(TSX Venture Exchange Symbol: CXX)

OVERVIEW

Crosshair is a junior Canadian exploration company that has acquired a large uranium bearing property within the Central Mineral Belt in Labrador (Canada), which is emerging as the next big uranium district in Canada.

Canada is the world's largest producer of uranium.

Crosshair also explores for gold on its South Golden Promise property and precious and base metals on its Victoria Lake properties, both located in Newfoundland (Canada).

The Company has $ 14 million in its Treasury, having raised $ 11.2 million recently and has an aggressive drilling program planned for 2006.

THE COMPANY

The Company was formed in 1966, but was restructured and changed its name in March, 2004. It is registered as a British Columbia reporting issuer and its shares trade on the TSX Venture Exchange, under the symbol CXX.

The Company's operations are either new or recent initiatives. In February 2003, the Company entered into three option-joint venture agreements with Rubicon Minerals Corp. for properties in Newfoundland. In October 2004, it acquired the initial uranium bearing property in Labrador, and has since added significant ground to the property through staking programs.

This multifaceted approach gives the Company a substantial stake in key regions where there is significant exploration interest. Gold has hit its highest price in over 25 years while uranium is at historic record prices.

URANIUM FUNDAMENTALS

Nuclear energy is a growing source of global electricity generation. Uranium is a key ingredient used by nuclear reactors, with 441 nuclear reactors worldwide generating 17% of global electric supply. Another 178 are currently being built, planned or proposed.

Since 1993, uranium production has lagged demand and currently meets only 60% of global reactor demand, according to the World Energy Council. The price of uranium has risen consistently since it reached a bottom in 2001, and is currently $ 37.50 per pound.

Uranium is the heaviest naturally occurring element on earth. The primary forms of uranium ore are uraninite (UO₂) and pitchblende (U₃O₈, which is also known as yellowcake), which are mined and then processed to produce uranium concentrates in the form of U₃O₈.

Canada is the world's largest producer and exporter of uranium, producing 29% of the world's uranium supply in 2004.

In 1979, there was an accident at a nuclear power plant at Three Mile Island in the US, and at Chernobyl in Russia in 1986. This led to a decade long decline in uranium prices and a ban in the US on new nuclear power plants.

The US has 103 nuclear power plants, providing 20% of the country's energy needs. Many of them are so old that they have applied for 20-year extensions on their 40 year operating licenses! The Bush administration has called for new nuclear power plants to be built.

Total uranium production in 1980 was 56 million pounds of U₃O₈, which has increased to 104 million pounds in 2004, according to Cameco, the largest uranium producer in the world.

The World Nuclear Association (WNA) estimates 2005 demand to be 177 million pounds, rising to 194,500 pounds by 2010. The International Atomic Energy Agency (IAEA) released a study in June 2004, projecting nuclear power generation increasing 2.5 times by 2030, to account for 27% of global energy production, up from 17% today.

Cameco projects that total demand will exceed supply by a cumulative 300 million pounds by the year 2013. This should continue to exert a significant upward pressure on prices.

The current supply-demand deficit has been made up from the release of uranium ore by the US Department of Defense, commercial inventory held by nuclear utilities and the decommissioning of Russian nuclear weapons.

As these sources are drawn down, demand from primary mining sources are likely to increase. This would reinforce the upward price trend.

During 1994-96, the demand-supply imbalance asserted itself, and prices began to rise. At that point, uranium from decommissioned Russian nuclear warheads flooded the market (under the 10 year HEU Purchase Agreement in 1994 between the US and Russia and illegal uranium sales on the black market), causing a sharp decline in prices.

In 1996 Russia signed a long-term commercial uranium sales agreement with Cameco and Cogema. The Canadian Nuclear Energy Association reports in its June 2004 edition that the Russians have reduced the quantity for sale by 44 million pounds to these companies as they need it for their own domestic use.

This indicates that supply is increasingly constrained and the run-up in price confirms that there is no surplus stock available even to take advantage of record prices.

THE ASSETS

Moran Lake Property

The Moran lake property, in which the Company has a 90% interest, covers a ground area of over 650 square kilometers within the Central Mineral Belt, in Labrador.

Exploration in the Central Mineral Belt (CMB) in the 1950's identified uranium mineralisation at Moran Lake, but it wasn't explored in detail until 1976 when Shell Canada began their first of several trenching and subsequent drilling programs on two zones; the B and C zones. The drilling produced some of the highest grade drill intersections in the Central Mineral Belt.

Shell reported that a portion of Moran Lake's Upper C Zone is host to an inferred geological resource of 500 tonnes (1.1 million pounds) of contained U₃O₈, while the Lower C Zone has a potential resource of 2,236 tonnes (4.92 million pounds) of contained U₃O₈ (note: these are ‘historic' resources and not 43-101 compliant).

A National Instrument 43-101 compliant mineral resource estimate completed by Roscoe Postle Associates Inc. (RPA) of Toronto reports the Upper C Zone to contain an inferred resource of 124,000 tonnes grading 0.25% U₃O₈ (688,000 pounds). The report notes that the Shell Canada drilling was shallow (less than 75 meters vertical depth) and recommends drilling to undercut the Shell drill holes to test the down dip extension.

Crosshair is currently drilling a Phase 1 drill program consisting of 10 to 12 drill holes for approximately 2000 meters, focusing on expanding the 43-101 uranium resource.

In October 2005, Crosshair completed a 7,062 line kilometer airborne radiometric and magnetic survey over the entire Moran Lake property. The survey has identified numerous large targets with strong uranium responses similar to that of the known C Zone. Several of these targets were followed up with ground work before winter and significant new bedrock uranium mineralisation has been discovered.

These targets include:

• the Moran Heights Boulder Field, which contains over 300 uranium mineralized boulders with assays up to 4.54% U3O8.
• Areas 1 to 4, which along with the C and B Zones, are all located within the influence of a large gravity anomaly and appear to be part of a large uranium rich IOCG (Iron Oxide Copper Gold) system comparable to the massive Olympic Dam deposit in Australia.
• Area 5, an area with an intense radiometric uranium signature over 1.2 km long.

In Dec 2005, the Company announced that a completely new area, identified by radiometric survey 18 kilometres west of the C-Zone, has returned assays averaging 0.35% U3O8 as well as significant IOCG type mineralization. This area, located near Croteau Lake, will be considered high priority when ground follow-up work resumes early in 2006.

Crosshair recently acquired two additional groups of claims at the Moran Lake project totaling 56 new claims (14 square kms), bringing the Company's land position to 2610 claims (653 sq km). The 56 new claims take in a significant target area identified by the airborne radiometric survey and is known to host at least 5 uranium occurrences with grab sample results up to 2.0% U3O8. The new claims are located in the southern area of the property, considered by the Company's geological team as being highly prospective for "Michelin type" uranium deposits.

Following the Phase 1 drill program, a larger Phase 2 drilling program, of more than 10,000 meters, will begin. The Phase 2 will continue to expand the uranium resource as well as test the other high priority uranium targets.

South Golden Promise Property

The South Golden Promise property comprises three claim blocks that stretch nearly 75 km. The claims are located near the town of Badger in central Newfoundland and are part of an option agreement between Crosshair and Rubicon Minerals, whose Golden Promise property is in close proximity.

In 2004, bonanza grade samples of 105.28 g/t Au and 41.66 g/t Au were produced from the test pit. In Dec 2005, trenching exposed a composite quartz vein system over a strike length of 170 meters, locally up to 5 meters wide and open in all directions. The new trenching returned grades of up to 232.0 g/t Au in grab samples and up to 29.7 g/t Au over 0.5 m in channels.

Diamond drilling to test the gold mineralization at depth is planned for the 1st quarter of 2006.

Victoria Lake Property

The Victoria Lake property (formally known as Block 4 of the South Golden Promise property) is located in north central Newfoundland. The property is comprised of 215 claims (5375 hectares) and is under option from Rubicon Minerals Corporation. Crosshair is currently exploring the property for precious and base rich metal volcanic massive sulphide deposits which are known to occur in the vicinity.

Soil sampling completed by both Noranda and the Company has outlined significant copper, zinc, lead and silver anomalies that locally correspond with alteration zones and geophysical targets, most of which are untested by diamond drilling.

Crosshair proposes an aggressive exploration program to follow up historic anomalies through focused rock sampling, ground geophysics and a joint orthophoto survey with Messina Minerals Inc. that will cover both Messina's and the Company's properties.

Beigou Property, China:

Crosshair had undertaken development on a property in China but has decided to focus its efforts on Newfoundland and Labrador. It will not continue with the Beigou gold project in China and management will be making efforts to option or secure a finder's fee for the rights to the project with interested parties.

BOARD OF DIRECTORS/MANAGEMENT

Mark J. Morabito, LLB, President & Director: Mr. Morabito is a business executive with a background in corporate finance and securities law.

When Mr. Morabito took over responsibility for Crosshair in 2003, it had no personnel and less than $60,000 in working capital. Since taking over, Mr. Morabito has raised in excess of $21,000,000 and assembled the current portfolio of advanced exploration projects.

He obtained a Bachelor of Arts degree from Simon Fraser University, and a Bachelor of Law degree from University of Western Ontario, London, ON, in 1993. Mr. Morabito is a Member of the Ontario Bar and British Columbia Bar. He has previously been Vice President of Corporate Affairs at Leisure Canada and has sat on the Boards of Continental Home HealthCare Ltd.; LaMancha Resources Inc.; X-Tal Minerals Corp.; and Target Exploration & Mining.

Timothy Froude, P.Geo., Senior VP Exploration: Extensive experience in Newfoundland geology and mineral deposits; instrumental in building property portfolio at Cornerstone Resources; previous successes include discovery of Valentine Lake gold prospect for BP and involvement in discovery of Bobby Pond's VMS deposit for Inco.

Timothy Froude graduated from the Memorial University of Newfoundland in May 1988 with a Bachelor of Science (Geology) degree. Mr. Froude is past Executive Director of the Newfoundland and Labrador Chamber of Mineral Resources, where he remains a director. He is a member of the Associate Fellow Geological Association of Canada (GAC) and the Association of Professional Engineers and Geoscientists of Newfoundland (APEGN).

J. Wayne Pickett, P. Geo., General Manager – Exploration: Mr. Pickett has over 25 years experience in mineral exploration in various parts of Canada, Mexico, Peru, Colombia and Ghana. He was part of the geology team that discovered the Collins Bay "B" Uranium Deposit in northern Saskatchewan for Gulf Minerals and the Bobby's Pond VMS Deposit for Inco in Newfoundland.

Mr. Pickett received his Master of Science, Earth Science (Geology) from the University of Newfoundland in 1989. He is a Registered Professional Geoscientist and a member of the Association of Professional Engineers and Geoscientists of Newfoundland and the Association of Professional Engineers and Geoscientists of British Columbia.

Mark Brown, CA, Chief Financial Officer: Mr. Brown has extensive experience with mining companies, having previously worked for Price Waterhouse, Miramar Mining Corporation/Northern Orion Explorations Ltd. and Eldorado Gold Corporation. Mr. Brown received his Bachelor of Commerce from the University of British Columbia in 1990 and received his Chartered Accountant designation from the Institute of Chartered Accountants B.C. in 1993.

David Lee, Director: Mr. Lee is a professional banker, his last position being Regional Vice President of British Columbia for Canada Trust from 1995 to 1999 and now operates his own business consulting firm, DMR Financial Corporation. He has provided major financing for international and Canadian projects. Mr. Lee holds a B.A. from Occidental College, Los Angeles and a M.A. from California State University.

C. Stewart Wallis, Director: Mr. Wallis is the Managing Director of Sundance Ventures, which provides geological services, including evaluations and prefeasibility studies, for individuals and mining companies based throughout the world. Mr. Wallis received his Bachelor of Science in Geology from McMaster University located in Hamilton, Ontario.

Geir Liland, Director: Mr. Liland had a long career at the TSX Venture Exchange his last position being Vice-President, Corporate Finance. He has been a Director of Silver Wheaton Corp., Atlas Cromwell Ltd., Pacific Imperial Mines Inc., Eastern Platinum Ltd. and Signature Resources Ltd. Geir Liland received his Bachelor of Arts (Economics and Commerce) from Simon Fraser University

Robert F. Weicker, Director: Mr. Weiker is the former Chief Geologist of the largest gold mine in Canada, the Williams Mine at Hemlo, Ontario and was involved with the start-up, development and production of a the Van Stone lead-zinc mine in Washington. He also directly supervised a multi-million dollar development program on a polymetallic deposit in B.C. Mr. Weicker graduated with Honours from the University of Waterloo, Ontario, with a degree in Earth Science in 1977.

Jay Sujir, Director: Mr. Sujir is a securities and natural resource lawyer, who has considerable experience in advising and assisting public companies. He has been a lawyer in the law firm of Anfield Sujir Kennedy & Durno and its predecessor since August 1986 and has been a partner of that firm since 1991. He obtained his B.A. from the University of Victoria in 1981 and obtained his L.L.B. in 1985.

Dean Nawata, Corporate Development: Mr. Nawata has over 8 years of public company experience as a stockbroker with Nesbitt Burns, Research Capital and, most recently, Raymond James (formerly Goepel McDermid). During those years Mr. Nawata focused on the junior mining and oil and gas sectors involving various projects across Canada, the US, China and various former Soviet Republics.

Greg Davis, Investor Relations: Mr. Davis has over 10 years experience in the mining industry, having recently worked with Nevsun Resources as the On-Site Project Manager of the Bisha VMS Project in Eritrea. He received his Diploma in Mining and Engineering Technology from the British Columbia Institute of Technology.

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