• Project is host to the Jaclyn Zone, a gold mineralized composite vein system defined over a strike length of 800 metres and to a depth of 275 metres and remains open for expansion along strike and to depth
• Jaclyn Main Zone contains a 43-101 inferred resource of 921,000 tonnes averaging 3.02 g Au/t (89,500 contained ounces of gold)
• Large land position in a highly prospective, emerging gold belt
• New grab sample assays grade up to 232.0 g/t gold.
• On trend with Crosshair's South Golden Promise project, which hosts the Linda/Snow White gold discovery.
• Strong similarities to the Bendigo-Ballarat Gold District, Victoria, Australia -- an area with past production of over 22 million ounces of gold
• Significant drill intercepts of up to 93.71 g/t gold over 1.40 metres including 327.97 g/t gold over 0.40 metres

Location

The Golden Promise project is comprised of 8 mineral licenses (1109 claims) covering an area of 27,725 hectares that stretch over 20 kilometres. The claims are located just south of the town of Badger and 35 kilometres west of Grand Falls-Windsor in central Newfoundland. The project is part of an option agreement between Crosshair and Paragon Minerals (formerly Rubicon Minerals).

Location Map

History

Before Paragon acquired the Golden Promise project in 2002, the area saw virtually no previous exploration for gold and was intermittently staked by companies looking for base-metal volcanic hosted massive sulphide (VHMS) deposits.

Prior to the option agreement with Crosshair, Paragon completed approximately $2.5 million in exploration, which included:

• 46 diamond drill holes (5,736 metres) with 33 holes totalling 3,496 metres at the Jaclyn (30 holes) Jaclyn North (1 hole) and Jaclyn South (2 holes) zones. A further 13 holes tested anomalous soil and float targets in the Jaclyn and Shawn's Shot areas
• Approximately 8,250 line-kilometre (75 metre spacing) high-resolution airborne magnetic/EM survey over the entire property
• 17 surface trenches at the Jaclyn, Christopher and Branden areas
• 5,624 soil samples and approximately 2,334 rock samples have been collected
• Property-scale geological and structural mapping

Claim Ownership

Crosshair entered into an option agreement with Paragon Minerals in May 2006 to earn a 60% interest in the Golden Promise project. Crosshair must spend $4,000,000 in exploration expenditures and issue 80,000 shares over the term of the four year earn-in agreement. The work is being carried out by Paragon personnel and supervised by David Copeland, M.Sc., P.Geo., Exploration Manager for Paragon.

Geology

Geology Map

The project is underlain by sedimentary rocks of the Ordivician Victoria Lake Group, which are overlain by black Caradocian shale and the Late Ordivician to Silurian Badger Group sedimentary rocks. The Victoria Lake Group comprises mainly epiclastic greywacke and siliceous mudstone with minor sequences of felsic volcanic tuff and pillow basalts. The Caradocian shale unit is highly graphitic and pyrite rich and in places is up to 600 metres thick. The Badger Group is comprised of generally coarse grained sandstone and conglomerate with lesser shale and siliceuous mudstone layers.

The entire sequence has been folded into tight regional anitclines and syclines that overall plunge moderately to the northeast, but are occasionally doubly-plunging. The folds have upright, near vertical axial surfaces. The sequence is cut by regional to local scale faults and mafic dyke swarms and is intruded by the Siluro-Devonian Skull Hill Intrusive Complex to the north and the Hodges Hill Granite to the east. Overall the sequence is metamorphosed to lower greenschist facies. The finer grained thinner bedded sediments usually display a strong, penetrative cleavage and local scale chevron folds.

Significant gold-bearing quartz veins have been identified at three main sites on the property, specifically the Jaclyn, Jaclyn North and Jaclyn South Zones, the Christopher Zone and the Shawn's Shot Occurrences.

Exploration Work

During the summer of 2006, Paragon and Crosshair completed a successful 15 hole, 2,450 metre drilling program. All eight holes testing the Jaclyn Main zone intersected visible gold. Significantly, three of these holes also intersected a new zone of high grade gold mineralization in the hanging-wall returning up to 93.71 g/t gold over 1.40 metres including 327.97 g/t gold over 0.40 metres. A total of five drill holes were completed on the Jaclyn North target, which lies parallel to and 250 metres northwest of the main Jaclyn Zone, where a strong gold-bearing quartz vein system has been defined over a 150 metre strike length.

During the winter of 2006/2007, a 14 hole, 3,073 metre drill program was successful in extending the main Jaclyn vein system by more than 50% to a defined strike length of 750 metres and to a depth of 225 metres. The zone remains open. Visible gold was noted in 10 of the 14 holes completed in this phase of drilling, which included some of the highest grades reported to date.

This drill program focussed exclusively on the main Jaclyn Zone and did not address any other targets on the property such as the Jaclyn North vein system. Given its potentially high grade nature and its close proximity to the main Jaclyn Zone, the Jaclyn North system could prove to be an extremely important component of the Golden Promise project and will be addressed with additional drilling in the future. Numerous additional geochemical and geological targets on the project remain untested, suggesting that multiple vein systems could occur elsewhere on the project.

The defined strike length was extended to 800 metres and to a depth of 275 metres following a successful Phase III drill program in the fall of 2007. The 3,926 metre drill program intersected visible gold in 18 of the 23 drill holes and included infill drilling and testing the extensions of mineralization on the Jaclyn Main Zone along strike and down plunge.

Examples of some of the better intersections:

• 6.5 g/t gold over 1.40 metres including 14.9 g/t gold over 0.45 metres in hole GP07-83
• 10.1 g/t Au over 1.40 metres including 35.3 g/t Au over 0.40 metres and a second interval of 6.3 g/t Au over 1.35 metres including 10.5 g/t Au over 0.75 metres in hole GP07-90
• 43.83 g/t Au over 1.45 metres, including 141.21 g/t Au over 0.45 metres in GP07-91
• 10.41 g/t Au over 4.70 metres, including 64.49 g/t Au over 0.50 metres in GP07-92
• 20.89 g/t Au over 1.90 metres, including 44.74 g/t Au over 0.65 metres in GP07-93
• 6.87 g/t Au over 1.70 metres, including 18.59 g/t Au over 0.45 metres in GP07-98

Golden Promise Long Section

2007 Drill Plan