Victoria Lake JV Project

60% Crosshair
40% Paragon

Target: Volcanogenic Massive Sulphide (VMS) deposit (Pb, Zn, Cu, Ag, Au)

Highlights

• Large land position in a highly prospective base metal belt
• Property is underlain by similar volcanic stratigraphy that hosts the Boomerang and Domino Deposits
• Three extensive (up to 2.5 kilometres long, 153 metres thick) VMS-style alteration systems identified on the property
• Eleven reconnaissance drill holes (2,197 metres) completed to date in four areas
• Un-sourced float samples with elevated base metal sulphides (6.5% zinc, 4.1% lead, 0.37% copper, 33.9 g/t Ag and 1.02 g/t gold)
• Located 8 kilometres south of the Boomerang Deposit (Messina Minerals)

Property Information

The 100% owned Victoria Lake Project is located in central Newfoundland, approximately 60 kilometres southwest of the town of Buchans. The property consists of 2 mineral licences (305 claims) for a total area of 7,625 hectares. Crosshair Exploration & Mining Corporation ("Crosshair") has earned a 60% interest in the property by spending $1,750,000 in a multiple property option agreement by October 2007.

Geology and Mineralization

The Victoria Lake property is underlain by the northeast--southwest trending Tulks Hill volcanic and sedimentary rocks of the Cambro-Ordovician Victoria Lake Group. The Tulks Hill volcanic-sedimentary sequence is well known to host significant volcanogenic massive sulphide deposits including Boomerang, Domino and Long Lake deposits (Messina Minerals). On the property, the Tulks Hill volcanic belt underlies a majority of the property and consists of mafic and felsic volcanic rocks that include felsic flows, tuffs and breccias and lesser mafic tuffs, agglomerates and pillow lavas. Sedimentary rocks occur along the southeast margins of the claim block and consist of interbedded volcanic tuffs and epiclastic sediments including sandstones, siltstones, shales and greywackes.

Historical exploration by Noranda (1980's to early 1990's) highlighted the presence of at least three distinct zones of altered (sericite-silica-pyrite) felsic volcanic rocks exhibiting volcanogenic massive sulphide indicators including strongly depleted sodium (0.13% to 0.33% Na2O), enriched potassium (up to 12% K2O) and enriched barium (4,940 ppm Ba) whole rock signatures. There are also unsourced, sulphide rich boulders assaying 6.5% zinc, 4.1% lead, 0.37% copper, 33.9 g/t Ag and 1.02 g/t gold. Boulders of massive barite have also been located immediately northeast of the property boundary.

Soil sampling completed by Noranda and more recently by Rubicon 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. After optioning the property, Crosshair refurbished approximately 62 kilometres of gridlines on three separate grids and added one new grid (DPS grid). Crosshair completed ground gravity surveys on all the grids, outlining several significant gravity targets.

During September and October 2006, Crosshair completed eleven drill holes (2,197 metres) in the four grid areas, three of which are underlain by highly prospective volcanic rocks similar to those hosting the nearby Boomerang Cu-Pb-Zn massive sulphide deposit being explored by Messina Minerals. Three of the grid areas tested, the Long Lake, Swamp, and Henry Waters grids, intersected up to 153 metre wide intervals of strongly altered and mineralized (locally up to 50% semi-massive to stringer pyrite containing minor base metal sulphides) volcanic rocks indicative of a proximal massive sulphide system.

Long Lake Grid - The strongest alteration and sulphide mineralization was returned from the Long Lake target area where five drill holes, totaling 1,315 metres were completed. Drill hole LL-06-03 intersected 153 metres of strongly altered felsic volcanic rock containing up to 25% disseminated to stringer sulphide mineralization including minor base metal sulphides. Drill hole LL-06-05, located approximately 500 metres to the southwest of LL-06-03 showed a significant increase in alteration and mineralization over 122 metres with local, up to 50% semi-massive bands over narrow intervals. Anomalous base metal sulphides were encountered within the better altered section with the results up to 0.166% zinc and 0.097% copper over 1.1 metres.

Swamp Grid - Four drill holes (567 metres) were completed on the Swamp Grid, located approximately 5 kilometres north of the Long Lake grid. All four drillholes intersected intensely altered and pyritic felsic volcanic rocks containing significant concentrations of disseminated to stringer zinc mineralization. The best results were from drill hole SG-06-04 where up to 1.29% zinc, 0.52% zinc, 0.59% zinc and 0.55% zinc in four 0.50 metre wide intervals within a 63 metre sequence of altered felsic volcanic package.

Henry Waters Grid - A single drill hole (134 metres) on the Henry Waters Grid returned 1.31% zinc over a 1.0 metre interval within a broader, 52-metre thick zone of altered and sulphide-bearing felsic volcanic rocks.

This first phase of drilling on the Victoria Lake property was very successful in outlining multiple zones of strongly altered, sulphide-bearing felsic volcanic rocks that are suggestive of a significant volcanogenic massive sulphide environment The encouraging results from this widely spaced drilling program will be followed up with additional drilling.