SHAREHOLDER
RIGHTS PLAN AGREEMENT


 


Dated as of March
21, 2012


 


Between


 


Jaguar mining
inc.


 


and


 


COMPUTERSHARE
INVESTOR SERVICES INC.



as Rights Agent


 


 



    	 



    	 



    
 


TABLE OF CONTENTS


 


Article 1

INTERPRETATION


 


	1.1	Certain Definitions	2
	1.2	Currency	15
	1.3	Headings	15
	1.4	Number and Gender	15
	1.5	Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting Shares	15
	1.6	Acting Jointly or in Concert	15
	1.7	Statutory References	16


Article 2

The RIGHTS


 


	2.1	Legend on Common Share Certificates	17
	2.2	Initial Exercise Price, Exercise of Rights and Detachment of Rights	17
	2.3	Adjustments to Exercise Price; Number of Rights	20
	2.4	Date on Which Exercise is Effective	26
	2.5	Execution, Authentication, Delivery and Dating of Right Certificates	26
	2.6	Registration, Registration of Transfer and Exchange	26
	2.7	Mutilated, Destroyed, Lost and Stolen Rights Certificates	27
	2.8	Persons Deemed Owners	28
	2.9	Delivery and Cancellation of Certificates	28
	2.10	Agreement of Rights Holders	28
	2.11	Rights Certificate Holder not Deemed a Shareholder	29


 


Article 3

ADJUSTMENTS TO THE RIGHTS ON FLIP-IN EVENT


 


	3.1	Flip-in Event	30
	3.2	Exchange Option	31


 


Article 4

THE RIGHTS AGENT


 


	4.1	General	32
	4.2	Merger or Amalgamation or Change of Name of Rights Agent	33
	4.3	Duties of Rights Agent	33
	4.4	Change of Rights Agent	35
	4.5	Compliance with Money Laundering Legislation	36
	4.6	Privacy Provision	36


 


Article 5

MISCELLANEOUS


 


	5.1	Redemption of Rights	37
	5.2	Waiver of Flip-In Event	38
	5.3	Expiration	39
	5.4	Issuance of New Rights Certificates	39
	5.5	Supplements and Amendments	39



 






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	5.6	Fractional Rights and Fractional Shares	40
	5.7	Rights of Action	40
	5.8	Notices	41
	5.9	Costs of Enforcement	42
	5.10	Benefits of this Agreement	42
	5.11	Governing Law	42
	5.12	Language	42
	5.13	Severability	42
	5.14	Effective Date and Termination	42
	5.15	Determinations and Actions by the Board of Directors	43
	5.16	Rights of Board of Directors and the Corporation	43
	5.17	Regulatory Approvals	43
	5.18	Declaration as to Non-Canadian Holders	43
	5.19	Time of the Essence	43
	5.20	Successors	43
	5.21	Execution in Counterparts	44


  



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SHAREHOLDER
RIGHTS PLAN AGREEMENT


 


THIS SHAREHOLDER RIGHTS
PLAN AGREEMENT is dated as of the 21st day of March, 2012


 


B E T W E E N:


 


JAGUAR MINING INC.,


a corporation existing under the laws
of the Province of Ontario (the "Corporation"),


 


- and -


 


COMPUTERSHARE
INVESTOR SERVICES INC.,


a corporation incorporated under the
laws of Canada (the "Rights Agent").


 


WHEREAS the Board of
Directors (as hereinafter defined) of the Corporation, in the exercise of their fiduciary duties to the Corporation, has determined
that it is advisable and in the best interests of the Corporation to adopt a shareholder rights plan (the "Rights Plan")
to (a) ensure, to the extent possible, that all holders of the Common Shares (as hereinafter defined) of the Corporation and the
Board of Directors have adequate time to consider and evaluate any unsolicited Take-over Bid (as hereinafter defined) for the Common
Shares, (b) provide the Board of Directors with adequate time to identify, solicit, develop and negotiate value-enhancing alternatives,
as considered appropriate, to any such unsolicited Take-over Bid; (c) provide the Board of Directors with adequate time to continue
to identify, solicit, develop and negotiate value-enhancing transactions, as considered appropriate, as part of the strategic review
process announced by the Board of Directors on November 16, 2011, (d) encourage the fair treatment of the Corporation's securityholders
in connection with any unsolicited Take-over Bid made for the Common Shares and (e) generally to assist the Board of Directors
in enhancing shareholder value;


 


AND WHEREAS the Board
of Directors has determined that the Rights Plan should take effect immediately;


 


AND WHEREAS in order
to implement the Rights Plan, the Board of Directors has authorized the issuance of:


 


		(a)	one right (a "Right") effective at the Record Time (as hereinafter defined) in
respect of each Common Share outstanding at the Record Time; and



 


		(b)	one Right in respect of each Common Share issued after the Record Time and prior to the earlier
of the Separation Time (as hereinafter defined) and the Expiration Time (as hereinafter defined);



 






    	 



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AND WHEREAS each Right
entitles the Holder (as hereinafter defined) thereof, after the Separation Time, to purchase securities of the Corporation pursuant
to the terms and subject to the conditions set forth herein;


 


AND WHEREAS the Corporation
desires to appoint the Rights Agent to act on behalf of the Corporation and the holders of Rights, and the Rights Agent has agreed
to act on behalf of the Corporation and the holders of Rights in connection with the issuance, transfer, exchange and replacement
of Rights Certificates (as hereinafter defined), the exercise of Rights and other matters referred to herein;


 


NOW THEREFORE, in consideration
of the foregoing premises and the respective covenants and agreements set forth herein, the parties hereby agree as follows:


 


Article 1

INTERPRETATION


 


		1.1	Certain Definitions



 


For purposes of this
Agreement, the following terms have the meanings indicated:


 


		(a)	"Acquiring Person" shall mean any Person who is the Beneficial Owner of 20% or
more of the outstanding Voting Shares; provided, however, that the term "Acquiring Person" shall not include:



 


		(i)	the Corporation or any Subsidiary of the Corporation;



 


		(ii)	any Person who becomes the Beneficial Owner of 20% or
more of the outstanding Voting Shares as a result of one or any combination of:



 


		(A)	a Corporate Acquisition which, by reducing the number
of Voting Shares outstanding, increases the percentage of Voting Shares Beneficially Owned by such Person to or above 20% or more
of the Voting Shares then outstanding;



 


		(B)	an Exempt Acquisition;



 


		(C)	a Permitted Bid Acquisition;



 


		(D)	a Pro Rata Acquisition; or



 


		(E)	a Convertible Security Acquisition;



 


provided, however, that if a
Person becomes the Beneficial Owner of 20% or more of the Voting Shares then outstanding by reason of one or any combination of
a Corporate Acquisition, an Exempt Acquisition, a Permitted Bid Acquisition, a Pro Rata Acquisition or a Convertible Security Acquisition,
and thereafter becomes the Beneficial Owner of any additional Voting Shares (other than pursuant to any one or a combination of
a Corporate Acquisition, an Exempt Acquisition, a Permitted Bid Acquisition, a Pro Rata Acquisition or a Convertible Security Acquisition),
then as of the date such Person becomes the Beneficial Owner of such additional Voting Shares, such Person shall become an Acquiring
Person;


 






    	 



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		(iii)	for a period of ten days after the Disqualification Date
(as hereinafter defined), any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares as a result
of such Person becoming disqualified from relying on Clause (vi) of the definition of Beneficial Owner solely because such Person
makes or announces an intention to make a Take-over Bid in respect of Voting Shares and/or Convertible Securities either alone
or by acting jointly or in concert with any other Person. For the purposes of this definition, "Disqualification Date"
means the first date of a public announcement of facts indicating that any Person is making or intends to make a Take-over Bid,
either alone, through such Person's Affiliates or Associates or by acting jointly or in concert with any other Person; or



 


		(iv)	an underwriter or member of a banking or selling group
that acquires Voting Shares from the Corporation in connection with a distribution of securities of the Corporation pursuant to
a prospectus or by way of private placement;



 


		(b)	"Affiliate" when used to indicate a relationship with a Person, shall mean a Person
that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with,
such specified Person;



 


		(c)	"Agreement" means this agreement as amended, modified or supplemented from time
to time; "hereof", "herein", "hereto" and similar expressions mean and refer
to this shareholder rights plan agreement as a whole and not to any particular part of this Agreement;



 


		(d)	"Associate", when used to indicate a relationship with a specified Person, shall
mean (a) any corporation or trust of which such Person beneficially owns, directly or indirectly, voting securities carrying more
than 10% of the voting rights attached to all voting securities of such corporation or trust for the time being outstanding, (b)
any partner of that Person, (c) any trust or estate in which such Person has a substantial beneficial interest or as to which such
Person serves as trustee or in a similar capacity, (d) a spouse of such specified Person, (e) any Person of either sex with whom
such specified Person is living in conjugal relationship outside marriage or (f) any relative of such specified Person or of a
Person mentioned in Clauses (d) or (e) of this definition if that relative has the same residence as the specified Person;



 






    	 



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		(e)	a Person shall be deemed the "Beneficial Owner" of, and to have "Beneficial
Ownership" of, and to "Beneficially Own":



 


		(i)	any securities as to which such Person or any of such
Person's Affiliates or Associates is the owner at law or in equity, directly or indirectly, including, for greater certainty,
beneficial ownership pursuant to the take-over bid provisions of the Securities Act (Ontario);



 


		(ii)	any securities as to which such Person or any of such
Person's Affiliates or Associates has the right to acquire or become the owner at law or in equity, where such right is exercisable
immediately or after the passage of time and whether or not on condition or the happening of any contingency or the making of
any payment, upon the exercise of any conversion right, exchange right or purchase right attaching to Convertible Securities,
or pursuant to any agreement, arrangement, pledge or understanding (including, for greater certainty, any lock-up agreement),
whether or not in writing, (other than (x) customary agreements with and between underwriters and/or banking group members and/or
selling group members with respect to a distribution of securities pursuant to a prospectus or by way of private placement and
(y) pledges of securities in the ordinary course of business of the lender granted as security for bona fide indebtedness)
or otherwise;



 


		(iii)	any securities as to which such Person or any of such
Person's Affiliates or Associates has the right to vote, or the right to direct the voting, where such right is exercisable immediately
or after the passage of time and whether or not on condition or the happening of any contingency or the making of any payment,
pursuant to any agreement, arrangement, pledge or understanding, whether or not in writing, (other than pursuant to pledges of
securities in the ordinary course of business of the lender granted as security for bona fide indebtedness) or otherwise;
and



 


		(iv)	any securities which are Beneficially Owned within the
meaning of Clauses (i), (ii) and (iii) of this definition by any other Person with whom such Person is acting jointly or in concert
with respect to the Corporation or any of its securities or assets;



 


provided, however, that a Person
shall not be deemed the "Beneficial Owner" of, or to have "Beneficial Ownership" of, or to "Beneficially
Own", any security:


 


		(v)	by reason of such security having been deposited or tendered
pursuant to any Take-over Bid made by such Person or any of such Person's Affiliates or Associates or any other Person referred
to in Clause (iv) of this definition until the earlier of such deposited or tendered security being accepted unconditionally for
payment or exchange or being taken up or paid for;



 






    	 



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		(vi)	where such Person, any of such Person's Affiliates or
Associates or any other Person referred to in Clause (iv) of this definition holds such security provided that:



 


		(A)	the ordinary business of any such Person (the "Investment Manager") includes
the management of investment funds for others (which others, for greater certainty, may include or be limited to one or more employee
benefit plans or pension plans) and includes the acquisition or holding of securities for a non-discretionary account of a Client
(as defined below) by a dealer or broker registered under applicable securities laws to the extent required and such security is
held by the Investment Manager in the ordinary course of such business in the performance of such Investment Manager's duties for
the account of any other Person (a "Client");



 


		(B)	such Person (the "Trust Company") is licensed to carry on the business of a trust
company under applicable laws and, as such, acts as trustee or administrator or in a similar capacity in relation to the estates
of deceased or incompetent Persons (each an "Estate Account") or in relation to other accounts (each an
"Other Account") and holds such security in the ordinary course of such duties for the estate of any such
deceased or incompetent Person or for such other accounts;



 


		(C)	such Person (the "Statutory Body") is established by statute for purposes that
include, and the ordinary business or activity of such Person includes, the management of investment funds for employee benefit
plans, pension plans, insurance plans or various public bodies and the Statutory Body holds such security in the ordinary course
of and for the purposes of the management of such investment funds;



 


		(D)	such person (the "Administrator") is the administrator or trustee of one or more
pension funds or plans (a "Plan") registered under the laws of Canada or any Province thereof or the corresponding
laws of the jurisdiction by which such Plan is governed and the Administrator holds such security for the purposes of its activities
as such; or



 


		(E)	such Person is a Crown agent or agency;



 


but only if the Investment Manager,
the Trust Company, the Statutory Body, the Administrator or the Crown agent or agency, as the case may be, (A) did not acquire
and does not Beneficially Own or hold such security for the purpose of or with the effect of changing or influencing the control
of the issuer thereof, either alone or acting jointly or in concert with any other Person, or in connection with or as a participant
in any transaction having that purpose or effect, (B) is not then making a Take-over Bid in respect of securities of the Corporation
or has not then announced an intention to make a Take-over Bid in respect of securities of the Corporation and (C) is not then
acting jointly or in concert with any other Person who is making a Take-over Bid or who has announced an intention to make a Take-over
Bid, other than an Offer to Acquire Voting Shares or other securities of the Corporation (1) pursuant to a distribution by the
Corporation or (2) by means of a Permitted Bid or a Competing Permitted Bid, or (3) by means of ordinary market transactions (including
prearranged trades entered into in the ordinary course of the business of such Person) executed through the facilities of a stock
exchange or organized over-the-counter market;


 






    	 



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		(vii)	because such Person is



 


		(A)	a Client of or has an account with the same Investment Manager as another Person on whose account
the Investment Manager holds such security,



 


		(B)	an Estate Account or an Other Account of the same Trust Company as another Person on whose account
the Trust Company holds such security; or



 


		(C)	a Plan with the same Administrator as another Plan on whose account the Administrator holds such
security;



 


		(viii)	where such Person is



 


		(A)	a Client of an Investment Manager and such security is owned at law or in equity by the Investment
Manager;



 


		(B)	an Estate Account or an Other Account of a Trust Company and such security is owned at law or in
equity by the Trust Company; or



 


		(C)	a Plan and such security is owned at law or in equity by the Administrator of the Plan; or



 


		(ix)	where such Person is the registered holder of securities
as a result of carrying on the business of or acting as a nominee of the securities depository;



 


		(f)	"Board of Directors" shall mean the board of directors of the Corporation, as
validly constituted from time to time;



 


		(g)	"Business Day" shall mean any day other than a Saturday, Sunday or a day on which
banking institutions in Toronto are authorized or obligated by law to close;



 


		(h)	"Canadian Dollar Equivalent" of any amount which is expressed in United States
dollars shall mean, on any date, the Canadian dollar equivalent of such amount determined by multiplying such amount by the U.S.
- Canadian Exchange Rate in effect on such date;



 






    	 



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		(i)	"close of business" on any given date shall mean the time on such date (or, if
such date is not a Business Day, the time on the next succeeding Business Day) at which the office of the transfer agent for the
Common Shares in Toronto (or, after the Separation Time, the office of the Rights Agent in Toronto) is closed to the public;



 


		(j)	"Common Shares" shall mean the common shares in the capital of the Corporation
and any other share of the Corporation into which such shares may be sub-divided, consolidated, re-classified or changed;



 


		(k)	"Competing Permitted Bid" shall mean a Take-over Bid that:



 


		(i)	is made after a Permitted Bid has been made and prior
to the expiry of that Permitted Bid (in this definition, the "Prior Bid");



 


		(ii)	satisfies all the components of the definition of a Permitted
Bid except the requirements set out in Clause (ii) of that definition; and



 


		(iii)	contains, and the take-up and payment for securities tendered
or deposited is subject to, an irrevocable and unqualified condition that no Voting Shares shall be taken up or paid for pursuant
to the Take-over Bid prior to the close of business on the date that is no earlier than the later of: (i) 35 days (or such other
minimum period of days as may be prescribed by the Securities Act (Ontario)) after the making of such Competing Permitted Bid;
and (ii) the 60th day after the date on which the earliest Prior Bid was made and then only if at that date more than 50% of the
then outstanding Voting Shares held by Independent Shareholders have been deposited or tendered pursuant to such Take-over Bid
and not withdrawn;



 


		(l)	"controlled": a Person is considered to be "controlled" by another Person
or two or more Persons if:



 


		(i)	in the case of a Person other than a partnership or a
limited partnership, including, without limitation, a corporation or body corporate:



 


		(A)	securities entitled to vote in the election of directors or trustees carrying more than 50% of
the votes for the election of directors or trustees of such Person are held, directly or indirectly, by or on behalf of the other
Person or Persons; and



 


		(B)	the votes carried by such securities are entitled, if exercised, to elect a majority of the board
of directors or trustees of such Person;



 






    	 



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		(ii)	in the case of a partnership other than a limited partnership,
more than 50% of the interests in such partnership are held by the other Person or Persons; and



 


		(iii)	in the case of a limited partnership, the other Person
or each of the other Persons is a general partner of the limited partnership,



 


and "controls",
"controlling" and "under common control with" shall be interpreted accordingly;


 


		(m)	"Convertible Securities" shall mean at any time any securities issued by the Corporation
(including rights, warrants, convertible notes and options but excluding the Rights) carrying any purchase, exercise, conversion
or exchange rights, pursuant to which the holder thereof may acquire Voting Shares or other securities convertible into or exercisable
or exchangeable for Voting Shares (in each case, whether such right is exercisable immediately or after a specified period and
whether or not on conditions or the happening of any contingency or the making of any payment);



 


		(n)	"Convertible Security Acquisition" shall mean the acquisition of Voting Shares
upon the exercise, conversion or exchange of Convertible Securities acquired by a Person pursuant to a Permitted Bid Acquisition,
an Exempt Acquisition or a Pro Rata Acquisition;



 


		(o)	"Co-Rights Agents" shall have the meaning ascribed thereto in Subsection 4.1(a);



 


		(p)	"Corporate Acquisition" shall mean an acquisition or a redemption of Voting Shares
by the Corporation which by reducing the number of Voting Shares outstanding increases the proportionate number of Voting Shares
Beneficially Owned by any Person;



 


		(q)	"Election to Exercise" shall have the meaning attributed thereto in Subsection
2.2(d)(ii);



 


		(r)	"Exempt Acquisition" shall mean an acquisition of Voting Shares or Convertible
Securities:



 


		(i)	in respect of which the Board of Directors has waived
the application of Section 3.1 pursuant to the provisions of Section 5.2 or which was made on or prior to the Record Time; or



 


		(ii)	pursuant to a distribution of Voting Shares or Convertible
Securities (and the exercise, conversion or exchange of such Convertible Securities) made by the Corporation pursuant to a prospectus
or private placement or other distribution made by the Corporation exempt from the prospectus requirements of applicable law;



 






    	 



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		(s)	"Exercise Price" shall mean, as of any date, the price at which a Holder may purchase
the securities issuable upon exercise of one whole Right. Until adjustment thereof in accordance with the terms hereof, the Exercise
Price shall be $25.00;



 


		(t)	"Expiration Time" shall mean the time at which the right to exercise Rights shall
terminate pursuant to Subsection 3.2(b), Subsection 5.1(d), or Section 5.14 hereof.



 


		(u)	"Flip-in Event" shall mean a transaction or other action in or pursuant to which
any Person becomes an Acquiring Person;



 


		(v)	"Holder" of any Rights, unless the context otherwise requires, shall mean the
registered holder of such Rights (or, prior to the Separation Time, of the associated Common Shares);



 


		(w)	"Independent Shareholders" shall mean the holders of Voting Shares other than:



 


		(i)	any Acquiring Person;



 


		(ii)	any Grandfathered Person;



 


		(iii)	any Offeror;



 


		(iv)	any Associate or Affiliate of any Acquiring Person, any Grandfathered Person or any Offeror;



 


		(v)	any Person acting jointly or in concert with any Acquiring Person, any Grandfathered Person or
any Offeror; and



 


		(vi)	any employee benefit plan, stock purchase plan, deferred profit sharing plan and any other similar
plan or trust for the benefit of employees of the Corporation or a Subsidiary of the Corporation, unless the beneficiaries of the
plan or trust direct the manner in which the Voting Shares are to be voted or direct whether the Voting Shares are to be tendered
to a Take-over Bid;



 






    	 



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		(x)	"Market Price" per security of any securities on any date of determination shall
mean the average of the daily closing prices per security of such securities (determined as described below) on each of the 20
consecutive Trading Days ending on the Trading Day immediately preceding such date; provided, however, that if an event of a type
analogous to any of the events described in Section 2.3 hereof shall have caused the closing prices used to determine the Market
Price on any such Trading Day not to be fully comparable with the closing price on such date of determination (or, if the date
of determination is not a Trading Day, on the immediately preceding Trading Day), each such closing price so used shall be appropriately
adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order to make it fully comparable
with the closing price on such date of determination (or, if the date of determination is not Trading Day, on the immediately preceding
Trading Day). The closing price per security of any securities on any date shall be:



 


		(i)	the closing board lot sale price or, in case no such sale takes place on such date, the average
of the closing bid and asked prices for each such security on such date, as reported by the principal stock exchange in Canada
on which such securities are listed or admitted to trading;



 


		(ii)	if for any reason none of such prices described in (i) above is available for such day or the securities
are not listed or admitted to trading on a Canadian stock exchange, the last sale price or, if such price is not available, the
average of the closing bid and asked prices, for each such security on such date, as reported by such other securities exchange
on which such securities are listed or admitted to trading;



 


		(iii)	if for any reason none of such prices described in (ii) above is available for such day or the
securities are not listed or admitted to trading on a Canadian stock exchange or other securities exchange, the last sale price,
or if no sale takes place, the average of the high bid and low asked prices for each such security on such date in the over-the-counter
market, as quoted by any reporting system then in use (as determined by the Board of Directors); or



 


		(iv)	if for any such date none of such prices described in (iii) above is available or the securities
are not listed or admitted to trading on a Canadian stock exchange or any other securities exchange and are not quoted by any such
reporting system, the average of the closing bid and asked prices for such date as furnished by a professional market maker making
a market in the securities selected in good faith by the Board of Directors,



 


provided, however, that if on any
such date none of such prices is available, the closing price per security of such securities on such date shall mean the fair
value per security of such securities on such date as determined in good faith by a nationally or internationally recognized firm
of investment dealers or investment bankers selected by the Board of Directors. The Market Price shall be expressed in Canadian
dollars and, if initially determined in respect of any day forming part of the 20 consecutive Trading Day period in question in
United States dollars, such amount shall be translated into Canadian dollars on such date at the Canadian Dollar Equivalent thereof;


 


		(y)	"Nominee" shall have the meaning ascribed thereto in Subsection 2.2(c);



 


		(z)	"OBCA" shall mean the Business Corporations Act, (Ontario) as amended,
and the regulations made thereunder and any comparable or successor laws or regulations thereto;



 






    	 



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		(aa)	"Offer to Acquire" shall include:



 


		(i)	an offer to purchase, a public announcement of an intention to make an offer to purchase, or a
solicitation of an offer to sell, Voting Shares, and



 


		(ii)	an acceptance of an offer to sell Voting Shares, whether or not such offer to sell has been solicited;



 


or any combination thereof, and
the Person accepting an offer to sell shall be deemed to be making an Offer to Acquire to the Person that made the offer to sell;


 


		(bb)	"Offeror" shall mean a Person who has announced an intention to make or who has
made a Take-over Bid;



 


		(cc)	"Offeror's Securities" shall mean Voting Shares Beneficially Owned by an Offeror,
on the date of an Offer to Acquire;



 


		(dd)	"Permitted Bid" shall mean a Take-over Bid made by an Offeror that is made by
means of a take-over bid circular and which also complies with the following additional provisions:



 


		(i)	the Take-over Bid is made to all holders of Voting Shares as registered on the books of the Corporation,
other than the Offeror and its Affiliates and Associates, for all Voting Shares held by them;



 


		(ii)	the Take-over Bid contains, and the take-up and payment for securities tendered or deposited thereunder
is subject to, an irrevocable and unqualified condition that no Voting Shares shall be taken up or paid for pursuant to the Take-over
Bid prior to the close of business on a date which is not less than 60 days after the date of the Take-over Bid, and only if at
such date more than 50% of the Voting Shares held by Independent Shareholders shall have been deposited or tendered pursuant to
the Take-over Bid and not withdrawn;



 


		(iii)	the Take-over Bid contains an irrevocable and unqualified provision that, unless the Take-over
Bid is withdrawn, Voting Shares may be deposited pursuant to such Take-over Bid at any time during the period of time between the
date of the Take-over Bid and the date on which the Voting Shares subject to the Take-over Bid may be taken up and paid for and
that any Voting Shares deposited pursuant to the Take-over Bid may be withdrawn until taken up and paid for; and



 


		(iv)	the Take-over Bid contains an irrevocable and unqualified provision that if, on the date on which
Voting Shares may be taken up and paid for, more than 50% of the Voting Shares held by Independent Shareholders shall have been
deposited or tendered pursuant to the Take-over Bid and not withdrawn, the Offeror will make a public announcement of that fact
and the Take-over Bid will remain open for deposits and tenders of Voting Shares for not less than 10 Business Days from the date
of such public announcement;



 






    	 



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		(ee)	"Permitted Bid Acquisitions" shall mean acquisitions of Voting Shares made pursuant
to a Permitted Bid or a Competing Permitted Bid;



 


		(ff)	"Person" shall include any individual, firm, partnership, association, trust,
trustee, executor, administrator, legal personal representative, government, governmental entity or authority, body corporate,
corporation, incorporated or unincorporated organization, syndicate or other entity;



 


		(gg)	"Pro Rata Acquisition" shall mean an acquisition by a Person of Voting Shares
or Convertible Securities:



 


		(i)	as a result of a stock dividend, a stock split or other event in respect of securities of the Corporation
of one or more particular classes or series pursuant to which a Person becomes the Beneficial Owner of Voting Shares or Convertible
Securities on the same pro rata basis as all other holders of securities of the particular class, classes or series;



 


		(ii)	pursuant to any regular dividend reinvestment plan or other plan made available by the Corporation
to holders of its securities where such plan permits the holder to direct that some or all of: (A) dividends paid in respect of
shares of any class of the Corporation, (B) proceeds of redemption of shares of the Corporation, (C) interest paid on evidences
of indebtedness of the Corporation, or (D) optional cash payments be applied to the purchase from the Corporation of further securities
of the Corporation;



 


		(iii)	pursuant to the receipt and/or exercise by the Person of rights (other than the Rights) issued
by the Corporation to all of the holders of a series or class of Voting Shares on a pro rata basis to subscribe for or purchase
Voting Shares or Convertible Securities, provided that such rights are acquired directly from the Corporation and not from any
other Person; or



 


		(iv)	pursuant to a plan of arrangement, amalgamation or other statutory procedure requiring shareholder
approval;



 


		(hh)	"Record Time" shall mean 5:00 p.m. (Toronto time) on the date of this Agreement;



 


		(ii)	"Redemption Price" shall have the meaning attributed thereto in Subsection 5.1(a);



 


		(jj)	"regular periodic cash dividend" shall mean cash dividends paid in any fiscal
year of the Corporation to the extent that such cash dividends do not exceed, in the aggregate, the greatest of:



 


		(i)	200% of the aggregate amount of cash dividends declared payable by the Corporation on its Common
Shares in its immediately preceding fiscal year;



 






    	 



    	- 13 -



    
 


		(ii)	300% of the arithmetic mean of the aggregate amounts of the annual cash dividends declared payable
by the Corporation on its Common Shares in its three immediately preceding fiscal years; and



 


		(iii)	100% of the aggregate consolidated net income of the Corporation, before extraordinary items, for
its immediately preceding fiscal year;



 


		(kk)	"Rights" shall mean the herein described rights to purchase securities pursuant
to the terms and subject to the conditions set forth herein;



 


		(ll)	"Rights Certificate" shall have the meaning attributed thereto in Clause 2.2(c)(i);



 


		(mm)	"Rights Register" shall have the meaning ascribed thereto in Subsection 2.6(a);



 


		(nn)	"Securities Act (Ontario)" shall mean the Securities Act, R.S.O. 1999,
c. S.5, as amended, and the rules and regulations thereunder, each as may be amended from time to time, and any comparable or successor
laws, rules, instruments or regulations thereto;



 


		(oo)	"Separation Time" shall mean, subject to Section 5.2, the close of business on
the second Trading Day after the earliest of:



 


		(i)	the Stock Acquisition Date;



 


		(ii)	the date of the commencement of, or first public announcement of the intent of any Person (other
than the Corporation or any Subsidiary of the Corporation) to make, a Take-over Bid (other than a Permitted Bid or a Competing
Permitted Bid); and



 


		(iii)	the date upon which a Permitted Bid or Competing Permitted Bid ceases to be such;



 


or such later date as may be determined
by the Board of Directors in its sole discretion, and provided further that if any Take-over Bid referred to in Clause 1.1(oo)(ii)
of this definition expires, is cancelled, terminated or otherwise withdrawn prior to the Separation Time, such Take-over Bid shall
be deemed, for the purposes of this definition, never to have been made;


 


		(pp)	"Stock Acquisition Date" shall mean the earlier of: (i) the first date of public
announcement (which, for purposes of this definition, shall include, without limitation, an early warning report filed pursuant
to the Securities Act (Ontario)) by the Corporation or a Person of facts indicating that any Person has become an Acquiring Person;
or (ii) the date that the Corporation first becomes aware of the facts that indicate that any Person has become an Acquiring Person;



 






    	 



    	- 14 -



    
 


		(qq)	"Subsidiary": a body corporate is a Subsidiary of another body corporate if:



 


		(i)	it is controlled by (A) that other, or (B) that other and one or more bodies corporate, each of
which is controlled by that other, or (C) two or more bodies corporate, each of which is controlled by that other, or



 


		(ii)	it is a Subsidiary of a body corporate that is that other's Subsidiary;



 


		(rr)	"Take-over Bid" shall mean an Offer to Acquire Voting Shares or Convertible Securities
(or both) if, assuming that the Voting Shares or Convertible Securities that are the subject of the Offer to Acquire are acquired
at the date of such Offer to Acquire by the Person making such Offer to Acquire, the Voting Shares Beneficially Owned by the Person
making the Offer to Acquire would constitute, in the aggregate, 20% or more of the outstanding Voting Shares;



 


		(ss)	"Trading Day", when used with respect to any securities, shall mean a day on which
the principal Canadian stock exchange on which such securities are listed or admitted to trading is open for the transaction of
business or, if the securities are not listed or admitted to trading on any Canadian stock exchange, a Business Day;



 


		(tt)	"U.S. - Canadian Exchange Rate" shall mean, on any date:



 


		(i)	if, on such date, the Bank of Canada sets an average noon spot rate of exchange for the conversion
of one United States dollar into Canadian dollars, such rate; or



 


		(ii)	in any other case, the rate for such date for the conversion of one United States dollar into Canadian
dollars calculated in such manner as may be determined by the Board of Directors from time to time acting in good faith; and



 


		(uu)	"Voting Shares" shall mean, collectively, the Common Shares of the Corporation
and any other shares of capital stock or voting interests of the Corporation entitled to vote generally in the election of all
directors of the Corporation.



 






    	 



    	- 15 -



    
 


		1.2	Currency



 


All sums of money which
are referred to in this Agreement are expressed in lawful money of Canada, unless otherwise specified.


 


		1.3	Headings



 


The division of this
Agreement into Articles, Sections, Subsections, Clauses and Subclauses and the insertion of headings, subheadings and a table of
contents are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.


 


		1.4	Number and Gender



 


Wherever the context
so requires, terms used herein importing the singular number only shall include the plural and vice-versa and words importing only
one gender shall include all others.


 


		1.5	Calculation of Number and Percentage of

Beneficial Ownership of Outstanding Voting Shares



 


For purposes of this
Agreement, the percentage of Voting Shares Beneficially Owned by any Person shall be and be deemed to be the product determined
by the formula:


 


100 × A/B


 


Where:


 


	A	=	the number of votes for the election of all directors generally attaching to the Voting Shares Beneficially Owned by such Person; and
	 	 	 
	B	=	the number of votes for the election of all directors generally attaching to all outstanding Voting Shares.


 


Where any Person is deemed
to Beneficially Own unissued Voting Shares which may be acquired pursuant to Convertible Securities, such Voting Shares shall be
deemed to be outstanding for the purpose of calculating the percentage of Voting Shares Beneficially Owned by such Person in both
the numerator and the denominator above, but no other unissued Voting Shares which may be acquired pursuant to any other outstanding
Convertible Securities shall, for the purposes of that calculation, be deemed to be outstanding.


 


		1.6	Acting Jointly or in Concert



 


For purposes of this
Agreement, it is a question of fact as to whether a Person is acting jointly or in concert with another Person and, without limiting
the generality of the foregoing, the following shall be deemed to be acting jointly or in concert with a Person (the "First
Person"):


 


		(a)	every Person who has any agreement, arrangement, commitment or understanding (whether formal or
informal and whether or not in writing) with the First Person, any Associate or Affiliate of the First Person or any other Person
acting jointly or in concert with the First Person, for the purpose of acquiring, directly or indirectly, or making an Offer to
Acquire any Voting Shares of the Corporation, including, without limitation, any one or more of, or any combination of, (i) a put,
call, option, forward sale purchase or other right or obligation relating to the sale or disposition of any Voting Shares of the
Corporation to the First Person, any Associate or Affiliate of the First Person or any other Person acting jointly or in concert
with the First Person (whether settled by delivery of securities, cash or a combination thereof) (including, for greater certainty,
any lock-up agreement), (ii) any security the value of which varies with the value of Voting Shares of the Corporation, or (iii)
any agreement, arrangement, commitment or understanding (whether formal or informal and whether or not in writing) pursuant to
which all or substantially all of the economic or market risk underlying a Voting Share of the Corporation, directly or indirectly,
is transferred to, or assumed by, the First Person, any Associate or Affiliate of the First Person or any other Person acting jointly
or in concert with the First Person;



 






    	 



    	- 16 -



    
 


		(b)	every Person who has any agreement, arrangement, commitment or understanding (whether formal or
informal and whether or not in writing) with the First Person, any Associate or Affiliate of the First Person or any other Person
acting jointly or in concert with the First Person, (i) for the purpose or with the intention of exercising jointly or in concert
with the First Person, any Associate or Affiliate of the First Person or any other Person acting jointly or in concert with the
First Person, any voting rights attaching to any securities of the Corporation or (ii) to act jointly or in concert or to cooperate
in obtaining, changing or influencing control of the Corporation (including with respect to the election of directors) or in connection
with or as a participant in any transaction or arrangement having that purpose or effect; and



 


		(c)	every Person who has any agreement, arrangement, commitment or understanding (whether formal or
informal and whether or not in writing) with the First Person, any Associate or Affiliate of the First Person or any other Person
acting jointly or in concert with the First Person, for the purpose of selling, offering to sell, acquiring or offering to acquire
any business, asset, subsidiary or investee company of the Corporation through any one transaction or series of transactions where
the aggregate value of the business, asset, Subsidiary or investee company to be acquired exceeds $1,000,000, such value to be
determined in good faith by the Board of Directors, after consultation with a nationally or internationally recognized investment
dealer or investment banker with respect to the value of such business, asset, Subsidiary or investee company.



 


Notwithstanding the foregoing and for greater
certainty, the phrase "acting jointly or in concert" shall not include any agreement, arrangement, commitment or understanding
to vote securities of the Corporation arising solely from a revocable proxy given in response to a proxy solicitation made generally
to all shareholders of the Corporation where the persons are not otherwise acting jointly or in concert pursuant to the foregoing
provisions of this Section 1.6.


 


		1.7	Statutory References



 


Unless the context otherwise
requires or except as expressly provided herein, any reference herein to a specific part, section, subsection, clause or rule of
any Act or regulation shall refer to the same as it exists on the date hereof.


 






    	 



    	- 17 -



    
 


Article 2

The RIGHTS


 


		2.1	Legend on Common Share Certificates



 


(a)           Certificates
issued for Common Shares, including without limitation Common Shares issued upon the exercise, conversion or exchange of Convertible
Securities, after the date hereof but prior to the close of business on the earlier of the Separation Time and the Expiration Time
shall evidence one Right for each Common Share represented thereby and shall have impressed on, printed on, written on or otherwise
affixed to them a legend in substantially the following form:


 


Until the Separation Time (as
defined in the Rights Agreement referred to below), this certificate also evidences and entitles the holder hereof to certain Rights
as set forth in the Shareholder Rights Plan Agreement, dated as of the 21st day of March,
2012, as amended from time to time (the "Rights Agreement"), between Jaguar Mining Inc. (the "Corporation")
and Computershare Investor Services Inc., as Rights Agent, the terms of which are hereby
incorporated herein by reference and a copy of which is on file and may be inspected during normal business hours at the principal
executive offices of the Corporation. Under certain circumstances, as set forth in the Rights Agreement, such Rights may be amended,
redeemed, may expire, may become null and void (if, in certain cases, they are "Beneficially Owned" by an "Acquiring
Person", as such terms are defined in the Rights Agreement, or a transferee thereof) or may be evidenced by separate certificates
and may no longer be evidenced by this certificate. The Corporation will mail or arrange for the mailing of a copy of the Rights
Agreement to the holder of this certificate without charge as soon as is reasonably practicable after the receipt of a written
request therefor.


 


Certificates representing Common Shares
that are issued and outstanding as at the date hereof shall evidence one Right for each Common Share evidenced thereby notwithstanding
the absence of the foregoing legend until the earlier of the Separation Time and the Expiration Time.


 


(b)           Registered holders
of Common Shares who have not received a share certificate and are entitled to do so on the earlier of the Separation Time and
the Expiration Time shall be entitled to Rights as if such certificates had been issued and such Rights shall for all purposes
hereof be evidenced by the corresponding entries on the Corporation's securities registers for the Common Shares.


 


		2.2	Initial Exercise Price, Exercise of Rights and Detachment of Rights



 


(a)           Subject to adjustment
as provided herein, each Right will entitle the Holder thereof, after the Separation Time and prior to the Expiration Time, to
purchase, for the Exercise Price as at the Business Day immediately preceding the date of exercise of the Right, one Common Share
(which Exercise Price and number of Common Shares are subject to adjustment as set forth herein). Notwithstanding any other provision
of this Agreement, any Rights Beneficially Owned by the Corporation or any of its Subsidiaries shall be void.


 






    	 



    	- 18 -



    
 


(b)           Until the Separation
Time, (i) the Rights shall not be exercisable and no Right may be exercised, and (ii) for administrative purposes, each Right will
be evidenced by the certificates for the associated Common Share registered in the name of the holder thereof (which certificate
shall also be deemed to be a Rights Certificate) and will be transferable only together with, and will be transferred by a transfer
of, such associated Common Share.


 


(c)           From and after
the Separation Time and prior to the Expiration Time, the Rights shall be exercisable and the registration and transfer of the
Rights shall be separate from and independent of the Common Shares. Promptly following the Separation Time, the Corporation will
prepare and the Rights Agent will mail to each holder of record of Common Shares as of the Separation Time and, in respect of each
Convertible Security converted into or exchanged or exercised for Common Shares after the Separation Time and prior to the Expiration
Time, promptly after such conversion, exchange or exercise to the holder so converting, exchanging or exercising (other than an
Acquiring Person and, in respect of any Rights Beneficially Owned by such Acquiring Person which are not held of record by such
Acquiring Person, the holder of record of such Rights (a "Nominee")), at such holder's address as shown on the
records of the Corporation (the Corporation hereby agreeing to furnish copies of such records to the Rights Agent for this purpose),


 


		(i)	a certificate (a "Rights Certificate")
in substantially the form of Exhibit A hereto appropriately completed, representing the number of Rights held by such Holder at
the Separation Time and having such marks of identification or designation and such legends, summaries or endorsements printed
thereon as the Corporation may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law, rule, regulation or judicial or administrative order or with any rule or regulation made pursuant
thereto or with any rule or regulation of any self-regulatory organization, stock exchange or quotation system on which the Rights
may from time to time be listed or admitted to trading, or to conform to standard usage; and



 


		(ii)	a disclosure statement prepared by or on behalf of the
Corporation describing the Rights;



 


provided that a Nominee shall be
sent the materials provided for in Clauses (i) and (ii) in respect of all Common Shares held of record by it which are not Beneficially
Owned by an Acquiring Person. In order for the Corporation to determine whether any Person is holding Common Shares which are Beneficially
Owned by another Person, the Corporation may require such first mentioned Person to furnish it with such information and documentation
as the Corporation considers advisable.


 






    	 



    	- 19 -



    
 


(d)           Rights may be
exercised in whole or in part on any Business Day after the Separation Time and prior to the Expiration Time by submitting to the
Rights Agent, at its principal office in the city of Toronto or any other office of the Rights Agent or Co-Rights Agent in the
cities designated from time to time for that purpose by the Corporation with the approval of the Rights Agent:


 


		(i)	the Rights Certificate evidencing such Rights;



 


		(ii)	an election to exercise such Rights (an "Election
to Exercise") substantially in the form attached to the Rights Certificate appropriately completed and duly executed
by the Holder or his executors or administrators or other personal representatives or his or their legal attorney duly appointed
by an instrument in writing in form and executed in a manner satisfactory to the Rights Agent; and



 


		(iii)	payment by certified cheque, banker's draft or money order
payable to or to the order of the Rights Agent, of a sum equal to the Exercise Price multiplied by the number of Rights being
exercised and a sum sufficient to cover any transfer tax or charge which may be payable in respect of any transfer involved in
the transfer or delivery of Rights Certificates or the issuance or delivery of certificates for Common Shares in a name other
than that of the Holder of the Rights being exercised.



 


(e)           Upon receipt
of a Rights Certificate, accompanied by an Election to Exercise appropriately completed and duly exercised that does not indicate
that such Right is null and void as provided by Subsection 3.1(b) and by payment as set forth in Subsection 2.2(d)(iii), the Rights
Agent (unless otherwise instructed in writing by the Corporation in the event that the Corporation is of the opinion that the Rights
cannot be exercised in accordance with this Agreement) will thereupon promptly:


 


		(i)	requisition from the transfer agent for the Common Shares,
certificates representing the number of Common Shares to be purchased (the Corporation hereby irrevocably authorizing its transfer
agent to comply with all such requisitions);



 


		(ii)	after receipt of any certificates referred to in Clause
2.2(e)(i), deliver such certificates to or upon the order of the registered holder of such Rights Certificate, registered in such
name or names as may be designated by such holder;



 


		(iii)	when appropriate, requisition from the Corporation the
amount of cash to be paid in lieu of issuing fractional Common Shares;



 


		(iv)	when appropriate, after receipt, deliver such cash (less
any amounts required to be withheld) by way of cheque to or to the order of the registered holder of the Rights Certificate; and



 


		(v)	tender to the Corporation all payments received on exercise
of the Rights.



 


(f)           In case the
Holder of any Rights shall exercise less than all the Rights evidenced by such Holder's Rights Certificate, a new Rights Certificate
evidencing the Rights remaining unexercised will be issued by the Rights Agent to such Holder or to such Holder's duly authorized
assigns.


 






    	 



    	- 20 -



    
 


(g)           The Corporation
covenants and agrees that it will:


 


		(i)	take all such action as may be necessary and within its
power to ensure that all Common Shares delivered upon exercise of Rights shall, at the time of delivery of the certificates for
such shares (subject to payment of the Exercise Price), be duly and validly authorized, executed, issued and delivered and fully
paid and non-assessable;



 


		(ii)	take all such action as may be necessary and within its
power to comply with any applicable requirements of the OBCA, the Securities Act (Ontario), and the comparable securities legislation
of each of the provinces and territories of Canada and any other applicable law, rule or regulation, in connection with the issuance
and delivery of the Rights Certificates and the issuance of any Common Shares upon exercise of Rights;



 


		(iii)	on or before the issuance thereof, use reasonable efforts
to cause all Common Shares issued upon exercise of Rights to be listed or admitted to trading upon issuance on the principal exchange
or exchanges on which the Common Shares are then listed or admitted to trading at that time;



 


		(iv)	cause to be reserved and kept available out of its authorized
and unissued Common Shares, the number of Common Shares that, as provided in this Agreement, will from time to time be sufficient
to permit the exercise in full of all outstanding Rights; and



 


		(v)	pay when due and payable any and all Canadian federal
and provincial transfer taxes (not including any tax in the nature of income or capital gains taxes of the Holder or exercising
Holder or any liability of the Corporation to withhold tax) and charges which may be payable in respect of the original issuance
or delivery of the Rights Certificates or certificates for Common Shares or registration of the Common Shares in the securities
register of the Corporation, provided that the Corporation shall not be required to pay any transfer tax or charge which may be
payable in respect of the transfer or delivery of Rights Certificates or the issuance or delivery of certificates for Common Shares
or registration of the Common Shares in the securities register of the Corporation in a name other than that of the Holder of
the Rights being transferred or exercised.



 


		2.3	Adjustments to Exercise Price; Number of Rights



 


(a)           The Exercise
Price, the number and kind of securities subject to purchase upon exercise of each Right and the number of Rights outstanding are
subject to adjustment from time to time as provided in this Section 2.3 and in Subsection 3.1(a).


 






    	 



    	- 21 -



    
 


(b)           In the event
the Corporation shall at any time after the Record Time and prior to the Expiration Time:


 


		(i)	declare or pay a dividend on Common Shares payable in
Common Shares or Convertible Securities other than pursuant to any regular dividend reinvestment plan of the Corporation providing
for the acquisition of Common Shares;



 


		(ii)	subdivide or change the then outstanding Common Shares
into a greater number of Common Shares;



 


		(iii)	consolidate or change the then outstanding Common Shares
into a smaller number of Common Shares; or



 


		(iv)	issue any Common Shares, Convertible Securities or other
capital stock of the Corporation in respect of, in lieu of or in exchange for existing Common Shares except as otherwise provided
in this Section 2.3;



 


the Exercise Price in effect at
the time of the record date for such dividend or of the effective date of such subdivision, consolidation, other change or issuance
and the number of Common Shares or other securities, as the case may be, issuable on such date, shall be proportionately adjusted
so that the holder of any Right shall be entitled to receive, upon payment of the applicable Exercise Price then in effect, the
aggregate number of Common Shares or other securities, as the case may be, which, if such Right had been exercised immediately
prior to such date and at a time when the share transfer books of the Corporation were open, such holder would have been entitled
to receive as a result of such dividend, subdivision, consolidation, other change or issuance.


 


(c)           In the event
the Corporation shall at any time after the Record Time and prior to the Expiration Time fix a record date for the issuance of
rights, options or warrants to all holders of Common Shares entitling them (for a period expiring within 45 calendar days after
such record date) to subscribe for or purchase Common Shares, shares having the same rights, privileges, restrictions and conditions
as Common Shares ("equivalent common shares"), or securities convertible into or exchangeable for or carrying
a right to purchase Common Shares or equivalent common shares at a price per Common Share or per equivalent common share (or, if
a security convertible into or exchangeable for or carrying a right to purchase or subscribe for Common Shares or equivalent common
shares, having a conversion, exchange or exercise price, including the price required to be paid to purchase such convertible or
exchangeable security or right per share) less than 90% of the Market Price per Common Share on the second Trading Day immediately
preceding such record date, the Exercise Price to be in effect after such record date shall be determined by multiplying the Exercise
Price in effect immediately prior to such record date by a fraction:


 


		(i)	the numerator of which shall be the number of Common Shares
outstanding on such record date, plus the number of Common Shares that the aggregate offering price of the total number of Common
Shares and/or equivalent common shares so to be offered (and/or the aggregate initial conversion, exchange or exercise price of
the convertible or exchangeable securities or rights so to be offered, including the price required to be paid to purchase such
convertible or exchangeable securities or rights) would purchase at such Market Price per Common Share; and



 






    	 



    	- 22 -



    
 


		(ii)	the denominator of which shall be the number of Common
Shares outstanding on such record date, plus the number of additional Common Shares and/or equivalent common shares to be offered
for subscription or purchase (or into which the convertible or exchangeable securities or rights so to be offered are initially
convertible, exchangeable or exercisable).



 


In case such subscription price
may be paid by delivery of consideration, part or all of which may be in a form other than cash, the value of such consideration
shall be as determined in good faith by the Board of Directors, whose determination shall be described in a statement filed with
the Rights Agent and shall be binding on the Rights Agent and the Holders of Rights. Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, or if issued, are
not exercised prior to the expiration thereof, the Exercise Price shall be readjusted to the Exercise Price which would have been
in effect if such record date had not been fixed, or to the Exercise Price which would be in effect based upon the number of Common
Shares, equivalent common shares or securities convertible into or exchangeable or exercisable for Common Shares actually issued
upon the exercise of such rights, options or warrants, as the case may be.


 


For the purposes of this Agreement,
the granting of the right to purchase Common Shares (whether from treasury or otherwise) pursuant to a dividend reinvestment plan
or any employee benefit, stock option or similar plans shall be deemed not to constitute an issue of rights, options or warrants
by the Corporation; provided, however, that, in all such cases, the right to purchase Common Shares is at a price per share of
not less than 90% of the current market price per share (determined as provided in such plans) of the Common Shares.


 


(d)           In the event
the Corporation shall at any time after the Record Time and prior to the Expiration Time fix a record date for the making of a
distribution to all holders of Common Shares (including any such distribution made in connection with a merger in which the Corporation
is the continuing corporation or an amalgamation) of evidences of indebtedness or assets, including cash (other than a regular
periodic cash dividend or a dividend paid in Common Shares, but including any dividend payable in securities other than Common
Shares), or subscription rights, options or warrants (excluding those referred to in Subsection 2.3(c) hereof) at a price per Common
Share that is less than 90% of the Market Price per Common Share on the second Trading Day immediately preceding such record date,
the Exercise Price in respect of the Rights to be in effect after such record date shall be determined by multiplying the Exercise
Price in respect of the Rights in effect immediately prior to such record date by a fraction:


 


		(i)	the numerator of which shall be the Market Price per Common
Share on such record date, less the fair market value (as determined in good faith by the Board of Directors, whose determination
shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the Holders of Rights),
on a per share basis, of the portion of the evidences of indebtedness, cash, assets, subscription rights, options or warrants
so to be distributed; and



 






    	 



    	- 23 -



    
 


		(ii)	the denominator of which shall be such Market Price per
Common Share.



 


Such adjustments shall be made
successively whenever such a record date is fixed, and in the event that such a distribution is not so made, the Exercise Price
shall be readjusted to be the Exercise Price which would have been in effect if such record date had not been fixed.


 


(e)           Notwithstanding
anything herein to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment would require an
increase or decrease of at least 1% in the Exercise Price; provided, however, that any adjustments which by reason of this Subsection
2.3(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations
under Section 2.3 shall be made to the nearest cent or to the nearest ten-thousandth of a Common Share or Right. Notwithstanding
the first sentence of this Subsection 2.3(e), any adjustment required by this Section 2.3 shall be made no later than the Expiration
Time.


 


(f)           In the event
the Corporation shall at any time after the Record Time and prior to the Expiration Time issue any shares of capital stock (other
than Common Shares), or rights, options or warrants to subscribe for or purchase any such capital stock, or securities convertible
into or exchangeable for any such capital stock, in a transaction referred to in Clause 2.3(b)(i) or (iv), if the Board of Directors
acting in good faith determines that the adjustments contemplated by Subsection 2.3(b) in connection with such transaction will
not appropriately protect the interests of the Holders of Rights, the Board of Directors acting in good faith may determine what
other adjustments to the Exercise Price, number of Rights and/or securities purchasable upon exercise of Rights would be appropriate
and, notwithstanding Subsection 2.3(b), such adjustments, rather than the adjustments contemplated by Subsection 2.3(b), shall
be made. The Corporation and the Rights Agent shall have authority, with such prior approval of the holders of the Common Shares
or the Holders of Rights as may be required to amend this Agreement in accordance with Section 5.5 hereof, as appropriate to provide
for such adjustments.


 


(g)           Unless the Corporation
shall have exercised its election as provided in Subsection 2.3(h), upon each adjustment of an Exercise Price as a result of the
calculations made in Subsections 2.3(c) and (d), each Right outstanding immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted Exercise Price, that number of Common Shares, as the case may be (calculated
to the nearest one ten-thousandth), obtained by:


 


		(i)	multiplying:



 


		(A)	the number of such Common Shares which would have been issuable upon the exercise of a Right immediately
prior to this adjustment; by



 






    	 



    	- 24 -



    
 


		(B)	the relevant Exercise Price in effect immediately prior to such adjustment of the relevant Exercise
Price; and



 


		(ii)	dividing the product so obtained by the relevant Exercise
Price in effect immediately after such adjustment of the relevant Exercise Price.



 


(h)           The Corporation
may elect on or after the date of any adjustment of an Exercise Price to adjust the number of Rights, in lieu of any adjustment
in the number of Common Shares purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in
the number of Rights shall be exercisable for the number of Common Shares for which such a Right was exercisable immediately prior
to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the relevant Exercise Price in effect immediately prior to
adjustment of the relevant Exercise Price by the relevant Exercise Price in effect immediately after adjustment of the relevant
Exercise Price. The Corporation shall make a public announcement of its election to adjust the number of Rights, indicating the
record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the
date on which the relevant Exercise Price is adjusted or any day thereafter, but, if the Rights Certificates have been issued,
shall be at least 10 days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment
of the number of Rights pursuant to this Subsection 2.3(h), the Corporation shall, as promptly as is practicable, cause to
be distributed to holders of record of Rights Certificates on such record date, Rights Certificates evidencing, subject to Section
5.6, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Corporation,
shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such
holders prior to the date of adjustment, and upon surrender thereof, if required by the Corporation, new Rights Certificates evidencing
all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates to be so distributed shall be
issued, executed and countersigned in the manner provided for herein and may bear, at the option of the Corporation, the relevant
adjusted Exercise Price and shall be registered in the names of holders of record of Rights Certificates on the record date specified
in the public announcement.


 


(i)           Each Right originally
issued by the Corporation subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right to purchase,
at the adjusted Exercise Price, the number of Common Shares purchasable from time to time hereunder upon exercise of a Right immediately
prior to such issue, all subject to further adjustment as provided herein.


 


(j)           If as a result
of an adjustment made pursuant to this Section 2.3 or an authorization made pursuant to Section 3.2, the holder of any Right thereafter
exercised (in the case of Section 2.3) or surrendered (in the case of Section 3.2) shall become entitled to receive any securities
other than Common Shares, thereafter the number of such other securities so receivable upon exercise of any Right and the applicable
Exercise Price thereof shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as is practicable
to the provisions with respect to the Common Shares contained in this Section 2.3, and the provisions of this Agreement with
respect to the Common Shares shall apply on like terms to any such other securities.


 






    	 



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(k)           Irrespective
of any adjustment or change in the Exercise Price or the number of Common Shares issuable upon the exercise of the Rights, the
Rights Certificate theretofore and thereafter issued may continue to express the Exercise Price per Common Share and the number
of Common Shares which were expressed in the initial Rights Certificates issued hereunder.


 


(l)           In any case
in which this Section 2.3 shall require that an adjustment in the Exercise Price be made effective as of a record date for a specified
event, the Corporation may elect to defer until the occurrence of such event the issuance to the Holder of any Right exercised
after such record date of the number of Common Shares and other securities of the Corporation, if any, issuable upon such exercise
over and above the number of Common Shares and other securities of the Corporation, if any, issuable upon such exercise on the
basis of the Exercise Price in effect prior to such adjustment; provided, however, that the Corporation shall deliver to such Holder
a due bill or other appropriate instrument evidencing such Holder's right to receive such additional Common Shares (fractional
or otherwise) or other securities upon the occurrence of the event requiring such adjustment.


 


(m)           Notwithstanding
anything in this Section 2.3 to the contrary, the Corporation shall be entitled to make such reductions in the Exercise Price,
in addition to those adjustments expressly required by this Section 2.3, as and to the extent that in its good faith judgment
the Board of Directors shall determine to be advisable in order that any: (i) consolidation or subdivision of Common Shares; (ii)
issuance wholly for cash of any Common Share or Convertible Securities; (iii) stock dividends; or (iv) issuance of rights, options
or warrants referred to in this Section 2.3, hereafter made by the Corporation to holders of its Common Shares, shall not
be taxable to such shareholders.


 


(n)           The Corporation
covenants and agrees that, after the Separation Time, it will not, except as permitted by Sections 5.1, 5.2 and 5.5, take (or permit
any Subsidiary of the Corporation to take) any action if at the time such action is taken it is reasonably foreseeable that such
action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights.


 


(o)           Whenever an
adjustment to the Exercise Price or a change in the securities purchasable upon exercise of the Rights is made at any time after
the Separation Time pursuant to this Section 2.3, the Corporation shall promptly:


 


		(i)	file with the Rights Agent and with the transfer agent
for the Common Shares a certificate specifying the particulars of such adjustment or change; and



 


		(ii)	give, or cause the Rights Agent to give, notice of the
particulars of such adjustment or change to Holders of the Rights who request a copy;



 


provided that failure to file such certificate
or cause such notice to be given as aforesaid, or any defect therein, shall not affect the validity of any such adjustment or change.


 






    	 



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		2.4	Date on Which Exercise is Effective



 


Each Person in whose
name any certificate for Common Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the
holder of record of the Common Shares represented thereby on, and such certificate shall be dated the date upon which the Rights
Certificate evidencing such Rights was duly surrendered (together with a duly completed Election to Exercise) and payment of the
Exercise Price for such Rights (and any applicable transfer taxes and other governmental charges payable by the exercising Holder
hereunder) was made; provided, however, that if the date of such surrender and payment is a date upon which the Common Share transfer
books of the Corporation are closed, such person shall be deemed to have become the record holder of such shares on, and such certificate
shall be dated, the next succeeding Business Day on which the Common Share transfer books of the Corporation are open.


 


		2.5	Execution, Authentication, Delivery and Dating of Right Certificates



 


(a)           The Rights Certificates
shall be executed on behalf of the Corporation by any two of its officers or directors, provided that at the time of such execution
none of such officer or director, any Affiliate or Associate of such officer or director or any person with whom such officer or
director or any such Affiliate or Associate is acting jointly or in concert has commenced or publicly announced an intention to
commence a Take-over Bid. The signature of any officers or directors on the Rights Certificates may be manual or facsimile. Rights
Certificates bearing the manual or facsimile signatures of individuals who were at any time the proper officers or directors of
the Corporation shall bind the Corporation, notwithstanding that such individuals or any of them have ceased to hold such offices
prior to the countersignature and delivery of such Rights Certificates.


 


(b)           Promptly after
the Corporation learns of the Separation Time, the Corporation will notify the Rights Agent in writing of such Separation Time
and will deliver Rights Certificates executed by the Corporation to the Rights Agent for countersignature, and the Rights Agent
shall countersign (manually or by facsimile signature in a manner satisfactory to the Corporation) and send such Rights Certificates
to the Holders of the Rights pursuant to Subsection 2.2(d) hereof. No Rights Certificate shall be valid for any purpose until countersigned
by the Rights Agent as aforesaid.


 


(c)           Each Rights
Certificate shall be dated the date of countersignature thereof.


 


		2.6	Registration, Registration of Transfer and Exchange



 


(a)           After the Separation
Time, the Corporation will cause to be kept a register (the "Rights Register") in which, subject to such reasonable
regulations as it may prescribe, the Corporation will provide for the registration and transfer of Rights. The Rights Agent is
hereby appointed "Rights Registrar" for the purpose of maintaining the Rights Register for the Corporation and registering
Rights and transfers of Rights as herein provided. In the event that the Rights Agent shall cease to be the Rights Registrar, the
Rights Agent will have the right to examine the Rights Register at all reasonable times.


 






    	 



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After the Separation Time and prior to
the Expiration Time, upon surrender for registration of transfer or exchange of any Rights Certificate, and subject to the provisions
of Subsection 2.6(c) and the other provisions of this Agreement, the Corporation will execute, and the Rights Agent will countersign
and deliver, in the name of the Holder or the designated transferee or transferees as required pursuant to the Holder's instructions,
one or more new Rights Certificates evidencing the same aggregate number of Rights as did the Rights Certificates so surrendered.


 


(b)           All Rights issued
upon any registration of transfer or exchange of Rights Certificates shall be valid obligations of the Corporation, and such Rights
shall be entitled to the same benefits under this Agreement as the Rights surrendered upon such registration of transfer or exchange.


 


(c)           Every Rights
Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument
of transfer in form satisfactory to the Corporation or the Rights Agent, as the case may be, duly executed by the Holder thereof
or such Holder's attorney duly authorized in writing. As a condition to the issuance of any new Rights Certificate under this Section
2.6, the Corporation may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses (including the fees and expenses of the Rights Agent) connected therewith.


 


(d)           The Corporation
shall not be required to register the transfer or exchange of any Rights after the Rights have been terminated pursuant to the
provisions of this Agreement.


 


		2.7	Mutilated, Destroyed, Lost and Stolen Rights Certificates



 


(a)           If any mutilated
Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, the Corporation shall execute and the Rights
Agent shall countersign and deliver in exchange therefor a new Rights Certificate evidencing the same number of Rights as did the
Rights Certificate so surrendered.


 


(b)           If there shall
be delivered to the Corporation and the Rights Agent prior to the Expiration Time (i) evidence to their reasonable satisfaction
of the destruction, loss or theft of any Rights Certificate and (ii) such security or indemnity as may be required by each of them
in their sole discretion to save each of them and any of their agents harmless, then, in the absence of notice to the Corporation
or the Rights Agent that such Rights Certificate has been acquired by a bona fide purchaser, the Corporation shall execute and
upon its request the Rights Agent shall countersign and deliver, in lieu of any such destroyed, lost or stolen Rights Certificate,
a new Rights Certificate evidencing the same number of Rights as did the Rights Certificate so destroyed, lost or stolen.


 


(c)           As a condition
to the issuance of any new Rights Certificate under this Section 2.7, the Corporation may require the payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Rights Agent) connected therewith.


 


(d)           Every new Rights
Certificate issued pursuant to this Section 2.7 in lieu of any destroyed, lost or stolen Rights Certificate shall evidence a contractual
obligation of the Corporation, whether or not the destroyed, lost or stolen Rights Certificate shall be at any time enforceable
by anyone, and shall entitle the Holder of the Rights to all the benefits of this Agreement equally and proportionately with any
and all other Rights duly issued by the Corporation hereunder.


 






    	 



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		2.8	Persons Deemed Owners



 


Prior to due presentment
of a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) for registration of transfer,
the Corporation, the Rights Agent and any agent of the Corporation or the Rights Agent may deem and treat the Person in whose name
a Rights Certificate (or, prior to the Separation Time, the associated Common Share certificate) is registered as the absolute
owner thereof and of the Rights evidenced thereby for all purposes whatsoever.


 


		2.9	Delivery and Cancellation of Certificates



 


All Rights Certificates
surrendered upon exercise or for redemption or for registration of transfer or exchange shall, if surrendered to any Person other
than the Rights Agent, be delivered to the Rights Agent and, in any case, shall be promptly cancelled by the Rights Agent. The
Corporation may at any time deliver to the Rights Agent for cancellation any Rights Certificates previously countersigned and delivered
hereunder which the Corporation may have acquired in any manner whatsoever, and all Rights Certificates so delivered shall be promptly
cancelled by the Rights Agent. No Rights Certificate shall be countersigned in lieu of or in exchange for any Rights Certificates
cancelled as provided in this Section 2.9, except as expressly permitted by this Agreement. The Rights Agent shall destroy all
cancelled Rights Certificates and deliver a certificate of destruction to the Corporation on request by the Corporation.


 


		2.10	Agreement of Rights Holders



 


Every Holder of Rights,
by accepting such Rights, becomes a party to this Agreement and for greater certainty is bound by the provisions herein and consents
and agrees with the Corporation and the Rights Agent and with every other Holder of Rights that:


 


		(a)	such holder shall be bound by and subject to the provisions of this Agreement, as amended from
time to time in accordance with the terms hereof, in respect of all Rights held;



 


		(b)	prior to the Separation Time, each Right will be transferable only together with, and will be transferred
by a transfer of, the associated Common Share certificate representing such Right;



 


		(c)	after the Separation Time, the Rights Certificates will be transferable only on the Rights Register
as provided herein;



 


		(d)	prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated
Common Share certificate) for registration of transfer or exchange, the Corporation, the Rights Agent and any agent of the Corporation
or the Rights Agent may deem and treat the Person in whose name the Rights Certificate (or, prior to the Separation Time, the associated
Common Share certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any
notations of ownership or writing on such Rights Certificate or the associated Common Share certificate made by anyone other than
the Corporation or the Rights Agent) for all purposes whatsoever, and neither the Corporation nor the Rights Agent shall be affected
by any notice to the contrary;



 






    	 



    	- 29 -



    
 


		(e)	such holder is not entitled and has waived his right to receive any fractional Rights or any fractional
Common Shares upon exercise of a Right (except as provided herein);



 


		(f)	subject to the provisions of Section 5.5, without the approval of any Holder of Rights and upon
the sole authority of the Board of Directors acting in good faith, this Agreement may be supplemented or amended from time to time
pursuant to and as provided herein; and



 


		(g)	notwithstanding anything in this Agreement to the contrary, neither the Corporation nor the Rights
Agent shall have any liability to any Holder of a Right or any other Person as a result of its inability to perform any of its
obligations under this Agreement by reason of a preliminary or permanent injunction or other order, decree or ruling issued by
a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule,
regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance
of such obligation.



 


		2.11	Rights Certificate Holder not Deemed a Shareholder



 


No Holder, as such, of
any Rights or Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose whatsoever to be the
holder of any Common Share or any other share or security of the Corporation which may at any time be issuable on the exercise
of the Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be construed or deemed to confer
upon the Holder of any Right or Rights Certificate, as such, any of the rights, title, benefits or privileges of a holder of Common
Shares or any other shares or securities or assets of the Corporation or any right to vote at any meeting of shareholders of the
Corporation whether for the election of directors or otherwise or upon any matter submitted to holders of shares of the Corporation
at any meeting thereof, or to give or withhold consent to any action of the Corporation, or to receive notice of any meeting or
other action affecting any holder of Common Shares or any other shares or securities or assets of the Corporation except as expressly
provided herein, or to receive dividends, distributions or subscription rights, or otherwise, until such Rights shall have been
duly exercised in accordance with the terms and provisions hereof.


 






    	 



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Article 3

ADJUSTMENTS TO THE RIGHTS ON FLIP-IN EVENT


 


		3.1	Flip-in Event



 


(a)           Subject to Subsection
3.1(b) and Section 5.2, in the event that prior to the Expiration Time a Flip-in Event shall occur, each Right shall constitute,
effective from and after the later of its date of issue and at the close of business on the second Trading Day after the Stock
Acquisition Date, the right to purchase from the Corporation, upon exercise thereof in accordance with the terms hereof, that number
of Common Shares having an aggregate Market Price on the date of consummation or occurrence of such Flip-in Event equal to twice
the Exercise Price for an amount in cash equal to the Exercise Price (such right to be appropriately adjusted in a manner analogous
to the applicable adjustment provided for in Section 2.3, without duplication, in the event that after such date of consummation
or occurrence, an event of a type analogous to any of the events described in Section 2.3 shall have occurred with respect to such
Common Shares).


 


(b)           Notwithstanding
anything in this Agreement to the contrary, upon the occurrence of a Flip-in Event, any Rights that are or were Beneficially Owned
on or after the earlier of the Separation Time or the Stock Acquisition Date by:


 


		(i)	an Acquiring Person, (or any Affiliate or Associate of
an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or an Affiliate or Associate of an Acquiring
Person); or



 


		(ii)	a transferee or other successor in title, direct or indirect,
of Rights held by an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in
concert with an Acquiring Person or an Affiliate or Associate of an Acquiring Person), whether or not for consideration, in a
transfer that the Board of Directors acting in good faith has determined is part of a plan, arrangement, understanding or scheme
of an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an
Acquiring Person or an Affiliate or Associate of an Acquiring Person), that has the purpose or effect of avoiding Clause 3.1(b)(i),



 


shall become null and void without any
further action, and any Holder of such Rights (including transferees or other successors in title) shall thereafter have no right
to exercise such Rights under any provision of this Agreement and further shall thereafter not have any other rights whatsoever
with respect to such Rights, whether under any provision of this Agreement or otherwise. The Holder of any Rights represented by
a Rights Certificate which is submitted to the Rights Agent upon exercise or for registration of transfer or exchange which does
not contain the necessary certifications set forth in the Rights Certificate establishing that such Rights are not void under this
Subsection 3.1(b) shall be deemed to be an Acquiring Person for the purposes of this Subsection 3.1(b) and such Rights shall be
null and void.


 






    	 



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(c)           From and after
the Separation Time, the Corporation shall do all such acts and things as shall be necessary and within its power to ensure compliance
with the provisions of this Section 3.1, including without limitation, all such acts and things as may be required to satisfy the
requirements of the OBCA, the Securities Act (Ontario) and the securities laws or comparable legislation of each of the provinces
of Canada in respect of the issue of Common Shares upon the exercise of Rights in accordance with this Agreement.


 


(d)           Any Rights Certificate
that represents Rights Beneficially Owned by a Person described in either Clause 3.1(b)(i) or (ii) or transferred to any nominee
of any such Person, and any Rights Certificate issued upon transfer, exchange, replacement or adjustment of any other Rights Certificate
referred to in this sentence, shall contain the following legend:


 


The Rights represented by this
Rights Certificate were Beneficially Owned by a Person who was an Acquiring Person or who was an Affiliate or an Associate of an
Acquiring Person (as such terms are defined in the Rights Agreement) or was acting jointly or in concert with any of them. This
Rights Certificate and the Rights represented hereby are void or shall become void in the circumstances specified in Subsection
3.1(b) of the Rights Agreement.


 


provided, however, that the Rights Agent
shall not be under any responsibility to ascertain the existence of facts that would require the imposition of such legend but
shall impose such legend only if instructed to do so by the Corporation in writing or if a Holder fails to certify upon transfer
or exchange in the space provided on the Rights Certificate that such Holder is not a Person described in such legend. The issuance
of a Rights Certificate without the legend referred to in this Subsection 3.1(d) shall be of no effect on the provisions of Subsection
3.1(b).


 


		3.2	Exchange Option



 


(a)           The Board of
Directors may, at its sole option and without seeking the approval of holders of Voting Shares or Rights but with the prior written
consent of any stock exchange on which the Common Shares are then listed if required by such exchange, at any time after a Flip-in
Event has occurred, authorize the Corporation to issue or deliver in respect of each Right which is not void pursuant to Subsection
3.1(b), either: (i) in return for the applicable Exercise Price and the Right, debt, equity or other securities or assets (or a
combination thereof) having a value equal to twice the applicable Exercise Price; or (ii) in return for the Right, subject to any
amounts that may be required to be paid under applicable law, debt, equity or other securities or assets (or a combination thereof)
having a value equal to the value of the Right, in full and final settlement of all rights attaching to the Rights, where in either
case the value of such debt, equity or other securities or other assets (or a combination thereof) and, in the case of clause (ii),
the value of the Right, shall be determined by the Board of Directors which may rely upon the advice of a nationally or internationally
recognized firm of investment dealers or investment bankers selected by the Board of Directors.


 


(b)           If the Board
of Directors authorizes the exchange of debt or equity securities or assets (or a combination thereof) for Rights pursuant to Subsection
3.2(a), without any further action or notice, the right to exercise the Rights will terminate and the only right thereafter of
a holder of Rights shall be to receive the debt or equity securities or assets (or a combination thereof) in accordance with the
exchange formula authorized by the Board of Directors. Within 10 Business Days after the Board of Directors has authorized the
exchange of debt or equity securities or assets (or a combination thereof) for Rights pursuant to Subsection 3.2(a), the Corporation
shall give notice of exchange to the holders of such Rights by mailing such notice to all such holders at their last addresses
as they appear upon the register of Rights holders maintained by the Rights Agent. Each such notice of exchange will state the
method by which the exchange of debt or equity securities or assets (or a combination thereof) for Rights will be effected.


 






    	 



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Article 4

THE RIGHTS AGENT


 


		4.1	General



 


(a)           The Corporation
hereby appoints the Rights Agent to act as agent for the Corporation and the Holders of the Rights in accordance with the terms
and conditions hereof, and the Rights Agent hereby accepts such appointment. The Corporation may from time to time appoint one
or more co-rights agents ("Co-Rights Agents") as it may deem necessary or desirable, subject to the prior written
approval of the Rights Agent. In the event the Corporation appoints one or more Co-Rights Agents, the respective duties of the
Rights Agent and Co-Rights Agents shall be as the Corporation may determine with the written approval of the Rights Agent and the
Co-Rights Agents. The Corporation agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder
and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred
in the administration and execution of this Agreement and the exercise and performance of its duties hereunder (including the reasonable
fees and disbursements of any expert or advisor retained by the Rights Agent with the prior approval of the Corporation). The Corporation
also agrees to indemnify the Rights Agent and its directors, officers, employees and agents for, and to hold them harmless against,
any loss, liability, cost, claim, action, damage, suit or expense, incurred without negligence, bad faith or wilful misconduct
on the part of the Rights Agent, its officers, directors, employees and agents, for anything done, suffered or omitted by the Rights
Agent in connection with the acceptance, execution and administration of this Agreement and the exercise and performance of its
duties hereunder, including the costs and expenses of defending against any claim of liability, which right to indemnification
will survive the termination of this Agreement on the resignation or removal of the Rights Agent. In the event of any disagreement
arising regarding the terms of this Agreement, the Rights Agent shall be entitled, at its option, to refuse to comply with any
and all demands whatsoever until the dispute is settled either by written agreement between the parties to this Agreement or by
a court of competent jurisdiction.


 


(b)           The Rights Agent
shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection
with its administration of this Agreement in reliance upon any certificate for Common Shares or any Rights Certificate or certificate
for other securities of the Corporation, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter,
notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed
and, where necessary, verified or acknowledged by the proper Person or Persons.


 






    	 



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(c)           The Corporation
will inform the Rights Agent in a reasonably timely manner of events which may materially affect the administration of this Agreement
by the Rights Agent, and at any time, upon request, shall provide to the Rights Agent an incumbency certificate with respect to
the then current directors and officers of the Corporation, provided that failure to inform the Rights Agent of any such events,
or any defect therein, shall not affect the validity of any action taken hereunder in relation to such events.


 


		4.2	Merger or Amalgamation or Change of Name of Rights Agent



 


(a)           Any corporation
into which the Rights Agent or any successor Rights Agent may be merged or amalgamated or with which it may be consolidated, or
any corporation resulting from any merger, amalgamation, statutory arrangement or consolidation to which the Rights Agent or any
successor Rights Agent is a party, or any corporation succeeding to the shareholder or stockholder services business of the Rights
Agent or any successor Rights Agent, will be the successor to the Rights Agent under this Agreement without the execution or filing
of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for
appointment as a successor Rights Agent under the provisions of Section 4.4 hereof. In case at the time such successor Rights Agent
succeeds to the agency created by this Agreement any of the Rights Certificates have been countersigned but not delivered, any
such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Rights Certificates
so countersigned; and in case at that time any of the Rights Certificates have not been countersigned, any successor Rights Agent
may countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights
Agent; and in all such cases such Rights Certificates will have the full force provided in the Rights Certificates and in this
Agreement.


 


(b)           In case at any
time the name of the Rights Agent is changed and at such time any of the Rights Certificates shall have been countersigned but
not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such
Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have
the full force provided in the Rights Certificates and in this Agreement.


 


		4.3	Duties of Rights Agent



 


The Rights Agent undertakes
the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Corporation and
the Holders of Rights Certificates, by their acceptance thereof, shall be bound:


 


		(a)	The Rights Agent may retain and consult with legal counsel (who may be legal counsel for the Corporation)
and the opinion of such counsel will be full and complete authorization and protection to the Rights Agent as to any action taken
or omitted by it in good faith and in accordance with such opinion; the Rights Agent may also, with the approval of the Corporation
(where such approval may reasonably be obtained and such approval not be unreasonably withheld), retain and consult with such other
experts or advisors as the Rights Agent shall consider necessary or appropriate to properly carry out the duties and obligations
imposed under this Agreement (at the Corporation's expense) and the Rights Agent shall be entitled to act and rely in good faith
on the advice of any such expert or advisor.



 






    	 



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		(b)	Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary
or desirable that any fact or matter be proved or established by the Corporation prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by a person believed by the Rights Agent to be an officer or a director of the Corporation
and delivered to the Rights Agent; and such certificate will be full authorization to the Rights Agent for any action taken or
suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate.



 


		(c)	The Rights Agent will be liable hereunder only for its own negligence, bad faith or wilful misconduct.



 


		(d)	The Rights Agent will not be liable for or by reason of any of the statements of fact or recitals
contained in this Agreement or in the certificates for Common Shares or the Rights Certificates (except its countersignature thereof)
or be required to verify the same, but all such statements and recitals are and will be deemed to have been made by the Corporation
only.



 


		(e)	The Rights Agent will not be under any responsibility in respect of the validity of this Agreement
or the execution and delivery hereof (except the due authorization, execution and delivery hereof by the Rights Agent) or in respect
of the validity or execution of any Common Share certificate or Rights Certificate (except its countersignature thereof); nor will
it be responsible for any breach by the Corporation of any covenant or condition contained in this Agreement or in any Rights Certificate;
nor will it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Subsection
3.1(b) hereof) or any adjustment required under the provisions of Section 2.3 hereof or responsible for the manner, method or amount
of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect
to the exercise of Rights after receipt of the certificate contemplated by Section 2.3 hereof describing any such adjustment);
nor will it by any act hereunder be deemed to make any representation or warranty as to the authorization of any Common Shares
to be issued pursuant to this Agreement or any Rights or as to whether any Common Shares will, when issued, be duly and validly
authorized, executed, issued and delivered and fully paid and non-assessable.



 


		(f)	The Corporation agrees that it will perform, execute, acknowledge and deliver or cause to be performed,
executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required
by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement.



 






    	 



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		(g)	The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance
of its duties hereunder from any person believed by the Rights Agent to be an officer or a director of the Corporation, and to
apply to such persons for advice or instructions in connection with its duties, and it shall not be liable for any action taken
or suffered by it in good faith in accordance with instructions of any such person. All such instruction shall, except where circumstances
make it impracticable or the Rights Agent otherwise agrees, be given in writing and, where not in writing, such instructions will
be confirmed in writing as soon as is reasonably practicable after the giving of such instructions.



 


		(h)	The Rights Agent and any shareholder or stockholder, director, officer or employee of the Rights
Agent may buy, sell or deal in Common Shares, Rights or other securities of the Corporation or become pecuniarily interested in
any transaction in which the Corporation may be interested, or contract with or lend money to the Corporation or otherwise act
as fully and freely as though it were not the Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent
from acting in any other capacity for the Corporation or for any other legal entity.



 


		(i)	The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform
any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent will not be answerable or accountable
for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Corporation resulting from any
such act, default, neglect or misconduct, provided reasonable care was exercised in good faith in the selection and continued employment
thereof.



 


		4.4	Change of Rights Agent



 


The Rights Agent may
resign and be discharged from its duties under this Agreement upon 60 days' notice (or such lesser notice as is acceptable to the
Corporation) in writing mailed to the Corporation and to the transfer agent of Common Shares by registered or certified mail, and
to the Holders of the Rights in accordance with Section 5.8 at the Corporation's expense. The Corporation may remove the Rights
Agent upon 30 days' notice in writing, mailed to the Rights Agent and to the transfer agent of the Common Shares by registered
or certified mail, and to the Holders of the Rights in accordance with Section 5.8. If the Rights Agent should resign or be removed
or otherwise become incapable of acting, the Corporation will appoint a successor to the Rights Agent. If the Corporation fails
to make such appointment within a period of 30 days after such removal or after it has been notified in writing of such resignation
or incapacity by the resigning or incapacitated Rights Agent or by the Holder of any Rights (which Holder shall, with such notice,
submit such Holder's Rights Certificate for inspection by the Corporation), then the outgoing Rights Agent or Holder of any Rights
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent at the Corporation's expense. Any successor
Rights Agent, whether appointed by the Corporation or by such a court, shall be a corporation incorporated under the laws of Canada
or a province thereof authorized to carry on the business of a trust company in each of the provinces and territories of Canada.
After appointment, the successor Rights Agent will be vested with the same powers, rights, duties and responsibilities as if it
had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent, upon payment by the Corporation
to the predecessor Rights Agent of all outstanding fees and expenses, owed by the Corporation to the predecessor Rights Agent pursuant
to this Agreement, shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder and execute
and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any
such appointment, the Corporation will file notice thereof in writing with the predecessor Rights Agent and the transfer agent
of the Common Shares, and mail or cause to be mailed a notice thereof in writing to the Holders of the Rights. Failure to give
any notice provided for in this Section 4.4, however, or any defect therein, shall not affect the legality or validity of the resignation
or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.


 






    	 



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		4.5	Compliance with Money Laundering Legislation



 


The Rights Agent shall
retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason
whatsoever, the Rights Agent reasonably determines that such an act would reasonably be expected to cause it to be in non-compliance
with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline, provided that the Rights Agent
promptly notifies the Corporation of such determination together with the reasons therefor in accordance with Section 5.8. Further,
should the Rights Agent reasonably determine at any time that its acting under this Agreement has resulted in it being in non-compliance
with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline, then it shall have the right
to resign on 10 days' written notice to the Corporation, provided: (i) that the Rights Agent's written notice shall describe the
circumstances of such non-compliance; and (ii) that if such circumstances are rectified to the Rights Agent's satisfaction, acting
reasonably, within such 10-day period, then such resignation shall not be effective.


 


		4.6	Privacy Provision



 


The parties acknowledge
that federal and/or provincial legislation that addresses the protection of individual's personal information (collectively, "Privacy
Laws") applies to obligations and activities under this Agreement. Despite any other provision of this Agreement, neither
party will take or direct any action in connection with this Agreement that would contravene, or cause the other to contravene,
applicable Privacy Laws. The Corporation will, prior to transferring or causing to be transferred personal information to the Rights
Agent, obtain and retain required consents of the relevant individuals to the collection, use and disclosure of their personal
information, or will have determined that such consents either have previously been given upon which the parties can rely or are
not required under the Privacy Laws. The Rights Agent will use commercially reasonable efforts to ensure that its services hereunder
comply with Privacy Laws.


 






    	 



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Article 5

MISCELLANEOUS


 


		5.1	Redemption of Rights



 


(a)           Redemption
of Holders of Voting Shares


 


Until the occurrence
of a Flip-in Event as to which the application of Section 3.1 has not been waived pursuant to Section 5.2 and provided that the
provisions of Subsection 5.2(c) are not applicable to such Flip-in Event, the Board of Directors may elect to redeem all but not
less than all of the then outstanding Rights at a redemption price of $0.00001 per Right, rounded down to nearest whole cent for
each Holder of Rights and appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3
if an event of a type analogous to any of the events described in Section 2.3 shall have occurred (such redemption price being
herein referred to as the "Redemption Price").


 


(b)           Deemed Redemption


 


The Board of Directors
shall, without further formality, be deemed to have elected to redeem the Rights at the Redemption Price on the date that a Person
who has made a Permitted Bid, a Competing Permitted Bid or a Take-over Bid in respect of which the Separation Time has occurred
and the Board of Directors has waived the application of Section 3.1 takes up and pays for Voting Shares pursuant to the terms
and conditions of such Permitted Bid, Competing Permitted Bid or Take-over Bid, as the case may be.


 


(c)           Redemption
on Withdrawal or Termination of Bid


 


Where a Take-over Bid
that is not a Permitted Bid or Competing Permitted Bid expires, is withdrawn or otherwise terminated after the Separation Time
has occurred and prior to the occurrence of a Flip-in Event, the Board of Directors may elect to redeem all the outstanding Rights
at the Redemption Price.


 


(d)           Effect of
Redemption


 


If the Board of Directors
elects or is deemed to have elected to redeem the Rights, (i) the right to exercise the Rights will thereupon, without further
action and without notice, terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption
Price, and (ii) subject to Subsection 5.1(f) no further Rights shall be issued.


 


(e)           Notice of
Redemption


 


Within ten Business Days
after the Board of Directors elects or is deemed to have elected to redeem the Rights, the Corporation shall give notice of redemption
to the Holders of the then outstanding Rights by mailing such notice to each such Holder at its last address as it appears upon
the Rights Register or, prior to the Separation Time, on the share register maintained by the Corporation's transfer agent or transfer
agents for the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed to have been given, whether
or not the Holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption
Price will be made. The Corporation may not redeem, acquire or purchase for value any Rights at any time in any manner other than
that specifically set forth in this Section 5.1, except in connection with the purchase of Common Shares prior to the Separation
Time.


 






    	 



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(f)           Reissuance
of Rights


 


Upon the Rights being
redeemed pursuant to this Section 5.1, Rights may be reissued under this Agreement to holders of record of Common Shares immediately
following such redemption, and thereafter, all the provisions of this Agreement shall continue to apply as if the Separation Time
had not occurred and Rights Certificates representing the number of Rights held by each holder of record of Common Shares as of
the Separation Time had not been mailed to each such holder and for all purposes of this Agreement, the Separation Time shall be
deemed not to have occurred and such reissued Rights shall, without any further formality, be attached to the outstanding Common
Shares in the same manner as prior to the occurrence of such Separation Time.


 


		5.2	Waiver of Flip-In Event



 


(a)           In accordance
with the remainder of this Section 5.2, the Board of Directors may waive the application of Section 3.1 to a Flip-in Event.


 


(b)           The Board of
Directors may waive the application of Section 3.1 to a Flip-in Event provided that the following conditions are satisfied:


 


		(i)	the Board of Directors has determined that the Acquiring
Person became an Acquiring Person by inadvertence and without any intention to become, or knowledge that it would become, an Acquiring
Person; and



 


		(ii)	such Acquiring Person has reduced its Beneficial Ownership
of Voting Shares such that at the time of the granting of the waiver pursuant to this Subsection 5.2(b), it is no longer an Acquiring
Person;



 


and, in the event of any such waiver, for
the purposes of this Agreement, such Flip-in Event shall be deemed not to have occurred and the Separation Time shall be deemed
not to have occurred as a result of such Person having inadvertently become an Acquiring Person. Written notice of any such waiver
shall be given to the Rights Agent as soon as is reasonably practicable.


 


(c)           Upon written
notice to the Rights Agent, the Board of Directors may determine, if a Flip-in Event has occurred or would occur by reason of an
acquisition of Voting Shares otherwise than in the circumstances set forth in Subsections 5.2(b) or 5.2(d), to waive the application
of Section 3.1 to such Flip-in Event (whether prior to or after the occurrence of such Flip-in Event), and, in the event of any
such waiver, for the purposes of this Agreement, such Flip-in Event shall be deemed not to have occurred and the Separation Time
shall be deemed not to have occurred.


 


(d)           Upon written
notice to the Rights Agent, the Board of Directors may determine to waive the application of Section 3.1 to any Flip-in Event (whether
prior to or after the occurrence of such Flip-in Event) provided that the Flip-in Event has occurred or would occur by reason of
an acquisition of Voting Shares pursuant to a Take-over Bid made by means of a take-over bid circular to all holders of record
of Voting Shares, other than the Offeror and its Affiliates and Associates, for all Voting Shares held by them. If the Board of
Directors waives the application of Section 3.1 to such Flip-in Event, the Board of Directors shall be deemed to have waived the
application of Section 3.1 to any other Flip-in Event occurring by reason of any Take-Over Bid made by any other offeror by means
of a take-over bid circular to all holders of record of Voting Shares, other than the applicable offeror and its Affiliates and
Associates, for all Voting Shares held by them prior to the expiry, termination or withdrawal of any Take-Over Bid in respect of
which a waiver is, or is deemed to have been, granted under this Section 5.2(d). In the event of such waiver, for the purposes
of this Agreement, the applicable Flip-in Events shall be deemed not to have occurred and the applicable Separation Times shall
be deemed not to have occurred.


 






    	 



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		5.3	Expiration



 


No Person shall have
any rights whatsoever pursuant to or arising out of this Agreement or in respect of any Right after the Expiration Time, except
the Rights Agent as specified in Subsection 4.1(a) hereof.


 


		5.4	Issuance of New Rights Certificates



 


Notwithstanding any of
the provisions of this Agreement or of the Rights to the contrary, the Corporation may, at its option, issue new Rights Certificates
evidencing Rights in such form as may be approved by the Board of Directors to reflect any adjustment or change in the number or
kind or class of shares purchasable upon exercise of Rights made in accordance with the provisions of this Agreement.


 


		5.5	Supplements and Amendments



 


(a)           The Corporation
may from time to time supplement or amend this Agreement without the approval of any Holders of Rights or Voting Shares (i) in
order to correct any clerical or typographical error or (ii) as required to maintain the validity or effectiveness of this Agreement
as a result of any change in any applicable legislation, rules or regulations thereunder. In addition, the Corporation may at any
time supplement or amend this Agreement without the approval of any Holders of Rights or Voting Shares in order to make any changes
which the Board of Directors may deem necessary or desirable (whether or not such action would materially adversely affect the
interests of the Holders of Rights or Voting Shares generally). Notwithstanding anything in this Section 5.5 to the contrary, no
such supplement or amendment shall be made to the provisions of Article 4 except with the written concurrence of the Rights
Agent to such supplement or amendment.


 


(b)           The Corporation
shall give notice in writing to the Rights Agent of any supplement, amendment, deletion, variation or rescission to or of this
Agreement pursuant to this Section 5.5 within five Business Days of the date of any such supplement, amendment, deletion, variation
or rescission, provided that failure to give such notice, or any defect therein, shall not affect the validity of any such supplement,
amendment, deletion, variation or rescission.


 






    	 



    	- 40 -



    
 


(c)           Any amendment
or supplement to this Agreement shall be subject to the receipt of any requisite approvals or consent from any applicable regulatory
authority including, without limitation, any necessary approvals of any stock exchange on which the Common Shares are listed for
trading.


 


		5.6	Fractional Rights and Fractional Shares



 


(a)           The Corporation
shall not be required to issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. After
the Separation Time, in lieu of issuing fractional Rights, the Corporation shall, subject to Section 3.1(b), deliver Rights Certificates
representing the number of Rights to which each Holder is entitled, rounded down to the nearest whole Right and shall not be required
to deliver any certificate or cash in lieu thereof in respect of any fractions of Rights.


 


(b)           Share Certificates
for Common Shares shall only be issued upon written request to the Corporation and the Corporation shall not be required in any
circumstances to issue fractional Common Shares upon exercise of the Rights or to distribute certificates which evidence fractional
Common Shares. In lieu of issuing fractional Common Shares, the Corporation shall pay to the registered Holders of Rights Certificates
at the time such Rights are exercised as herein provided, an amount in cash equal to the same fraction of the Market Price of one
Common Share.


 


(c)           The Rights Agent
shall have no obligation to make any payments in lieu of issuing fractions of Rights or Common Shares pursuant to Subsections 5.6(a)
or 5.6(b), respectively, unless and until the Corporation shall have provided to the Rights Agent the amount of cash to be paid
in lieu of issuing such fractional Rights or Common Shares, as the case may be.


 


		5.7	Rights of Action



 


Subject to the terms
of this Agreement, all rights of action in respect of this Agreement, other than rights of action vested solely in the Rights Agent,
are vested in the respective registered Holders of the Rights; and any registered Holder of any Rights, without the consent of
the Rights Agent or of the registered Holder of any other Rights, may, on such Holder's own behalf and for such Holder's own benefit
and the benefit of other Holders of Rights enforce, and may institute and maintain any suit, action or proceeding against the Corporation
to enforce, or otherwise act in respect of, such Holder's right to exercise such Holder's Rights in the manner provided in such
Holder's Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the Holders of Rights,
it is specifically acknowledged that the Holders of Rights would not have an adequate remedy at law for any breach of this Agreement
and will be entitled to specific performance of the obligations under, and injunctive relief against actual or threatened violations
of the obligations of any Person subject to, this Agreement.


 






    	 



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		5.8	Notices



 


Notices or demands authorized
or required by this Agreement to be given or made by the Rights Agent or by the Holder of any Rights to or on the Corporation shall
be sufficiently given or made if delivered or sent by registered or certified mail, postage prepaid, addressed (until another address
is filed in writing with the Rights Agent), or sent by facsimile or other form of recorded electronic communication, charges prepaid
and confirmed in writing, as follows:


 


Jaguar Mining Inc.

122 North Main Street, 2nd Floor

Concord, NH USA

03301


 


		Attention:	Chairman



		Facsimile:	603.224.6143



 


Any notice or demand authorized or required
by this Agreement to be given or made by the Corporation or by a Holder of Rights to or on the Rights Agent shall be sufficiently
given or made if delivered or sent by registered or certified mail, postage prepaid, addressed (until another address is filed
in writing with the Corporation), or sent by facsimile or other form of recorded electronic communication, charges prepaid and
confirmed in writing, as follows:


 


Computershare Investor Services Inc.

100 University Avenue, 9th floor


Toronto Ontario


M5J 2Y1


 


		Attention:	Manager, Client Services



		Facsimile:	416.981.9800



 


Notices or demands authorized or required
by this Agreement to be given or made by the Corporation or the Rights Agent to or on any Holder of Rights shall be sufficiently
given or made if delivered or sent by registered or certified mail, postage prepaid, addressed to such Holder at the address of
such Holder as it appears upon the Rights Register or, prior to the Separation Time, on the registry books of the transfer agent
for the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the Holder
receives the notice.


 


Any notice given or made in accordance
with this Section 5.8 shall be deemed to have been given and to have been received on the day of delivery, if so delivered; on
the third Business Day (excluding each day during which there exists any general interruption of postal service due to strike,
lockout or other cause) following the mailing thereof, if so mailed; and on the day of telegraphing, telecopying or sending of
the same by other means of recorded electronic communication (provided such sending is during the normal business hours of the
addressee on a Business Day and if not, on the first Business Day thereafter). Each of the Corporation and the Rights Agent may
from time to time change its address for notice by notice to the other given in the manner aforesaid.


 






    	 



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		5.9	Costs of Enforcement



 


The Corporation agrees
that if the Corporation or any other Person the securities of which are purchasable upon exercise of Rights fails to fulfil any
of its obligations pursuant to this Agreement, then the Corporation or such Person will reimburse the Holder of any Rights for
the costs and expenses (including reasonable legal fees) incurred by such Holder in actions to enforce his rights pursuant to any
Rights or this Agreement.


 


		5.10	Benefits of this Agreement



 


Nothing in this Agreement
shall be construed to give to any Person other than the Corporation, the Rights Agent and the Holders of the Rights any legal or
equitable right, remedy or claim under this Agreement; and this Agreement shall be for the sole and exclusive benefit of the Corporation,
the Rights Agent and the Holders of the Rights.


 


		5.11	Governing Law



 


This Agreement and each
Right issued hereunder shall be deemed to be a contract made under the laws of the Province of Ontario and for all purposes
shall be governed by and construed in accordance with the laws of such province applicable to contracts to be made and performed
entirely within such province.


 


		5.12	Language



 


Les parties aux présentes
ont exigées que la présente convention ainsi que tous les documents et avis qui s'y rattachent et/ou qui en découleront
soient rédigés en langue anglaise. The parties hereto have required that this Agreement and all documents and notices
related thereto and/or resulting therefrom be drawn up in the English language.


 


		5.13	Severability



 


If any Section, Subsection,
Clause, Subclause, term or provision hereof or the application thereof to any circumstance or any right hereunder shall, in any
jurisdiction and to any extent, be invalid or unenforceable, such Section, Subsection, Clause, Subclause, term or provision or
such right shall be ineffective only as to such jurisdiction and to the extent of such invalidity or unenforceability in such jurisdiction
without invalidating or rendering unenforceable or ineffective the remaining Sections, Subsections, Clauses, Subclauses, terms
and provisions hereof or rights hereunder in such jurisdiction or the application of such Section, Subsection, Clause, Subclause,
term or provision or rights hereunder in any other jurisdiction or to circumstances other than those as to which it is specifically
held invalid or unenforceable.


 


		5.14	Effective Date and Termination



 


This Agreement is in
full force and effect in accordance with its terms from and after the Record Time. This Agreement and all outstanding Rights shall,
without further formality, terminate and be void and of no further force and effect on and from the earlier of (i) 5:00 p.m. (Toronto
time) on July 19, 2012 and (ii) such earlier date or time as may be determined by the Board
of Directors, in its sole discretion.


 






    	 



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		5.15	Determinations and Actions by the Board of Directors



 


All actions, calculations
and determinations (including all omissions with respect to the foregoing) which are done or made by the Board of Directors, in
good faith, for the purposes of this Agreement shall not subject the Board of Directors or any director of the Corporation to any
liability to the Holders of the Rights.


 


		5.16	Rights of Board of Directors and the Corporation



 


Without limiting the
generality of the foregoing, nothing contained herein shall be construed to suggest or imply that the Board of Directors shall
not be entitled to recommend that holders of Voting Shares reject or accept any Take-over Bid or take any other action (including,
without limitation, the commencement, prosecution, defence or settlement of any litigation and the submission of additional or
alternative Take-over Bids or other proposals to the holders of the Voting Shares with respect to any Take-over Bid or otherwise)
that the Board of Directors believes is necessary or appropriate in the exercise of its fiduciary duties.


 


		5.17	Regulatory Approvals



 


Any obligation of the
Corporation or action or event contemplated by this Agreement shall be subject to the receipt of any requisite approval or consent
from any governmental or regulatory authority, including any necessary approvals of any stock exchange on which the Common Shares
are listed.


 


		5.18	Declaration as to Non-Canadian Holders



 


If, in the opinion of
the Board of Directors (who may rely upon the advice of counsel), any action or event contemplated by this Agreement would require
compliance by the Corporation with the securities laws or comparable legislation of a jurisdiction outside Canada, the Board of
Directors acting in good faith may take such actions as it may deem appropriate to ensure compliance. In no event shall the Corporation
or the Rights Agent be required to issue or deliver Rights or securities issuable on exercise of Rights to persons who are citizens,
residents or nationals of any jurisdiction other than Canada, in which such issue or delivery would be unlawful without registration
of the relevant Persons or securities for such purposes.


 


		5.19	Time of the Essence



 


Time shall be of the
essence in this Agreement.


 


		5.20	Successors



 


All the covenants and
provisions of this Agreement by or for the benefit of the Corporation or the Rights Agent shall bind and enure to the benefit of
their respective successors and assigns hereunder.


 






    	 



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		5.21	Execution in Counterparts



 


This Agreement may be
executed in any number of counterparts; each of such counterparts shall for all purposes be deemed to be an original; and all such
counterparts shall together constitute one and the same instrument.


 


[The remainder of this
page has been intentionally left blank.]


 






    	 



    	 



    
 


IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date first above written.


  


	 	JAGUAR MINING INC.	 
	 	 	 
	 	By:	(Signed) James M. Roller	 
	 	 	Name:	James M. Roller	 
	 	 	Title:	Chief Financial Officer and Treasurer	 


  


	 	COMPUTERSHARE INVESTOR
    SERVICES INC.	 
	 	 	 
	 	By:	(Signed) Eric Caramancion	 
	 	 	Name:	Eric Caramancion	 
	 	 	Title:	Professional, Client Services	 
	 	 	 	 	 
	 	 	(Signed) Paul Keyes	 c/s 
	 	By:	Name:	Paul Keyes	 
	 	 	Title:	Professional, Client Services	 




 






    	 



    	 



    
 


Exhibit A


 


[FORM OF RIGHTS CERTIFICATE]


 


RIGHTS CERTIFICATE


 


	Certificate No. __________	__________ Rights




 


THE
RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE CORPORATION, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN
CIRCUMSTANCES (SPECIFIED IN SUBSECTION 3.1(b) OF THE RIGHTS AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON, OR TRANSFEREES
OF AN ACQUIRING PERSON OR ITS ASSOCIATES OR AFFILIATES (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY PERSON ACTING
JOINTLY OR IN CONCERT WITH ANY OF THEM, MAY BECOME VOID WITHOUT ANY FURTHER ACTION.


 


This certifies that ____________________,
or registered assigns, is the registered holder of the number of Rights set forth above, each of which entitles the registered
holder thereof, subject to the terms, provisions and conditions of the Shareholder Rights Plan Agreement dated as of the 21st
day of March, 2012, (the "Rights Agreement") between Jaguar Mining Inc., a corporation incorporated under the Business
Corporations Act (Ontario), (the "Corporation") and Computershare Investor Services
Inc., a corporation incorporated under the laws of Canada, as rights agent (the "Rights
Agent", which term shall include any successor Rights Agent under the Rights Agreement) to purchase from the Corporation at
any time after the Separation Time (as such term is defined in the Rights Agreement) and prior to the Expiration Time (as such
term is defined in the Rights Agreement), one fully paid and non-assessable Common Share of the Corporation (a "Common Share")
at the Exercise Price referred to below, upon presentation and surrender of this Rights Certificate together with the Form of Election
to Exercise duly executed and submitted to the Rights Agent at its principal office in the city of Toronto. The Exercise Price
shall initially be $25.00 (Canadian) per Right and shall be subject to adjustment in certain
events as provided in the Rights Agreement.


 


In certain circumstances
described in the Rights Agreement, the number of Common Shares which each Right entitles the registered holder thereof to purchase
shall be adjusted as provided in the Rights Agreement.


 


This Rights Certificate
is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description
of the rights, limitations of rights, obligations, duties and immunities thereunder of the Rights Agent, the Corporation and the
holders of the Rights. Copies of the Rights Agreement are on file at the registered office of the Corporation and are available
upon written request.


 






    	 



    	- 2 -



    
 


This Rights Certificate,
with or without other Rights Certificates, upon surrender at any of the offices of the Rights Agent designated for such purpose,
may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing an aggregate number of
Rights entitling the holder to purchase a like aggregate number of Common Shares as the Rights evidenced by the Rights Certificate
or Rights Certificates surrendered. If this Rights Certificate shall be exercised in part, the registered holder shall be entitled
to receive, upon surrender hereof, another Rights Certificate or Rights Certificates for the number of whole Rights not exercised.


 


Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Rights Certificate may be, and under certain circumstances are required to
be, redeemed by the Corporation at a redemption price of $0.00001 per Right.


 


No fractional Common
Shares will be issued upon the exercise of any Right or Rights evidenced hereby, but in lieu thereof, a payment by cheque will
be made, as provided in the Rights Agreement.


 


No holder of this Rights
Certificate, as such, shall be entitled to vote, receive dividends or be deemed for any purpose the holder of Common Shares or
of any other securities of the Corporation which may at any time be issuable upon the exercise hereof, nor shall anything contained
in the Rights Agreement or herein be construed to confer upon the holder hereof, any of the rights of a shareholder of the Corporation
or any right to vote for the election of directors or upon any matter submitted to shareholders of the Corporation at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders
of the Corporation (except as provided in the Rights Agreement), or to receive dividends, distributions or subscription rights,
or otherwise, until the Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement.


 






    	 



    	- 3 -



    
 


This Rights Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.


 


WITNESS the facsimile
signature of the proper officers of the Corporation.


 


Date: ____________________


 


JAGUAR MINING INC.    




 


	By:	 	By:	 
	 	 	 	 


Countersigned:


 


	COMPUTERSHARE INVESTOR SERVICES INC.
	 
	By:	 	 	 
	 	Authorized Signature	 	 


 






    	 



    	 



    
 


(To be attached to each Rights Certificate)


 


FORM
OF ELECTION TO EXERCISE


 


		TO:	JAGUAR MINING INC.



 


		AND TO:	COMPUTERSHARE
INVESTOR SERVICES INC.



 


The undersigned hereby
irrevocably elects to exercise _______________ whole Rights represented by the attached Rights Certificate to purchase the Common
Shares issuable upon the exercise of such Rights and requests that certificates for such Shares be issued to:


 


	 	 
	(Name)	 
	 	 
	(Address)	 
	 	 
	(City and Province or State)	 
	 	 
	(Social Insurance Number or other taxpayer identification number)


 


If such number of Rights
are not all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance of such Rights shall be registered
in the name of and delivered to:


 


	 	 
	(Name)	 
	 	 
	(Address)	 
	 	 
	(City and Province or State)	 
	 	 
	(Social Insurance Number or other taxpayer identification number)


 


	Dated:	 	 	Signature:	 
	 	 	 	 
	Signature Guaranteed:	 	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever)


 


Signature must be guaranteed
by a Schedule 1 Canadian chartered bank, a major Canadian trust company or a member of a recognized Medallion Guarantee Program.


 






    	 



    	 



    
 


CERTIFICATE


 


(To be completed if true)


 


The undersigned hereby
represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are
not, and, to the knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate
thereof or any Person acting jointly or in concert with any of the foregoing (all capitalized terms are used as defined in the
Rights Agreement).


 


 


 


	 	 	 	Signature:	 





 


NOTICE


 


In the event the certification
set forth in the Form of Election to Exercise is not completed, the Corporation will deem the Beneficial Owner of the Rights evidenced
by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (all capitalized terms are used as defined
in the Rights Agreement) and accordingly such Rights shall be null and void.


 


 



    	 



    	 



    
 


FORM
OF ASSIGNMENT


 


(To be executed by the registered holder
if such

holder desires to transfer the Rights Certificate)


 


	FOR VALUE RECEIVED 	 	 


  


	hereby sells, assigns and transfers unto 	 	 


(Please print name and
address of transferee)


 


the Rights represented by this Rights Certificate,
together with all right, title and interest therein, and does hereby irrevocably constitutes and appoints                                                 
, as attorney, to transfer the within Rights on the books of the Corporation, with full power of substitution.


 


	Dated:	 	 	Signature:	 
	 	 	 	 
	Signature Guaranteed:	 	(Signature must correspond to name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change whatsoever)


 


Signature must be guaranteed
by a Schedule 1 Canadian chartered bank, a major Canadian trust company or a member of a recognized Medallion Guarantee Program.


 


 


CERTIFICATE


 


(To be completed if true)


 


The undersigned hereby
represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are
not, and, to the knowledge of the undersigned, have never been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate
thereof or any Person acting jointly or in concert with any of the foregoing (all capitalized terms are used as defined in the
Rights Agreement).


 


 


	 	 	 	Signature:	 


 


  


NOTICE


 


In the event the certification
set forth in the Form of Assignment is not completed, the Corporation will deem the Beneficial Owner of the Rights evidenced by
this Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof (all capitalized terms are used as defined
in the Rights Agreement) and accordingly such Rights shall be null and void.