quartz, which is compatible with the mineralization of the trend. The soil sampling grid that covers this area revealed several anomalies, indicating the existence of other mineralized levels that could potentially be surface mined. During 2010, Jaguar intends to conduct a detailed exploration program, which will include trenching and diamond drilling, with the goal of estimating mineral resources.

At the Palmital Mine, Jaguar continues with underground development at level three to expose the conglomerate horizon as well as working on ramp development to access level four. Channel samples carried out to date confirm the grades and the continuity defined during the surface and underground drilling campaigns. During the fourth quarter of 2009, Jaguar started a complementary underground drilling program to estimate the resource potential in one known 300-meter section and trace the geometry of the conglomerate reef further along the strike.

Jaguar controls other targets along the Paciência Shear Zone, which shows mineralization similar to the Santa Isabel Mine. During late 2009, Jaguar initiated survey activity to evaluate these targets, which are known as Monges, Ajuda, Quati and Viana targets. Jaguar expects to carry out trenching and drilling to further evaluate these targets during 2010.

Two additional targets in the Paciência concession base where Jaguar is active include the Banded Iron Formation (“BIF”) North Target and the Urubu Target. Both targets are part of the Rio de Peixe property, which is located approximately 25 kilometers from the Paciência Plant.

At the BIF North Target, a total of 7,025 meters of drilling in 70 drill holes was completed in 2009. Jaguar began the mineral resource estimate process for this target during the fourth quarter of 2009. During the current exploration campaign, new gold mineralization was found approximately 700 meters from the BIF North Target. Jaguar has carried out trenching in this 250-meter area with positive results and detailing work is underway. The table below presents the most significant drill results for the BIF North Target.

Rio de Peixe BIF North - Main Surface Drilling Results (cut-off = 1 g/t)
Hole	From (m)	To (m)	Grade (g/t)	Thickness (m)
FRB-002	21.95	24.95	1.14	3.00
	30.95	34.95	1.30	4.00
FRB-003	31.10	42.10	1.17	11.00
FRB-004	64.50	67.65	2.80	3.15
FRB-005	0.00	10.75	1.08	10.75
	13.00	30.00	0.71	17.00
FRB-006	0.00	11.00	4.26	11.00
	19.00	27.00	1.81	8.00
FRB-008	20.45	28.50	1.88	8.05
FRB-009	35.70	41.70	1.54	6.00
FRB-011	29.50	38.50	1.72	9.00
FRB-013	6.10	17.00	0.88	10.90
	26.00	36.05	3.29	10.05
FRB-014	13.00	22.00	1.28	9.00
FRB-015	20.00	30.00	1.31	10.00
	44.00	47.00	2.49	3.00
FRB-016	59.00	69.00	0.92	10.00
FRB-017	14.20	20.30	1.03	6.10
FRB-019	18.60	31.85	1.54	13.25
FRB-020	21.60	27.60	4.81	6.00
FRB-021	19.00	44.00	2.65	25.00
	50.00	69.00	0.89	19.00
FRB-025	10.00	20.00	1.48	10.00
	32.00	38.00	1.14	6.00
FRB-028	16.70	20.70	1.96	4.00
FRB-029	44.80	52.00	1.81	7.20
FRB-034	8.60	17.00	2.95	8.40
FRB-035	0.00	22.00	4.37	22.00
FRB-037	98.00	103.10	3.28	5.10
FRB-043	24.45	31.00	1.15	6.55
	34.00	38.00	1.57	4.00
FRB-044	24.00	31.00	1.47	7.00
FRB-045	42.00	47.00	2.30	5.00
FRB-046	71.00	77.00	2.22	6.00
FRB-047	62.30	66.00	2.24	3.70
FRB-055	43.00	53.00	10.60	10.00
FRB-056	6.00	16.00	3.77	10.00
	24.00	28.00	18.40	4.00
	43.00	71.00	1.01	28.00
FRB-063	37.00	42.00	1.97	5.00
FRB-064	46.00	51.00	1.00	5.00
Note: Not all holes represent true width.

The area’s north and south extensions have been extensively covered by soil geochemistry. Several anomalies have been identified and noted for the work in progress.

A new mineralized area referred to as the Urubu Target, located approximately 700 meters southeast of the BIF North Target, contains an estimated 350 meters of mineralized horizons along the strike. Samples taken from the outcrops as well as trenching results are summarized below.

Urubu Target	Outcrop	Trench TRB033	Trench TRB023
Mineralized Horizons	8.00 g/t x 2.00 m	1.05 g/t x 8.00 m	10.35 g/t x 4.00 m
	6.40 g/t x 2.00 m	1.51 g/t x 5.00 m	0.52 g/t x 4.00 m
	1.00 g/t x 3.00 m	1.12 g/t x 4.00 m	5.63 g/t x 4.00 m
		0.87 g/t x 2.00 m	3.45 g/t x 6.00 m

This is a hydrothermalized zone characterized by sericite carbonated schists with three to four mineralized levels, apparently continuous and located near a BIF horizon that could be an extension of the same formation hosting the BIF North Target. Additional drilling and analysis to determine if these zones are linked continues.

Sabará

Sabará Zone A and Serra Paraíso are above ground mines from which oxide ore is processed at a 1,500 tpd carbon-in-column (“CIC”) plant (the “Sabará Plant”) located adjacent to the Zone A Mine. Sabará is a limited life, non-core asset.

During 2009, Sabará produced 6,360 ounces of gold at an average cash operating cost of US$680 per ounce compared to 18,199 ounces at an average cash operating cost of US$667 in 2008.

After a strategic review of the Sabará operation, which was completed in early-2010, Jaguar’s management deemed this operation to be a non-core facility and recorded a charge against earnings of approximately $3.5 million during the fourth quarter of 2009. The charge represented the current book value of the assets less an estimate of the salvage value of the equipment. Management continues to assess the alternatives with respect to the Sabará facility. These alternatives include seeking a buyer for the equipment or relocating the Sabará Plant to a new site which has considerable oxide resources.

In 2003, Jaguar commissioned TechnoMine to produce studies of its Sabará property. Jaguar completed a feasibility study on the Zone B Mine of the Sabará property in June 2003.

In July 2003, Jaguar commenced pre-mining operations at the Sabará Zone B Mine. In December 2003, Jaguar began pouring gold from the Sabará Zone B Mine at the Caeté Plant. Mining operations at the Sabará Zone B Mine concluded in the fourth quarter of 2005.

MSOL and AngloGold Ashanti owned adjacent properties, known together as Lamego, in the Sabará property area of the Iron Quadrangle region in Brazil. On November 21, 2003, MSOL entered into an agreement with an AngloGold Ashanti subsidiary, Mineração Morro Velho Ltda. (“Morro Velho”) regarding exploration at the adjacent properties. AngloGold Ashanti applied for concession of mining rights for sulfide mineral resources on its property, and MSOL received concessions for oxide mineral resources on its property. Through Morro Velho, AngloGold Ashanti granted to MSOL the right to explore for oxide resources on AngloGold Ashanti’s Lamego property, and in exchange MSOL granted to AngloGold Ashanti the right to explore for sulfide resources on MSOL’s Lamego property. On November 21, 2007, Jaguar and AngloGold Ashanti entered into an agreement, pursuant to which Jaguar transferred its interests in the Lamego property (valued at US$8,060,560) to AngloGold Ashanti in consideration of (i) satisfaction of the US$350,000 note payable related to the purchase of quota shares of MTL, (ii) elimination of US$153,960 payable in connection with leaching services provided by AngloGold Ashanti, and (iii) a reduction in future net smelter royalty payments for the Paciência Mine equal to US$7,556,600 (net smelter royalty payments are generally due on a monthly basis on a sliding scale from 1.5% to 4.5% on gross revenues from gold produced, the percentage of such royalty being determined based on the US$ price of gold at a given time).

In January 2005, Jaguar completed a feasibility study on the remaining gold oxides at Sabará, which included Zones A and B and Lamego, and commissioned Scott Wilson RPA to audit the feasibility study and issue a technical report in accordance with NI 43-101. Scott Wilson RPA’s report was issued on February 17, 2006.

In December 2005, Jaguar began crushing ore from Zone A at the Sabará Plant.

During the third quarter of 2007, Jaguar concluded drilling activities at the Serra Paraíso Target, an oxide zone near the Sabará mining and processing complex. After carrying out metallurgical recovery tests and completing its analysis of the Serra Paraíso Target drill program, Jaguar initiated stripping operations at the Serra Paraíso mineralized zone and started moving its ore to the Sabará Plant. During 2008, management reduced mining operations in the Zone A Mine in favour of higher grade ore from the Serra Paraíso Target.

Caeté Project

The Caeté Project consists of two mines, the Roça Grande Mine and the Pilar Mine. Ore from both mines will be processed at the new CIP processing plant (the “Caeté Plant”), which is scheduled to be commissioned during the second quarter of 2010.

In November 2005, Jaguar entered into a mutual exploration and option agreement with Vale with respect to seven concessions, known as the Roça Grande concessions, located on 9,500 acres of highly prospective gold properties along 25 kilometers of a key geological trend in the Iron Quadrangle. The contract between Jaguar and Vale provided Jaguar with the exclusive right over a twenty-eight month period beginning November 28, 2005 to explore and conduct feasibility studies and to acquire gold mining rights in the Vale properties if the studies supported economical mining operations. The contract granted corresponding rights for Vale to explore the Jaguar property for iron and acquire mineral rights in the property during a three-year period. In November 2007, Jaguar notified Vale of its intent to exercise the option to acquire all seven Roça Grande concessions. The legal procedures necessary to execute the final transfer agreement in connection with the acquisition of the Roça Grande concessions started in 2008 and are expected to conclude by the second quarter of 2010.

During 2007, a number of key events occurred with respect to the expansion of the Caeté Project, including:

•

Jaguar commissioned TechnoMine to prepare technical studies with respect to the expansion,

•

TechnoMine completed a scoping study on the Caeté Project,

•

Jaguar received the Implementation License (LI) for the Caeté Project,

•

Jaguar secured the power contract for a 2009 start-up of the Caeté Project, and

•

TechnoMine completed a NI 43-101 technical report on the Caeté Project resources.

In September 2008, expansion plans at the Caeté Project continued as TechnoMine completed the NI 43-101 feasibility study technical report. Based on the feasibility study, processing facilities will include crushing and grinding plants, followed by a gravity separation circuit, a flotation plant (10% mass recovery and 90% gold recovery), whose concentrate feeds a leaching and CIP-ADR (carbon-in-pulp adsorption/desorption/recovery) plant, after a regrinding circuit. Cyanidation of only about 10% of the total mill feed mass will be required, therefore minimizing environmental costs. The Caeté Plant will process the sulfide ore from Pilar, Roça Grande, and other nearby targets. Jaguar intends to use a combination of “cut and fill” and “selective stoping” methods at both mines, which contemplates a treated tailings backfill system.

By the end of the third quarter in 2008, all necessary permits and licenses for the construction and commissioning phase had been received and Jaguar initiated civil works for the milling and treatment circuits.

In November 2008, due to the retraction in gold prices, financial markets and worldwide equity values, including the gold sector, Jaguar temporarily suspended development of the Caeté Project pending an assessment of market conditions and the availability of capital to move the project forward. Consistent with the decision to suspend the development of the Caeté Project, underground work at the Roça Grande Mine was temporarily suspended; however, development at the Pilar Mine continued.

In December 2008, Jaguar began transporting ore by truck from the Pilar Mine to the Paciência Plant to supplement the ore being supplied from Paciência’s Santa Isabel Mine. Jaguar expects to continue this practice through early 2010, at which time Pilar ROM will be diverted to the newly built Caeté Plant. Drawing on the ore supplied from the fully-developed Pilar Mine has allowed Jaguar to train Caeté personnel under actual operating conditions and refine mining procedures, which should streamline start-up of the mine once the Caeté Plant is completed.

In March 2009, as gold prices, financial markets and worldwide equity values started to stabilize, Jaguar completed a Cdn.$86.3 million equity offering, the proceeds of which were primarily used to restart development and construction at Caeté. During 2009, Jaguar focused on the implementation and construction of the Caeté Project, which is on-schedule and on-budget on a local currency basis (R$). All permits, licenses and power contracts necessary for mine development and construction have been received.

Detailed engineering for the Caeté Project is complete, on-site support facilities are 94% complete and all components for the Caeté Plant are on-site. Overall, the implementation of the Caeté Project is 85% complete with civil works being 90% complete. The Pilar Mine, which will be the initial ore source for the Caeté Plant, is fully commissioned and producing ore today. Commissioning of the Caeté Plant is expected to commence during the second quarter of 2010.

Mine development at the Roça Grande Mine is complete and the Pilar Mine is developed and producing ore.

During the fiscal year ended December 31, 2009, Jaguar spent approximately US$32.5 million developing the Caeté Project. In 2010, the Company estimates capital expenditures will be approximately US$59.2 million, of which a portion represents working capital and costs capitalized for the start of operations. Gold production for the Caeté operation in 2010 is estimated to be between 30,000 to 35,000 ounces at an average cash operating cost of US$500-510 at an assumed exchange rate of R$1.75 per US$1.00.

On the exploration front and as part of Jaguar’s effort to identify and add to its gold resource base at the Caeté Project, 75,000 meters of additional drilling are planned over the next few years on targets near the Caeté Plant, including the Catita II, Serra Paraíso, Boa Vista, Lavra Velha and Carrancas targets.

At the Catita II Target, which was previously mined in the mid-1900’s, Jaguar recently completed the second phase of a drill program that included 13,810 meters of drilling in 34 drill holes. Jaguar completed a preliminary resource estimate for this concession. Given the positive results, Jaguar has decided to continue the drilling program during 2010 to further increase resources. The mineralization is open laterally and at depth.

At the Serra Paraíso area, which includes the Serra Paraíso and Lavra Velha targets, Jaguar completed a drill program to evaluate the refractory sulfide ore. Drill results from several holes confirm the continuity of the mineralization to at least 200 meters from the oxide mining pit. The sulfide resource estimate process began in 2010. Management believes this is a mid-range target not likely to be developed in the next three years.

The Lavra Velha Target is located 11 kilometers southwest of the Caeté CIP plant currently under construction. During 2009, Jaguar drilled a total of 8,350 meters in 46 drill holes at this target. The table below presents the most significant drill results.

Lavra Velha - Main Surface Drilling Results (cut-off = 1 g/t)
Hole	From (m)	To (m)	Grade (g/t)	Thickness (m)
FLV-001	57.90	62.15	6.53	4.25
	78.75	79.70	15.67	0.95
FLV-003	44.05	47.05	2.70	3.00
FLV-005	38.15	45.20	2.10	7.05
FLV-006	48.40	49.40	4.25	1.00
FLV-007	22.35	27.15	6.32	4.80
	49.05	50.35	22.00	1.30
FLV-011	9.50	10.50	5.13	1.00
FLV-014	19.50	23.90	2.45	4.40
FLV-018	22.60	29.45	3.12	6.85
	45.01	46.00	6.55	0.99
FLV-020	72.20	74.60	3.25	2.40
	87.15	90.05	4.18	2.90
FLV-023	81.50	83.80	9.21	2.30
	87.95	89.20	7.48	1.25
	95.80	99.10	4.51	3.30
FLV-024	19.45	23.55	1.89	4.10
FLV-025	80.80	81.80	8.78	1.00
FLV-029	68.00	70.15	6.60	2.15
FLV-030	98.45	103.10	2.38	4.65
FLV-033	50.10	51.40	4.75	1.30
FLV-035	95.95	100.85	1.72	4.90
FLV-036	58.80	66.45	3.26	7.65
FLV-040	40.25	41.20	4.30	0.95
FLV-041	33.50	35.50	27.13	2.00
FLV-045	28.25	32.10	2.01	3.85
FLV-048	105.00	107.80	9.47	2.80
FLV-049	71.15	73.30	3.00	2.15
	75.20	77.15	6.09	1.95
FLV-050	114.55	118.25	3.27	3.70
FLV-053	107.10	109.00	5.13	1.90
FLV-055	83.55	84.55	3.60	1.00
FLV-056	36.05	37.10	3.17	1.05
FLV-057	74.40	77.65	4.31	3.25
FLV-059	62.55	65.45	6.25	2.90
FLV-061	256.25	258.25	2.43	2.00
FLV-065	89.70	90.65	6.13	0.95
FLV-066	67.75	68.65	7.08	0.90
FLV-067	46.80	48.75	2.94	1.95
FLV-076	125.55	126.50	4.97	0.95
FLV-078	78.65	86.35	4.04	7.70
FLV-079	116.20	120.05	4.80	3.85
	153.55	154.75	7.67	1.20
FLV-080	127.00	129.10	6.60	2.10
FLV-082	169.00	173.90	4.04	4.90
FLV-086	65.85	66.80	3.85	0.95
FLV-087	132.15	142.05	3.63	9.90
	145.05	147.00	4.00	1.95
FLV-089	157.65	160.55	1.96	2.90
FLV-090	229.15	231.30	2.24	2.15
	243.10	245.10	2.47	2.00
FLV-091	280.55	283.65	4.98	3.10
FSP-002	34.10	40.80	5.38	6.70
FSP-004	33.30	35.45	5.95	2.15
FSP-005	57.75	62.75	2.20	5.00
FSP-006	11.55	13.55	2.58	2.00
FSP-009	11.55	14.70	2.04	3.15
Note: Not all holes represent true width.

Drilling has confirmed that the mineralization in the area consists of lenses of various dimensions, which demonstrates significant continuity along the plunge. Jaguar is currently preparing a geological model to estimate the sulfide resources.

The Boa Vista Target is located 15 kilometers and 20 kilometers from the Sabará Plant and the Caeté Project, respectively. Jaguar initiated preliminary exploration activities in this target. Channel sample results were encouraging. The majority of the ore at the Boa Vista Target is oxide and could be treated at the Company’s Sabará Plant. Jaguar intends to begin a drill program in this target in the near future. The Boa Vista Target contains 80,000 ounces of pre NI 43-101 mineral resources. The property was acquired by the Company from Vale.

In the same concession area, Jaguar identified another target known was Boa Vista II Target and conducted cleaning and outcrop sampling. Gold intersections at the channels were encouraging. As result, Jaguar is conducting trenching and surface drilling to evaluate the potential in the area.

At the Água de Sapo Target, trenching along the strike of the mineralization was conducted during 2009. Drilling at this target is currently underway.

In the Carrancas Target, reconnaissance and drilling of old underground workings (galleries) is taking place. Over 100 galleries have been identified in the area, several of which show evidence of past gold mining. The mineralization occurs in BIF lenses with thicknesses generally less than one meter and grades between 1.00 grams per tonne to 4.00 grams per tonne with some samples showing up to 40.00 grams per tonne. Jaguar plans to begin drilling at the Carrancas Target during the second half of 2010.

During 2009, Jaguar completed 8,650 meters of drilling for a total of 53 drill holes in the exploration concessions that are part of the Caeté Project mining complex.

Gurupi Project

On December 2, 2009, Jaguar acquired 100 percent of MCT for US$42.5 million, which includes a US$3.5 million adjustment to reflect the fair value for accounting purposes, from Companhia Nacional de Mineracão (“CNM”), an indirect, wholly-owned subsidiary of Kinross. MCT holds all of the mineral licenses for the Gurupi Project, a gold project located in the state of Maranhão, Brazil. In addition, Kinross has granted a right of first refusal to Jaguar on an adjacent exploration property.

Jaguar satisfied the purchase price by issuing 3,377,354 Jaguar common shares to CNM, representing approximately 4.07 percent of Jaguar’s outstanding common shares (on a non-diluted basis) as of the date of the acquisition.

No commercial production of gold has taken place on the Gurupi property. In 2005, AMEC plc (“AMEC”) completed a feasibility study for Kinross, which yielded measured and indicated gold resources of 35,884,000 tonnes at an average grade of 1.35 grams per tonne totaling 1,559,800 ounces.

On December 7, 2009, Jaguar filed on SEDAR a NI 43-101 statement of resources technical report on the Gurupi Project. The technical report was prepared by PAH and stated measured and indicated gold resources of 70,159,952 tonnes at an average grade of 1.12 grams per tonne totaling 2,516,326 ounces and inferred gold resources of 18,821,168 tonnes at an average grade of 1.02 grams per tonne totaling 618,595 ounces.

Immediately after the acquisition, Jaguar commissioned AMEC to prepare a revised feasibility study for the Gurupi Project, which is expected to be completed early in the second quarter of 2010. AMEC’s revised feasibility study will be based on PAH’s statement of resources technical report and will utilize alternative stripping ratios and pit designs, as well as other factors including gold price assumptions.

Pedra Branca Project

In March 2007, Jaguar entered into a joint venture agreement with Xstrata to explore the Pedra Branca gold project (the “Pedra Branca Project”) in the State of Ceará in northern Brazil (the “Joint Venture Agreement”). Under the Joint Venture Agreement, a new company or companies will be formed to mine economic gold deposits. Jaguar paid an aggregate fee of US$150,000 over the initial two year period in exchange for an option to hold a 51 percent ownership interest in the new company or companies by investing an aggregate of US$3.85 million in exploration expenditures within the following four years from the execution of the agreement. Jaguar is subject to annual exploration expenditure targets for each year in which it maintains such option. Furthermore, Jaguar may increase its ownership interest in certain gold deposits to 60 percent through an additional investment of US$3 million by the fifth anniversary of the Joint Venture Agreement, subject to the rights of Xstrata to return to their 49 percent interest through additional contributions to the joint venture for certain properties which have gold deposits of two million ounces or more. Certain properties within the Pedra Branca Project that are dominated by base metal deposits, or which have gold deposits of less than one million ounces, may be held in different ownership percentages and be subject to different conditions, or removed from the scope of the Joint Venture Agreement.

The Pedra Branca Project has mineral rights to 43 concessions totaling approximately 182,000 acres in a 65-kilometer shear zone. The concessions are located in and around municipal areas with good infrastructure.

Xstrata carried out a preliminary exploration program that covered only 25 kilometers of the shear zone. The program identified 10 kilometers of soil anomalies, including two large anomalies referred to as Coelho and Mirador targets. For the most part, the mineralized formations uncovered by Xstrata’s preliminary efforts are open along the extremity and lead both companies’ geologists to believe the area has significant potential for gold mineralization, which could include the presence of both oxide and sulfide formations in large structures.

Jaguar is currently conducting a comprehensive exploration program at the Pedra Branca Project, including extensive geological mapping, drainage and soil geochemistry, detailing of zones with anomalies, trenching and diamond drilling. During 2007 and 2008, Jaguar completed an exploration drill program to test the continuity of the mineralization laterally and at depth. To-date, 101 drill holes totaling 9,885 meters have been completed.

During the second half of 2009, Jaguar carried out geological reconnaissance in the concession area, trenching and soil geochemistry in preparation for further drilling. Jaguar also initiated preliminary resource estimate work for the Mirador, Coelho and Queimada Targets. Resource estimates consistent with NI 43-101 standards are planned to be completed in 2010.

During the fourth quarter of 2009, the Company developed a new trenching plan incorporating a retro-excavator. The current plan is to perform approximately 4,000 m of trenching over soil anomalies that show grades over 0.2 g/t in the Mirador-Coelho-Queimada region, the area deemed to have the greatest potential.

Below is a summary of the activities carried out during 2009 at the Pedra Branca Project.

Activity	2009
Activity	m	samples
Stream sediment sampling		685
Soil sampling	43,200	1,595
Rock sampling / Chip		520
Trenching	7,770	2,130

Contracts with AngloGold Ashanti

On November 21, 2003, MSOL entered an agreement with AngloGold Ashanti’s subsidiary, Morro Velho, pursuant to which MSOL is provided with certain ore treatment services at the Queiróz plant of AngloGold Ashanti (“Queiróz Plant”), and certain gold refining and marketing services. The treatment operations began in the first quarter of 2006. MSOL agreed to deliver for treatment a certain number of metric tons of gold each year for four years starting in January 2006 and ending in 2009. If AngloGold Ashanti fails to treat the scheduled amount of ore, it will pay a penalty to MSOL. AngloGold Ashanti will provide gold refining services and each year will refine the amount of gold agreed upon by the parties by December 30th of the preceding year. AngloGold Ashanti further agreed to market MSOL’s gold. As a fee for the refining and marketing aspects of the contract, MSOL will pay one percent of the gross income from sales resulting from the refining and marketing services. The agreement with respect to the treatment services expired on December 31, 2009, and with respect to the refining and marketing services until 2017, or a previous date if the sources of natural resources are exhausted. MSOL may terminate the agreement if it determines through a mineral survey that the exploitation of certain specified deposits is not feasible. In January 2007, Jaguar notified AngloGold Ashanti that it elected not to exercise its rights to process non-refractory ore at the Queiróz Plant. This decision was based on an internal assessment of other production alternatives, which Jaguar has determined should generate a greater level of profitability in the future by processing available ore through a Jaguar-owned facility.

On November 21, 2003, Jaguar acquired its Paciência - Santa Isabel, Catita, Juca Vieira (Catita II), Bahú, Marzagão (NW1 Target), Camará and Morro do Adão properties in the Iron Quadrangle region from AngloGold Ashanti. Under the terms of such transaction, AngloGold Ashanti has the right, following exhaustion of the reserves developed from the known resources at the Paciência - Santa Isabel, Juca Vieira, Catita, Bahú, Marzagão, Camará and Morro do Adão properties, to develop a full valuation of any of such properties, including drilling works. If the valuation identifies the existence, in one or more areas, of measured and indicated resources of a minimum of 750,000 ounces, AngloGold Ashanti will have the right to reacquire up to 70% of any of such properties at an ascribed value of US$10.50 per ounce of the new measured and indicated resources.

AngloGold Ashanti’s rights pertain to only three of the twelve concessions at Jaguar’s Paciência property (Paciência-Santa Isabel, Bahú and Marzagão) and four concessions at the Sabará property (Catita, Catita II, Camará and Morro do Adão). The mineralization potential at Sabará is not considered substantial. These seven concessions represent only 16% of the hectares of Jaguar’s concession base in Minas Gerais. At this time, none of Jaguar’s resources, operations and projections for the next five years are impacted by this provision nor expected to be in the next several years. Moreover, any improvements made to the properties, such as the costs of underground development or above-ground processing plants Jaguar has made, are not included under the agreements signed with AngloGold Ashanti. Given these substantial costs, management believes the likelihood of AngloGold Ashanti exercising their right to reacquire any of the properties which Jaguar is actively mining from today, is minimal.

Laboratory

In 2005, Jaguar completed the construction of its own testing laboratory adjacent to the Caeté Plant. Jaguar’s on-site testing laboratory expedites process control and certain exploration testing and alleviates some of the delays experienced by excessive demand on the independent laboratories due to surging mining activity. Jaguar also utilizes the services of a local, independent laboratory.

Corporate Transactions

On December 20, 2005, MTL obtained a secured financing facility from RMB International (“RMB”) in an amount of up to US$14,000,000 (the “Turmalina Facility”) which was used primarily to finance the construction and start-up of the Turmalina Mine. In connection with the Turmalina Facility, (i) MTL and MSOL provided security interests in the cash flow, equipment and other assets of Turmalina and Sabará operations and a pledge, (ii) Jaguar issued a guaranty of MTL’s obligations under the Turmalina Facility, and (iii) Jaguar issued 1,093,835 unlisted warrants to the Turmalina Facility lenders (which had an exercise price of Cdn.$4.50 and an expiry date between June 30, 2009 and March 31, 2010 and which have all been exercised), 350,000 listed warrants to the lenders’ agent (all of such warrants were exercised at a price of Cdn.$4.50), and 300,000 unlisted warrants to Auramet Trading, LLC in its capacity as an advisor to Jaguar with respect to the Turmalina Facility (all of such warrants were exercised at a price of Cdn.$3.90), in each case with each warrant entitling the holder to purchase one common share of Jaguar. In the fourth quarter of 2005, Jaguar entered into a forward sales contract agreement with the lender under the Turmalina Facility to implement a risk management strategy to manage commodity price exposure on gold sales. In September 2007, Jaguar received an amendment to the loan facility agreement from RMB, which allowed Jaguar to close the forward sales contracts. In March 2008, Jaguar paid RMB US$9.8 million plus US$181,000 accrued interest to repay the Turmalina Facility agreement in full, paid RMB US$22.1 million to close the forward sales contracts and closed the forward purchase contracts realizing a gain of US$7.4 million, thereby effectively reducing the net loss of the forward contracts to US$14.8 million (of which US$14.5 million was accrued as of December 31, 2007). No additional charges were realized during 2009 and 2008 for the forward contracts.

On March 27, 2006, Jaguar completed a public offering in Canada and private placement offering in the United States of 10,100,000 common shares at a price of Cdn.$5.25 pursuant to an Underwriting Agreement dated March 9, 2006 among Jaguar and Blackmont Capital Inc. (“BCI”), BMO Nesbitt Burns Inc. (“BMO”), RBC Dominion Securities Inc. (“RBC”), TD Securities Inc. (“TD Securities”) and Paradigm Capital Inc. as underwriters. The underwriters received a cash commission equal to 5.5 percent of the gross proceeds of the offering, underwriter options to purchase up to 1,335,000 common shares at a price of Cdn.$5.25, which they exercised at the closing on March 27, 2006, and compensation warrants to purchase up to 343,050 common shares at a price of Cdn.$5.25 with an expiry date of March 27, 2008. As of December 31, 2007, 198,969 common shares were purchased as a result of the exercise of such compensation warrants. During 2008, 144,081 compensation warrants were exercised and at December 31, 2009 no warrants were outstanding.

On February 1, 2007, Jaguar’s Board of Directors adopted a shareholder rights plan (the “Shareholder Rights Plan”) which is intended to ensure the fair treatment of shareholders in connection with any take-over bid for common shares. The Shareholder Rights Plan was not being adopted in response to any proposal to acquire control of Jaguar. The Shareholder Rights Plan seeks to provide shareholders with adequate time to properly assess a take-over bid without undue pressure. It also is intended to provide the Board with more time to fully consider an unsolicited take-over bid and, if considered appropriate, to identify, develop and negotiate other alternatives to maximize shareholder value. The rights issued under the Shareholder Rights Plan will become exercisable only when a person, including its affiliates and associates and persons acting jointly or in concert with it, acquires or announces its intention to acquire beneficial ownership of common shares which when aggregated with its current holdings total 20 percent or more of the outstanding common shares (determined in the manner set out in the Shareholder Rights Plan) without complying with the “Permitted Bid” provisions of the Shareholder Rights Plan or without approval of the Board. Under the Shareholder Rights Plan those bids that meet certain requirements intended to protect the interests of all shareholders are deemed to be “Permitted Bids”. Permitted Bids must be made by way of a take-over bid circular prepared in compliance with applicable securities laws and, among other conditions, must remain open for at least sixty (60) days. In the event a take-over bid does not meet the Permitted Bid requirements of the Shareholder Rights Plan, the rights will entitle shareholders, other than the person making the take-over bid and its affiliates and associates and persons acting jointly or in concert with it, to purchase additional common shares at a substantial discount to the market price of the common shares at that time. The TSX accepted notice of the Shareholder Rights Plan and the shareholders ratified the adoption of the Shareholder Rights Plan on May 10, 2007.

On February 27, 2007, Jaguar filed a final short form prospectus to issue up to 340,090 common shares to the holders of 5,398,250 common share purchase warrants, upon early exercise of the warrants. Each warrant entitled the holder thereof to acquire one common share of Jaguar at a price of Cdn.$4.50 at any time prior to 5:00 p.m. (Eastern Standard Time) on December 31, 2007. Each warrant entitled the holder thereof to acquire an additional 0.063 of one common share if such holder exercised his or her warrants during the thirty (30) day early exercise period commencing on February 28, 2007, and ending at 5:00 p.m. (Eastern Standard Time) on March 30, 2007. The additional 0.063 of a common share issued upon the exercise of the warrants during the early exercise period represented a value of Cdn.$0.43 based on the closing price on February 26, 2007 of Cdn.$6.79. If at least 66 2/3 percent of the warrants outstanding on February 28, 2007 were exercised at or before the early warrant expiry time, each warrant that had not been so exercised during the early exercise period (except in limited circumstances with respect to U.S. warrant holders) would be exchanged, without any further action on the part of the warrant holder, including payment of the exercise price thereof or any other additional consideration, for a fraction of a common share equal to: (A) one plus (B) 0.063 multiplied by 50 percent minus (C) Cdn.$4.50 divided by the lesser of (i) the volume weighted average trading price of the common shares on the TSX for the five trading days ending on the early exercise expiry date, and (ii) the closing price of the common shares on the early exercise expiry date. As a result of the early exercise program described in this paragraph, 4,818,852 warrants were exercised resulting in the issuance of 5,122,428 common shares to the warrant holders. No agency fee was paid by Jaguar in connection with the distribution of the early exercise shares or the exchange shares being qualified under the short form prospectus. BCI acted as financial advisor and soliciting dealer manager to Jaguar in connection with the issuance of the early exercise shares and the exchange shares. Jaguar paid BCI a financial advisory fee of 3 percent of the exercise price for each warrant that is submitted for exercise in connection with the early exercise and automatically exchanged for exchange shares. The early exercise warrant transaction was approved by shareholders on February 27, 2007 and by warrant holders on February 28, 2007.

On March 22, 2007, Jaguar closed a private placement of 75,000 units. The units were sold by a syndicate led by TD Securities and included BCI, BMO and RBC. The underwriters exercised their option to purchase an additional 15 percent of the number of the units offered to cover over-allotments, resulting in aggregate gross proceeds of Cdn.$86.3 million (US$74.5 million) from the sale of 86,250 units. The units were comprised of a secured note in the principal amount of Cdn.$1,000, bearing a coupon of 10.5 percent, payable semi-annually in arrears, and 25 common shares of Jaguar. A total of 2.16 million new shares were issued relating to the private placement. The notes were listed on the TSX on July 26, 2007, under the symbol “JAG.NT”. On October 20, 2009, Jaguar commenced an offer to purchase all Cdn$86.25 million aggregate principal amount of the outstanding notes at a purchase price of 105% of the principal amount thereof plus accrued and unpaid interest to, but excluding, the date of payment on the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement. Jaguar also solicited consents to amend the indenture governing the notes in order to revise the indenture to permit Jaguar to redeem any Notes not tendered to the offer to purchase at any time following the amendment to the indenture at a price equal to 102% of the principal amount thereof plus accrued but unpaid interest. The indenture originally provided that unless there was a change of control of Jaguar, Jaguar could not redeem the notes until March 23, 2010, at which time the notes would be redeemable. In order for the amendments to be effective, Jaguar was required to receive consents from noteholders who held at least 66 2/3% of the aggregate principal amount of the notes. When the offer to purchase and consent solicitation expired on November 17, 2009, Cdn.$85,372,000 (or 99%) of the notes and the corresponding consents were validly tendered or delivered. On November 18, 2009, Jaguar notified the depositary under the offer and the trustee under the indenture that it intended to purchase all of the notes tendered to the offer as permitted under the Indenture, as amended. On November 26, 2009, Jaguar announced it had redeemed all the remaining Cdn.$878,000 aggregate principal amount of the notes that were not purchased pursuant to the offer to purchase.

On July 23, 2007, Jaguar common shares began trading under the symbol “JAG” on the NYSE Arca.

On February 21, 2008, Jaguar issued 8,250,000 common shares at a price of Cdn.$13.40 per share for proceeds of Cdn.$110,550,000. The offering price was determined by negotiation between Jaguar and a syndicate led by RBC and included TD Securities, BCI, BMO, and Raymond James Ltd. Jaguar granted the underwriters an over-allotment option, exercisable in whole or in part up to 30 days following the closing of the transaction, to purchase up to an additional 1,237,500 common shares at a price of Cdn.$13.40 per common share, which would have increased the aggregate proceeds of the offering to Cdn.$127,132,500 if the over-allotment option had been fully exercised. The over-allotment option was not exercised and no additional shares were issued subsequent to the closing.

On November 10, 2008, Jaguar received approval from the TSX for a normal course issuer bid (“NCIB”) to purchase up to the lesser of 3,110,114 common shares, being 5% of the issued and outstanding common shares at that time, or the number of common shares equal to a maximum aggregate purchase price of Cdn.$7,000,000. The NCIB commenced on November 13, 2008 and terminated on November 12, 2009. Jaguar did not purchase any common shares under the NCIB.

On March 2, 2009, Jaguar issued 13,915,000 common shares at a price of Cdn$6.20 per share for gross proceeds of Cdn.$86,273,000. The offering was underwritten by a syndicate of underwriters led by RBC and BCI and included TD Securities and M Partners Inc. The offering was comprised of 12,100,000 common shares and an additional 1,815,000 common shares, which Jaguar granted the underwriters to cover over-allotments and for market stabilization purposes.

On July 6, 2009, trading of Jaguar common shares was transferred from the NYSE Arca to the NYSE under the symbol “JAG”.

On September 15, 2009, Jaguar closed a private offering of US$150,000,000 aggregate principal amount of 4.50% senior convertible notes due 2014. J.P. Morgan Securities Inc. acted as Sole Book-Running Manager and Jefferies & Company, Inc. acted as Co-manager for the offering. Jaguar granted the initial purchasers in the offering a 30-day option to purchase up to an additional US$15,000,000 aggregate principal amount of notes to cover over-allotments, if any. On September 21, 2009, Jaguar closed the issuance of the additional US$15,000,000 following the exercise in full of the over-allotment option. The net proceeds of approximately US$14,500,000 million from the exercise of the over-allotment option brought the total net proceeds received from the offering to approximately US$159,100,000. The notes are unsecured, senior obligations of Jaguar. The notes bear interest at a rate of 4.5% per year, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2010, and will mature on November 1, 2014. The notes have an initial conversion rate of 78.4314 Jaguar common shares per US$1,000 principal amount of converted notes, representing an initial conversion price of approximately US$12.75 per common share, which represented a premium of approximately 26.24% to the closing price of Jaguar common shares on the NYSE on September 10, 2009. The conversion rate is subject to certain anti-dilution adjustments. The notes are convertible at any time prior to maturity. Upon conversion, Jaguar may, in lieu of delivering its common shares, elect to pay or deliver, as the case may be, cash or a combination of cash and common shares, in respect of the converted notes. Jaguar will be required to make an offer to repurchase the notes for cash upon the occurrence of certain fundamental changes.

On December 2, 2009, Jaguar completed its purchase of 100 percent of MCT from CNM, an indirect wholly-owned subsidiary of Kinross. Jaguar satisfied the US$39 million purchase price for MCT (and an associated right of first refusal provided to Jaguar by Kinross in connection with certain properties adjacent the those held by MCT) by issuing 3,377,354 common shares to CNM, representing approximately 4.07 percent of Jaguar’s outstanding common shares (on a non-diluted basis) as at December 2, 2009 after giving effect to the issuance of such common shares.

DESCRIPTION OF THE BUSINESS

General

Jaguar’s three producing properties, Turmalina, Paciência and Sabará, are located in or adjacent to the Iron Quadrangle region of Brazil, a greenstone belt located east of the city of Belo Horizonte in the state of Minas Gerais. Jaguar has a fourth property in the Iron Quadrangle, the Caeté Project, which is currently under development. In addition, Jaguar recently acquired the Gurupi Project in the state of Maranhão from Kinross. Jaguar has also entered into a joint venture agreement with Xstrata to explore the Pedra Branca Project located in the state of Ceará, in northeastern Brazil.

Through its wholly-owned subsidiaries, MSOL, MTL and MCT, Jaguar has interests in, and controls the mineral rights, concessions and licenses to the mineral resources and reserves presented in Tables 1 and 2 under the section entitled “Mineral Resources and Reserves”.

The TechnoMine technical report on the Turmalina Gold Project dated October 29, 2004, revised on December 16, 2004 and further revised on December 20, 2004, and the TechnoMine Turmalina Expansion Technical Report, as defined below, contain further details with respect to reported gold reserves and gold resources at Turmalina - See “TechnoMine Turmalina Expansion Technical Report” below.

The TechnoMine Paciência Technical Report, as defined below, contains additional details regarding currently reported gold resources and reserves at Paciência - See “TechnoMine Paciência Technical Report” below.

The TechnoMine Caeté Project Technical Report, as defined below, contains additional details regarding currently reported gold resources in the Caeté Project - See “TechnoMine Caeté Technical Report” below.

The PAH Gurupi Project Technical Report, as defined below, contains additional details regarding currently reported gold resources in the Gurupi Project - See “PAH Gurupi Technical Report” below.

In addition to the mining properties described in the preceding paragraph, in March 2007, Jaguar entered into the Joint Venture Agreement with Xstrata with respect to the Pedra Branca Project located in the State of Ceará in northeastern Brazil. Pursuant to the Joint Venture Agreement, Jaguar is currently conducting a comprehensive exploration program at the Pedra Branca Project.

The Technical Reports (as defined below) contain additional information regarding gold reserves and gold resources on Jaguar’s properties. See “Jaguar Gold Operations and Projects” below.

Gold production and sales

During 2009, Jaguar produced a total of 155,102 ounces of gold at an average cash operating cost of US$468 per ounce compared to 115,348 ounces produced at an average cash operating cost of US$429 per ounce during 2008. For the year ended December 31, 2009, gold sales totaled 143,698 ounces at an average price of US$979 per ounce compared to 108,944 ounces sold at an average price of US$860 per ounce for the year ended December 31, 2008.

The table below provides greater detail regarding total gold production at Turmalina, Paciência and Sabará for the year ended December 31, 2009:

	Ore processed (000 tonnes)	Feed Grade (grams per tonne)	Plant Recovery Rate (%)	Production (ounces)	Cash operating cost per tonne (US$)	Cash operating cost per ounce (US$)
Turmalina	588	4.81	89	82,071	59.60	424
Paciência	646	3.42	93	66,671	51.20	502
Sabará	169	1.80	66	6,360	26.10	680
Total	1,403	3.81	89	155,102	51.70	468

During 2010, Jaguar estimates it will produce 200,000 - 217,000 ounces of gold as follows:

	Estimated		Estimated
	FY 2010		FY 2010
Operation	Production		Cash Operating Cost
	(ounces)		(US$/ounce)
Turmalina		95,000-101,000	$	480-490
Paciência		75,000-81,000	$	495-510
Caeté		30,000-35,000	$	500-510
Total		200,000-217,000	$	489-500

Operating cash cost estimates for 2010 are based on an average exchange rate of R$1.75 per US$1.00. The 2009 exchange rate was R$2.04 per US$1.00.

As noted above under the heading “Sabará”, Jaguar has deemed this operation to be a non-core facility which will continue to be idle during 2010.

All of Jaguar’s production facilities are, or will be, near Jaguar’s mineral concessions and are accessible via existing roads. Jaguar believes it has an advantage over other gold mine operators due to the clustered nature of its resource concessions and the proximity of its concessions to its processing facilities and existing infrastructure.

Jaguar has contracted for AngloGold Ashanti to arrange sales of Jaguar’s gold bullion with gold brokers at Jaguar’s request and direction, which provides Jaguar with ready access to gold markets at limited costs and risks.

Specialized Skill and Knowledge

Jaguar is staffed by an experienced senior management team with over 100 years of collective experience exploring, developing and operating gold mines in Brazil. Jaguar’s Chief Executive Officer and President, Daniel R. Titcomb, has been involved in continuous mining exploration and development in Brazil since 1993. Jaguar’s Chief Operating Officer, Lúcio Cardoso, was formerly superintendent of AngloGold Ashanti’s gold division and has over 35 years experience in the Brazilian mining sector. Jaguar’s Vice President of Exploration and Engineering, Adriano L. Nascimento, has approximately 30 years experience in the Brazilian mining industry and held the position of senior engineer at AngloGold Ashanti for 11 years, where he was responsible for the production department of several mines, including Mina Grande, the deepest and one of the oldest mines in Brazil. Jaguar’s Chief Geologist, Jaime Duchini, has over 25 years experience in exploration in the Iron Quadrangle.

Competitive Conditions

The gold exploration and mining business is a competitive business in all its phases. Jaguar competes with numerous other companies and individuals in the search for and the acquisition of mineral licenses, permits and other mineral interests, as well as for acquisition of equipment and the recruitment and retention of qualified employees. There is also significant competition for the limited number of gold property acquisition opportunities. The ability of Jaguar to acquire gold mineral properties in the future will depend not only on its ability to develop its present properties, but also on its ability to select and acquire suitable producing properties or prospects for gold development or mineral exploration.

Jaguar has an ongoing relationship with AngloGold Ashanti through contractual royalty rights in certain of its properties and an agreement to provide Jaguar’s operating company with gold refining and marketing services.

Jaguar has built its base upon the acquisition of later-stage gold exploration properties in the Iron Quadrangle region of Brazil at relatively depressed prices. Jaguar believes that its asset acquisition costs combined with the clustered nature of its mineral assets and production facilities gives it an advantage over other similarly-sized competitors.

Employees

Jaguar had 1,535 employees as at December 31, 2009.

Foreign Operations

All of Jaguar’s mineral projects are owned and operated though its wholly-owned Brazilian subsidiaries, MSOL, MTL and MCT. Jaguar’s wholly-owned properties are located in the states of Minas Gerais and Maranhão in Brazil. Jaguar is entirely dependent on its foreign operations for the exploration and development of gold properties and for production of gold.

Mineral Projects

Except as otherwise noted, the following descriptions and summaries of Jaguar’s material projects, are derived from the following Technical Reports:

(i)	The Technical Report on the Turmalina Expansion Feasibility Study dated September 9, 2008 (the “TechnoMine Turmalina Expansion Technical Report”), which covers the Turmalina property;

(ii)	The Technical Report on the Paciência Gold Project Santa Isabel Mine dated August 7, 2007 (the “TechnoMine Paciência Technical Report”), which covers the Paciência-Santa Isabel property;

(iii)

The Technical Report on the Caeté Expansion Feasibility Study dated September 15, 2008 (the “TechnoMine Caeté Technical Report”), which covers the Pilar and Roça Grande properties; and

(iv)	The Technical Report on the Gurupi Gold Project dated December 4, 2009 (the “PAH Gurupi Project Technical Report”), which covers the Gurupi property and together with the technical reports in items (i)-(iv), the “Technical Reports”).

This Annual Information Form contains only summary information regarding Jaguar’s properties. A complete description of Jaguar’s properties and associated maps, photographs and references can be found in the Technical Reports filed on SEDAR (at www.sedar.com), and such reports are hereby incorporated by reference herein.

The Qualified Person, as such term is defined in NI 43-101, who prepared the TechnoMine Turmalina Expansion Technical Report, the TechnoMine Paciência Technical Report and the TechnoMine Caeté Technical Report referred to above was Ivan C. Machado, M.Sc., P.E., P.Eng. Mr. Machado is a principal of TechnoMine and is independent for the purposes of NI 43-101.

The Qualified Persons who prepared the PAH Gurupi Project Technical Report were Barton G. Stone, C.P.G. and Jeremy Lee Clark. Mr. Stone is Chief Geologist of PAH, and Mr. Stone and Mr. Clark are independent for the purposes of NI 43-101.

Mineral Resources and Reserves

In March 2010, Jaguar completed an internal reconciliation of its mineral resources and reserves. Ivan C. Machado, M.Sc., P.E., P.Eng. audited the internal reconciliation. Mr. Machado is a Qualified Person as such term is defined in NI 43-101. Based on the reconciliation, Jaguar’s mineral resources are (i) measured and indicated resources of 98,452,182 tonnes with an average grade of 1.93 grams per tonne containing 6,093,916 ounces of gold and (ii) inferred resources of 26,153,968 tonnes with an average grade of 2.08 grams per tonne containing 1,747,196 ounces of gold. Jaguar’s proven and probable mineral reserves, which are included in the measured and indicated mineral resource figure above, are 17,902,060 tonnes with an average grade of 3.51 grams per tonne containing 2,021,120 ounces of gold. See below detailed tables of Jaguar’s mineral resources and reserves as at December 31, 2009.

Table 1 - Summary of Estimated Mineral Resources*
	RESOURCES (tonnage in metric tonnes and grades in grams/tonne)								RESOURCES (ounces Au)
	Measured (t)	g/t	Indicated (t)	g/t	Measured + Indicated (t)	g/t	Inferred (t)	g/t	Measured + Indicated	Inferred
Sabará
Sabará(1)	491,530	1.67	245,970	1.47	737,500	1.61	439,000	2.24	38,070	31,620
Paciência
Santa Isabel(2)	1,651,480	3.98	2,331,680	3.24	3,983,160	3.55	1,356,710	3.67	454,240	160,270
Other(1)	1,642,000	3.68	1,567,000	3.97	3,209,000	3.82	500,000	5.00	394,330	80,390
Total	3,293,480	3.83	3,898,680	3.53	7,192,160	3.67	1,856,710	4.03	848,570	240,660
Caeté Project
Pilar(3)	2,137,260	4.05	1,668,020	4.71	3,805,280	4.34	1,757,090	6.20	530,510	350,400
Roça Grande(3)	4,686,090	2.97	4,927,390	3.82	9,613,480	3.41	1,540,660	3.88	1,053,480	192,410
Other(1)	529,000	5.48	530,000	5.83	1,059,000	5.66	330,000	6.04	192,650	64,070
Total	7,352,350	3.47	7,125,410	4.18	14,477,760	3.82	3,627,750	5.20	1,776,640	606,880
Turmalina
Faina and Pontal(4)	339,600	5.64	1,191,000	5.70	1,530,600	5.69	120,000	5.70	279,870	21,990
Ore Bodies A and B(5)	331,160	4.52	2,277,280	5.58	2,608,440	5.44	809,600	6.54	456,370	170,340
Ore Body C(5)	627,700	2.57	1,118,070	3.51	1,745,770	3.17	479,740	3.70	178,070	57,110
Total	1,298,460	3.87	4,586,350	5.10	5,884,810	4.83	1,409,340	5.50	914,310	249,440
Gurupi
Cipoeiro(6)	-	-	49,407,050	1.17	49,407,050	1.17	6,813,170	1.10	1,852,367	240,980
Chega Tudo(6)	-	-	20,752,902	1.00	20,752,902	1.00	12,007,998	0.98	663,959	377,615
Total	-	-	70,159,952	1.12	70,159,952	1.12	18,821,168	1.02	2,516,326	618,595
TOTAL IN SITU RESOURCES					98,452,182	1.93	26,153,968	2.08	6,093,916	1,747,196

Table 2 - Summary of Estimated Mineral Reserves*
	Proven (t)	g/t	Probable (t)	g/t	Proven + Probable (t)	g/t	Ounces Au
Sabará
Sabará(1)	100,460	1.68			100,460	1.68	5,440
Turmalina
Ore Bodies A and B(5)	293,020	3.62	2,366,890	4.78	2,659,910	4.65	397,860
Ore Body C(5)	638,240	2.20	1,162,060	3.01	1,800,300	2.72	157,600
Total	931,260	2.65	3,528,950	4.20	4,460,210	3.87	555,460
Paciência
Santa Isabel(2)	1,713,200	3.43	2,383,510	2.82	4,096,710	3.07	405,040
Caeté Project
Pilar(3)	1,719,860	3.67	1,680,760	4.20	3,400,620	3.93	430,150
Roça Grande(3)	2,805,180	2.88	3,038,880	3.74	5,844,060	3.33	625,020
Total	4,525,040	3.18	4,719,640	3.90	9,244,680	3.55	1,055,180
TOTAL	7,269,960	3.15	10,632,100	3.76	17,902,060	3.51	2,021,120

*	Mineral resources listed in Table 1 include mineral reserves listed in Table 2. Some columns and rows may not total due to rounding.

(1)	TechnoMine NI 43-101 Technical Report on the Quadrilátero Gold Project filed on SEDAR on December 20, 2004.

(2)	TechnoMine NI 43-101 Feasibility Study Report on the Paciência Gold Project Santa Isabel Mine filed on SEDAR on August 9, 2007.

(3)	TechnoMine NI 43-101 Feasibility Study Technical Report on the Caeté Gold Project filed on SEDAR on September 17, 2008.

(4)	TechnoMine NI 43-101 Technical Report on the Turmalina Gold Project filed on SEDAR on December 20, 2004.

(5)	TechnoMine NI 43-101 Feasibility Study Technical Report on the Turmalina Phase I Expansion Project filed on SEDAR on September 11, 2008.

(6)	Pincock Allen & Holt NI 43-101 Technical Report on the Gurupi Project filed on SEDAR on December 4, 2009.

Although Jaguar has carefully prepared and verified the mineral resource and reserve figures presented herein, such figures are estimates, which are, in part, based on forward-looking information and no assurance can be given that the indicated level of gold will be produced. Estimated reserves may have to be recalculated based on actual production experience. Market price fluctuations of gold as well as increased production costs or reduced recovery rates, and other factors may render the present proven and probable reserves unprofitable to develop at a particular site or sites for periods of time. See “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements”.

Mining Concession and Exploration Permitting Requirements and Status

In Brazil mining activity requires the grant of concessions from the DNPM, an agency of the Brazilian federal government responsible for controlling and applying the Brazilian Mining Code. Government concessions consist of exploration awards, exploration licenses, and mining permits. Exploration awards permit the holder to begin exploration of the property, exploration licenses allow the holder to proceed with exploration to determine feasibility of mining the property, and mining permits allow the holder to mine the property.

Applications for mining concessions must include an independently-prepared environmental plan that deals with water treatment, soil erosion, air quality control, re-vegetation and reforestation (where necessary) and reclamation. Mining concessions will not be granted unless the mining plan, including the environmental plan, is approved by the state authorities.

Based on the experience of management in obtaining licenses, Jaguar has made estimates for receiving licenses, upon which it has based projections for capital expenditures, revenues and earnings. The time frames in which licenses are issued are dependent upon the actions of regulatory authorities and third parties.

The following table lists the status of Jaguar’s awards, licenses and permits.

Property	Permits
	Phase	Status
Sabará
Sabará Plant	Implementation License	Received September 2005
Sabará Plant	Operation License	Received December 2006
Sabará Zone A Mine	Implementation License	Received September 2006
Sabará Zone A Mine	Operation License	Received November 2006
Paciência
Santa Isabel Mine and Plant	Implementation License	Received May 2007
Santa Isabel Mine and Plant	Operation License	Received October 2008
Palmital Mine	Mining Permit*	Received July 2007
NW1 Mine	Mining Permit*	Received August 2007
Ouro Fino Mine	Mining Permit*	Received December 2009
Bahú Mine	Mining Permit*	Received February 2010
Caeté Project
Caeté Plant	Implementation License	Received July 2007
Caeté Plant	Operation License	Expected April 2010
Caeté Tailing Dam	Previous License	Received November 2007
Caeté Tailing Dam	Implementation License	Received May 2009
Caeté Tailing Dam	Operation License	Expected April 2010
Roça Grande Mine	Operation License	Received April 2008
Pilar Mine	Implementation License	Received August 2008
Pilar Mine	Operation License	Received October 2009
Boa Vista Mine	Mining Permit*	Received October 2007
Roça Grande Mine	Mining Permit*	Received April 2009
Roça Grande Mine	Mining Permit*	Received August 2009
Turmalina
Turmalina Mine and Plant	Implementation License	Received August 2006
Turmalina Mine and Plant	Operation License	Received March 2007
Turmalina Mine and Plant Expansion I	Operation License	Received December 2009
Turmalina Tailing Dam Expansion I	Implementation License	Received June 2009
Turmalina Tailing Dam Expansion I	Operation License	Received December 2009
Rio de Peixe
Cavalo de Pedra Mine	Mining Permit*	Received July 2008
Fazenda Velha Mine	Mining Permit*	Received July 2008

*A Mining Permit, which is known in Brazil as the “AAF - Autorização Ambiental de Funcionamento”, allows mining production of up to 100,000 tonnes per year for underground mines and 50,000 tonnes per year for open pit mines.

JAGUAR GOLD OPERATIONS AND PROJECTS

In the state of Minas Gerais in Brazil, Jaguar has two operating properties (Turmalina and Paciência) and one property under development (the Caeté Project). See detailed description of each property below.

Turmalina Operations	Paciência Operations	Caeté Project
Turmalina Plant	Paciência Plant	Caeté Plant
Turmalina Mine (Ore Bodies A and B)	Santa Isabel Mine	Roça Grande Mine
Satinoco (Ore Body C)	Bahú Target	Pilar Mine
Satinoco Extension (Zone D)	NW1 Zone	Catita II Target
Faina and Pontal Targets	Rio de Peixe Target	Morro do Adão Target
Fazenda Experimental Target	Palmital Target (Conglomerates)	Camará/Trindade Targets
	Jatobá Target	Serra Paraíso Target
	BIF North Target	Lavra Velha Target
	Urubu Target	Boa Vista Target
	Monges Target	Boa Vista II Target
	Ajuda Target	Àgua de Sapo Target
	Quati Target	Carrancas Target
	Viana Target Ouro Fino Target (Conglomerates)

In the state of Maranhão in Brazil, Jaguar has the Gurupi Project, which controls the Chega Tudo and Cipoeiro targets.

In the state of Ceará also in Brazil, Jaguar has a joint venture with Xstrata in the Pedra Branca Project, which controls the Coelho, Mirador and Queimada targets.

TechnoMine Turmalina Expansion Technical Report

Introduction

Jaguar retained TechnoMine to prepare a NI 43-101 compliant feasibility study on the expansion of its Turmalina operations (the “Turmalina Expansion Project”), which includes the Satinoco Ore Body (“Ore Body C”) and the existing Turmalina Ore Bodies A and B mineral resources and reserves. TechnoMine issued the Turmalina Expansion Technical Report on September 9, 2008. The Turmalina Expansion Project is controlled by Jaguar’s fully-owned subsidiary MTL. The TechnoMine Turmalina Expansion Technical Report study was preceded by two technical reports on the Ore Body C, also prepared by TechnoMine and filed on SEDAR on October 22, 2007 and February 5, 2008. The Ore Body C is also referred herein as the Satinoco Target and the Satinoco Structure.

The Turmalina mining complex is located approximately 120 kilometers northwest of Belo Horizonte and 6 kilometers south of the town of Pitangui, Minas Gerais, Brazil. Turmalina comprises six (6) contiguous mining concessions covering an area of 4,787 ha and was acquired from AngloGold Ashanti in September 2004. The Ore Body C is located within the Turmalina concessions. Jaguar has 100% ownership subject to a 5% royalty on net revenue interest up to US$ 10 million, and 3% royalty thereafter, to an unrelated third party. In addition, there is a 0.5% on net revenue interest payable to the landowner.

The Turmalina Mine currently encompasses Ore Bodies A and B and is currently producing 360,000 tpy (ROM). The Turmalina Expansion Technical Report addresses the incremental 250,000 tpy to be produced by both the Ore Bodies A and C, which will increase Turmalina production to 610,000 tpy. The expanded output is expected to reach 480,000 tonnes in 2008 and 610,000 tonnes by 2009. The Ore Body C will contribute about 136,000 tpy in 2008 and starting in 2009, 200,000 tpy.

Geology

The Turmalina ore bodies are hosted by rocks of the Pitangui Group, considered a NW “geological window” of the Archean Rio das Velhas greenstone belt in the “Iron Quadrangle”. This region is one of the major gold provinces in the world. In the Pitangui area various small and historical alluvial or superficial mines were active during the Brazilian Gold Cycle (17th an 18th centuries).

The Turmalina ore bodies are underlain by rocks of Archaean and Proterozoic ages. Archaean units include a granitic basement, overlain by the Pitangui Group, a sequence of ultramafic to intermediate volcanic flows and pyroclastics, and associated sediments. The predominant rock types are metamorphosed pelites, tuffs, and banded iron formations (“BIF”) locally.

The gold metallogeny in the Iron Quadrangle has a complex history. Initially, in the Archean period, volcanic exhalative sedimentary processes in the greenstone belts produced banded iron formations and chert-hosted, sulfide-rich gold deposits. Later shear zones with hydrothermal activity promoted both remobilization and local concentration of gold.

A portion of the gold mineralization in the Turmalina deposits may be due primarily to exhalative deposition associated with the BIF. However, most of the gold content is associated with rocks that show increases in sericite, quartz, and biotite content. Consequently, the deposit can be broadly classified as epigenetic related to a mesothermal system containing auriferous silicification in local structural features within a wider shear zone.

The Turmalina deposits were discovered by AngloGold Ashanti’s geological and geochemical exploratory works done in the 1979-1988 period. There were neither surface excavations, nor evidences of historic artisan miner’s activities over the Turmalina and Satinoco deposits at that time.

The deposits comprise three zones: the Ore Bodies A and B (currently operating mines) and the Satinoco structure. Ore Body A strikes azimuth 110º and dips 55-60º. Gold grades zoning indicates a SE plunge of approximately 65º. The zone is 200-250 meters long and ranges in horizontal width from 2 meters to 30 meters, averaging approximately 8 meters. Ore Body B lies 50 meters to 100 meters east of Ore Body A and has a similar attitude. It is approximately 200 meters long and ranges from 1 to 12 meters in horizontal width, averaging approximately 3 meters. The mineralized body extends to at least 550 meters below the surface.

The Satinoco Structure has three mineralized sectors located in a parallel structure about 300 meters west of Turmalina’s Ore Body A, also with similar altitudes, with strike lengths of 100 to 200 meters and 3 to 4 meters wide. These ore shoots are open at depth, below the current 420-meter drilling limit.

All these mineralized zones or ore bodies are quartz-sulfide-rich rocks with variable increases of sericite, chlorite, biotite or carbonates, plunging to ENE. Gold is present in small free grains associated mainly with arsenopyrite and quartz.

Mineral Resources and Reserves

This section combines the Ore Body C mineral resources and reserves with those reported in the Scott Wilson RPA Turmalina Technical Report, as reviewed and accepted by TechnoMine, which included Ore Body A (referred to as “Principal” in the Scott Wilson RPA report) and Ore Body B (referred to as “NE Zone” in the Scott Wilson RPA report).

Tables 1.3 and 1.4 below show mineral resources for Ore Bodies A and B as reported in the Scott Wilson RPA Turmalina Technical Report.

TABLE 1-3 MINERAL RESOURCES - JULY 2006
Jaguar Mining Inc. - Turmalina Project


	Principal Zone (Ore Body A)		NE Zone (Ore Body B)		CD Zone		TOTAL
	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade	Cont. Au
	(t)	(g/t)	(t)	(g/t)	(t)	(g/t)	(t)	(g/t)	(oz)
Measured	276,000	6.1					276,000	6.1	54,000
Indicated	1,830,000	7.8	748,000	5.6			2,577,000	7.1	590,000
Measured + Indicated	2,106,000	7.6	748,000	5.6			2,854,000	7.0	644,000
Inferred	554,000	7.0	256,000	5.5	218,000	5.8	1,027,000	6.4	211,000

Notes:

CIM definitions were followed for Mineral Resources.

Mineral Resources are estimated at a cutoff grade of 1.0 grams per tonne Au.

A minimum mining width of 1.0 m was used.

Rows and columns may not total due to rounding.

Mineral resources exclude previous production.

6. The mineral resources are inclusive of mineral reserves.

Mineral reserves have been estimated based on the mineral resources. Mining technical and economic factors have been applied. The breakeven cut-off grade based on operating costs of US$33.23 per tonne and a gold price of US$450, is approximately 2.6 grams per tonne Au. The incremental cut-off is approximately 1.5 grams per tonne Au. Due to the lack of selectivity in the mining method, all resources within the 1.0 grams per tonne Au envelope have been considered for reserves.

TABLE 1-4 MINERAL RESERVES - JULY 2006
Jaguar Mining Inc. - Turmalina Project


	Principal Zone (Ore Body A)		NE Zone (Ore Body B)		CD Zone		TOTAL
	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade	Cont. Au
	(t)	(g/t)	(t)	(g/t)	(t)	(g/t)	(t)	(g/t)	(oz)
Proven	234,000	5.5					234,000	5.5	41,000
Probable	2,017,000	6.8	665,000	4.9			2,682,000	6.3	546,000
Total	2,252,000	6.7	665,000	4.9			2,916,000	6.3	587,000

Notes:

Based on a gold price of US$ 450 per ounce

Cutoff grade = 1.0 grams per tonne

Dilution overall = 15%

Extraction = 89%

Reserves estimated according to CIM definitions

Rows and columns may not add exactly due to rounding

Expected process recovery = 90%.

Production based on the mineral reserves in Table 1-4 is further modified by a Mine Call Factor (“MCF”) of 97%, applied to grade. Base Case production totals 2,916,000 tonnes at a grade of 6.1 grams per tonne Au.

The total ore mined out since the beginning of the operations at Turmalina in November 2006 has been reported by Jaguar as follows.

2007 production: 347,000 tonnes with an average grade of 4.37 grams per tonne = 45,527 ounces Au

2008 production: 481,000 tonnes with an average grade of 5.46 grams per tonne = 72,785 ounces Au

2009 production: 588,000 tonnes with an average grade of 4.81 grams per tonne = 82,071 ounces Au

Mineral Resources - Ore Body C

The following data was used to estimate the mineral resources at the Ore Body C:

•

AngloGold Ashanti’s exploration program from 1979 to 1988, which included 9 diamond drill holes totaling 1,524 meters and about 250 meters of trenches.

•

Jaguar’s three-phase surface diamond drilling program from 2004 to 2007, as summarized below:

Phase 1: 5,501 meters drilled in 35 holes. This program tested the continuity of the mineralized body between the weathered zone and up to 200 meters below the surface.

Phase 2: 3,338 meters drilled in 24 complementary infill holes to create a 25 x 60 meter grid between the surface and 100 meters below and to test the continuity of the mineralized body up to 350 meters above sea level.

Phase 3: In 2007, an additional drill hole campaign was carried out, which consisted of 12,763 meters drilled in 48 holes. Results from holes FSN 10 to 68 from this campaign were included in estimating mineral resources contained in the original TechnoMine Satinoco Target Resource Statement technical report dated October 22, 2007. Results from the remaining drill holes FSN 69 to 113 were included in the TechnoMine Satinoco Target Resource Statement technical report dated February 5, 2008. Results from drill holes FSN 114 to 116 have been included in this feasibility study. From the total 12,763 meters drilled, 11,889 meters were utilized to estimate the mineral resources.

•

Underground Development: in 2007, a horizontal drift excavation was started from the Turmalina ramp in order to access the central portion of the Satinoco Structure. The purpose was to expose the Satinoco mineralized body along strike. The underground developments are progressing and now total about 822 meters. Jaguar’s exploration and development plans at the Turmalina mining complex include additional underground drilling to define the Satinoco zones that cannot be drilled from the surface, in order to further increase estimated mineral resources in future studies.

Exploration activities resulted in total estimated measured and indicated resources of about 173,900 ounces Au and inferred resources of approximately 57,100 ounces Au as detailed in the table below.

The Ore Body C mineral resource estimate was prepared by MCB Serviços e Mineração Ltda. (“MCB”), a Belo Horizonte-based consulting company, under the supervision of Jaguar’s Chief Geologist, Jaime Duchini and the author of this feasibility study.

Ore Body C Mineral Resources Cut-off Grades: 0.3 Au (g/t) - Oxide and 1.5 Au (g/t) Sulfide
Type	Resource Category	Tonnage (t)	Au (g/t)	oz Au
Oxide	Measured	55,280	3.12	5,550
	Indicated	72,120	2.55	5,920
	Measured and Indicated	127,400	2.80	11,470
	Inferred	400	0.46	10
Sulfide	Measured	470,220	3.58	54,150
	Indicated	1,026,380	3.28	108,280
	Measured and Indicated	1,496,600	3.37	162,430
	Inferred	479,340	3.71	57,090
Total	Measured	525,500	3.53	59,700
	Indicated	1,098,500	3.23	114,200
	Measured and Indicated	1,624,000	3.33	173,900
	Inferred	479,740	3.70	57,100

MineSight software was used. The adopted capping grade was 30 grams per tonne, while the cutoff grade selected for the estimation was 0.30 grams per tonne for oxide and 1.5 grams per tonne for sulfide resources. Poor variography eliminated the option of kriging and the inverse squared distance (“ISD”) method was adopted to weigh composites grades within the blocks.

Mineral Resources at the Ore Body A that will be used in the Expansion Project

The mineral resource estimate summarized below was prepared by Jaguar’s Chief Geologist, Jaime Duchini and the author of the TechnoMine Turmalina Expansion Technical Report.

Ore Body A Mineral Resources included in the Expansion Project
Cutoff Grade: 1.0 Au (g/t)
Type	Resource Category	Tonnage (t)	Au (g/t)	oz Au
Sulfide	Measured	0	0	0
Sulfide	Indicated	391,700	8.23	103,700
Total	Measured and Indicated	391,700	8.23	103,700
Total	Inferred	0	0	0

Expansion Project Total Mineral Resources

Expansion Project Total Mineral Resources (Ore Bodies A and C)

Type	Resource Category	Tonnage (t)	Au (g/t)	oz Au
Oxide	Measured	55,280	3.12	5,550
	Indicated	72,120	2.55	5,920
	Measured and Indicated	127,400	2.80	11,470
	Inferred	400	0.46	10
Sulfide	Measured	470,220	3.58	54,150
	Indicated	1,418,080	4.65	211,980
	M+I	1,888,300	4.38	266,130
	Inferred	479,340	3.71	57,090
Total	Measured	525,500	3.53	59,700
	Indicated	1,490,200	4.55	217,900
	Measured and Indicated	2,015,700	4.28	277,600
	Inferred	479,740	3.70	57,100

The mineral reserves estimates are summarized on the next page and were prepared by Minere Engenharia Ltda (“Minere”), under the supervision of the author of the TechnoMine Turmalina Expansion Technical Report.

Mineral Reserves at the Ore Body C

Ore Body C Proven and Probable Mineral Reserves

Type	Reserve Category	Tonnage (t)	Au (g/t)	0z Au
Oxide	Proven	19,500	4.02	2,520
	Probable	35,700	3.35	3,850
	Proven + Probable	55,200	3.59	6,370
Sulfide	Proven	353,300	3.40	38,650
	Probable	857,300	2.97	81,980
	Proven + Probable	1,210,600	3.10	120,630
Total	Proven	372,800	3.43	41,170
	Probable	893,000	2.99	85,830
	Proven + Probable	1,265,800	3.12	127,000

Open Pit Dilution:	12%
Underground Mine Dilution:	15%
Satinoco Overall Mining Recovery:	68%

Mineral Reserves at the Ore Body A that will be used in the Expansion Project

Ore Body A Proven and Probably Mineral Reserves that will be used in the Expansion Project

Type	Reserve Category	Tonnage (t)	Au (g/t)	oz Au
Sulfide	Proven	0	0	0
	Probable	418,800	7.16	96,410
	Proven + Probable	418,800	7.16	96,410

Mine Dilution:	15%
Mining Recovery:	93%

Expansion Project Total Mineral Reserves

Expansion Project Proven and Probable Mineral Reserves

Type	Resource Category	Tonnage (t)	Au (g/t)	oz Au
Oxide	Proven	19,500	4.02	2,520
	Probable	35,700	3.35	3,850
	Proven + Probable	55,200	3.59	6,370
Sulfide	Proven	353,300	3.40	38,650
	Probable	1,276,100	4.35	178,390
	Proven + Probable	1,629,400	4.14	217,040
Total	Proven	372,800	3.43	41,170
	Probable	1,311,800	4.32	182,240
	Proven + Probable	1,684,600	4.12	223,410

Expansion Project Summary Data

•	Project Life (Ore Body C): 16 semesters, starting in the first semester of 2008.

•	Pre-production period: 12 months - It is anticipated that only 135,700 t will be added to current production during the pre-production period.

•	Measured and Indicated Resources:

Ore Body C: 1,624,000 tonnes at 3.33 grams per tonne (average) = 173,900 ounces Au

Ore Body A: 391,700 tonnes at 8.23 grams per tonne (average) = 103,700 ounces Au

Total: 2,015,700 tonnes at 4.28 grams per tonne (average) = 277,600 ounces Au

•	Mining Method: sublevel stoping for both Ore Bodies A and C

•	Cruise Production Rates (ROM): about 250 ktpy (Ore Body C) as an incremental production to current operations (Ore Bodies A and B: 360 ktpy), totaling 610 ktpy

•	Mining Average Dilution:

Ore Body C (open pit): 12%

Ore Body C (underground): 15%

Ore Body A: 15%

•	Mining Average Recovery:

Ore Body C: 68.0%

Ore Body A: 92.97%

•	Proven and Probable Reserves:

Ore Body C: 1,265,800 tonnes at 3.12 grams per tonne t (average) = 127,000 ounces Au

Ore Body A: 418,800 tonnes at 7.16 grams per tonne t (average) = 96,410 ounces Au

Total: 1,684,600 tonnes at 4.12 grams per tonne t (average) = 223,410 ounces Au

•	Mine Call Factor: 97%

•

Mill Feed Grades:

Ore Body C: 3.02 grams per tonne

Ore Body A: 6.94 grams per tonne

Average: 4.00 grams per tonne

•

Mill Feed Gold:

216,710 ounces

Ore Body C: 123,190 ounces

Ore Body A: 93,520 ounces

Total: 216,710 ounces

•	Process Route: Crushing/Screening - Grinding -Leaching - CIP - ADR (including Elution, Electrowinning, and Smelting)

•	Metallurgical Recovery: 90% (average)

•	Total “Salable” Gold: 195,040 ounces

Ore Body C: 110,870 ounces

Ore Body A: 84,170 ounces

Total: 195,040 ounces

Permitting

Mining Rights

The Turmalina mining complex entails the mining concessions (ultimate mineral right), all in good standing and shown in the table below.

Turmalina Mining Concessions
DNPM Mining Concession	Area (ha)
832203/03	996
812004/75	880
803470/78	952
830027/79	120
812003/75	980
831617/03	859

Environmental Licensing

Original Turmalina Project Licenses

In 2005, MTL applied for the Previous License (“LP”) related to the original Turmalina Gold Project, for both the open pit and underground exploitation of the sulfide mineralized body, in connection with Mining Concession DNPM 812.003/75 and the mineral processing plant. The LP was granted to MTL in October 2005. The submitted environmental study, along with the LP application, formed an Environmental Control Report (“RCA”). The Implementation License (“LI”) for the original Turmalina mine and mill undertaking was applied for in November 2005. In August 2006, COPAM granted MTL the LI, after the PCA’s analysis.

The Operation License (“LO”) for the original Turmalina Gold Project was applied for in March 2007 and granted in June 2008. The LO does not cover the tailings disposal system, since the system originally foreseen was revised by Jaguar (See item 1.5.3 below, which portrays the ongoing licensing for the tailings disposal system).

Expansion Project Licenses

Minas Gerais State Decree 44.844/2008, dated 06/25/08 establishes that given the operating situation and production status prevailing in the Turmalina mining complex, Jaguar was allowed to apply directly for an LO for the Expansion Project.

The RCA and the Environmental Control Plan (“PCA”) studies related the LO for the Turmalina Expansion were submitted to SUPRAM in October 2008.

In December 2009, Jaguar received the LO awards in connection with the Expansion Project, which included the plant, mine and the tailings dam.

Infrastructure

The underground access drift to the sulfide ore body from ore body A has been fully developed.

Additional Infrastructure: Installation is needed for one (1) air compressor, a mine substation, and a ventilation shaft, for the underground sulfide ore body. These items were properly budgeted. Development activities and transportation of the open pit oxide material will be outsourced.

Capital Costs

The total nondiscounted investment estimate is US$ 25.5 million, as shown below.

INVESTMENTS	Unit: US$ 1,000
♦CAPEX - Initial Investments (2007 - 2009)	(22,373)

♦CAPEX - Operational (Q1 2008 to Q2 2009) and Post-Operation Investments	(3,146)
• Operation Shutdown (2015 to 2017)	1,895
• Environmental Closure (2015 to 2017)	921
• Work Capital	(0)
• Work Capital Recovery	0
• Salvage	0
• Stay in Business	(330)
♦TOTAL INVESTMENT	(25,519)

Operating Costs

The total nondiscounted life of mine operating cost for the Turmalina expansion has been estimated at US$ 92.9 million.

Economic Analysis

The economic results presented in the table below - Base Case Scenario Summary of Economic Results are based on the criteria utilized in the discounted cash flow model for the Base Case Scenario presented below. The after-tax economic indicators from the Cash Flow Model and a Sensitivity Analysis (Appendix 02 of the TechnoMine Turmalina Expansion Technical Report) point to an economically robust project.

ECONOMIC ANALYSIS CRITERIA

•	Gold price	US$ 750 per troy ounces of gold

•	ROM Total Tonnage (Ore Body C)	1,265,800 tonnes

•	ROM Total Tonnage
	(Ore Bodies A and C)	1,684,600 tonnes

•	Mineral Reserves (Ore Body C)	1,265,800 tonnes @ 3.12 grams per tonne Au, containing approximately 127,000 ounces

•	Mineral Reserves
	(Ore Bodies A and C)	1,684,600 tonnes @ 4.12 grams per tonne Au, containing approximately 223,410 ounces

•	Mine Call Factor	97%

•	Mill Feed Grade
	(Ore Bodies A and C average)	(4.12)*(97%) = 4.00 grams per tonne

•	ROM Average “Cruise” Production	incremental 250,000 tpy to the current 360,000 tpy
	starting in 2009

•	Metallurgical Recovery	90%

•	Total Gold Production	195,040 ounces Au

•	Average Annual Gold Production	24,380 opy

•	Project Life (LOM - Ore Body C)	16.0 semesters

•	CAPEX (Ore Body C)	US$ 25.5 million (straight)

•	Production Start (Ore Body C)	First semester of 2008

•	Production Finish (Ore Body C)	Second semester of 2015

•	Exchange Rate	Construction Period:
		US$ 1.00 = R$ 1.70

		Production Period:
		US$ 1.00 = R$ 2.00

•	Depreciation and amortization have been prorated over the life of the Turmalina expansion.

The cumulative operating profit has been estimated at US$ 51.1 million, while the after-tax cumulative profit estimate is US$ 41.3 million and the cumulative net cash flow estimate is US$ 15.8 million.

Base Case Scenario: Summary of Economic Results

Turmalina Expansion Project (Phase I - 610 ktpy)	Economic Indicators
IRR (% per year)	106.3
NPV @ 0% - [US$]	15.8 million
NPV @ 5% - [US$]	11.6 million
NPV @ 8 % - [US$]	9.7 million
NPV @ 10% - [US$]	8.6 million
NPV @ 12% - [US$]	7.7 million
Payback Period (straight)	1.98 semesters
Payback Period @ 8%	2.07 semesters
Payback Period @ 10%	2.09 semesters
Payback Period @ 12%	2.11 semesters
Life of Mine Production	16.0 semesters

•	Average Cash Cost	US$ 488 per ounce Au

•	Total Production Cost	US$ 619 per ounce, including invested capital

The sensitivity analysis indicated the following variations to the IRR:

Gold Price = US$ 675/ounces Au	IRR = 30.9 % py
Gold Price = US$ 725/ounces Au	IRR = 76.2 % py
Metallurgical Recovery = 92%	IRR = 133.0 % py
Metallurgical Recovery = 89%	IRR = 95.3% py
Investment + 10%	IRR = 67.4 % py
Investment + 5%	IRR = 83.3 % py
OPEX + 7%	IRR = 73.1 % py
OPEX - 5%	IRR = 135.3 % py

Mill Feed Grade + 3% (4.12 grams per tonne)	IRR = 144.4 % py
Mill Feed Grade - 3% (3.88 grams per tonne)	IRR = 79.0 % py

Interpretation and Conclusions

It is TechnoMine’s conclusion that the Turmalina Expansion is low-risk and robust. It has been extensively studied from a technical standpoint and is supported by extensive exploration, metallurgical testwork, and conceptual and basic engineering, in addition to special front-end engineering tests and studies. The technical work for the expansion was performed by reputable entities in Canada, USA, Germany, and Brazil.

Most CAPEX and OPEX estimates are supported by vendor quotes, contracts, and receipts. Key pieces of equipment have been purchased or are in the final procurement stage. Cost estimates are based on solidly supported process routes, mining methods, and plans, being within the +/- 15% accuracy range.

Based on the aforementioned conclusions and on the strong economic results yielded from the cash flow model and sensitivity analysis, TechnoMine considers the Turmalina Expansion to be feasible and attractive. Related technical and economic risks are small.

Recommendations

TechnoMine recommended Jaguar to proceed with the implementation of the Turmalina Expansion.

Although the Turmalina Expansion is feasible and robust at its current size, it is recommended that exploration efforts continue not only at the Turmalina mining complex, but also at other targets in the region. An increased resource base will give rise, via a further consolidated feasibility study, to increased reserves, which, in turn, may significantly improve the financial performance of the expansion.

The same or higher technical standards related to the front-end engineering activities (such as exploration, metallurgical testwork, and conceptual and basic engineering) and the required special front-end engineering tests and studies should be maintained for the augmented project.

The recommended additional exploration and remaining front-end engineering activities should start as soon as possible in order to support a technically sound and smooth transition in the increase of project size.

Project Status

The construction related to the implementation of the Turmalina Expansion was completed during the third quarter of 2009, boosting annual gold production capacity at Turmalina from 80,000 ounces per year to 100,000 ounces per year. As a result, Turmalina’s grinding and milling capacity has been increased to 1,800 tonnes per day of ore in its CIP plant, from the previous designed operating level of 1,500 tonnes per day.

TechnoMine Paciência Technical Report

Introduction

Jaguar retained TechnoMine to prepare an NI 43-101 compliant feasibility study on the on the Paciência-Santa Isabel Mine Project (the “Paciência-Santa Isabel Project” or the “Paciência-Santa Isabel Target”). TechnoMine issued its report on August 7, 2007. The following description of this project is derived from the summary contained in the TechnoMine Paciência Technical Report.

Paciência-Santa Isabel Project is located 81 kilometers from Belo Horizonte and 23 kilometers from Itabirito, in the state of Minas Gerais, Brazil. The area has good infrastructure and the Paciência-Santa Isabel Project site can be accessed by 18-wheel trucks on paved and dirt roads.

MSOL, Jaguar’s 100%-owned subsidiary, purchased several properties from AngloGold Ashanti in 2003, including the Paciência-Santa Isabel Target, which was the object of the TechnoMine Paciência Technical Report. The Paciência-Santa Isabel Target comprises one mineral right covering an area of 1,000 hectares. The Paciência-Santa Isabel Target is part of Jaguar’s Paciência mining complex, which includes several mineral rights covering an area of approximately 17,500 acres.

Mining operations at the Santa Isabel Mine commenced in April 2008 as the Paciência Plant entered the commissioning phase. Paciência reported its first gold pour on July 24, 2008 and produced a total of 24,364 ounces of gold by the end of 2008. In 2009, the Paciência operation produced a total of 66,671 ounces.

During 2008, power for the Paciência-Santa Isabel operations was partially supplied by CEMIG, the local power utility company. A total diesel-generated installed power of 4.2 MVA (3.5 MW; one 0.5 MW generator in stand by) was implemented to replace high-cost energy, especially during peak demand hours.

Fresh water to supply the mine and plant is provided by the Tejuco Creek, a tributary to the Rio das Velhas (“das Velhas River”). A pump station is located in the river about 2.6 kilometers from the Santa Isabel Project’s main water tank.

A digital-technology based telephone communication system is supplied by Embratel, a leader in corporate communication solutions. The system accommodates a 30-channel link for voice communication and a digital data connection with MSOL’s head office in Belo Horizonte, where a shared link provides safe Internet and Intranet access.

Geology

The Paciência-Santa Isabel Project area hosted various productive and historical mines during the Brazilian Gold Cycle (17th an 18th centuries), such as the Cata Branca Mine, the Rainha Mine, Morro de São Vicente, Marzagão, Bahú, etc. The Project properties are situated in the Iron Quadrangle, including the Paciência-Santa Isabel Target (which is the object of the Paciência-Santa Isabel feasibility study). This well-known prolific mining area comprises rocks ranging in age from Archean to Upper Proterozoic. Numerous gold and iron deposits are associated with these rocks.

The gold metallogeny in the Iron Quadrangle has a complex history. Initially, in the Archean period, volcanic exhalative sedimentary processes in the greenstone belts produced banded iron formations and chert-hosted, sulfide-rich gold deposits. Shear zone related gold deposits were also generated at that time.

Gold mineralization at the Paciência-Santa Isabel operations area occurs in two forms. The dominant form is associated with disseminated sulfide in quartz veins and sericite/chlorite schists, as a result of the hydrothermal alteration development in the shear zone. The second form is in the basal conglomerate of the Moeda Formation. The second type of mineralization is not considered in the TechnoMine Paciência Technical Report.

The gold mineralization of the Santa Isabel Target is related to the Paciência trend. This trend was discovered and intensively mined in the 17th and 18th centuries and now it is recognized by large surface excavations and old mines distributed in a continuous straight line. The ore shoots are composed of concentrations of the microcrystalline quartz veins in a sericite/chlorite schist matrix. The gold occurs in small visible nuggets in the quartz or inside the sulfide. These quartz-rich zones exhibit boudinage shapes, with thicknesses variable from centimeters up to 30 meters, width between 10 meters and 200 meters and hundreds of meters of continuity following the plunge. The gold grades are variable, and grades between 100 to 500 grams per tonne are not uncommon due to the existence of coarse gold.

Mineral Resources

The mineral resource estimate was prepared by Moreno & Associados (“Moreno”), a Belo Horizonte based consulting company, under the supervision of the author of the TechnoMine Paciência Technical Report, and is shown in the table below.

Paciência Gold Project Santa Isabel Mine - Resource Estimate

Category	Tonnage (t)	Grade (g Au/t)	Ounces (oz Au)
Measured (M)	871,170	5.59	156,590 (36.4%)
Indicated (I)	1,702,230	5.00	273,670 (63.6%)
(M + I)	2,573,400	5.20	430,260

Inferred	420,700	5.44	73,580

The software used was MineSight. The adopted capping grade was 95 grams per tonne, while the cut-off grade selected for the estimation was 1.5 grams per tonne. Poor variography eliminated the option of kriging and the ISD method was adopted to weigh composites grades within the blocks. See Appendix 01 of the TechnoMine Paciência Technical Report for Moreno’s Mineral Resource Final Report.

Mineral Reserves

Paciência Gold Project Santa Isabel Mine - Reserve Estimate

	Tonnage (t)	Grade (g Au/t)	Ounces (ounces Au)
Proven (Pv)	987,900	4.52	143,580
Probable (Pb)	1,726,000	4.52	250,870
Total (Pv + Pb)*	2,713,900	4.52	394,450

* 2,260 ounces of gold, corresponding to test mining production during 2006 (21,742 tonnes at

3.23 grams per tonne) have not been deducted from the above stated reserves.

The Cut and Fill Method has been adopted for the Paciência-Santa Isabel Project. The Mining Plan showed a 91.7% recovery and a dilution of 15%. Hence, the estimated total tonnage that will be mined is:

[(2,573,400 tonnes)*(0.917)*(1.15)] = 2,714,000 tonnes.

The ROM average diluted average is estimated at:

[(5.20 grams per tonne)]/(1.15) = 4.52 grams per tonne

(Proven + Probable) Reserves are currently estimated at:

Pv + Pb = (2,714,000 tonnes) * (4.52 g / t) = 394,450 ounces Au

Proven Reserves = (0.364)*(2,714,000) = 987,900 tonnes @ 4.52 grams per tonne = 143,580 ounces Au

Probable Reserves = (0.636)*(2,714,000) = 1,726,100 tonnes @ 4.52 grams per tonne = 250,870 ounces Au

A Mine Call Factor (“MCF”) of 97% has also been adopted based on the experience of the feasibility study’s mining team. Therefore, the estimated Mill Feed grade is:

4.52 * 0.97 = app 4.384 grams per tonne and the estimated to-the-mill amount of ounces of gold is (394,450 ounces Au) * (0.97) = (2,714,000 tonnes) * (4.384 grams per tonne) = approx. 382,600 ounces Au

Considering the Overall Metallurgical Recovery (93%), the estimated total salable ounces of gold is (382,600)*(0.93) = 356,000 ounces Au.

Project Summary Data

•	Project Life:	9.7 semesters, starting in the second quarter of 2008

•	Pre-production period:	5 months

•	Measured and Indicated Resources of Au:	2,573,400 tonnes at 5.20 grams per tonne (average) = 430,260 ounces

•	Mining Method:	Cut and Fill

•	Production Rates (ROM):	400 kt / year (2008) and 600 kt / year (following years),
		514 kt in 2012

•	Mining Average Dilution:	15%

•	Mining Average Recovery:	91.7%

•	Proven and Probable Reserves (ROM):	2,714,000 t at 4.52 grams per tonne = 394,450 ounces Au

•	Mining Call Factor:	97%

•	To-the-Mill Grade:	4.39 grams per tonne

•	To-the-Mill Gold:	382,600 ounces Au

•	Process Route:	Crushing/Screening - Grinding - Gravity Separation - Leaching - CIP - ADR (including Elution and Electrowinning)

•	Metallurgical Recovery:	93%

•	Total salable ounces of gold:	356,000 ounces Au

•	Product:	Gold (bullion)

Permitting

On January 24, 2005 MSOL applied for the Previous License (“LP”) related to the Paciência-Santa Isabel Project. The LP was awarded to MSOL on July 27, 2006. The environmental study, submitted along with the LP application, was an EIA/RIMA - as defined in item 21.4.1. The Paciência-Santa Isabel Target’s EIA/RIMA is filed at Jaguar’s office in Belo Horizonte, Brazil.

On December 26, 2006 Jaguar submitted an application for the Implementation License (“LI”). The environmental study submitted along with the LI application was an RCA, whose approval allows the completion of important works that need to be constructed in the area, such as the erection of the mineral processing plant, construction of the tailings dam, opening of accesses, development of the underground mine, installation of the Infrastructure (power and water supply systems, roads, etc.), and preparation of the waste dump area.

MSOL holds the Mineral Right DNPM 830.375/79 related to the property. Jaguar applied for the Mining Concession last year. Jaguar was awarded the LI on May 17, 2007 and informed the DNPM shortly thereafter. After the installation of the Paciência Santa Isabel Project was completed and the environmental requirements were met, Jaguar applied for the Operation License (“LO”). After the LO application was submitted, operations started under a Provisional Operation License issued 10 (ten) days after the filing date, as established in the state of Minas Gerais Decree Nº 44.309/06, dated June 5, 2006. The Paciência Santa Isabel LO was received in October 2008.

Capital Costs

The total non-discounted investment estimate is US$ 47.7 million as shown below.

Investments	Unit: US$ 1,000
Operation Shutdown	(2,126)
Environmental Operation & Closure CAPEX	(515)
Work Capital	(722)
Work Capital Recovery	722
Salvage	7,256
Stay in Business	(450)
CAPEX - Pre- Operational Investments	(43,388)
CAPEX - Operational Investments	(8,505)
TOTAL INVESTMENTS	(47,729)

Operating Costs

The total non-discounted life of mine operating cost for the Paciência-Santa Isabel Project has been estimated at US$ 86.5 million.

Economic Analysis

The following economic results are based on the criteria utilized in the discounted cash flow model for the Base Case Scenario:

•	Gold price	US$600 per troy ounce of gold

•	ROM Total Tonnage	2,714,000 tonnes

•	Mineral Reserves	2,714,000 tonnes @ 4.52 grams per tonne Au, containing 394,450 ounces

•	Mill Feed Grade (average)	4.39 grams per tonne

•	Mining Rate	400,000 tonnes in 2008;
		600,000 tonnes per year starting in 2009;
		513,700 tonnes in 2012

•	ROM Average “Cruise” Production	1,755 tpd ROM (600,000 tpy: 342 days/year)

•	Metallurgical Recovery	93%

•	Gold Total Production	356,000 ounces Au

•	Gold Average Annual Production	73,300 opy



•	Project life (LOM)	9.7 semesters

•	CAPEX (total)	US$ 47.7 million (straight)

•	Average Cash Cost	US$ 252 per ounce Au

•	Total Production Cost	US$ 386 per ounce, including invested capital

•	Production Start	Second quarter of 2008

•	Exchange Rate	Construction Period: US$ 1.00 = R$2.00
		Production Period: US$ 1.00 = R$2.30 (average)

•

Depreciation and amortization have been prorated over the Paciência-Santa Isabel Project life.

The Cumulative Operating Profit has been estimated at US$ 123.8 million, while the After-Tax Cumulative Profit estimate is US$ 98.0 million and the Cumulative Net Cash Flow estimate is US$ 49.5 million.

The primary after-tax economic indicators from the Cash Flow Model (Appendix 02 of the TechnoMine Paciência Technical Report, which also includes a Sensitivity Analysis) are summarized in Table 1.9.1. The indicators point to an economically feasible project.

Table 1.9.1 - Base Case Scenario: Summary of Economic Results

Paciência Gold Project Santa Isabel Mine	Economic Indicators s
IRR (% per year)	26.2
NPV @ 0% - [US$]	49.5 million
NPV @ 5% - [US$]	26.4. million
NPV @ 8 % - [US$]	17.8 million
NPV @ 10% - [US$]	13.6 million
NPV @ 12% - [US$]	10.2 million
Payback Period (straight)	4.81 semesters
Payback Period @ 8%	5.36 semesters
Payback Period @ 10%	5.44 semesters
Payback Period @ 12%	6.04 semesters
Life of Mine Production	9.7 semesters

The sensitivity analysis indicated the following variations to the IRR:

Gold Price = US$ 520/ounces Au	IRR = 17.3 % py
Gold Price = US$ 680/ounces Au	IRR = 34.4 % py
Metallurgical Recovery = 92%	IRR = 25.5 % py
Metallurgical Recovery = 91%	IRR = 24.8 % py

Investment + 10%	IRR = 24.1 % py
Investment - 10%	IRR = 28.4 % py
OPEX + 10%	IRR = 23.5 % py
OPEX - 10%	IRR = 28.7 % py

Mill Feed Grade + 10% (4.83 grams per tonne)	IRR = 34.2% py
Mill Feed Grade - 10% (3.95 grams per tonne)	IRR = 21.7% py

Interpretation and Conclusions

It is TechnoMine’s conclusion that the Paciência-Santa Isabel Project is low-risk and robust. It has been extensively studied from a technical standpoint and is supported by significant exploration, metallurgical testwork, and conceptual and basic engineering, in addition to special front-end engineering tests and studies. The aforementioned technical work for this Paciência-Santa Isabel Project was performed by reputable entities in Canada, USA, Germany, and Brazil.

Most CAPEX and OPEX estimates are supported by vendor quotes, contracts, and receipts. Key pieces of equipment have been purchased. Cost estimates are based on solidly supported process routes, mining methods, and plans, being within the +/- 15% accuracy range.

Based on the economic results yielded from the cash flow model and sensitivity analysis, TechnoMine considers the Paciência-Santa Isabel Project to be feasible and attractive. Related technical and economic risks are small.

Recommendations

TechnoMine recommended Jaguar to proceed with the Paciência-Santa Isabel Project’s implementation.

Although the Paciência-Santa Isabel Project is feasible and robust at its current size, it is our recommendation that the exploration efforts continue not only at the Paciência-Santa Isabel Property, but also at other targets in the Paciência mining complex. An increased resource base will give rise, via a consolidated feasibility study, to increased reserves, which, in turn, will significantly improve the financial performance of the Paciência-Santa Isabel Project.

The recommended additional exploration and remaining front-end engineering activities should start as soon as possible in order to support a technically sound and smooth project size transition.

The basic project of the CIP tailings Detox Plant should start as soon as the process route is defined based upon the ongoing Degussa/CyPlus test work being carried out by CyPlus at their research center facility at Hanau, Germany (Purchase Order issued on April 24, 2007).

Project Status

Construction of the Paciência CIP processing plant began immediately after the completion of the TechnoMine Paciência Technical Report. Mining operations at the Santa Isabel Mine commenced in April 2008 as the new plant entered the commissioning phase. On July 24, 2008, Paciência reported its first gold pour and operations were deemed commercial during the latter part of the fourth quarter of 2008 based on throughput rates. Paciência produced 24,364 ounces of gold in 2008 and 66,671 ounces in 2009.

TechnoMine Caeté Technical Report

Introduction

The TechnoMine Caeté Tehcnical Report includes Jaguar’s Pilar and Roça Grande Targets. Pilar is described in the TechnoMine Quadrilátero Technical Report and updated in the TechnoMine Caeté Technical Report herein described. Roça Grande consists of four targets referred to as RG-01/07, RG-02, RG-03, and RG-06, which are also described in the TechnoMine Caeté Technical Report. The TechnoMine Caeté Technical Report was preceded by a scoping study completed by TechnoMine on May 31, 2007 and a statement of resources technical report dated November 23, 2007 also prepared by TechnoMine.

After the completion of the statement of resources report in 2007, Jaguar retained TechnoMine to prepare an NI 43-101 compliant feasibility study on the resources contained in Jaguar’s Caeté Expansion Gold Project (“Caeté Project”). TechnoMine issued its report on September 15, 2008. The following description of this project is derived from the summary contained in the TechnoMine Caeté Technical Report.

The Caeté Project is controlled by MSOL, Jaguar’s fully-owned subsidiary.

The Caeté Project is expected to take advantage of the infrastructure of Jaguar’s recently closed Caeté heap leach CIC facility located 51 kilometers from Belo Horizonte in the state of Minas Gerais, Brazil. Jaguar expects to minimize environmental impacts and expedite permitting by utilizing the existing Caeté plant site.

Based on the results of the TechnoMine Caeté Technical Report, Jaguar intends to construct a centralized leaching CIP - adsorption/desorption/recovery (“ADR”) metallurgical plant. This new plant will process the sulfide ore from the Pilar Target as well as sulfide, transition, and oxide ore from the Roça Grande Target. Although other nearby targets are expected to feed the new plant, only resources and reserves from the Roça Grande and Pilar Targets were taken into account in the TechnoMine Caeté Technical Report. Based on extensive metallurgical testwork a CIP - ADR plant was chosen as the core hydrometallurgical process route.

The Caeté Project’s plant site will possess two water supply and distribution systems: a potable water system and an industrial water system. The potable water system will supply water to all ancillary and industrial buildings (where required) from a concrete-lined circular well. The industrial water system includes the future Roça Grande underground mine dewatering system supplemented by water from a station located inside the Marembá Tunnel, about 1 kilometer from the mine’s portal. Potable water for the Pilar Target will also be provided by a concrete-lined circular well, while industrial water will be provided by the a new dewatering system supplemented by water from an intake station to be built at the Conceição River.

Electrical power will be supplied by CEMIG, the state-owned utility company with operations in the state of Minas Gerais. CEMIG is preparing its system to support the long-term operation of the Caeté Plant and the Roça Grande underground mine and open pits, which, altogether, will account for the highest power demand share of the Project. The demand of the open pit mines is anticipated to be less than 250 kW. Based on its experience, MSOL management will use contractors for open pit mining and ore transportation. The cost of power is included in the service agreement. MSOL has already agreed with CEMIG over the supply to its contractors.

The Pilar Mine will be supplied by a new and dedicated transmission line that is under construction by CEMIG. Pilar mining development is being supported by diesel generators that will be used in the future as emergency supply in case of power failure.

To complete the TechnoMine Caeté Technical Report, TechnoMine defined and coordinated supporting studies conducted by MSOL’s technical staff and local consultants, in addition to testwork carried out by laboratories and research centers located in Brazil, Canada, Germany, and the U.S. In addition, TechnoMine was in charge of the Caeté Project’s plant design and cost, with the assistance of MSOL’s Chief Metallurgist Dacildo Rodrigues de Souza, M.Sc.

Since TechnoMine issued the statement of resources technical report in 2007, the following additional work was completed and formed the basis for the TechnoMine Caeté Technical Report:

•

Definition drilling consisting of 14 surface holes (8,409 meters), and two underground holes (59 meters) at the Pilar Target and 49 surface holes (11,954 meters) at the Roça Grande Target,

•

Underground development (779 meters at the Pilar Target and 1,728 meters at the Roça Grande Target),

•

Metallurgical testwork,

•

Mine plan, infrastructure, environmental studies,

•

Plant design,

•

Licensing, and

•

Economic analysis.

Jaguar plans to continue underground development at both the Pilar and Roça Grande Targets, as well as carrying out test mining, additional underground and surface definition drilling, detailed engineering, and permitting.

Geology

The Pilar and Roça Grande Targets lie within an elongated NE-SW Archean to the Upper Proterozoic metamorphic belt, defined as the eastern part of the Iron Quadrangle Province. This well-known prolific mining region contains numerous gold and iron deposits and several productive and historical gold mines, which were active during the Brazil Gold Cycle (17th and 18th centuries), such as Juca Vieira, Gongo Soco, Luis Soares, São Bento (Eldorado Group), Cuiabá (AngloGold Ashanti - still in operation), and many others.

The dominant host for the gold mineralization in the Caeté Project region was a thick sequence of rocks composed of mafic-felsic volcanic flows, tuffs, volcanoclastics, and banded iron formations and cherts, tightly folded and intensely sheared, named the Rio das Velhas Super Group.

At the Pilar and Roça Grande Targets, the mineralized bodies occur within BIF and shear zones, represented by disseminated gold-bearing sulfides associated to silic-sericitic-carbonatic solutions originating from hydrothermal activity.

The Pilar Target is located at the basal unit of the Nova Lima Group, which is composed of mafic and ultramafic rocks, like talc-schist, meta-basalts, meta-andesite with layers of the meta-sediments represented by oxide BIF, metachert, carbonaceous schists, metatuffs, metavolcanoclastics, and hydrothermal products of theses rocks.

The Roça Grande mineralized body occur within the BIF and metachert layers in disseminated gold-bearing sulfides associated with silic-sericitic-carbonatic solutions originating from hydrothermal activity.

Due to hydrothermal alteration, iron oxide and iron carbonates were replaced by iron sulfides. Also, more gold was introduced.

The main ore zones are hosted in carbonate/sulfide BIF (Algoma type) and subordinately in quartz veins in sericite-chlorite schist related with hydrothermal alteration in shear zones.

Gold is associated with sulfides (arsenopyrite, pyrite and pyrrhotite) or “free” in the quartz veins or in the contact quartz/sericite schist.

Mineral Resource Estimates

Mineral resource estimates were prepared by MCB - Geologia e Mineração Ltda.’s (“MCB”) Principal and Chief Resource Geologist, Rogério Moreno, under the supervision of Jaguar’s Chief Geologist, Jaime Duchini, and the author of TechnoMine Caeté Technical Report. Methodology and criteria for the resource estimation are presented in Appendix 01-A - MCB Mineral Resource Estimate Report (Pilar Target) and Appendix 01-B - MCB Mineral Resource Estimate Report (Roça Grande) of the TechnoMine Caeté Technical Report. The estimated mineral resources, inclusive of mineral reserves, are shown in the tables below. The cutoff grade (grams per tonne) and capping (grams per tonne) adopted for the 3D modeling are presented below.

Target	Cutoff (grams per tonne)	Cap (grams per tonne)
Pilar	2.50	50.00
RG-01	3.00	16.00
RG-07	3.00	14.00
RG-02, 03 and 06	0.80 (for open pit) and 3.00 (for underground)	30.00

Pilar Target - Resource Estimate (sulfide mineralization)

Category	Tonnage (t)	Grade (g Au/t)	Contained Gold (oz Au)
Measured	1,355,400	5.71	248,850
Indicated	1,249,200	5.73	230,200
Measured and Indicated	2,604,600	5.72	479,050

Inferred	1,620,600	6.59	343,400

Roça Grande Target - Resource Estimate (sulfide, transition, and oxide mineralization)

Category	Tonnage (t)	Grade (g Au/t)	Contained Gold (oz Au)
Measured (M)	3,340,200	3.30	354,400
Indicated (I)	3,396,600	4.59	501,240