Exhibit
99.1






AUDITORS'
REPORT ON RECONCILIATION TO UNITED STATES GAAP
  To the
Board of Directors of Jaguar Mining Inc.
 
 On
March 24, 2008, we reported on the consolidated balance sheets of Jaguar Mining
Inc. ("the Company") as at December 31, 2007 and 2006 and the consolidated
statements of operations and comprehensive loss and deficit and cash flows for
each of the years in the three-year period ended December 31, 2007 which are
included in the annual report on Form 40-F. In connection with our audits
conducted in accordance with Canadian generally accepted auditing standards of
the aforementioned consolidated financial statements, we also have audited the
related supplemental note entitled "Reconciliation to United States GAAP"
included in the Form 40-F. This supplemental note is the responsibility of the
Company's management. Our responsibility is to express an opinion on this
supplemental note based on our audits.
 
 In our
opinion, such supplemental note, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly, in all
material respects, the information set forth therein.
    
  Chartered
Accountants, Licensed Public Accountants
  Toronto,
Canada
 March 24,
2008




COMMENTS
BY AUDITORS FOR US READERS ON CANADA – US REPORTING DIFFERENCES
 
 To the
Board of Directors of Jaguar Mining Inc.
 
 In the
United States, reporting standards for auditors required the addition of an
explanatory paragraph (following the opinion paragraph) where there is a change
in accounting principles that has a material effect on the comparability of the
financial statements, such as the changes described in note 2 to the
consolidated financial statements as at December 31, 2007 and for the year then
ended. Our report to the shareholders dated March 24, 2008 is expressed in
accordance with Canadian reporting standards, which do not require a reference
to changed in accounting policies if those changes were appropriately disclosed
in the notes to the consolidated financial
 statements.
   
  Chartered
Accountants, Licensed Public Accountants
  Toronto,
Canada
 March 24,
2008







Jaguar
Mining Inc.
 Schedule
of Reconciliation between Canadian and U.S. GAAP
 Years
ended December 31, 2007, 2006 and 2005
 (Expressed
in thousands of U.S. Dollars)
 
 
 Canadian
generally accepted accounting principles (“Canadian GAAP”) varies in certain
significant respects from the principles and practices generally accepted in the
United States (“U.S. GAAP”).  The effect of these principal
differences on the Company’s consolidated financial statements is quantified
below and described in the accompanying notes:
 
 Consolidated
      Statements of Operations
              
              Note
              
              
              December
      31, 2007
              
              
              December
      31, 2006
              
              
              December
      31, 2005Net
      Loss under Canadian GAAP
              
              
              
              
              $
              (27,660
              )
              
              $
              (12,746
              )
              
              $
              (12,838
              )Increase
      in gold revenue
              
              
              b
              
              
              
              -
              
              
              
              850
              
              
              
              397Decrease
      in production costs
              
              
              a,
      b
              
              
              
              -
              
              
              
              (540
              )
              
              
              (465
              )(Increase)
      decrease in inventory write-down
              
              
              a,
      b, c
              
              
              
              -
              
              
              
              (1,904
              )
              
              
              99Decrease
      in depletion and amortization
              
              
              a,
      b, c
              
              
              
              372
              
              
              
              1,531
              
              
              
              512Increase
      in exploration costs
              
              
              a,
      c
              
              
              
              (24,252
              )
              
              
              (14,434
              )
              
              
              (7,585
              )Decrease
      in amortization of deferred financing fees
              
              
              d
              
              
              
              -
              
              
              
              698Increase
      (decrease) in future income taxes recovered
              
              
              a
              
              
              
              1,761
              
              
              
              (209
              )
              
              
              (106
              )Net
      loss under U.S. GAAP
              
              
              
              
              
              $
              (49,779
              )
              
              $
              (26,754
              )
              
              $
              (19,986
              )Basic
      and fully diluted loss per share under U.S. GAAP
              
              
              
              
              
              $
              (0.93
              )
              
              $
              (0.62
              )
              
              $
              (0.64
              )
 
 
 Consolidated
      Balance Sheets
              
              Note
              
              
              December
      31, 2007
              
              
              December
      31, 2006
              
              
              December
      31, 2005Total
      assets under Canadian GAAP
              
              
              
              
              $
              234,231
              
              
              $
              124,130
              
              
              $
              51,235Increase
      (decrease) in inventory
              
              
              a,
      c
              
              
              
              (146
              )
              
              
              170
              
              
              
              169Increase
      (decrease)in prepaid expenses
              
              
              d
              
              
              
              2,859
              
              
              
              (1,321
              )
              
              
              -Decrease
      in property, plant and equipment
              
              
              b
              
              
              
              (2,240
              )
              
              
              (310
              )
              
              
              -Decrease
      in mineral exploration projects
              
              
              a,
      c
              
              
              
              (46,185
              )
              
              
              (24,772
              )
              
              
              (10,897
              )Total
      assets under U.S. GAAP
              
              
              
              
              
              $
              188,519
              
              
              $
              97,897
              
              
              $
              40,507Total
      liabilities under Canadian GAAP
              
              
              
              
              
              $
              132,712
              
              
              $
              34,755
              
              
              $
              11,236Decrease
      in future income tax liability
              
              
              a
              
              
              
              (2,182
              )
              
              
              (421
              )
              
              
              (629
              )Increase
      (decrease) in notes payable
              
              
              d
              
              
              
              2,859
              
              
              
              (1,707
              )
              
              
              -Total
      liabilities under U.S. GAAP
              
              
              
              
              
              $
              133,389
              
              
              $
              32,627
              
              
              $
              10,607Shareholders'
      equity under Canadian GAAP
              
              
              
              
              
              
              101,519
              
              
              
              89,375
              
              
              
              39,999Reverse
      Cdn GAAP adjustment to opening equity
              
              
              d
              
              
              
              (165
              )
              
              
              -
              
              
              
              -Cumulative
      U.S. GAAP adjustment
              
              
              
              
              
              
              (46,224
              )
              
              
              (24,105
              )
              
              
              (10,099
              )Shareholders'
      equity under U.S GAAP
              
              
              
              
              
              
              55,130
              
              
              
              65,270
              
              
              
              29,900Total
      liabilities and shareholders' equity under U.S. GAAP
              
              
              $
              188,519
              
              
              $
              97,897
              
              
              $
              40,507
 
 
  
 Jaguar
Mining Inc.
 Schedule
of Reconciliation between Canadian and U.S. GAAP
 Years
ended December 31, 2007, 2006 and 2005
 (Expressed
in thousands of U.S. Dollars)
  
 The
following shows the significant impact on operating, investing and financing
cash flows after considering U.S. GAAP adjustments:
 
 
 Consolidated
      Statements of Cash Flows
              
              Note
              
              
              December
      31, 2007
              
              
              December
      31, 2006
              
              
              December
      31, 2005Cash
      used in operations under Canadian GAAP
              
              
              
              
              $
              1,457
              
              
              $
              (7,647
              )
              
              $
              (7,706
              )Mineral
      exploration
              
              
              a,
      c
              
              
              
              (24,252
              )
              
              
              (14,434
              )
              
              
              (7,585
              )Cash
      used in operations under U.S. GAAP
              
              
              
              
              
              $
              (22,795
              )
              
              $
              (22,081
              )
              
              $
              (15,291
              )Cash
      used in investing activities under Canadian GAAP
              
              
              
              
              
              $
              (60,167
              )
              
              $
              (56,112
              )
              
              $
              (16,620
              )Mineral
      exploration
              
              
              a,
      c
              
              
              
              24,252
              
              
              
              14,434
              
              
              
              7,585Cash
      used in investing activities under U.S. GAAP
              
              
              
              
              
              $
              (35,915
              )
              
              $
              (41,678
              )
              
              $
              (9,035
              )
 
 a)
              Mineral
      Properties
 
 Under
Canadian GAAP, the Company capitalizes all costs related to the acquisition,
exploration and development of non-producing mineral
properties.  Under U.S GAAP, exploration and development costs are
expensed as incurred, until the establishment of commercially mineable reserves
is complete, at which time any further exploration costs are
capitalized.
 
 As of
February 17, 2006, a bankable feasibility study determined that there were
commercially mineable reserves at the Sabara Mine. For U.S. GAAP purposes, all
exploration costs related to Sabara prior to the second quarter of 2006 have
been expensed and all exploration costs subsequent to April 1, 2006 have been
capitalized.
 
 On
September 16, 2005, a bankable feasibility study determined that there were
commercially mineable reserves at the Turmalina mine for U.S. GAAP
purposes.  All exploration costs related to Turmalina prior to the
third quarter of 2005 have been expensed and all exploration costs after October
1, 2005 have been capitalized, for U.S. GAAP purposes.
 
 On
August 7, 2007, a bankable feasibility study determined that there were
commercially mineable reserves at the Santa Isabel mine for U.S. GAAP
purposes.  All exploration costs related to Santa Isabel prior to the
fourth quarter of 2007 have been expensed and all exploration costs after
October 1, 2007 have been capitalized, for U.S. GAAP purposes.
 
 For
U.S. GAAP purposes, all exploration and development expenses not related to
Sabara, Turmalina or Santa Isabel have been expensed.  Due to
differences in the asset bases for Canadian and U.S. GAAP, the annual
depreciation, amortization and depletion charge will differ.
 
 For
Canadian GAAP, cash flows relating to mineral property exploration are reported
as investing activities. For U.S. GAAP, these costs would be characterized as
operating activities.
 
  
  Jaguar
Mining Inc.
 Schedule
of Reconciliation between Canadian and U.S. GAAP
 Years
ended December 31, 2007, 2006 and 2005
 (Expressed
in thousands of U.S. Dollars)





b)
            Transition
      from Development Stage to
Production





Under
U.S. GAAP, new production facilities are placed in service once the facility has
been constructed and fully tested to the point where it can be shown that it is
capable of producing its intended product.  Under Canadian GAAP, new
production facilities are placed in service when output reaches a significant
portion of the facility’s design capacity.  As such, the new Sabara
plant was placed in service on January 1, 2006 for U.S. GAAP purposes and August
1, 2006 for Canadian GAAP purposes.  Sales revenue of $1,247,000 and
costs of $1,112,448 incurred during the period January 1, 2006 to August 1, 2006
have been capitalized under Canadian GAAP.This revenue was recognized in the
statement of operations, and production costs and fixed asset amortization were
included in inventory and expensed through cost of sales to the extent the
inventory produced was sold to third parties for U.S. GAAP
purposes.





c)
            Stripping
      Costs





Under
Canadian GAAP, the Company accounts for stripping costs in accordance with
EIC-160, “Stripping Costs Incurred in the Production Phase of a Mining
Operation” (“EIC-160”).  Under EIC-160, stripping costs are accounted
for according to the benefit received by the Company and are capitalized if the
stripping activity can be shown to represent a betterment to the mineral
property.  A betterment occurs when the stripping activity provides
access to sources of reserves that will be produced in future periods that would
not have been accessible in the absence of this activity.  However,
under U.S. GAAP, as outlined under EITF Issued No. 04-6, “Accounting for
Stripping Costs Incurred During Production in the Mining Industry” (“EITF
04-6”), all stripping costs incurred during the production of a mine are
considered variable production costs during the period that the stripping costs
are incurred.





d)
            Deferred
      Financing Fees





Prior
to January 1, 2007, the Company accounted for its deferred financing fees as an
asset, which for Canadian GAAP purposes is amortized to the statement of
operations over the period of the related debt, on a straight-line
basis.  For U.S. GAAP, the Company is required to defer and amortize
the financing fees, directly related to incurring the debt, to the statement of
operations using the  interest method. Also, U.S. GAAP requires that
the unamortized fees are presented on the balance sheet as a separate asset.
Beginning January 1, 2007, Canadian GAAP requires the Company to begin
amortizing deferred financing fees in the same manner as for U.S. GAAP except
that the debt issuance costs are netted against the related debt.  An
adjustment was made to the opening deficit for Canadian GAAP purposes to account
for the change in accounting method for the deferred financing fees incurred
prior to January 1, 2007.








e)
            Statement
      of Comprehensive Income





There
is no statement of Comprehensive Income shown for U.S GAAP purposes due to the
fact there are no differences between net loss and comprehensive
loss.








f)
            Comparative
      figures




Certain
comparative figures have been reclassified to conform to the current year’s
presentation.










Jaguar
Mining Inc.
 Schedule
of Reconciliation between Canadian and U.S. GAAP
 Years
ended December 31, 2007, 2006 and 2005
 (Expressed
in thousands of U.S. Dollars)





Recent
Accounting Pronouncements





i)
            In
      June 2006, the FASB issued FIN 48 “Accounting for Uncertainty in Income
      Taxes - an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48
      provides guidance on the recognition threshold and measurement attribute
      for the financial statement recognition and measurement of a tax position
      taken or expected to be taken on a tax return. FIN 48 requires that the
      Company recognize in its financial statements the impact of a tax position
      if that position is more likely than not of being sustained on audit,
      based on the technical merits of the position. It also provides criteria
      for the derecognition, classification, interest and penalties, accounting
      in interim periods and disclosure. The interpretation is effective for
      fiscal years beginning after December 15, 2006 with the cumulative effect
      of the change in accounting principle recorded as an adjustment to the
      opening balance of retained earnings. As a result of implementing FIN 48,
      the Company determined there was no impact on the consolidated financial
      statements.





ii)
            In
      September 2006, the FASB issued SFAS 157, “Fair Value Measurements” (“SFAS
      157”), which defines fair value, establishes a framework for measuring
      fair value and a framework for measuring assets and liabilities at fair
      values when a particular standard describes it. In addition, SFAS 157
      prescribes a more enhanced disclosure of fair value measures and requires
      additional expanded disclosure when non-market data is used to assess fair
      values. The provisions of SFAS 157 are effective for fiscal years
      beginning after November 15, 2007 except that the standard has been
      deferred to years ending after November 15, 2008 for non-financial assets
      and liabilities. The Company is currently evaluating the impact that the
      adoption of this pronouncement will have on its financial
      statements.





iii)
            In
      February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities - Including an Amendment of
      FASB Statement No. 115.” This pronouncement permits entities to use the
      fair value method to measure certain financial assets and liabilities by
      electing an irrevocable option to use the fair value method at specified
      election dates. After election of the option, subsequent changes in fair
      value would result in the recognition of unrealized gains or losses as
      period costs during the period the change occurred. SFAS No. 159 becomes
      effective as of the beginning of the first fiscal year that begins after
      November 15, 2007, with early adoption permitted. However, entities may
      not retroactively apply the provisions of SFAS No. 159 to fiscal years
      preceding the date of adoption. The Company is currently evaluating the
      impact that SFAS No. 159 may have on our financial position, results of
      operations and cash flows.





iv)
            In
      February 2007, the SEC provided an interpretation of the U.S. accounting
      rules contained in SFAS 133, “Accounting for Derivatives and Hedging
      Activities” (“SFAS 133”), which outlines the accounting rules for the
      Company’s share purchase warrants.  The interpretation states
      that under U.S. GAAP when a company has instruments outstanding with an
      exercise price denominated in a functional currency other than the
      Company’s functional currency, those instruments must be fair valued at
      each reporting date, with the resulting gains or losses being included in
      the calculation of U.S. GAAP earnings.  In these circumstances a
      loss (gain) would be recorded by the Company when the value of the
      Company’s share purchase warrants increase
      (decrease).  Following the issuance of this interpretation by
      the SEC, discussions were initiated by the FASB concerning the application
      and adoption of this interpretation of SFAS 133 that have yet to be
      concluded and, as a result, the Company has not changed the treatment of
      its share purchase warrants.










Jaguar
Mining Inc.
 Schedule
of Reconciliation between Canadian and U.S. GAAP
 Years
ended December 31, 2007, 2006 and 2005
 (Expressed
in thousands of U.S. Dollars)


Recent
accounting pronouncements (continued):





v)
            In
      December 2007, the Financial Accounting Standards Board (“FASB”) issued
      SFAS No. 141 (revised 2007), Business Combinations (“SFAS No. 141(R)”).
      SFAS No. 141(R) establishes principles and requirements for how an
      acquirer recognizes and measures in its financial statements the
      identifiable assets acquired, the liabilities assumed, any noncontrolling
      interest in the acquiree and the goodwill acquired. SFAS No. 141(R) also
      establishes disclosure requirements to enable the evaluation of the nature
      and financial effects of the business combination. SFAS No. 141(R) is
      effective for fiscal years beginning after December 15, 2008. The Company
      is currently evaluating the impact that the adoption of this pronouncement
      will have on its financial
statements.








vi)
            In
      December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in
      Consolidated Financial Statements - an amendment of Accounting Research
      Bulletin No. 51 (“SFAS No. 160”). SFAS No. 160 establishes accounting and
      reporting standards for ownership interests in subsidiaries held by
      parties other than the parent, the amount of consolidated net income
      attributable to the parent and to the noncontrolling interest, changes in
      a parent’s ownership interest, and the valuation of retained
      noncontrolling equity investments when a subsidiary is deconsolidated.
      SFAS No. 160 also establishes disclosure requirements that clearly
      identify and distinguish between the interests of the parent and the
      interests of the noncontrolling owners. SFAS No. 160 is effective for
      fiscal years beginning after December 15, 2008. The Company is evaluating
      the potential impact, if any, of the adoption of SFAS No. 160 on our
      consolidated results of operations and financial
  condition.





.