Jaguar has verbal confirmations from Canadian Royalties Debenture Holders
holding $44.57 million that they will not tender to the Jien Offer

Jaguar proposes win-win solution in two tiered offer

TORONTO , Oct. 27 /CNW/ - Jaguar Financial Corporation (TSX: JFC) ("Jaguar") today announced that it has verbal confirmations from holders (the "Debenture Holders") of Canadian Royalties Inc. (TSX: CZZ) ("Canadian Royalties") debentures (the "Debentures") owning in the aggregate $44.57 million or 32.4% of the total principal amount of the Debentures that are not tendering to the revised offer (the "Jien Offer") by Jien Mining Ltd ("Jien").

If an additional $1.26 million principal amount of Debentures is not tendered, the minimum tender condition of 66 2/3% in the Jien Offer will not be met, which would mean that Jien cannot amend the debenture indenture and remove the existing right to receive 101% on a change of control.

Similarly, if as verbally indicated to Jaguar, $44.57 million of Debentures are not tendered to the Jien Offer, Jien would need a tender of $91.67 million in Debentures to the Jien Offer representing 98.6% of the remaining eligible Debentures of $92.93 million in order for the Jien Offer to be successful.

Vic Alboini, Chairman and Chief Executive Officer of Jaguar stated: "While we can 'never say never' we believe it is highly unlikely that 98.6% of the remaining Debentures would tender to the Jien Offer. We predict Jien will not meet its tender condition."

Jaguar believes there is a win-win solution available to Jien and the Debenture Holders who want payment of 101% of their principal amount. FTQ and Colonial have locked-up and have agreed to accept an 80% payment, if La Caisse follows through with its verbal indication and tenders to the Jien Offer, it too would accept an 80% payment.

"A potential solution would be to offer Debenture Holders a two-tiered payment structure where every Debenture Holder except FTQ, Colonial and La Caisse, would receive a 101% payment; this two-tiered offer has been done before as for example one year ago today when Severstal acquired PBS Coal and the major shareholders accepted a lower offer from Severstal" added Mr. Alboini .

About Jaguar Financial Corporation

Jaguar is a Canadian merchant bank that invests in undervalued small capitalization companies in a variety of industry sectors.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release. This news release may contain certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under Jaguar's control which may cause actual results, performances or achievements of Jaguar to be materially different from those implied by such forward looking statements.

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For further information: Vic Alboini, Chairman & Chief Executive Officer, [phone]; or Kyler Wells, General Counsel & Corporate Secretary, [phone]