Investors Sell Jaguar Mining (JAG) Shares as Special Committee Concludes Strategic Review

Shares of Jaguar Mining (NYSE: JAG) have tumbled more than 30 percent Tuesday afternoon following an earlier release from the company which disclosed the Special Committee of the Board has concluded its strategic review process related to the possible change of control of Jaguar. Despite the Committee's extensive efforts, this process has not resulted in an agreed change of control transaction.

The company also announced the implementation of a comprehensive restructuring and turnaround plan to improve costs and efficiency at its operations in the state of Minas Gerais, Brazil.

Highlights of the restructuring and turnaround plan include:

• Paciencia operations placed on temporary care and maintenance for mine development catch-up;
  
• Cost reduction and productivity improvements at the Turmalina and Caete operations;
  
• Focus on mining dilution reduction and development cost reduction at all operations; and
  
• Targeted 40 percent reduction in overhead and administrative costs across the company.

Based on the planned implementation of the restructuring and turnaround plan, Jaguar is revising its outlook for both production and costs in 2012. The Company now expects 2012 gold production in the range of 120,000 to 130,000 ounces. On this new volume, operating cash costs are expected to be in the range of $900 to $1,000 per ounce as the planned benefits of the turnaround plan will not be fully realized until 2013.

Looking to mid 2013 and beyond, the Company's revised preliminary annual targets for its Southern operations (excluding any Gurupi potential production) is 170,000 to 190,000 ounces at cash costs of $700 to $800 per ounce.

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