- Annual and Transition Report (foreign private issuer) (20-F)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

(Mark One)

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended April 30, 2012

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to __________

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report ____________

Commission file number 001-33439

CROSSHAIR ENERGY CORPORATION

(Exact name of Registrant as specified in its charter)

British Columbia, Canada

(Jurisdiction of incorporation or organization)

Suite 1240, 1140 West Pender Street, Vancouver, B.C. Canada V6E 4G1

(Address of principal executive offices)

Mark Morabito, Phone: (604) 681-8030, mmorabito@forbeswest.com

Suite 1240, 1140 West Pender Street, Vancouver, B.C. Canada V6E 4G1

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of Exchange on which registered
Common Shares, without par value	NYSE MKT LLC

Securities registered pursuant to Section 12(g) of the Act:

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: 65,782,178

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

¨ Yes þ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

¨ Yes þ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

þ Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

¨ Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer þ

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ¨

International Financial Reporting Standards as issued

by the International Accounting Standards Board þ

Other ¨

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

¨ Item 17 þ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

¨ Yes þ No

Index to Exhibits on Page 123

CROSSHAIR ENERGY CORPORATION

(the “Company” or “Crosshair”)

FORM 20-F ANNUAL REPORT

TABLE OF CONTENTS

Part I		Page
Item 1.	Identity of Directors, Senior Management and Advisers	3
Item 2.	Offer Statistics and Expected Timetable	3
Item 3.	Key Information	3
Item 4.	Information on the Company	14
Item 4A.	Unresolved Staff Comments	41
Item 5.	Operating and Financial Review and Prospects	41
Item 6.	Directors, Senior Management and Employees	48
Item 7.	Major Shareholders and Related Party Transactions	66
Item 8.	Financial Information	67
Item 9.	The Offer and Listing	69
Item 10.	Additional Information	70
Item 11.	Quantitative and Qualitative Disclosures About Market Risk	78
Item 12.	Description of Securities Other Than Equity Securities	79
Part II
Item 13.	Defaults, Dividend Arrearages and Delinquencies	80
Item 14.	Material Modifications to the Rights of Security Holders and Use of Proceeds	80
Item 15.	Controls and Procedures	80
Item 16A.	Audit Committee Financial Expert	81
Item 16B.	Code of Ethics	81
Item 16C.	Principal Accountant Fees and Services	81
Item 16D.	Exemptions from the Listing Standards for Audit Committees	82
Item 16E.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	82
Item 16F.	Changes in Registrant’s Certifying Accountant	82
Item 16G	Corporate Governance	82
Part III
Item 17.	Financial Statements	84
Item 18.	Financial Statements	84
Item 19.	Exhibits	123
	Glossary of Geological Terms	126

RESOURCE AND RESERVE ESTIMATES

The terms “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” used in our disclosure are Canadian mining terms that are defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Best Practice Guidelines for the Estimation of Mineral Resource and Mineral Reserves (the “CIM Standards”), adopted by the CIM Council on December 11, 2005. These definitions differ from the definitions in the United States Securities and Exchange Commission (the “SEC”) Industry Guide 7 under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

The terms “mineral resource,” “measured mineral resource,” “indicated mineral resource” and “inferred mineral resource” used in our disclosure are Canadian mining terms that are defined in accordance with NI 43-101 under the guidelines set out in the CIM Standards; however, these terms are not defined terms under Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable.

Accordingly, information contained in this report and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

FORWARD-LOOKING STATEMENTS

Certain statements in this document constitute “forward-looking statements” under applicable securities laws. Forward-looking statements can be identified by the use of terminology such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend,” and statements that an action or event “may,” “might,” “could,” or “should,” be taken or occur, or other similar expressions. Forward looking statements contained in this document include, but are not limited to, statements with respect to: (i) the estimation of inferred and indicated mineral resources; (ii) details and goals of exploration activities; (iii) estimations of future costs and expenditures; (iv) permitting timelines; (v) currency fluctuations; (vi) requirements for additional capital and the sufficiency of working capital; (vii) government regulation of mining operations; (viii) environmental risks; (ix) unanticipated reclamation expenses; and (x) increases in mineral resource estimates. These forward-looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks:

the risks associated with outstanding litigation, if any;

risks associated with project development;

the need for additional financing;

operational risks associated with mining and mineral processing, including risks related to accidents, equipment breakdowns, labor disputes or other unanticipated difficulties with or interruptions in operations which may or may not be insured;

fluctuations in metal prices;

title matters;

environmental liability claims and insurance;

reliance on key personnel;

the receipt of necessary regulatory approvals;

the potential for conflicts of interest among certain officers, directors or promoters with certain other projects;

the absence of dividends;

currency fluctuations;

competition;

dilution;

the volatility of our common share price and volume;

tax consequences to U.S. shareholders;

risks related to our being subject to the penny stock rules;

risks related to our being a foreign private issuer; and

risks related to our possibly being a passive foreign investment company.

Forward-looking information and forward-looking statements are in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of commodities; that the Company can access financing, appropriate equipment and sufficient labour availability and that the political environment will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further in “Item 3. Key Information—D. Risk Factors.” Accordingly, readers are advised not to place undue reliance on forward-looking statements. The Company does not intend to update forward-looking statements or information, except as may be required by applicable law. Except as required by applicable regulations or by law, we do not undertake any obligation to publicly update or review any forward-looking statements whether as a result of new information, future events or otherwise.

FINANCIAL AND OTHER INFORMATION

In this Annual Report, unless otherwise specified, all dollar amounts are expressed in Canadian Dollars (“CDN$” or “$”). The Government of Canada permits a floating exchange rate to determine the value of the Canadian Dollar against the U.S. Dollar (US$).

PART I

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable

ITEM 3.

KEY INFORMATION

3.A. Selected Financial Data

Our selected financial data for the fiscal years ended April 30, 2012, 2011, 2010, 2009 and 2008 was derived from our financial statements that have been audited by Davidson & Company LLP, independent Chartered Accountants, as indicated in their audit reports. Davidson & Company LLP is a member of the Canadian Institute of Chartered Accountants.

The selected financial data should be read in conjunction with and is qualified in its entirety by reference to the financial statements and notes thereto included elsewhere in this Annual Report.

To date, we have not generated sufficient cash flow from operations to fund ongoing operational requirements and cash commitments. We have financed our operations principally through the sale of our equity securities. While we believe we have sufficient capital and liquidity to finance current operations, nevertheless, our ability to continue operations is dependent on our ability to obtain additional financing. See “Item 3. Key Information—D. Risk Factors.”

The information for year ended April 30, 2012 and 2011 in the following table is derived from our financial statements, which have been prepared in accordance with the International Financial Reporting Standards (“IFRS”). There were no material differences between IFRS and US GAAP for the years ended April 30, 2012 and 2011. The information for year ended April 30, 2010, 2009 and 2008 were prepared in accordance with the Canadian generally accepted accounting principles (“Canadian GAAP”). All material numerical differences between Canadian GAAP and US GAAP, are described in footnotes to the financial statements for the years ended April 30, 2010, 2009, and 2008.

	For the Year Ended April 30,
	2012			2011			2010			2009			2008
	IFRS 1			IFRS 1			CGAAP			CGAAP			CGAAP
Revenue		--			--			--			--			--
Income (Loss) for the Period	$	(11,977,829	)	$	(4,077,470	)	$	(2,321,078	)	$	(20,724,237	)	$	(12,933,204	)
Basic Income (Loss) Per Share	$	(0.24	)	$	(0.10	)	$	(0.02	)	$	(0.22	)	$	(0.18	)
Dividends Per Share		--			--			--			--			--
Weighted Average Shares (#) 7		50,377,698			41,193,459			118,114,045			93,584,687			72,997,081
Period-end Shares (#) 7		65,782,178			47,477,151			131,477,493			112,184,313			84,595,825
Working Capital	$	5,466,961		$	10,815,170		$	3,403,009		$	2,641,169		$	13,272,006
Mineral Properties	$	11,592,105		$	10,180,650		$	30,385,684		$	29,336,828		$	27,071,981
Long-Term Debt	$	558,742		$	1,146,879		$	490,458		$	676,484		$	172,238
Capital Stock	$	87,457,513		$	81,021,668		$	70,162,104		$	67,793,186		$	60,948,053
Shareholders’ Equity	$	16,999,901		$	20,048,338		$	33,705,417		$	31,849,308		$	40,795,458
Total Assets	$	17,997,243		$	21,545,974		$	34,998,792		$	33,365,659		$	42,270,262
	IFRS 1			IFRS 1			US GAAP 2 3 4 5 6			US GAAP 2 3 4 5 6			US GAAP 2 3 4 5 6
Net Income (Loss)	$	(11,977,829	)	$	(4,077,470	)	$	(4,359,091	)	$	(16,296,230	)	$	(24,195,442	)
Loss Per Share	$	(0.24	)	$	(0.10	)	$	(0.04	)	$	(0.17	)	$	(0.33	)
Mineral Properties	$	11,592,105		$	10,180,650		$	10,338,357		$	10,690,539		$	3,201,950
Shareholders’ Equity	$	16,999,901		$	20,048,338		$	13,441,816		$	13,172,334		$	16,389,177
Total Assets	$	17,997,243		$	21,545,974		$	14,951,465		$	14,719,370		$	18,400,231

The financial information for years ended April 30, 2012 and 2011 are prepared using the International Financial Reporting Standards (“IFRS”). The Company’s transition date is May 1, 2010. The application of IFRS conforms in all material respects for the years ended April 30, 2012 and 2011 with United States GAAP. All the financial information prior to the Company’s transition date is presented in accordance with the Canadian generally accepted accounting principles (“Canadian GAAP”).

2 The cumulative net loss under IFRS/US GAAP at April 30, 2012 is approximately $91.4 million.

3	Under US GAAP, options granted to non-employees as compensation for services provided are fair valued and an expense recorded.

4	Under SEC interpretation of US GAAP, all exploration costs on mineral properties prior to the establishment of proven or probable reserves are expensed as incurred.

Under Canadian income tax legislation, we are permitted to issue shares whereby we agree to incur qualifying expenditures (as defined under the Income Tax Act of Canada) on our mineral properties and renounce the related income tax deductions to the investors. Under Canadian GAAP, flow-through shares are accounted for as part of the issuance of capital stock at the price paid for the shares, net of any future income tax liability. Under US GAAP/IFRS, any difference between the market price of our common shares and the fair value of the flow-through shares must be recorded as a liability if a premium is paid by investors or as an asset if investors are purchasing the shares at a discount. The asset or liability is charged to income as the flow-through share proceeds are expended on qualifying expenditures.

Under both IFRS and US GAAP, basic loss per share is calculated using the weighted average number of common shares outstanding during the year. Under US GAAP, the weighted average number of common shares outstanding excludes any shares held in escrow for which the release is subject to certain performance conditions.

On October 28, 2010, the common shares of the Company were consolidated on the basis of four pre-consolidation shares for one post-consolidation share. The numbers presented for fiscal 2012 and 2011 are presented on post-consolidated basis, while the numbers presented for fiscal 2010, 2009 and 2008 are presented on a pre-consolidated basis.

Exchange Rates

The following table sets forth the high and low rates of exchange for the Canadian Dollar for each month during the previous six months. The table also sets forth the average exchange rates for the Canadian Dollar for the five most recent fiscal years ended April 30th. The yearly average rate means the average of the exchange rates based on the daily rates during each fiscal period.

For purposes of this table, the rates of exchange are those quoted by the Bank of Canada. The table sets forth the number of Canadian Dollars required under that formula to buy one U.S. Dollar.

Period		High (1)	Low (1)

June 2012		1.0443	1.0166
May 2012		1.0366	0.9830
April 2012		1.0050	0.9800
March 2012		1.0035	0.9842
February 2012		1.0040	0.9844
January 2012		1.0296	0.9966

	Average (2)
Fiscal year ended April 30, 2012	0.9928
Fiscal year ended April 30, 2011	1.0138
Fiscal year ended April 30, 2010	1.0721
Fiscal year ended April 30, 2009	1.1501
Fiscal year ended April 30, 2008	1.0175

The exchange rate was $1.0078 on July19, 2012.

(1)

Means the intra-day high/low rate during the period.

(2)

Means the average of the noon day rates on the last day of each month during the period.

3.B.	Capitalization and Indebtedness

Not applicable

3.C.	Reasons for the Offer and Use of Proceeds

Not applicable

3.D.	Risk Factors

We are subject to a number of risks due to the nature of our business, including our present exploration state. The following describes the material risks that could affect us.

There has been significant economic uncertainty since the second half of 2008 and it has affected the Company’s operations.

The recent unprecedented events in global financial markets have had a profound impact on the global economy. Many industries, including the mining industry, are impacted by these market conditions. Some of the key impacts of the current financial market turmoil include contraction in credit markets resulting in a widening of credit risk, devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets, and a

lack of market liquidity. A continued or worsened slowdown in the financial markets or other economic conditions, including but not limited to, consumer spending, employment rates, business conditions, inflation, fuel and energy costs, consumer debt levels, lack of available credit, the state of the financial markets, interest rates, and tax rates may adversely affect the Company’s growth and profitability. Specifically:

·	the global credit/liquidity crisis could impact the cost and availability of financing and the Company’s overall liquidity;

·	the volatility of mineral prices would impact the Company’s revenues, profits, losses and cash flow potential;

·	volatile energy prices, commodity and consumables prices and currency exchange rates would impact the Company’s production costs; and

·	the devaluation and volatility of global stock markets would impact the valuation of the Company’s equity and other securities.

These factors could have a material adverse effect on the Company’s financial condition and results of operations. As a result, the Company will consider its plans and options carefully in fiscal 2013.

No known reserves

Our properties are in the exploration stage and are without a known body of mineral reserves.

We have no mineral producing properties at this time. Only those mineral deposits that we can economically and legally extract or produce, based on a comprehensive evaluation of cost, grade, recovery and other factors, are considered “reserves.” We have not defined or delineated any proven or probable reserves on any of our properties. Although the mineralized material and mineralized deposit estimates included herein have been carefully prepared by us, or, in some instances have been prepared, reviewed or verified by independent mining experts, these amounts are estimates only and no assurance can be given that any particular level of recovery of uranium, vanadium, copper, gold, base metals and other minerals from mineralized material will in fact be realized or that an identified mineralized deposit will ever qualify as a commercially mineable (or viable) reserve.

Our planned exploration programs may not result in profitable commercial mining operations

Our operations involve exploration, and there is no guarantee that any of our activities will result in commercial production of any mineral deposits. The exploration for and development of mineral deposits involves significant financial and other risks which even a combination of careful evaluation, experience and knowledge may not eliminate. Most exploration projects do not result in the discovery of commercially mineable deposits. Major expenses are required to locate and establish mineral reserves, to develop metallurgical processes, and to construct mining and processing facilities at a particular site. Our planned exploration programs may not result in a profitable commercial mining operation. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are: the particular attributes of the deposit, such as quantity and quality of the minerals, costs and efficiency of the recovery methods that can be employed; proximity to infrastructure; financing costs; mineral prices, which are highly cyclical; and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals, and environmental protection. The exact effect of these factors cannot be accurately predicted but could have a material adverse effect upon our operations and/or our ability to receive an adequate return on our invested capital. There is no certainty that our expenditures made towards the search and evaluation of uranium, vanadium, copper, gold, base metals and other minerals result in discoveries of mineral resources, mineral reserves or any other mineral occurrences, or in profitable commercial mining operations.

Mining operations generally involve a high degree of risk

Our operations are subject to all the hazards and risks normally encountered in the exploration, development and production of uranium and other minerals, including environmental pollution, accidents or spills, industrial accidents, labor disputes, changes in the regulatory environment, natural phenomena, unusual and unexpected geologic formations, seismic activity, rock bursts, cave-ins, flooding and other conditions involved in the drilling and removal of material, any of which could result in damage to, or destruction of, mines and other producing facilities, damage to life or property, environmental damage, delays in or cessation of production, exploration or development, monetary losses and cost increases which could make us uncompetitive, and could lead to possible legal liability. Although adequate precautions to minimize risk will be taken, mining operations are subject to hazards such as equipment failure or failure of retaining dams around tailings disposal areas which may result in environmental pollution and consequent liability. In addition, due to the radioactive nature of the materials handled in uranium mining, applicable regulatory requirements result in additional costs that must be incurred.

Our resource estimates may not be reliable

There is no certainty that any of our mineral resources will be economically mineable. Until a deposit is actually mined and processed the quantity of mineral resources and grades must be considered as estimates only. Valid estimates made at a given time may significantly change when new information becomes available. In addition, the quantity of mineral resources may vary depending on, among other things, metal prices. Any material change in quantity of mineral resources, grade or stripping ratio may affect the economic viability of our properties or any project we undertake. In addition, there can be no assurance that mineral or other metal recoveries in small scale laboratory tests will be duplicated in a larger scale test under on-site conditions or during production.

Fluctuations in prices of uranium, vanadium, copper, gold, base metals and other minerals, results of drilling, metallurgical testing and production and the evaluation of studies, reports and plans subsequent to the date of any estimate may require revision of such estimate. Any material reductions in estimates of mineral resources could have a material adverse effect on our results of operations and financial condition.

We rely on a limited number of properties

Our only properties of interest are currently the Central Mineral Belt properties in Labrador, the Golden Promise, South Golden Promise and Victoria Lake properties in Newfoundland and the Bootheel, Buck Point and Juniper Ridge properties in the United States. As a result, unless we acquire additional property interests, any adverse developments affecting these properties could have a material adverse effect upon our business and would materially and adversely affect our potential mineral resource production, profitability, financial performance and results of operations.

Competition from other energy sources and public acceptance of nuclear energy may affect the demand for uranium

Nuclear energy competes with other sources of energy, including oil, natural gas, coal and hydro-electricity. These other energy sources are to some extent interchangeable with nuclear energy, particularly over the longer term. Lower prices of oil, natural gas, coal and hydro-electricity may result in lower demand for uranium concentrate and uranium conversion services. Furthermore, the growth of the uranium and nuclear power industry beyond its current level will depend upon continued and increased acceptance of nuclear technology as a means of generating electricity. Because of unique political, technological and environmental factors that affect the nuclear industry, the industry is subject to public opinion risks which could have an adverse impact on the demand for nuclear power and increase the regulation of the nuclear power industry.

We face strong competition for the acquisition of mining properties

The mining industry is competitive in all of its phases. We face strong competition from other mining companies in connection with the acquisition of properties producing, or capable of producing, uranium and precious metals. Many of these companies have greater financial resources, operational experience and technical capabilities than

we do. As a result of this competition, we may be unable to maintain or acquire attractive mining properties on terms we consider acceptable, if at all. Consequently, our revenues, operations and financial condition could be materially adversely affected.

The Nunatsiavut moratorium may adversely affect our ability to raise capital

In order to develop the tools to evaluate the impact of large-scale development projects and the environmental impact, on April 8, 2008, Labrador’s Nunatsiavut Government announced a moratorium on uranium mining on Inuit land it governs that was supposed to continue until March 31, 2011. Even though the majority of our uranium properties did not fall under Nunatsiavut jurisdiction, we had experienced waning shareholder interest and difficulty in raising the capital required for the development of the Labrador projects. The moratorium was lifted on March 9, 2012; however, the difficulties associated with difficulty in raising capital may continue as an ongoing effect of the moratorium being put in place.

We do not have a history of mineral production or operations

We have never had any interest in mineral producing properties. There is no assurance that commercial quantities of minerals will be discovered at our current properties or any future properties, nor is there any assurance that our exploration programs thereon will yield any positive results. Even if commercial quantities of minerals are discovered, there can be no assurance that any of our properties will ever be brought to a stage where mineral resources can profitably be produced thereon. Factors which may limit our ability to produce mineral resources from our properties include, but are not limited to, the price of the mineral resources which are being explored for, availability of additional capital and financing and the nature of any mineral deposits.

We do not have an extensive operating history and there can be no assurance of our ability to operate our projects profitably in the future.

Our insurance will not cover all the potential risks associated with our operations

Our business is subject to a number of risks and hazards generally, including adverse environmental conditions, industrial accidents, labor disputes, unusual or unexpected geological conditions, ground or slope failures, cave-ins, changes in the regulatory environment and natural phenomena such as inclement weather conditions, floods and earthquakes. Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to our properties or other properties, delays in mining, monetary losses and possible legal liability.

Our insurance will not cover all the potential risks associated with a mining company’s operations. We may also be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not be available or may not be adequate to cover any resulting liability. Moreover, there are risks against which we cannot insure or against which we may elect not to insure. Insurance against risks such as environmental pollution or other hazards as a result of exploration and production is not generally available to us or to other companies in the uranium mining industry. We might also become subject to liability for pollution or other hazards which we may not be insured against or which we may elect not to insure against because of premium costs or other reasons. Losses from these events may cause substantial delays and require us to incur significant costs that could have a material adverse effect upon our financial condition, results of operations, competitive position and potentially our financial viability.

Our operations are subject to environmental regulation

All phases of our operations are subject to environmental regulation in the various jurisdictions in which we operate or may operate in the future. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set forth limitations on the generation, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner that will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects, and a heightened degree of responsibility for companies and their officers,

directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect our operations. Environmental hazards may exist on the properties on which we hold interests which are unknown to us at present and which have been caused by previous or existing owners or operators of the properties.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. Parties engaged in mining operations or in the exploration or development of mineral properties may be required to compensate those suffering loss or damage by reason of the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations.

Our operations are dependent on adequate infrastructure

Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants, which affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect our operations, financial condition and results of operations.

Our properties may be subject to undetected title defects

It is possible there may still be undetected title defects affecting our properties. Title insurance generally is not available, and our ability to ensure that we have obtained secure claim to individual mineral properties or mining concessions may be severely constrained. Furthermore, we have not conducted surveys of the claims in which we hold interests and, therefore, the precise area and location of such claims may be in doubt. Accordingly, our properties may be subject to prior unregistered liens, agreements, transfers or claims, and title may be affected by, among other things, undetected defects which could have a material adverse impact on our operations. In addition, we may be unable to operate our properties as permitted or to enforce our rights with respect to our properties.

We may be subject to additional costs for land reclamation

It is difficult to determine the exact amounts which will be required to complete all land reclamation activities in connection with our properties. Reclamation bonds and other forms of financial assurance represent only a portion of the total amount of money that will be spent on reclamation activities over the life of a mine. Accordingly, it may be necessary to revise planned expenditures and operating plans in order to fund reclamation activities. Such costs may have a material adverse impact upon our financial condition and results of operations.

The inability to obtain necessary permits would adversely affect our ability to operate our business

We may not receive the necessary permits or receive them on acceptable terms, if at all, in order to conduct further exploration and to develop our properties. The failure to obtain such permits, or delays in obtaining such permits, could adversely affect our operations.

Government approvals, approval of aboriginal people and permits are currently and may in the future be required in connection with our operations. To the extent such approvals are required and not obtained; we may be curtailed or prohibited from continuing our mining operations or from proceeding with planned exploration or development of mineral properties.

We will require additional capital for our mining operations

The development and exploration of our mining properties will require substantial additional financing. Failure to obtain sufficient financing may result in the delay or indefinite postponement of exploration, development or production on our properties or even a loss of property interest. There can be no assurance that additional capital

will be available when needed or that, if available, the terms of financing such capital will be acceptable to us. In addition, any future financing may be dilutive to our existing shareholders.

Future production from our mining properties, if any, is dependent upon the prices of uranium, vanadium, copper, gold, base metals and other minerals being adequate to make these properties economically viable

Mineral and base metals prices received, if any, could be such that our properties cannot be mined at a profit. The price of our common shares, and our financial results and exploration, development and mining activities may in the future be significantly and adversely affected by declines in the price of uranium, vanadium, copper, gold, base metals and other minerals. The price of uranium, vanadium, copper, gold, base metals and other minerals fluctuates widely and is affected by numerous factors beyond our control such as the sale or purchase of commodities by various central banks and financial institutions, interest rates, exchange rates, inflation or deflation, fluctuation in the value of the United States dollar and foreign currencies, global and regional supply and demand, the political and economic conditions and production costs of major mineral-producing countries throughout the world, and the cost of substitutes, inventory levels and carrying charges. With respect to uranium, such factors include the demand for nuclear power, political and economic conditions in uranium producing and consuming countries, uranium supply from secondary sources, uranium production levels and costs of production. Future serious price declines in the market value of uranium, vanadium, copper, gold, base metals and other minerals could cause development of and commercial production from our properties to be impracticable. Depending on the price of uranium, vanadium, copper, gold, base metals and other minerals, cash flow from mining operations may not be sufficient and we could be forced to discontinue production and may lose our interest in, or may be forced to sell, some of our properties. Future production from our mining properties, if any, is dependent upon the prices of uranium, vanadium, copper, gold, base metals and other minerals being adequate to make these properties economically viable.

In addition to adversely affecting our reserve estimates, if any, and our financial condition, declining commodity prices can impact operations by requiring a reassessment of the feasibility of a particular project. Such a reassessment may be the result of a management decision or may be required under financing arrangements related to a particular project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause substantial delays or may interrupt operations until the reassessment can be completed.

Exchange rate fluctuations may effectively increase our costs of exploration and production

Exchange rate fluctuations may affect the costs that we incur in our operations. Uranium, vanadium, copper, gold, base metals and other minerals are generally sold in U.S. dollars and our costs are incurred principally in Canadian dollars. We also operate several mineral exploration projects in the United States that require payments to be made in U.S. dollars. The appreciation of non-U.S. dollar currencies against the U.S. dollar can increase the cost of exploration and production in U.S. dollar terms, which could materially and adversely affect our profitability, results of operations and financial condition.

Our operations are subject to extensive governmental regulation that may adversely affect our operating costs

Our mining, processing, development and mineral exploration activities are subject to various laws governing prospecting, development, production, taxes, labor standards and occupational health, mine safety, toxic substances, land use, water use, land claims of local people, and other matters. Although our exploration and development activities are currently carried out in accordance with all applicable rules and regulations, new rules and regulations may be enacted or existing rules and regulations may be applied in a manner which could limit or curtail production or development. Amendments to current laws and regulations governing operations and activities of mining and milling or more stringent implementation thereof could have a substantial adverse impact on our operations. Worldwide demand for uranium is directly tied to the demand for energy produced by the nuclear electric industry, which is also subject to extensive government regulations and policies.

Amendments to current laws, regulations and permits governing operations and activities of mining and exploration companies, or more stringent implementation thereof, could have a material adverse impact on our operations and

cause increases in exploration expenses, capital expenditures or production costs, or reduction in levels of production at producing properties, or require abandonment or delays in development of new mining properties.

The market price of our common shares may experience substantial volatility

In recent years, the securities markets in the United States and Canada have experienced a high level of price and volume volatility, and the market price of securities of many mineral exploration companies have experienced wide fluctuations in price which have not necessarily been related to the operating performance, underlying asset values or prospects of such companies. The price of our common shares is also likely to be significantly affected by short-term changes in prices of uranium, vanadium, copper, gold, base metals and other minerals, or in our financial condition or results of operations as reflected in our quarterly earnings reports. Other factors unrelated to our performance that may have an effect on the price of our common shares include the following: the extent of analytical coverage available to investors concerning our business may be limited if investment banks with research capabilities do not follow our securities; lessening in trading volume and general market interest in our securities may affect an investor’s ability to trade significant numbers of our common shares; the size of our public float may limit the ability of some institutions to invest in our securities; and a substantial decline in the price of our common shares that persists for a significant period of time could cause our securities to be delisted from such exchange, further reducing market liquidity.

We have not paid dividends in the past and do not expect to pay dividends in the foreseeable future

No dividends on our common shares have been paid to date and we have no earnings. We currently plan to retain all future earnings and other cash resources, if any, for the future operation and development of our business. Payment of future dividends, if any, will be at the discretion of our Board of Directors after taking into account many factors, including our operating results, financial condition, and current and anticipated cash needs.

Future sales of common shares by existing shareholders could adversely affect the trading price of our common shares

Sales of a large number of our common shares in the public markets, or the potential for such sales, could decrease the trading price of the common shares and could impair our ability to raise capital through future sales of common shares.

We are dependent upon the services of our key executives

We are dependent upon the services of key executives, including our directors and a small number of highly skilled and experienced executives and personnel. Due to our relatively small size, the loss of our Chief Executive Officer, Mark Ludwig, or our Executive Chairman, Mark Morabito, or our inability to attract and retain additional highly-skilled employees may adversely affect our future operations.

Our directors and officers have certain conflicts of interest

Certain of our directors and officers also serve as directors and/or officers of other companies involved in natural resource exploration and development and, consequently, there exists the possibility for such directors and officers to be in a position of conflict.

We have no positive cash flow and no recent history of earnings and we are dependent upon public and private contributions of equity to obtain capital in order to sustain our operations

None of our properties have advanced to the commercial production stage and we have no history of earnings or positive cash flow from operations. Our cumulative loss, as of the year ended April 30, 2012 determined in accordance with IFRS is approximately $94.1 million. We do not know if we will ever generate material revenue from mining operations or if we will ever achieve self-sustaining commercial mining operations. Historically, the only source of funds available to us has been through the sale of our equity securities. Any future additional equity financing would cause dilution to current shareholders.

Dilution through employee, director and consultant stock options and warrants could adversely affect our shareholders by decreasing shareholder value

Because our success is highly dependent upon our employees, we have granted to some or all of our key employees, directors and consultants options to purchase common shares as non-cash incentives. In addition we have also issued share purchase units and warrants to investors and brokers in connection with equity financings. To the extent that significant numbers of such options, warrants and share purchase units may be granted and exercised, the interests of our other shareholders may be diluted.

As of July 19, 2012 we had 6,573,121 purchase options, 1,375,000 share purchase warrants (each share purchase warrant exercisable into one unit consisting of one share and one share purchase warrant) and 21,047,463 share purchase warrants outstanding If all of these securities were exercised, the number of common shares issued and outstanding would increase from 65,782,178 to 96,152,762. This represents an increase of`46.17% in the number of shares issued and outstanding and would result in significant dilution to current shareholders.

If we become subject to the SEC’s penny stock rules, the risks associated with penny stock classification could affect the marketability of our equity securities and shareholders could find it difficult to sell their common shares

If we do not maintain the NYSE MKT LLC (“NYSE MKT”) listing for our common shares or a listing of our common stock on another national securities exchange in the United States, and if the trading price of our common shares is less than US $5.00 per share, our common stock will become subject to the SEC’s “penny stock” rules as defined in Rule 3a51-1 under the Securities Exchange Act of 1934 (“Exchange Act”). The SEC has adopted the penny stock rules to regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks generally are equity securities with a price of less than US $5.00, other than securities registered on certain national securities exchanges, provided that current price and volume information with respect to transactions in such securities is provided by the exchange.

Transaction costs associated with purchases and sales of penny stocks are likely to be higher than those for other securities. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation.

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from such rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for our equity securities in the United States and shareholders may find it more difficult to sell their shares.

U.S. investors may not be able to enforce their civil liabilities against us or our directors, controlling persons and officers

It may be difficult to bring and enforce suits against us. We are incorporated in the province of British Columbia under the Business Corporations Act (British Columbia). The majority of our directors and officers are residents of Canada, and all or substantial portions of their assets are located outside of the United States, predominately in Canada. As a result, it may be difficult for U.S. holders of our common shares to effect service of process on these persons within the United States or to realize in the United States upon judgments rendered against them. In addition, a shareholder should not assume that the courts of Canada (i) would enforce judgments of U.S. courts obtained in actions against us or such persons predicated upon the civil liability provisions of the U.S. federal

securities laws or other laws of the United States, or (ii) would enforce, in original actions, liabilities against us or such persons predicated upon the U.S. federal securities laws or other laws of the United States.

However, U.S. laws would generally be enforced by a Canadian court provided that those laws are not contrary to Canadian public policy, are not foreign penal laws or laws that deal with taxation or the taking of property by a foreign government and provided that they are in compliance with applicable Canadian legislation regarding the limitation of actions. Also, a Canadian court would generally recognize a judgment obtained in a U.S. Court except, for example, where:

a)	the U.S. court that rendered the judgment had no jurisdiction according to applicable Canadian law;

b)	the judgment was subject to ordinary remedy (appeal, judicial review and any other judicial proceeding which renders the judgment not final, conclusive or enforceable under the laws of the applicable state) or not final, conclusive or enforceable under the laws of the applicable state;

c)	the judgment was obtained by fraud or in any manner contrary to natural justice or rendered in contravention of fundamental principles of procedure; or

d)	a dispute between the same parties, based on the same subject matter has given rise to a judgment rendered in a Canadian court or has been decided in a third country and the judgment meets the necessary conditions for recognition in a Canadian court.

As a "foreign private issuer”, we are exempt from the Section 14 proxy rules and Section 16 reporting rules under the Exchange Act which may result in shareholders having less complete and timely data

The submission of proxy and annual shareholder meeting information (prepared to Canadian standards) on Form 6-K may result in shareholders having less complete and timely data than if we were subject to the SEC’s domestic issuer proxy rules under Section 14 of the Exchange Act. The exemption from Section 16 rules under the Exchange Act that require the reporting of acquisitions and disposition of our equity securities by our officers, directors and greater than 10% shareholders also may result in shareholders having less data.

If we are characterized as a passive foreign investment company (“PFIC”), our shareholders may be subject to adverse U.S. federal income tax consequences.

We have not made a determination as to whether we are considered a PFIC as such term is defined in the U.S. Internal Revenue Code of 1986 (the “Code”), for U.S. federal income tax purposes for the current tax year and any prior tax years. A non-U.S. corporation generally will be considered a PFIC of any tax year if either (1) at least 75% of its gross income is passive income or (2) at least 50% of the value of its assets (based on an average of the quarterly values of the assets during a taxable year) is attributable to assets that produce or are held for the production of passive income.

In general, if we are or become a PFIC, any gain recognized on the sale of our common stock and any “excess distributions” (as specifically defined in the U.S. Internal Revenue Code of 1986) paid on the common stock must be ratably allocated to each day in a U.S. taxpayer’s holding period for the securities. The amount of any such gain or excess distribution allocated to prior years of such U.S. taxpayer’s holding period for the common stock generally will be subject to U.S. federal income tax at the highest tax applicable to ordinary income in each such prior year, and the U.S. taxpayer will be required to pay interest on the resulting tax liability for each such prior year, calculated as if such tax liability had been due in each such prior year.

Litigation

Due to the nature of our business, we may become subject to regulatory investigations, claims, lawsuits and other proceedings in the ordinary course of its business. The results of these legal proceedings cannot be predicted with certainty due to the uncertainty inherent in litigation, including the effects of discovery of new evidence or advancement of new legal theories, the difficulty of predicting decisions of judges and juries and the possibility that

decisions may be reversed on appeal. There can be no assurances that these matters will not have a material adverse effect on our business.

ITEM 4.

INFORMATION ON THE COMPANY

4.A. History and Development of the Company

Introduction

Crosshair Energy Corporation (the “Company” or “Crosshair”) was incorporated as a specially limited company pursuant to the Company Act (British Columbia) (replaced by the Business Corporations Act (British Columbia) effective March 29, 2004) on September 2, 1966 under the name Shasta Mines & Oil Ltd. (Non-Personal Liability). We converted from a Private Company to a Public Company on February 20, 1967. On February 4, 1975 we changed our name to International Shasta Resources Ltd. (Non-Personal Liability) and consolidated our share capital on the basis of one new share for five old shares and increased our share capital from 600,000 common shares to 3,000,000 common shares. On September 14, 1977 we increased our authorized share capital from 3,000,000 common shares to 5,000,000 common shares. On April 5, 1982, we increased our authorized share capital from 5,000,000 common shares to 10,000,000 common shares by Special Resolution. On March 5, 1986 we converted from a Specially Limited Company into a Limited Company under the name of International Shasta Resources Ltd. and increased our authorized share capital from 10,000,000 common shares to 30,000,000 common shares. On May 20, 1994, we changed our name to Consolidated Shasta Resources Inc . and consolidated our share capital on the basis of one new share for ten old shares and increased our authorized share capital from 3,000,000 common shares to 20,000,000 common shares. On November 23, 1994 we changed our name to Lima Gold Corporation and on September 21, 1999 we changed our name to International Lima Resources Corp. and consolidated our share capital on the basis of one new share for three old shares and increased our authorized share capital from 6,666,667 common shares to 20,000,000 common shares. On November 5, 2003 we increased our authorized share capital from 20,000,000 common shares to 100,000,000 common shares. On March 1, 2004 we changed our name to Crosshair Exploration & Mining Corp. On June 1, 2004 we replaced our Memorandum with a Notice of Articles as required by the Business Corporations Act (British Columbia). On March 11, 2005 we changed our authorized capital to an unlimited number of common shares. On December 15, 2010, we consolidated our share capital on the basis of one new share for four old shares. On October 28, 2011 we changed our name from Crosshair Exploration & Mining Corp. to Crosshair Energy Corporation .

Our executive office is located at:

Suite 1240 - 1140 West Pender Street

Vancouver, British Columbia, Canada V6E 4G1

Telephone: (604) 681-8030

Facsimile: (604) 681-8039

Website: www.crosshairenergy.com

Email: mmorabito@forbeswest.com

The contact person is: Mr. Mark J. Morabito, Executive Chairman.

Our fiscal year ends April 30th.

Our common shares first began trading on the Vancouver Stock Exchange under the name Shasta Mines & Oil Ltd. on March 14, 1969. Our common shares began trading on the TSX Venture Exchange with the trading symbol “CXX” on March 1, 2004. On February 10, 2006, we graduated to Tier 1 on the TSX Venture Exchange. On May 7, 2007, our common shares began trading on the American Stock Exchange (now NYSE MKT) with the trading symbol “CXZ.” On May 12, 2008, our common shares began trading on the Toronto Stock Exchange with the trading symbol “CXX” and ceased trading on the TSX Venture Exchange.

On March 29, 2004, the Company Act (British Columbia) (the “Company Act”) was replaced by the Business Corporations Act (British Columbia) (the “BCBCA”). Accordingly, we are now subject to the BCBCA and are no

longer governed by the Company Act. There are a number of differences under the BCBCA, which differences are designed to provide greater flexibility and efficiency for British Columbia companies.

Under the BCBCA, every company incorporated under the Company Act was required to complete a mandatory transition rollover under the BCBCA to substitute a Notice of Articles for its Memorandum within two years of March 29, 2004. On June 1, 2004 we replaced our Memorandum with a Notice of Articles as is required by the BCBCA. The only information contained in the Notice of Articles is the authorized share structure of the company, the name of the company, the address of the registered and records office of the company, and the names and addresses of the directors of the company. On March 11, 2005, we changed our authorized capital to an unlimited number of common shares.

On March 31, 2009, Crosshair and Target Exploration and Mining Corp. (“Target”) successfully closed a plan of arrangement whereby Crosshair acquired all the outstanding common shares of Target and Target has become a wholly owned subsidiary of Crosshair. Target shareholders received approximately 14.7 million common shares of Crosshair (1.2 Crosshair shares for each Target common share outstanding) with an estimated market value of approximately $2.6 million. In addition, each outstanding Target warrant and stock option which gives the holder the right to acquire common shares of Target was exchanged for a warrant or stock option which gives the holder the right to acquire common shares of Crosshair on the exchange ratio of 1.2 Crosshair shares for each Target warrant or stock option exercised, with all other terms of such warrants and options (such as term and expiry) remaining unchanged. As a result of the acquisition of Target, Crosshair acquired an interest in the Bootheel and Sinbad projects in Wyoming and Utah, USA respectively. During fiscal 2010, we allowed all 62 mineral claims on the Sinbad property located in Emery County, Utah, to lapse, and the State Lease with the State of Utah was not renewed.

Property Acquisitions

Since the beginning of fiscal 2012, we have acquired no additional properties.

Property Terminations

Since the beginning of fiscal 2012, we have dropped a total of 549 claims from the land package acquired from Expedition Mining Inc. (formerly Universal Uranium Ltd.) (“Expedition”). See “Item 4.D. Property, Plants and Equipment – Labrador – Central Mineral Belt – CMB-JV Property and Agreement” for further details about this land package. A total of 68 claims were dropped from the South Golden Promise Property, 491 claims from the Golden Promise Property and 20 claims from the CMB Property. The abandoned claims did not represent any significant value for the Company so their abandonment did not reduce the value of the respective project and consequently there was no impairment of the carrying value of costs relating to these projects.

Capital Expenditures

Our capital expenditures, excluding property, plant and equipment, for the last three fiscal years were as follows:

Fiscal Year	Expenditures
Fiscal 2010	$1,278,652 (1)
Fiscal 2011	$474,183 2)
Fiscal 2012	$1,411.455 (3)

(1) These funds were spent as outlined below:

Expense ($)	CMB			CMB JV			Bootheel Project			Golden Promise			Other Claims
Drilling and trenching	$	88,713		$	--		$	2,952		$	592,314		$	--
Geology		90,800			70,282			209,190			157,040			--
Geophysics		--			123,662			--			--			--
Administration		56,770			32,435			28,961			47,242			--
Technical analysis		37,527			3,901			--			38,974			--
Future reclamation		(18,665	)		(5,651	)		(366,889	)		2,005			--
Acquisition costs		200,000			--			46,812			20,000			--
JCEAP refunds received		--			(70,954	)		--			(6,569	)		--
Recovery – JV partner		--			(71,004	)		(18,236	)		(4,352	)		--
Administration fees		--			(8,260	)		--			(348	)		--

(2) Some of the previously reported capital expenditures for fiscal 2011 were reclassified to comply with requirements under IFRS. The funds were spent as outlined below:

Expense ($)		CMB				CMB JV				Bootheel Project				Golden Promise				Juniper Ridge				Other Claims
Acquisition costs			200,000				--				40,903				335				232,945				--

(3) These funds were spent as outlined below:

Expense ($)		CMB				CMB JV				Bootheel Project				Golden Promise				Juniper Ridge				Other Claims
Acquisition costs			653,574				--				38,589				23,185				696,107				--

We expect to incur capital expenditures of approximately $1.25 million for fiscal year 2013. Our capital expenditures are financed through sales of our common shares.

Exploration and evaluation expenses

Upon transition to IFRS, the Company recorded the following exploration and evaluation expenses in relation to its mineral properties.

Fiscal Year	Expenditures
Fiscal 2011	$883,152 1)
Fiscal 2012	$6,630,464 (2)

(1)	The following expenses for April 30, 2011 were reclassified to comply with requirements under IFRS:

Expense ($)	CMB			CMB JV			Bootheel Project			Golden Promise			Juniper Ridge		Other Claims
Drilling and trenching	$	--		$	--		$	--		$	39,853		$	--	$	--
Geology		240,974			190,385			43,512			278,413			25,513		9,924
Geophysics		--			--			--			65,442			--		--
Geochemistry		3,637			27,800			--			43,475			--		--
Metallurgy		22,235			--			--			54,586			--		--
Administration		4,485			14,088			21,241			15,649			--		--
Technical analysis		(652	)		(871	)		--			(3,850	)		--		--
Future reclamation		(25,209	)		(5,445	)		--			(583	)		--		--
JCEAP refunds		--			--			--			(155,439	)		--		--
Recovery – JV partner		--			--			(26,011	)		--			--		--

(2)	These funds were spent as outlined below:

Expense ($)	CMB			CMB JV			Bootheel Project		Golden Promise		Juniper Ridge		Other Claims
Drilling and trenching	$	1,033,429		$	1,860,522		$	710,552	$	45,295	$	929,475	$	--
Geology		441,464			514,365			466,545		98,445		427,398		--
Geophysics		896			896			47,398		2,500		289,556		--
Geochemistry		8,905			3,305			--		--		--		--
Metallurgy		--			--			--		--		22,987		--
Administration		9,456			6,561			19,300		60		6,951		--
Technical analysis		--			--			--		--		--		--
Future reclamation		(162,239	)		(43,337	)		--		--		--		(7,664	)
Pre-acquisition cost		--			--			--		--		--		153,170
JCEAP refunds		--			(150,000	)		--		--		--		--
Recovery		--			(105,727	)		--		--		--		--

4.B. Business Overview

Historical Corporate Development

We are a mineral exploration company engaged in the acquisition and exploration of mineral properties (primarily uranium, base and precious metals). We do not have any producing mineral properties at this time. Our business is presently focused on the exploration and evaluation of various mineral deposits in North America.

We are currently focusing our exploration and evaluation activities in the Province of Newfoundland and Labrador and the State of Wyoming on the following properties:

Central Mineral Belt properties located in Labrador, Canada (going forward will include the CMB-JV Property located in Labrador, Canada).

The Bootheel Project LLC located in Wyoming, U.S.A.

Juniper Ridge Property located in Wyoming, U.S.A.

Material Effects of Government Regulations

Our current and anticipated future operations, including further exploration activities, require permits from various Canadian Federal and Provincial and U.S. Federal and State of Wyoming governmental authorities. Such operations are subject to various laws governing land use, the protection of the environment, production, exports, taxes, labor standards, occupational health, waste disposal, toxic substances, well safety and other matters. Unfavorable amendments to current laws, regulations and permits governing operations and activities of resource exploration companies, or more stringent implementation thereof, could have a materially adverse impact on us and cause increases in capital expenditures which could result in our ceasing operations. We have had no material costs related to compliance and/or permits in recent years, and anticipate no material costs in the next year.

Work may be prohibited on certain parts of the Bootheel Properties due to the presence of sage grouse mating areas during the period March 15 th to June 30 th .

In order to develop the tools to evaluate the impact of large-scale development projects and the environmental impact, on April 8, 2008, Labrador’s Nunatsiavut Government announced a moratorium on uranium mining on Inuit land it governs that was supposed to continue until March 31, 2011. The moratorium was officially lifted on March 9, 2012. On July 20, 2011 it was announced that a draft land use plan for the Labrador Inuit Settlement Area had been adopted-in-principle for the purpose of public hearings by the Government of Newfoundland and Labrador and the Nunatsiavut Government. The hearings took place in the five Inuit communities of Nain, Hopedale, Makkovik, Postville, and Rigolet, as well as Mud Lake, Happy Valley-Goose Bay, North West River and St. John’s.

The moratorium had a material adverse impact on all uranium exploration and mining companies in Labrador, regardless of whether their properties fall under Nunatsiavut jurisdiction. Even though the majority of our uranium properties do not fall under Nunatsiavut jurisdiction, we have experienced waning shareholder interest and difficulty in raising the capital required for the development of our projects.

Seasonality

We can only carry out exploration when weather is favorable. Typically, we cannot carry out any work at a reasonable cost during the months of November and December for winter freeze-up and March and April for spring break-up on our Canadian properties.

Dependency upon Patents/Licenses/Contracts/Processes

Not applicable

Sources/Availability of Raw Materials

Not applicable

4.C.	Organization Structure

Crosshair is a corporation subject to the BCBCA. Crosshair owns 100% of the issued and outstanding shares in each of the following subsidiaries:

Target Exploration and Mining Corp. (“Target”), a British Columbia corporation.

Target owns all of the issued and outstanding shares in 448018 Exploration Inc., a Nevada Corporation.

448018 Exploration Inc. holds an 81% interest in The Bootheel Project LLC.

ii.

448018 Exploration Inc. is a party to the Juniper Ridge Agreement.

Gemini Metals Corp., a British Columbia corporation.

4.D.	Property, Plants and Equipment

Our properties are in the exploration stage and a substantial amount of capital will have to be spent on each property before we will know if they contain commercially viable mineral deposits. Our material properties are located in the Province of Newfoundland and Labrador, Canada and the State of Wyoming, U.S.A. Our properties are without known reserves and the work being done by us is exploratory in nature.

Our executive offices are located shared office premises of approximately 8,240 square feet at Suite 1240, 1140 West Pender Street, Vancouver, British Columbia Canada. We have occupied these facilities since 2006. Beginning on January 1, 2010 (revised on October 1, 2010), we entered into a management services agreement with Forbes West Management Corp. (formerly EGM Exploration Group Management Corp.) (“Forbes West”) under which Forbes West provides shared office space for the Company and other companies that Forbes West provides management services to. As part of this agreement, Forbes West has assumed the lease for the office facilities occupied by the Company.

On October 1, 2011, we commenced renting two offices of approximately 131 square feet each, in a shared executive office center located at Suite 400, 1400 16 th Street, Denver, Colorado for our President and Chief Executive Officer, and our Executive Vice President, Corporate Communications. The term of the rental agreement is one year, expiring on September 30, 2013.

National Instrument 43-101 Compliance

Except as otherwise indicated, C. Stewart Wallis, P.G., P.Geo., having a business address at Suite 1240, 1140 West Pender Street, Vancouver, British Columbia, V6E 4G1, a Director of Crosshair and a Qualified Person as defined by NI 43-101, has reviewed and is responsible for the technical information contained in this Annual Report on Form 20-F. Stewart Wallis has consented to the inclusion of his name and the statements attributed to him in this Annual Report on Form 20-F. Further information about the Company’s mineral properties can be found in the following technical reports which are available on SEDAR at www.sedar.com :

Juniper Ridge Property: The Technical Report titled “Juniper Ridge Uranium Project, 43-101 Mineral Resource Technical Report, Carbon County, Wyoming, USA” dated February 21, 2012 (filed as exhibit to our Form 6-K filed on February 28, 2012).

Bootheel Project : The Technical Report titled “Technical Report on the Bootheel Project for Crosshair Energy Corp. and The Bootheel Project LLC” dated February 27,2012 (filed as exhibit to our Form 6-K on March 5, 2012).

CMB JV Uranium Project : The Technical Report titled “Technical Report on the CMBNW Property, Labrador Canada” dated June 22, 2009 (filed as an exhibit to our Form 6-K on June 24, 2009).

CMB Property : The Technical Report titled “Form 43-101 Technical Report on the Central Mineral Belt (CMB) Uranium - Vanadium Project, Labrador, Canada” dated January 20, 2011 (Rev March 10, 2011) (filed as an exhibit to our Form 6-K on March 17, 2011).

Golden Promise Property : The Technical Report titled “Form 43-101F1 Technical Report for the Golden Promise, South Golden Promise and Victoria Lake Properties, Newfoundland and Labrador” dated April 30, 2008 and amended September 23, 2008 (filed as exhibit to our Form 6-K on October 1, 2008).

Newfoundland

Golden Promise Property and Agreements

Paragon Minerals Corp. (“Paragon”) acquired an option to earn a 100% interest in the Golden Promise property subject to underlying option agreements with William Mercer and Stephen Courtney on a portion of the property surrounding the Jaclyn Zones. A total of 192 claims (4,800 hectares) comprise the option arrangement with William Mercer with payments totaling $230,000 ($230,000 paid) and 100,000 Paragon common shares, all of which have been issued. Mr. Mercer’s property includes the Jaclyn deposit and he is entitled to a 2% NSR subject to a $1 million buyback of 50% of the NSR at any time. Mr. Mercer also receives $20,000 per year as Advance Royalties deductable from his NSR The Courtney Property is no longer held by the Company.

Under the terms of an option agreement dated May 2, 2006, as amended April 18, 2008, with Paragon, we acquired an option to earn a 60% interest in the Golden Promise Property. To complete the exercise of the option, we were required to issue 5,000 shares by May 1, 2009 and incur project expenditures of at least $1,416,000 by May 1, 2009 and another $1,250,000 by May 1, 2010.

Under the terms of a Purchase and Sale Agreement dated June 4, 2008 between Gemini Metals Corp. (“Gemini”), Crosshair and Paragon, our option agreement described above was terminated and Paragon’s interest in the Golden Promise Property was to be contributed to Gemini in exchange for shares of Gemini. Under the terms of this agreement, on closing of the proposed transaction, Gemini would hold 100% interest in the Golden Promise

Property. This agreement was terminated pursuant to the terms of Golden Promise Option and Joint Venture Agreement dated as of April 8, 2009 between Crosshair and Paragon as described below.

Crosshair entered into the Golden Promise Option and Joint Venture Agreement dated April 8, 2009 between Crosshair and Paragon, pursuant to which it acquired a 60% interest in the Golden Promise Gold Project in Central Newfoundland, Canada with an option to acquire up to a 70% interest. This agreement terminated the original property option earn-in agreement with Paragon, and Crosshair also abandoned the previously approved Plan of Arrangement with Gemini whereby Crosshair was to transfer its gold and volcanic-hosted massive sulfide projects located in Newfoundland to Gemini in exchange for shares for Gemini. As a result of the current market conditions, the board of directors of Crosshair determined that it was no longer in the best interest of shareholders to spin-out the Golden Promise, South Golden Promise and Victoria Lake properties into a separate publicly traded company to be known as Gemini.

Pursuant to the Golden Promise Option and Joint Venture Agreement, Crosshair issued 663,750 common shares with a market value of approximately $686,608 to Paragon to purchase the 60% interest in Golden Promise. Crosshair will provide Paragon with a $2.0 million carried interest in initial exploration expenditures to be completed prior to May 2013. Crosshair can extend the timeframe to complete the initial exploration program by 12 months upon issuing 62,500 common shares to Paragon. As of April 30, 2012, expenditures under the Golden Promise Option total $1.65 million.

Upon the successful completion of the initial $2.0 million exploration program, Crosshair can elect to earn an additional 10% interest (to 70%) in Golden Promise by providing Paragon with an additional $1.0 million carried interest in additional exploration expenditures within 24 months. Crosshair can extend the timeframe to complete the additional exploration program by 12 months upon issuing 25,000 common shares to Paragon. In the event Crosshair does not complete the additional expenditure program within the required timeframe, Crosshair can purchase the remaining 10% interest by paying Paragon the difference between actually incurred exploration expenditures and $1.0 million or revert to the 60% interest.

The Golden Promise Property consists of one map-staked license located east, and northeast of Red Indian Lake in west central Newfoundland on National Topographic System (NTS) Map Sheet 12A/16, part of the Grand Falls – Buchans Electoral District. The claims are crosscut by an all season Highway (Route 370) connecting the towns of Buchans in the southwest to Badger at the Trans Canada Highway in the northeast end of the property.

The license cover 5,850 hectares in 234 map-staked claims. Each claim is 500 by 500 meters, which is bounded by one corner of the UTM grid square and is one quarter of the square. The claims are grouped into licenses, which are the units of ownership and assessment work requirements. The Property also includes a Mining Lease which is included within the license boundaries.

Accessibility

The property is accessible from Badger on the Trans Canada Highway via Route 370 to Buchans Junction about 43 km to the southwest. The Buchans Highway (Route 370) is the principal access road to the portions of the property where most of the exploration activity has been focused. Access to the eastern and southern portions of the property is gained via logging roads trending south and west of the town of Grand Falls-Windsor, a major industrial hub for central Newfoundland. The Exploits River, the largest river system on the Island of Newfoundland, crosses the north-western part of the property. Secondary access to most of the property is provided by logging roads and snowmobile and ATV trails leading from Route 370 as well as the logging roads south and southwest of Grand Falls-Windsor.

History and Previous Work

The exploration history of the vast majority of the property dates back only as far as 2002, when a prospector working in an area burned by a major forest fire in 1999 located gold-bearing quartz boulders immediately north of Route 370 approximately 10 kilometers southwest of the town of Badger. Exploration in the region prior to 2002

traditionally focused on the productive massive sulfide districts located south and west of the current property boundaries. The mining town of Buchans, located about 30 kilometers west - southwest of the property, produced very rich ores that carried high combined grades of zinc (14.5%), copper (1.4%), lead (7.6%), gold (1.3 grams per tonne) and silver (126 grams per tonne) for 56 years prior to closing in 1984.

The property was mapped by both the Provincial and Federal Geological Surveys whose efforts included regional scale geological surveys and geochemical surveys including glacial till and lake sediment sampling.

In the spring of 2002, a local prospector, William Mercer, discovered several large boulders of gold bearing float of which a composite sample from 10 boulders returned 30 grams per tonne gold. The property was subsequently optioned by Mr. Mercer to Paragon in July of 2002.

Geological Setting

The property lies within the Dunnage Zone, a major tectonic and stratigraphic succession of Cambrian to Middle Ordovician aged volcanic and sedimentary rocks occupying much of central Newfoundland. The Dunnage Zone rocks record the opening and closing of a proto-Atlantic Ocean known as Iapetus. The Dunnage Zone has been subdivided into two subzones, the Notre Dame and the Exploits, which are separated by a major fault system known as the Red Indian Line. The bulk of the Golden Promise property is inferred to be underlain by rocks of the Exploits Subzone, which includes the Badger and Victoria Lake Groups.

Regional Geology and Mineralization

The property is largely underlain by sedimentary rocks of the Badger Group. The Badger Group conformably overlies Caradocian black shale, which in turn overlies Ordovician volcanic and sedimentary rocks of the Victoria Lake Supergroup. The volcanic sequences of the Victoria Lake Supergroup are among the most prolific hosts to massive sulfide copper/lead/zinc deposits in Canada .

Property Geology and Mineralization

The property is largely underlain by sedimentary rocks of the Badger Group, consisting mainly of arkose, greywacke and shale. The Badger Group rocks overlie the Victoria Lake sequences of volcaniclastic and fine grained sedimentary rocks. A unit of black shale of Caradocian age, a regional stratigraphic marker, separates the Badger Group from the Victoria Lake Group. The dominant structural trend is northeasterly. All rock units have been folded into a series of tight, isoclinal, upright, northeast plunging folds and have been cut by northeasterly faults. Mafic dykes occupy the faults at several locations.

The mineralization at Golden Promise consists of a series of sub-parallel gold-bearing quartz veins ranging up to 4 meters in true thickness. The veins are milky white, inclusion rich and locally bladed. Gold is hosted by the veins typically occurring within narrow intervals (20-30 cm) close to vein margins. Fine grained arsenopyrite is the most common accessory mineral with lesser amounts of pyrite, galena, sphalerite and chalcopyrite (< 1%) occurring locally.

At least 5 zones of gold mineralization are known to occur at Golden Promise. They include the Jaclyn Main, Jaclyn South, Jaclyn North, Christopher and Shawn’s Shot occurrences, of which the most important are the Jaclyn Main, Jaclyn South and Jaclyn North Zones.

Based on the results of 68 drill holes that penetrated the Jaclyn Main Zone, and using a 1 gram per tonne gold cutoff, an inferred resource was calculated equal to 89,500 ounces of gold in the Jaclyn Main Zone contained within a total of 921,000 tonnes of rock averaging 3.02 grams per tonne gold.

Exploration and Development

In July of 2002, the property was optioned by local prospectors to Paragon who completed a Phase 1 drilling program to follow up on the discovery of high grade gold-bearing float. The 21 hole program (1,045 meters) tested

the Jaclyn Zone along a 225 meter strike length and to a vertical depth of 50 meters. Subsequent drilling in late 2003 extended the Jaclyn Zone along strike and to depth, and also tested the newly discovered Jaclyn North and Jaclyn South Zones.

We optioned the Golden Promise property from Paragon on May 1, 2006 and carried out further drilling in June. This program, completed in February 2007, included 5,488 meters of drilling in 29 holes on the Jaclyn Main, Jaclyn North and Jaclyn South Zones. From June 2007 through December 2007 a 23 hole 3,926 meter drill program was completed in the Jaclyn area. The focus of the drilling was the continued evaluation of the Jaclyn Main Zone (19 holes, 3,135 meter), and Jaclyn North Zone (4 holes, 790 meter).

During fiscal 2011, the Company completed 7,220 m of drilling in 38 holes. Twelve (12) holes (641m) were shallow infill holes located in the central part of the deposit designed to provide samples of the vein for metallurgical testing and to test for structural and grade continuity of the vein prior to the planned bulk sampling program. Three holes (657m) tested the Jaclyn North showing and four holes (572 m) followed up an intercept 400 m west of the North zone. The remaining 19 holes (5,350m) tested the central part of the deposit and the extension down plunge to the east

A composite sample from six previously completed drill holes was submitted to SGS Mineral Services Vancouver, BC (“SGS”) for preliminary metallurgical testing including gravity concentration, flotation and determination of the cyanide leaching characteristics. Drill core samples from the 12 infill holes drilled in 2010 in the central part of the Jaclyn Main Deposit were also sent to SGS where additional metallurgical test work further defined the extraction process flow sheet. These core samples were composited to provide two samples (labelled A and B) of 17.0 kilograms (kg) and 13.9 kg with head grades which assayed 8.02 grams per tonne (g/t) and 8.00 gpt respectively. The composite samples were crushed, then blended and split into individual charges for the various metallurgical tests. The results confirm that the gold in the vein can be effectively recovered using gravity separation in combination with leaching, or by direct leaching.

A gravity separation test conducted on composite A ground to P 80 of 150 microns recovered 84% of the gold. The recovery process was further enhanced when the gravity tail was leached. Leaching recovered 76% of the gold in the gravity tail, which resulted in a total gold recovery of 96%. The leach kinetics were fast and the recovery was complete within 24 hours.

The gold can also be recovered by direct leaching of the whole rock resulting in 93% extraction of the gold. When composite A was ground to P 80 of 150 microns and leached, 93% of the gold was recovered and only 0.16 kg/t of sodium cyanide (NaCN) was consumed. Composite B had the same gold recovery and was ground slightly more to P 80 of 100 microns and consumed slightly more NaCN (0.25 kg/t).

The 2,200 tonne bulk sampling program was completed in December 2010 in order to determine a more representative gold grade for the Jaclyn resource, since assay results from diamond drilling alone may not be an effective means of reliably determining grade in high-nugget effect gold systems. The gold occurrences on the Golden Promise Property, including the Jaclyn Main Zone, exhibit many similarities to the deposits of the Bendigo-Ballarat Gold District in Australia, which have collectively produced over 31 million ounces of gold. Studies of other high-nugget effect gold deposits, including deposits from the Bendigo Goldfield, indicate that assays from surface diamond drill holes may understate the actual in-situ gold grade in such deposits.

A total of 2,241 tonnes were delivered to the Nugget Pond Mill owned by Rambler Metals and Mining Plc. Two gold bars weighing 5.37 kilograms were poured and shipped to Johnson Matthey Limited in Toronto for refining. In addition to the bars, the ball mill and SAG mill were cleaned out and 482.5 kilograms of concentrate were also shipped to Johnson Matthey for treatment and refining. After refining, the bars and the mill concentrate produced a total of 313.59 ounces of gold and 23.05 ounces of silver which were sold for net receipts of CDN$430,001.85 after treatment charges. The cost of the program, after receipts from the gold sales, was approximately $100,000.

Based on the mill records and the total gold recovered, the average recovered gold grade was 4.47 g/t gold. The average tails grade was 1.12 g/t gold indicating a back-calculated head grade of 5.59 g/t gold with an 80% recovery. While an overall recovery of 80% is positive it is lower than predicted by the bench scale test work. It is believed

that the lower than expected recovery is due to the presence of carbonaceous material in the waste rock. In future, this issue can be mitigated by modifying the circuit to a carbon in leach process as opposed to a carbon in pulp process. This would result in a minor modification to the flow sheet which will be further refined in future metallurgical test programs.

The Jaclyn North occurrence, located 250 meters north of the Jaclyn Zone, has been tested by 13 drill holes and has been defined over a 450 meter strike length. The occurrence has returned values up to 5.24 grams per tonne gold over 1.70 meters.

The Jaclyn South occurrence, located 300 meters southeast of the Jaclyn Zone, comprises two subparallel quartz veins, one of which is up to 3.4 meters thick. The zone has been tested by four drill holes from which the best result obtained to date is 0.30 meters grading 44.6 grams per tonne gold.

No work was completed on the Golden Promise property in the 2012 fiscal year.

South Golden Promise (and Victoria Lake) Property and Agreements

Paragon acquired an option to earn a 100% interest in the South Golden Promise Property pursuant to an underlying option agreement, dated January 8, 2003, with Al Keats, Calvin Keats and Kevin Keats. The vendors are entitled to a 2.5% Net Smelter Return. Paragon can repurchase a 1.5% Net Smelter Return for $1,500,000 and has a right of first refusal with respect to the remaining 1.0%. As of September 2005, Paragon completed its obligations under its option agreement with the vendors and now holds a 100% interest in the South Golden Promise Property subject to the 2.5% Net Smelter Return.

Under the terms of an agreement dated February 14, 2003 with Paragon, we earned a 60% interest in the South Golden Promise Property in consideration for issuing a total of 100,000 common shares and incurring a minimum of $1,750,000 in exploration expenditures.

The South Golden Promise Property agreement includes two separate blocks of licenses, these being the South Golden Promise and the Victoria Lake claim blocks, which collectively cover 1,975 hectares in 79 map-staked claims. Each claim is 500 by 500 meters, which is bounded by one corner of the UTM grid square and is one quarter of the square. The claims are grouped into licenses, which are the units of ownership and assessment work requirements.

Paragon was the contractor for the execution of the exploration programs in the first year for cost plus 8% fee. Subsequent to the first year, we have operated and carried out the exploration programs on the South Golden Promise property using in-house personnel.

We are responsible for paying for and renewing these licenses. The fee for license renewals is $25 per claim every five years and failure to pay the fee will result in the loss of the claims.

Paragon has declined to participate in the recent programs and has currently diluted its interest to a 37.98% interest. Once their interest falls below 10% it will convert to a 1% Net Smelter Return Royalty.

Property Location

The South Golden Promise and Victoria Lake properties consist of two separate blocks of licenses located east and southwest of Red Indian Lake in west central Newfoundland, in the Grand Falls – Buchans Electoral District. The South Golden Promise property is underlain by similar geology to that of the Golden Promise property, which is contiguous and immediately northeast of the South Golden Promise claims. The South Golden Promise agreement also includes the Victoria Lake claims, where exploration has focused on massive sulfide deposits as opposed to gold, which is the focus of exploration at Golden Promise and South Golden Promise.

Accessibility

The South Golden Promise claims are accessible from Badger on the Trans Canada Highway via Route 370 to Buchans Junction about 43 kilometers to the southwest of Badger, and from Grand Falls-Windsor, immediately east of the property. The Millertown – Lake Ambrose logging haulage road west southwest of Buchans Junction is the principal access road to the various claim blocks to the south and southwest. The Exploits River, the provinces largest river system, crosses the northern portion of the property. The Victoria Lake claim group, which is the most southwestern of the two claim blocks, is best accessed by the main logging road leading west from the Exploits Dam along the south shore of Red Indian Lake. Numerous older logging roads, generally in poor shape, crosscut the property and afford locally limited access.

History

The northeastern portion of the property has received the least amount of previous exploration. In fact, prior to the discovery of gold-bearing boulders at Golden Promise in 2002, most of the northern half of the property had received no previous exploration for gold.

The sedimentary sequences that host the Jaclyn gold mineralization received very little exploration by previous explorers. The bulk of exploration activity in the region focused on the highly prospective volcanic rocks to the southwest which are known to host numerous copper and zinc prospects in the region. The volcanic sequences, most common on the south side of the Exploits River and occurring in the south central portion of the South Golden Promise property, received moderate amounts of exploration in the search for base metals (copper, lead and zinc). Noranda was most active and carried out ground surveys including, line cutting, geological mapping, soil sampling and geophysics. Several widely spaced drill holes did not intersect any mineralization. Immediately east of the property Aur Resources (subsequently taken over by Teck/Cominco) commenced commercial production in January 2007 at the Duck Pond deposit and will produce concentrate containing copper, zinc, lead, gold and silver over the projected 10 year life of the mine.

The Victoria Lake claims have received the most intensive exploration of all of the South Golden Promise property. The claims are considered highly prospective to host significant quantities of massive sulfides rich in copper, lead, zinc, gold and silver. Noranda carried out numerous exploration programs over the past 25 years including diamond drilling. Favorably altered volcanic rocks were encountered in several localities and suggest that massive sulfide bodies could exist on the claims. Work by Paragon in 2002 located potentially significant gold mineralization in the extreme southwestern portion of the claim group. Results include sulfide-bearing quartz veins that have returned assays of 2.5 and 3.6 grams per tonne gold. The claims covering this gold showing were abandoned by us in 2009. No work has been carried out on the Victoria Lake Claims during the current fiscal year.

Property Geology

The South Golden Promise claims are underlain mainly by sedimentary and volcanic rocks of the Ordovician Victoria Lake Group which are in turn overlain by the Badger Group sedimentary rocks. The Victoria Lake Group is dominated in the upper sections by fine grained sedimentary sequences, while the lower portions of the Group are dominated by mafic and felsic volcanic rocks with minor interbedded sedimentary rocks. The Victoria Lake Group and Badger Group rocks are separated by a regionally important marker horizon of Caradocian shale.

The prominent structures on the property are a major syncline - anticline pair as traced by folds in the Caradocian shale. The folds are tight and upright with a gentle plunge to the northeast. A penetrative foliation is commonly developed sub parallel to bedding. Glacial striae showing ice movement to the northeast and south-southeast are observed locally.

The Victoria Lake claims are underlain mainly by volcanic and sedimentary rocks of the Victoria Lake Group. The felsic volcanic rocks in the area are considered highly prospective for hosting significant massive sulfide deposits and several areas of favorably altered and locally mineralized volcanic rocks are known to occur. These areas will be the primary target of exploration efforts on that portion of the property.

Exploration and Development

Since acquiring the properties, we have completed several phases of exploration including prospecting, mapping, till and rock sampling as well as excavator trenching on targets defined by the other works. The Victoria Lake claims also had ground gravity surveying completed to help identify potential massive sulfide targets. Diamond drilling has been carried out on the gold targets at South Golden Promise and the massive sulfide targets at Victoria Lake.

At South Golden Promise, the work to date has outlined a significant gold-bearing quartz vein system that has been exposed on surface for 170 meters and tested to about 50 meters depth by diamond drilling. A total of 16 holes were completed at South Golden Promise in 2006 with two holes returning visible gold-bearing quartz veining which assayed a high of 19.5 grams per tonne gold over 1.15 meters. During 2009, the Gabbro showing, which had previously sampled up to 10 g/t gold from a narrow quartz vein, was trenched without returning significant gold values.

In 2010, a small structural mapping program was completed over the Snow White-Linda showing.

Further work including diamond drilling and trenching of soil geochemical anomalies is recommended for the South Golden Promise gold target.

At Victoria Lake, an 11 hole (2,197 meters) diamond drilling program was completed in 2006. The program tested several coincidental geological, rock and soil geochemical anomalies as well as geophysical (gravity) anomalies identified by us. Favorably altered, sulfide-bearing felsic volcanic units were encountered in several of the holes. The drilling program was managed by Paragon personnel who have extensive experience in the region and who received 8% of the program costs as a management fee. During 2008, a borehole Pulse EM survey was conducted to test for off-hole conductors that may represent massive sulfides. Interpretation of the data identified several anomalies suggestive of conductive sources within the vicinity of the diamond drill holes. An airborne electromagnetic and magnetic survey was carried out in December 2010 and several anomalies were outlined. Future work will be focused on evaluating these anomalies.

No work was completed on the South Golden Promise or Victoria Lake Properties in the 2012 fiscal year.

Labrador—Central Mineral Belt

CMB Property and Agreements

On October 14, 2004, we entered into an agreement (the ‘Original Moran Lake Agreement”) with a private individual, local prospector Lewis Murphy, for an option to acquire a 90% interest (subject to a 2% NSR and a 10% carried interest to the vendor) in the Moran Lake Property, comprising 67 claims in Central Labrador. On March 1, 2005 we acquired another 187 claims from Lewis Murphy entered into an amending agreement with Mr. Murphy (the “Amended and Restated Moran Lake Agreement”). The Amended and Restated Moran Lake Agreement called for exploration expenditures of $3,000,000, the issuance of 400,000 common shares, and cash payments of $575,000, with the balance of the shares and cash payable over a five-year term. The agreement also required completion of a bankable feasibility study for the commencement of commercial production on the property within 24 months of completion of the aforementioned obligations.

We subsequently carried out a detailed digital compilation of all the historic work that has been carried out on the property.

To date, we have issued 400,000 common shares, made cash payments totaling $575,000 and spent more than the required minimum $3,000,000 on project expenditures. On May 21, 2008, we entered into a letter agreement (the “Letter Agreement”) with Mr. Murphy whereby we received a three year extension on the requirement to complete the bankable feasibility study such that the study will be due on or before November 10, 2013. Additionally, the

Company was required to make advance royalty payments in the amount of $200,000 per year until the commencement of commercial production.

In December 2011, the Company settled a dispute with Mr. Murphy regarding the timing of the advance royalty payments. See “Item 8. Financial Information – 8.A. Consolidated Statements and Other Financial Information – Legal/Arbitration Proceedings – Litigation with Lewis Murphy.” On December 5, 2011, the Company entered into a co-ownership agreement (the “Moran Lake Co-Ownership Agreement”) with Mr. Murphy which agreement amends, clarifies, confirms and replaces the contractual relationship created between the parties further to the Original Moran Lake Agreement, the Amended and Restated Moran Lake and the Letter Agreement. The Moran Lake Co-Ownership Agreement sets out that ownership of the CMB Property shall be as Tenants in Common in proportions of 90% Crosshair and 10% Mr. Murphy. Mr. Murphy shall retain his 10% ownership in the CMB Property until such time as commercial production commences on the property. The Company will be required to make advance royalty payments of $200,000 per year commencing in November 2012. Should the Company choose to bring the Moran Lake Property into production; the advance royalty payments made previously will be deducted against any Net Smelter Royalty owed to the original vendor of the property. In addition, any requirement to complete a bankable feasibility study has been irrevocably waived.

Property Description and Location

The Central Mineral Belt Property is located in the Central Mineral Belt of Labrador, about 140 km north of the town of Happy Valley-Goose Bay and 85 km southwest of the coastal community of Postville on Kaipokok Bay. In a direct line, the property is about 75 km from tidewater to the northeast. The undeveloped Michelin uranium deposit is 60 km east-northeast of the Moran Lake Property. The property area is within the Naskaupi Electoral District of Labrador.

Accessibility

Helicopter and fixed wing service out of Goose Bay are the most efficient means of access to the property. Local infrastructure is confined to the limited facilities of the community of Postville, which has commercial airline service from Goose Bay and commercial ferry service from St John’s, Newfoundland. Coastal boats are available to convey goods and passengers from Happy Valley to Postville. Most necessary goods and services, including charter aircraft, can be obtained in Goose Bay, which has excellent commercial airline connections to St John’s, Halifax and Montreal.

This portion of central Labrador has a sub-Arctic climate, with strong seasonal contrasts marked by short cool summers and long cold winters. Freeze-up typically begins in late October and lasts until early to mid June. Snow cover is relatively heavy and usually lasts seven to eight months. Daytime temperatures during the winter typically range from -15º Celsius to -30º Celsius, while daytime summer temperatures typically range from 15º Celsius to 25º Celsius.

The topography of the Moran Lake area consists of rolling highlands with maximum relief approaching 300m. The hilltops can be partly barren while the slopes and valleys are covered in vegetation, mostly scrubby black spruce and some deciduous trees with a thick intervening growth of alders. Almost everywhere there is a thick ground cover of moss. The valleys are steep sided at many locations and are often host to boggy ground with small ponds or lakes. Moran Lake, one of the largest lakes on the property, occupies a prominent valley which trends east-northeast.

History

Uranium was first discovered near Moran Lake by British Newfoundland Exploration Limited (“Brinex”), which conducted prospecting, geological mapping and radiometric surveying in the area from 1956 to 1958. In 1964, Mokta Co. Ltd. (Mokta) acquired a development license for the Moran Lake area and subsequently discovered uranium mineralization at Lady Lake, the site of the present C zone. In following years, Mokta completed a considerable amount of prospecting, trenching and packsack drilling in the Moran Lake A, B and C zones. In 1969

however, Mokta allowed the development license to expire at which time the license was granted to Brinex, which did no further work on the property.

In 1976, the license was granted to Commodore Mining Company Limited (Commodore) which in turn optioned the property to Shell Canada Resources Limited (Shell). During September of 1976, Shell performed geological, magnetometer and Track Etch surveys over the B Zone near Henry Lake and did preliminary geological mapping on the C zone. This led to a 15 hole, 864 meter drill program to test the B Zone uranium mineralization during the winter of 1977.

In the summer of 1977, a full exploration program was carried out on the C Zone including detailed geological mapping, systematic trench sampling, a scintillometer survey and a small drill program totaling eight holes and 497 meters. Uranium mineralization was discovered in a fault zone over which VLF-EM, magnetometer and Track Etch surveys were performed during September. In the winter of 1978, Shell completed a 17 hole, 1,542 meter drill program to test the uraniferous fault zone and subsequently found high grade uranium mineralization. The following summer’s exploration program consisted of VLF-EM, magnetometer and altimeter surveys over the entire C Zone, with a 15 hole, 1,581 meter drill program to test the uraniferous zones. Low grade uranium mineralization was located in altered sandstones above the Aphebian-Helikian unconformity near Lady Lake. This led to a 1979 winter dril1 program of 17 drill holes totaling 1,193 meters to explore the unconformity and what became later known as Lower C Zone.

In the summer of 1979, Shell undertook a review of its Moran Lake project. Drill core from the Upper C zone (C-1 to C-35) was re-logged by one person and multiple samples were taken for thin section study and 30 element spectrographic analysis. This work led to the appreciation that the rocks were extensively altered, that the identification of primary lithologies was in many cases dubious, that the uranium mineralization was associated with alteration and that there was a definable geometry to the alteration package. The property was considered to have good uranium potential and an 8 hole, 1,400 meter drill program was proposed but never carried out as Shell abandoned its interest in the area due to a decline in uranium prices.

Lewis Murphy acquired the Moran Lake claims in 2003 and optioned the ground to us in October of 2004. In 2003, an airborne gravity survey of the area located an interpreted 4 milligal to 8 milligal gravity anomaly, elliptical in shape, about 4 km long and centered between the Moran B and C zones. Considering the spatial association of uranium with brecciated, highly silicified, carbonatized and hematized rocks, plus locally significant concentrations of copper, silver and gold mineralization, we invoked the analogy with Iron Oxide Copper Gold (IOCG) deposit types, as at the Olympic Dam copper-uranium deposit in Australia.

Since acquiring the Moran Lake property in October 2004, we have embarked on an aggressive program including airborne radiometric and magnetic surveys, compilation of previous work including sampling archived drill core from the 1970’s Shell Canada Resources drilling, and commencement of diamond drilling in January of 2006. A more detailed description of the exploration program is included below under “Exploration”.

Property Geology

The Moran Lake Property was staked in a configuration to cover as much mineralized Paleoproterozoic stratigraphy as was available encompassing mostly rocks of the Moran Lake Group and the overlying Heggart Lake, Brown Lake and Sylvia Lake Formations of the Bruce River Group, both groups containing known occurrences of uranium, Cu, Pb, Zn, Ag, F and iron (as pyrite and hematite).

The Moran Lake Group unconformably overlies Archean gneisses and granites of the Nain Province. The basal unit, the Warren Creek Formation was deposited in a low energy, shallow shoreline or shelf environment and consists mainly of black graphitic, grey and green shale and siltstone containing local interbeds of dolostone, chert and black conglomerate with siltstone and shale clasts. The Warren Creek Formation ranges from perhaps 1,200 meter up to 3,000 meter in thickness and is overlain conformably by 100 meter to 300 meter thickness of the Joe Pond Formation, a sequence of light- to dark-green, fine grained, massive and pillowed basalt and mafic tuff with occasional interbeds of variably colored chert or grey dolostone. Rocks of the Moran Lake Group occupy a northeasterly trending belt which underlies the northern portion of the Moran Lake Property.

The Bruce River Group consists of a basal, polymictic conglomerate and sandstone of the Heggart Lake Formation overlain by polymictic conglomerate and tuffaceous sandstone of the Brown Lake Formation. The uppermost and thickest unit of the Bruce River Group is the Sylvia Lake Formation, a bimodal, potassic calc-alkaline assemblage of predominantly subaerial volcanic rocks which are coeval with the plutons of the Trans Labrador Batholith. Northerly directed compression during the Grenville orogenic event folded the Bruce River Group into a northeast-trending, open, upright syncline.

Exploration

After acquiring the property in October of 2004, we immediately launched a comprehensive review and compilation of all previous exploration carried out in the area. The results of the review confirmed that the property had considerable potential to host several types of uranium deposits including uranium-rich iron oxide copper gold deposits (IOCG).

Exploration work on the property by us has included line cutting, airborne and ground geophysical surveys, lake sediment sampling, till geochemical and alpha track surveys, biogeochemical surveys, prospecting, limited hand trenching, mechanical trenching, geological mapping and diamond drilling. An airborne radiometric and magnetic survey totaling 7,312 line kilometers covering the entire property was carried out by Fugro Airborne Surveys in 2005. A supplemental airborne survey totaling 675 kilometers covering several claims acquired subsequent to the 2005 survey was carried out by Fugro in 2006. In 2007, a helicopter supported electromagnetic and magnetic (HeliGEOTEM) survey totaling approximately 4,500 line kilometers was carried out over two different blocks on the property. The ground geophysical surveys include gravity, induced potential (IP), and horizontal loop EM (Max-Min) surveys. Follow-up of targets identified from interpretation of the various data has resulted in the discovery of several new showings and target areas, some of which have been drill tested as well as others that are being advanced to the drill ready stage.

In 2008 an updated resource estimate for the Upper and Lower C Zones was prepared based on drilling up to May 2008. In addition, resource estimates were prepared for two new zones of uranium mineralization discovered by Crosshair, these being the Trout Pond (Area 1) and Armstrong zones (the “2008 CMB Report”). The mineral resource estimate included a total indicated resource for the Upper C Zone is 5.19 million pounds of U 3 O 8 (6.92 million tonnes grading 0.034% U 3 O 8 ). The Upper C Zone also contains additional resources in the inferred category which, when combined with the inferred resources in the Lower C Zone, Trout Pond and Armstrong zones total 5.83 million pounds of U 3 O 8 (8.17 million tonnes grading 0.032% U 3 O 8 ). With the exception of the Lower C Zone, these estimates are reported at a block cut-off of 0.015% U 3 O 8. The cut-off grades are considered appropriate for the location and cost profile that can be expected for open pit mining. In the case of the Lower C Zone, a cut-off grade of 0.035% U 3 O 8 is used for reporting purposes, reflecting higher costs associated with underground mining.

Drilling

We launched our first drill program in February 2006, completing approximately 2,750 meters of drilling in 19 holes at the C Zone. Further drilling using two drill rigs and totaling over 18,500 meters was carried out during the summer of 2006, followed by an additional 9,400 meters of drilling during the winter of 2007. The 2007 summer program was our most aggressive program, with over 28,000 meters of drilling using three rigs. This was followed by over 12,000 meters during the 2008 winter program. The drilling programs focused on defining uranium mineralization at the C Zone, which represents the most advanced uranium target on the property, but also tested targets at Area 1, Armstrong, B Zone, Area 51, Moran Heights, Madsen Lake and Croteau Lake.

Our 2006 drill program totaled 21,486 meters and consisted of 137 holes, of which 58 tested the Upper C Zone and 10 tested the Lower C Zone. The remainder of the holes tested seven other anomalies or showings on the property. From late January 2007 to late April 2007, we carried out further drilling at the C Zone as well as limited drilling at Area 1 and the Armstrong and Dominion showings. Total drilling in the winter of 2007 amounted to 9,410 meters in 34 holes. At the C Zone, our 2007 winter drill program consisted of 8,211 meters in 26 holes. Fifteen of the holes tested both the Upper and Lower C Zone, 6 holes (1,042 meters) tested the Upper C Zone only, and 5 holes (1,166 meters) tested the Lower C Zone. The program expanded the C Zone mineralization along strike and to

depth. The program also included the intersection of the thickest and highest grades of uranium reported from the Lower C Zone.

The summer 2007 drill program totaled 28,745 meters in 121 holes. Eighty-nine of those holes (15,727 meter) were targeting the C Zone, with the goal of upgrading and expanding the existing NI 43-101 resource. Drilling intercepted the highest and thickest grades to date including 0.202% U 3 O 8 over 22.4 meters as part of a wider zone grading 0.100% U 3 O 8 over 46.3 meters in hole ML-122 and 0.100% U 3 O 8 over 45.7 meters as part of a much wider interval that assayed 0.074% U 3 O 8 over 71.3 meters in ML-87. A total of 26 holes (2,820 meters) were drilled at Area 1 in the 2007 summer program and 6 holes (784 meters) at Croteau Lake.

Our 2008 winter drill program consisted of 55 holes totaling 12,198 meters. Drilling was focused at Armstrong, which is believed to anchor the southern end of the same 4.5 kilometer long trend that hosts the C Zone to the north and Area 1 in the middle. A total of 6,366 meters in 30 holes were drilled in this recently discovered zone, with highlights from ML-AR-26, which returned 0.20% U 3 O 8 over 9.5 meters including 1.10% U 3 O 8 over 1.6 meters.

The summer 2008 drill program consisted of 3,516 meters in 19 holes. Eleven of the holes (2,035 meters) tested the C Zone, while 6 of the holes (1,276 meters) tested targets at Area 1 and two holes (205 meters) were drilled at Madsen Lake in the central portion of the CMB Property.

In December 2008, a previously unidentified zone of uranium mineralization, referred to as the “Apollo Zone” was discovered. During the summer of 2008, follow-up prospecting of several anomalies identified in 2006 revealed significant uranium mineralization over a 500 meter strike length. The Apollo Zone returned grab samples assaying up to 0.50% U 3 O 8 in outcrop and 0.20% U 3 O 8 in local boulders. This new zone appears to lie along strike of the Boiteau Lake Showing (0.79% U 3 O 8 ) announced by Bayswater Uranium Corp. in November 2008. The Boiteau Lake Showing lies very close to the Crosshair/Bayswater property boundary and the trend is open along strike for the 7 kilometers between the showing and the Apollo Zone. The Apollo Zone lies approximately 11 kilometers NE from the C Zone uranium resource and approximately 3 kilometers south of previously discovered Blue Star, where sampling by Crosshair in 2006 returned values of up to 1.37% U 3 O 8 outcrop. To date on the Moran Lake property, we have completed 366 holes totaling over 65,000 meters. One hundred and ninety-three holes have been drilled at the C Zone, 55 at Area 1, and 32 at Armstrong. Several other areas have also been drill tested, including the B Zone, Moran Heights, Area 51, Croteau Lake, and Madsen Lake. All programs have been helicopter supported producing BTW size drill core.

In December 2010, the Company completed a vanadium resource expansion program and outlined an NI 43-101 resource of 42.8 million pounds of vanadium (14.7 million tonnes at 0.15% V 2 O 5 ) in the indicated category and an additional 93.6 million pounds (28.3 million tonnes at 0.16% V 2 O 5 ) in the inferred category.

In 2011, a 3,138 metre drill program was completed on the CMB Project. The drilling focused on connecting the C-Zone and Area One deposits, as well as testing the Blue Star prospect. The results confirmed that the vanadium mineralization is continuous between the C-Zone and Area One over a strike length of approximately 1.7 km The mineralization remains open along strike and at depth. Drilling on the Blue Star prospect tested coincident airborne geophysical and rock geochemical anomalies; four out of the ten holes drilled intersected uranium mineralization. The best hole was 3 metres of 0.05% U 3 O 8 .

Current Exploration

The 2012 summer program will consist of drilling, prospecting, sampling and trenching. The goal of the program is to increase the existing uranium and vanadium resources as well as test other exploration targets. A budget of approximately $2.2 million has been allotted for this program, which is expected to take 3 months to complete.

CMB-JV Property and Agreement

In July 2008, we acquired a 60% interest in 4,741 claims in the Central Mineral Belt from Expedition by paying CDN $500,000 and issuing 2,500,000 common shares and 1,875,000 warrants to Expedition. The claims were part of a property agreement between Expedition and Silver Spruce, under which Expedition had earned a 60% interest. The claims are host to the Two Time deposit.

Silver Spruce declined to participate in last summer’s program and has diluted its interest to a 2% Net Smelter Return Royalty. Going forward the CMB and CMB-JV properties will be consolidated into one property referred to as the CMB Property.

Property Description and Location

The CMB-JV Project comprises 616 map-staked claims in several separate claim blocks located roughly 150 kilometers north of the town of Happy Valley – Goose Bay, Labrador. Approximately half of the claims are contiguous with Crosshair’s 100% owned claims located near Moran Lake, while most of the remaining claims are situated south and southeast of the coastal community of Postville on Kaipokok Bay.

Property Geology

The CMB-JV Project is situated within the Central Mineral Belt (CMB) of Labrador, a geological province comprising six Proterozoic sequences of volcanic, sedimentary and plutonic rocks ranging in age from about 2.0 to 1.3 billion years and include, from oldest to youngest, the Post Hill, Moran Lake, Aillik, Bruce River, Letitia Lake and Seal Lake Groups. The CMB includes portions of 4 major tectonic provinces, these being the Nain, Makkovik and Grenville provinces, and the Hopedale Block of the Archean Nain Province. The easternmost claims of the CMB-JV Project lie within the Makkovik Province, while the westernmost claims of the CMB-JV Project generally lie along the boundary between the Nain, Churchill and Grenville Province.

Exploration

Exploration by Silver Spruce and Expedition includes an airborne magnetic radiometric survey over all the claims, as well as limited follow-up over most of the claims including geological mapping, prospecting and lake sediment sampling. Exploration to date has focused on the claim blocks hosting the Two Time deposit, where work has been more extensive and includes line cutting, ground scintillometer surveying, soil, till, lake, and stream sediment sampling, ground radon (RadonEx) surveying, prospecting, trenching, geological mapping, and diamond drilling.

The most significant discovery to date on the CMB-JV claims has been the Two Time deposit, which was discovered as a result of follow-up of a high priority airborne radiometric anomaly. The Two Time zone is hosted within brecciated and fractured granitic to dioritic intrusive rocks of the Kanairiktok Intrusive Suite characterized by hematite, carbonate, and chlorite alteration. A number of other showings and prospects have also been discovered on the claim block, including the Firestone Showing, Doucette, HF, J, F, and W occurrences.

Drilling

Past drilling carried out on the CMB-JV Project has been focused on the ‘CMB-NW (Northwest)’ claim block, which is contiguous with the northern portion of Crosshair’s 100% owned CMB Project. Diamond drilling carried out to date by Silver Spruce and Expedition totals 11,196 meters in 44 holes. Highlights include 0.118% U 3 O 8 over 28.00 meters in hole CMB-07-06, 0.101% U 3 O 8 over 33.00 meters in hole CMB-07-14, and 0.112% U 3 O 8 over 19.00 meters in hole CMB-07-34.

Based on the drilling results, an indicated mineral resource estimate of 2.33 million pounds of U 3 O 8 (1.82 million tonnes grading 0.058% U 3 O 8 ) and additional inferred mineral resource estimate of 3.73 million pounds of U 3 O 8

(3.16 million tonnes grading 0.053% U 3 O 8 ) was prepared for the Two Time zone using a cut-off grade of 0.03% U 3 O 8 . The Two Time zone remains open to depth and along strike to the south.

During the summers of 2009 and 2010, Crosshair carried out geological mapping, prospecting and sampling programs to evaluate priority targets generated from the airborne surveys. Several new uranium showings were discovered and were followed up during the 2011 summer drilling program.

Two of the new targets, South Brook and Running Man, were found on the CMB-JV Property, which is located directly to the west of the Jacques Lake Deposit, recently purchased by Paladin Energy from Aurora Energy / Fronteer Development Group. Forty Six (46) samples from the South Brook Showing gave results ranging from 0.03% to 0.46% U 3 O 8 , averaging 0.11%. The showing is outlined by anomalous float and bedrock occurrences for approximately 3.5 kilometres (km). The Running Man Showing is located approximately 5.5 km southeast of the South Brook Showing and consists of a 2 km long, linear airborne radiometric anomaly where 21 samples gave values from 0.03% to 0.28% U 3 O 8 .

The Big Bear Showing is located on the CMB-NE Property, approximately 20 km northeast of CMB-JL. The showing, in a 1.25 km long corridor of anomalous bedrock radioactivity, is hosted in altered granitic rocks and gave results ranging from 0.02% to 0.1% U 3 O 8 , averaging 0.06%.

The fiscal 2012 program consisted of 2,961 metres of diamond drilling on the Two Time Zone, and a total of 1,245 metres on four separate prospects on the property, including outlying properties near Postville. The most favorable of these prospects was the Firestone Prospect, where drill hole FS-11-007 intersected a 3.5 metre interval that returned 0.084% U 3 O 8 . Drilling on the Two Time Zone confirmed that the uranium mineralization continues at depth.

The goal of the fiscal 2013 drill program is to expand the mineralized zone at Two Time and to continue to test the Firestone Prospect.

Wyoming – Bootheel and Buck Point Properties

On March 31, 2009, we acquired the Bootheel and Buck Point Properties in Wyoming, USA through the acquisition of Target via Plan of Arrangement.

On June 7, 2007, Target, now a wholly owned Crosshair subsidiary, entered into an agreement to form the Bootheel Project, LLC with URE whereby Target may acquire a 75% participating interest in two uranium properties, the Bootheel and Buck Point properties located in the Shirley Basin, Albany County, Wyoming (the “Bootheel Project”) by completing expenditures totalling US $3 million and issuing 31,250 common shares on or before June 7, 2011. Target earned its 75% interest in the property as all shares have been issued and US $3.1 million had been spent as of April 30, 2010. As URE declined to participate in the fiscal 2012 exploration program, its participating interest was diluted from 25% to approximately 19%, and Target’s participating interest increased from 75% to approximately 81%.

Under Agreements dated February 5, 2008 between M J Ranches, and 448018 as manager, the Bootheel Project LLC leased MJ Ranches’ 75% ownership of the minerals located under four sections and the surface access rights to six sections adjacent to portions of the ground controlled by The Bootheel Project LLC. The initial term of the agreement is for five years with provision for two renewals. Payment for the initial five year term is $252,651 paid in advance, increased for inflation for the renewal periods. The Fee Lands are subject to a sliding scale Royalty tied to the sales price of uranium.

An additional five fractional claims were staked in December 2009, and The Bootheel Project LLC now comprises a 100% mineral interest in 274 Federal Unpatented Mining Claims, two state leases and a 75% mineral interest in four fee sections for a total of 8,524 gross acres and surface access rights to 7,882 acres.

Property Location

The Bootheel and Buck Point properties are located in Albany County on the southeast edge of the Shirley Basin approximately 60 miles southeast of Casper, Wyoming and 25 miles southeast of Medicine Bow.

The Bootheel property comprises about 6,113 gross mineral acres consisting of one 640 acre Wyoming State Mineral Lease No 0-40774, 167 unpatented Federal lode mining claims including approximately 2,597 acres, and one mineral lease for approximately 2,516 acres of fee land owned by MJ Ranches Inc. (MJ Ranches). The lode mining claims control the subsurface mineral rights and are administered by the U.S. Bureau of Land Management (BLM). In addition, a surface lease with MJ Ranches provides access to 5,390 acres of the land to which BP LLC has mineral rights.

Accessibility

The Shirley Basin property is readily accessible year-round by an extensive system of county gravel and unimproved ranch roads extending east from U.S. Highways 30 and 287 and Wyoming Road 487. The all season maintained gravel County Road Number 61 (Fetterman Road) crosses the Bootheel property.

History

Uranium was discovered in the Shirley Basin in 1955 by Teton Exploration Drilling Co., who found ore-grade material by drilling west of the Little Medicine Bow River in the western part of the Shirley Basin, 30 mi south of Casper. In the summer of 1957, several thousand claims were staked over 150 square mi. By the end of 1959, over 1,000,000 ft of drilling had been completed through the mineralized Wind River Formation, and into underlying pre-Tertiary rocks. In 1959, Utah Mining Corp. later Utah Construction and Mining Co. (Utah) sank a shaft on their property and the first uranium was produced in March 1960, with ore shipped to the Lucky Mc mill in the Gas Hills area west of Casper. Late in 1964, the company stopped underground mining and commenced an in-situ leach operation using sulphuric acid and ion exchange for recovery. Production amounted to approximately 200,000 pounds of U 3 O 8 per year through 1970. In 1970, the ISR operation was replaced by a conventional mine and mill.

In July 1960, Petrotomics Co. commenced an open-pit operation in the same area and in 1962 a solvent extraction facility was built on the property. A second pit commenced operation in 1966. By late 1969, there were three operating mines in the Shirley Basin, those of Petrotomics and Utah, as well as Kerr McGee Corp. (“Kerr-McGee”).

Total production from the Basin amounted to about 34 million lbs of uranium. The last mine closed in 1992 and most of the pits have been reclaimed. Cogema Mining Inc. retains one pit, which is used for the disposal of low-level radioactive waste from the ISR operations in the Powder River Basin.

The Bootheel property was originally staked in 1958 by Kerr McGee Corp. Kerr McGee drilling (283 holes) discovered both shallow oxidized and deeper uranium mineralization in sandstones but dropped the property in 1962. The company re-acquired the property in 1968, and again abandoned it. Rocky Mountain Energy Corporation (Union Pacific Railroad) also conducted limited drilling in the early 1970s. In 1977, Cherokee

Exploration Inc. (“Cherokee”) obtained a land package, as well as the Kerr McGee database and formed an exploration and drilling participation agreement with Uranium Resources and Development Company (“URADCO”), a subsidiary of Pennsylvania Power and Light. Drilling from 1978 to 1980 partly delineated both shallow and deep sandstone mineralization. Drilling by Kerr McGee Corporation, Cherokee, URADCO and others intersected significant uranium mineralization in sandstones at depths ranging from 150 to 600 feet. Grades and thickness range from 2 feet at 0.12% U 3 O 8 to 22.5 feet at 0.071% U3O8.

Dames & Moore estimated a historical resource included in a report dated 1980, for parts of the property. Nuclear Assurance Corporation (NAC) completed a study in 1982 reporting the reserves and resources shown in Table 4.D.-1. As was industry standard for reporting in the 1980s, tonnages are not provided in the reports. Reserves are reported using a minimum grade of 0.02% eU 3 O 8 and a GT of 0.12 ft%.

TABLE 4.D.-1 – HISTORICAL RESOURCES
Classification	Age of Formation	Av. Thick. (ft)	Av grade (%eU 3 O 8 )	Av GT	Pounds eU 3 O 8
Measured + Indicated Reserves	Jurassic	14.9	0.037	0.55	2,625,000
Measured + Indicated Resources	Tertiary	4.9	0.078	0.38	1,095,000
Inferred Resources	Jurassic	11.4	0.044	0.50	2,801,000
Geological Resources	Jurassic, Cretaceous.	Not Reported	Not Reported	Not Reported	4,462,000
TOTAL					10,983,000

These resources are historical in nature and were compiled before the implementation of NI 43-101 reporting standards. Readers are cautioned that recent independent verification of the data has not been performed and we have not completed sufficient exploration to verify the historical resource and reserve estimates. The categories of mineralization used are not those prescribed by the Canadian Institute of Mining, Metallurgy and Petroleum and stipulated in NI 43-101 but with the exception of the Geological Resources they would correspond to indicated or inferred resources under those guidelines. Additional drilling will be required to verify this resource and classify it under the current standards. Given the quality of the historic work completed on the property, Crosshair believes the resource estimate to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources or mineral reserves as defined in NI 43-101, and Crosshair is not treating the historic resources as current. Therefore, the historical resource estimate should not be relied upon.

In 1995, Cherokee sold the project and database to Cameco Corp. (“Cameco”) who carried out limited drilling and evaluation of the in-situ recovery potential. Although the results were very favorable, Cameco abandoned the property in 1998 due to the low uranium price ($10 per pound). Total drilling on the property is estimated to be over 600,000 feet. The known uranium zone on the property remains open for expansion.

The Bootheel Project LLC acquired a database from Power Resources Inc. that includes reports, gamma logs, drill logs and other data which primarily cover the Federal mining claims but also include some historic data from the surrounding fee land.

On January 15, 2009 the Bootheel Project LLC acquired additional data from Cameco which covers the four fee sections under lease from MJ Ranches. The data includes historical geological and gamma logs covering 660 drill holes totalling approximately 290,000 feet. Compilation to date indicates that there have been approximately 1,900 drill holes totalling in excess of 600,000 ft, completed on the property and the surrounding area.

The Buck Point property was drilled in 1979 and 1980 by Cherokee and Mobil Oil Corp. Mineralization has been found in at least six sandstone units over a 250 ft. interval, with grades up to 0.10% U 3 O 8 . No further work has been carried out on the property since then.

Property Geology

The Bootheel Project is located at the south-eastern margin of the Shirley Basin, along the western flank of the Laramie Mountains. Tertiary sediments occupy the entire surface area of the property and unconformably overlie a gently dipping, relatively undisturbed sequence of Paleozoic and Mesozoic sediments. A moderate degree of block faulting and some gentle folding are the main structural features and mostly affect pre-Tertiary rocks.

Uranium mineralization occurs within seven different sandstone beds within the gently dipping Jurassic and Cretaceous stratigraphy and within the overlying Tertiary Wind River Formation. Five horizons host significant mineralization and have the potential to host economic resources: 1) Jurassic Sundance Formation containing the Canyon Springs B and D Beds, 2) Cretaceous Dakota Sandstone, 3) Cretaceous Rusty Beds Sandstone, 4) Cretaceous Muddy Sandstone and 5) Tertiary Wind River Formation. Three other Cretaceous horizons (Lakota Sandstone, Fuson Shale and Wall Sandstone) contain scattered weak mineralization, but are not considered exploration targets at this time.

Two major zones of mineralization are recognized within the Sundance Formation. The main zone in Sections 36 and 1 stretches for over 7,000 ft in length and reaches widths of up to 400 ft and is described as a series of tabular zones. In Sections 6 and 7 the mineralization shows the characteristic roll front shape with the main northeast –trending nose extending approximately 1,900 ft in length. These zones vary from 2 to 60 ft in thickness, averaging from 0.017% to 0.216% eU 3 O 8 occurring at depths of 158 to 585 ft. Length of the individual bodies ranges from 300 to 1,300 ft.

Three Cretaceous sandstone units host uranium mineralization. The Dakota Sandstone ranges from 4 to 47 ft thick and contains abundant pyrite and carbonaceous material. Uranium mineralization ranging from 2 to 14 ft thick, grades from 0.026% to 0.23% eU 3 O 8 and occurs from 163 to 325 ft below the surface. The main zone is about 300 ft wide and 1,000 ft long. The Rusty Beds range from 5 to 87 ft thick, and contain abundant pyrite and carbonaceous debris. Mineralization is 2 to 18 ft thick, grades from 0.020% to 0.11% eU 3 O 8 and occurs from 232 to 297 ft below the surface. Mineralization occurs in three small zones, 300 to 400 ft in size. The Muddy Sandstone is 18 to 45 ft thick and is the least well mineralized of the Cretaceous units, with only one zone, about 200 ft by 400 ft in dimension, drilled to date. This zone ranges from 2 to 6 ft thick, grades from 0.145% to 0.157% eU 3 O 8 and is relatively shallow at 138 to 149 ft below the surface.

Tertiary Wind River Formation mineralization is typically thin, high grade, meandering and somewhat laterally discontinuous. The Wind River ranges from 25 to 270 ft thick, averaging 150 ft. The mineralized zones are typically 2 to 24 ft thick, averaging 5 ft, from 0.016% to 0.520% eU 3 O 8 and occur from 50 to 215 ft below the surface. The two main zones are up to 700 ft in width and 1,670 ft in length.

Exploration and Development

The 2008 drilling program, designed to further test the mineralized Sundance Formation, consisted of 93 vertical holes averaging 540 feet in depth and totaling 50,163 ft. Of these holes, 12 were spot cored through the Sundance Formation resulting in 708.5 ft of core. Drilling commenced in June and was completed September 20, 2008. Virtually all historic drill hole sites within the main resource zone were resurveyed.

In addition to the drilling program, the historic holes were relocated, limited ground radiometric and water sampling surveys were carried out. On February 5, 2009 Target reported that preliminary bottle roll tests had confirmed historical metallurgical test work indicating uranium recoveries of 87% or better using sodium bicarbonate as a lixiviant.

The final historic drill data set acquired from Cameco in January 2009 was compiled by our geological team and combined with the results from over 50,000 feet of drilling completed by Target at Bootheel in 2008. This compilation allowed us to complete the initial Bootheel Report. The estimate includes an indicated resource of 1.09 million pounds of uranium oxide (1.44 million tons at 0.038% eU 3 O 8 ) and an additional inferred resource of 3.25

million pounds of uranium oxide (4.40 million tons at 0.037% eU 3 O 8 ). The resource remains open for expansion with less than 60% of the historical resource area included in this initial estimate.

Activities in fiscal 2011 included further base line environmental studies. A Sage Grouse and Raptor survey was completed in June. The Nuclear Regulatory Commission was notified in August of the Company`s intention to file a permit application in 2012.

In the summer 2011, Crosshair carried out an $860,000 exploration program, which consisted of 35,760 feet of drilling in 76 holes. Hydrogeological tests and continued permitting were also completed. The program resulted in an updated Indicated mineral resource estimate of 1.48 million lbs of uranium (2.1M tons at 0.036% U3O8), and an inferred mineral resource estimate of 3.13 million lbs uranium (4.0M tons at 0.039% U3O8) Inferred.

The fiscal 2013 program will consist of 17,000 feet of exploration drilling and ongoing permitting.

Wyoming – Juniper Ridge Property

The Juniper Ridge Property, located in Carbon County, southwest Wyoming, comprises 197 claims and one state mineral lease totalling 4,710 acres (1,906 Ha) in size.

On October 29, 2010, we signed a definitive agreement with Strathmore Resources Ltd. (“Strathmore”), a wholly owned subsidiary of Strathmore Minerals Corp. to acquire the Juniper Ridge uranium property. The aggregate total price for a 100% interest in the property will be satisfied as follows:

	In Cash (USD)		In Shares (USD)		Total (USD)
Upon signing of the agreement (paid)	$	25,000	$	-	$	25,000
By November 15, 2010 (paid)		175,000		-		175,000
By October 29, 2011		250,000		250,000		500,000
By October 29, 2012 (1)		1,250,000		1,250,000		2,500,000
By October 29, 2013 (1)		1,250,000		1,250,000		2,500,000
Upon obtaining production permit (2)		1,500,000		-		1,500,000

	$	4,450,000	$	2,750,000	$	7,200,000

2 This amount is based on the estimated 5 million pounds uranium reserves at US $0.30 per pound. Actual payments will be based on the proven and probable uranium reserves as determined by prefeasibility or feasibility study. At the option of Strathmore, the Company will make this payment in cash, shares or a combination of cash and shares.

The Company can terminate the acquisition agreement at any time upon written notice, without any further liabilities to the Company. Strathmore will retain a 2% Gross Revenue Royalty on the property. The Company has the option to repurchase this royalty at any time during the first three years after commencement of commercial production for US $1.5 million for each 1% of the Gross Revenue Royalty.

Location

The property is located in Carbon County, 60 miles south of Rawlins and the I-80, 6 miles west of Baggs and 2 miles north of the Wyoming Colorado border.

Accessibility

A well maintained gravel road from Baggs crosses the property. Numerous two-tracks provide easy access to the all of the property from the main road. Hayden, Colorado, 75 miles southeast of Baggs, is the nearest airport with commercial air service.

History

The property has seen limited production from shallow open pits in the 1950s and 1960s. It has been reported that 156,000 tons grading 0.172% U 3 O 8 were mined which resulted in the production of 536,000 pounds of uranium. Urangesellschaft (“UG”) acquired the property in the 1970s and carried out an extensive program consisting of drilling, metallurgical test work and other technical studies on the feasibility of taking the property to production as an open pit heap-leach operation. Due to low uranium prices the property was sold to AGIP Mining Company (“AGIP”) in 1981 who re-evaluated the property with additional drilling and technical studies in 1982 and 1986. The earlier study proposed an open pit and heap-leach scenario with a projected 80% recovery while the later study proposed an open pit and conventional mill circuit with an expected 90% recovery using alkaline leaching. The studies were based on gamma logs from over 4,000 rotary holes and 200 core holes.

The most recent historical estimate completed by AGIP in 1986 is 5.2 million tons grading 0.067% eU3O8 for a total 6.97 million pounds of uranium. This historical resource estimate was based on half-foot interval gamma logs using a tonnage factor of 17.0 cubic feet per short ton, and cut-offs of 0.03% eU3O8 over a minimum 2.0 foot interval. The resource was estimated using the polygonal method with a maximum 50 foot radius. This resource estimate was completed prior to the implementation of NI 43-101 and is not compliant with current accepted reserve and resource classifications as set forth by the Canadian Institute of Mining and Metallurgy. Additional drilling will be required to verify this resource and classify it under the current standards. Given the quality of the historic work completed on the property, we believe the resource estimate to be both relevant and reliable. However, a qualified person has not completed sufficient work to classify the historic mineral resources as current mineral resources or mineral reserves as defined in NI 43-101, and we are not treating the historic resources as current. Therefore, the historical resource estimate should not be relied upon.

AGIP dropped the property in the mid 1980s due to the low price of uranium. No work has been carried out on the property since then.

Geology

The Juniper Ridge uranium property is located within a small subsidiary basin on the southeast flank of the Washakie Basin. This basin, as defined by the outcropping Browns Park formation is about 10 miles square appears to be a small tectonic graben down-dropped post Eocene but pre-Browns Park time. Dominant structures are east-trending high angle normal faults. Minor east-west trending folds cut through the basin but the effects on the Browns Park are not significant.

Rocks ranging from Cretaceous to recent outcrop in the region surrounding the basin. The Browns Park is the only Miocene age outcropping in the basin and was deposited on a highly irregular erosion surface. The formation has a dip of 5 o or less. The base of the Browns Park consists of a conglomerate, unconformably overlying the Wasatch Formation. The conglomerate is 5 to 75 feet thick and contains quartz and igneous pebbles in a sandstone matrix. Overlying the conglomerate is tuffaceous fine-grained feldspathic sandstone with a bi-model grain size. The upper unit consists of a similar tuffaceous sandstone but it is a very fine-grained unimodal sandstone. Both the middle and upper units contain up to 20% clay in the form of montmorillonite or kaolinite. The consensus of most geologists is that the upper two units are eolian in origin.

Mineralization

Oxidation of the host sandstone is generally less than 60 feet. Secondary uranium minerals in this zone include autunite, meta-autunite uranophane and schroeckingerite. The better mineralization is in the un-oxidized sections and is reported to contain autunite, coffinite and uraninite. Mineralization is largely restricted to the sandstone units above the conglomerate. It is reported that based on the electric logs there is a tendency for the mineralization to occur between finer and coarser units deposited along classical roll fronts. Mineralization is predominately parallel to the sedimentary structures but occasionally crosses some structures. Localization of the uranium appears to be the result of the presence of pyrite or hydrogen sulphide as there is an active gas reservoir at depth. D Robertson determined that at very low grades, about 0.008%, the mineralization was continuous for several thousand feet but at grades above 0.05% continuity varied between tens of feet to several hundreds of feet. In an examination of 80 twinned holes (5 to 12 feet apart) there were significant variations in grade and thickness over very short distances.

Exploration and Development

The fiscal 2012 program consisted of 78,253 feet of mud-rotary drilling in 400 holes. The program resulted in an Indicated mineral resource of 5.2 million lbs of uranium oxide (4.1M tons at 0.063% U3O8). Total expenditures were approximately $1.3 million.

The fiscal 2013 program will consist of 60,000 feet of resource drilling, metallurgical test work and a Pre-Feasibility Study. Permitting will commence this summer and will include wildlife studies and the drilling of monitor wells for ongoing water quality testing.

ITEM 4A.

UNRESOLVED STAFF COMMENTS

Not applicable

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following discussion for the fiscal years ended April 30, 2012, 2011, and 2010 should be read in conjunction with our audited financial statements for the referenced periods and the notes thereto. Our financial statements for the year ended April 30, 2012 have been prepared in accordance with IFRS. The Company has retrospectively applied IFRS to areas that are deemed appropriate except where specific exemptions permitted an alternative treatment upon transition to IFRS in accordance with IFRS 1. Comparative figures for 2011 have been adjusted to give effect to those changes. The functional currency of the Company and its subsidiaries is the Canadian Dollar and therefore our financial statements are reported in Canadian dollars.

Overview

The Company is a mineral exploration company engaged in acquiring, exploring and developing mineral properties and its focus is primarily uranium, base and precious metals. The Company does not have any producing mineral properties at this time. The Company’s business is presently focused on the exploration and evaluation of various mineral deposits in North America. The Company’s shares trade on Toronto Stock Exchange and on NYSE MKT Exchange.

The Company is currently focusing on exploration and evaluation activities in the province of Newfoundland and Labrador, Canada and the State of Wyoming USA on the following properties:

Central Mineral Belt properties located in Labrador, Canada (going forward will include the CMB-JV Property located in Labrador, Canada).

The Bootheel Project LLC located in Wyoming, U.S.A.

Juniper Ridge Property located in Wyoming, U.S.A.

For fiscal year ended April 30, 2012 the Company reported a net loss of $11,977,829 or $0.24 per common share, compared with a net loss of $4,077,470 or $0.10 per common share for the prior fiscal year. While figures have been prepared using International Financial Reporting Standards applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due, certain conditions and events cast significant doubt on the validity of this assumption. For the year ended April 30, 2012, the Company reported a loss of $11,977,829 and as at that date had an accumulated deficit of $91,351,849. The Company’s ability to continue as a going concern is dependent upon its ability to obtain additional funding from loans or equity financings or through other arrangements. To raise funds for operations, the Company is pursuing merger and acquisition opportunities, in conjunction with private or institutional financing. However, there can be no assurance that these activities will be successful.

Accounting Standards

International Financial Reporting Standards ("IFRS")

In February 2008, the Canadian Accounting Standards Board confirmed that publicly accountable enterprises are required to adopt IFRS for fiscal years beginning on or after January 1, 2011. Accordingly, the Company changed from Canadian GAAP reporting and commenced reporting under IFRS effective May 1, 2011 with restatement of comparative information presented. The conversion to IFRS from Canadian GAAP affects the Company’s reported financial position and results of operations and comprehensive income (loss) and affects the Company’s accounting policies, internal control over financial reporting and disclosure controls and procedures.

Recent Canadian Accounting Pronouncements

Financial Instruments IFRS 9, “Financial Instruments” (“IFRS 9”) was issued by the IASB on November 12, 2009 and will replace IAS 39. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple classification options in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial impairment methods in IAS 39. IFRS 9 is effective for annual periods beginning on or after January 1, 2013.

Amendments to IFRS 7, Financial Instruments: Disclosures are effective for annual periods beginning on or after July 1, 2011 and introduce enhanced disclosure around transfer of financial assets and associated risks. These amendments are not anticipated to impact the disclosures made by the Company.

Amendments to IAS 1, Presentation of Financial Statements (effective for annual periods beginning on or after July 1, 2012) require that elements of other comprehensive income that may subsequently be reclassified through profit and loss be differentiated from those items that will not be reclassified.

IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, and consequential revisions to IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures (all effective January 1, 2013) provide revised guidance on the accounting treatment and associated disclosure requirements for joint arrangements and associates, and a revised definition of ‘control’ for identifying entities which are to be consolidated.

IFRS 13 Fair Value Measurement (effective January 1, 2013) provides new guidance on fair value measurement and disclosure requirements.

The Company is currently evaluating the impact of these new and amended standards on its financial statements.

US GAAP Reconciliation

Under Canadian GAAP, it is acceptable to defer mineral property acquisition and exploration costs until a decision to abandon the property is made, it is determined that the property does not have economically recoverable reserves or that a company is unlikely to pursue exploration activities on the property. Under U.S. GAAP/IFRS, mineral exploration costs are expensed until it can be proven that economically viable reserves are present on the property and a company has the ability and intention to pursue exploitation of these reserves.

Under Canadian GAAP, cash flows relating to mineral property exploration costs are reported as investing activities. For U.S. GAAP/IFRS, these costs would be characterized as operating activities.

Under Canadian GAAP, future income taxes are calculated based on enacted or substantially enacted tax rates applicable to future years. Under U.S. GAAP/IFRS, only enacted rates are used in the calculation of future income taxes.

This difference between IFRS and US GAAP did not result in a difference in our financial position, results of operations or cash flows for the years ended April 30, 2012 and 2011.

We have adopted the fair value based approach to share-based compensation under the provisions of IFRS 2 Share-based Payment and SFAS No. 148. The method of adoption applied by us is permissible under both Canadian and US standards.

5.A.	Operating Results

Results of Operations for the fiscal year ended April 30, 2012 compared to the fiscal year ended April 30, 2011

number of common shares for fiscal 2012 increased to 50,377,698 from 41,193,459 for the previous year. The increase in the average number of shares outstanding was primarily due to share issuances related to the following:

Share issuance in relation to acquisition of exploration and evaluation assets (1,925,627common shares) in the 2 nd , 3 rd and 4 th quarters of fiscal 2012

Various financings (16,379,400 common shares) completed in the 4 th quarter of fiscal 2012

Expenses

Expenses for the current year were $11,751,934, approximately 152% higher than in fiscal 2011 due primarily to an increase in exploration and evaluation expense, consulting fees, office and administration expenses, investor relation expenses and wages and salaries expense. The increase in these expenses was partially offset by a reduction in legal expenses. Increases in exploration and evaluation expense, consulting fees and wages and salaries caused a 89% increase in the overall loss, which was partially offset by a decrease from legal expense due to the settlement of a dispute involving the Company.

Exploration and evaluation expense for 2012 was 650% higher than in 2011 due largely to the drilling programs completed on the CMB Uranium/Vanadium Project, the CMB JV Project , and the Bootheel Project, as well as the Mineral Resource estimate completed on the Juniper Ridge Property and the updated Mineral Resource estimate completed on the Bootheel Project.

Consulting and management fees increased by 184%, as a direct result of increased Company activities, reflecting favorable conditions in the markets.

In addition, investor relations expenditures increased by 143% from fiscal 2011 due to increasing investor and public relations activities.

To fuel the Company’s continuous growth, the Company hired additional field workers which had caused the wages and salaries to increase by 55% in 2012.

Audit and accounting expenditures increased by 22% compared to fiscal 2011 when additional costs attributable to the transition to IFRS were incurred.

Other Income (Expenses)

Other expense increased in fiscal 2012 by $804,941 to an expense of $225,895 compared with recorded income of $579,046 in 2011. The Company recorded an unrealized loss on Marketable securities of $701,327 compared to a last year’s gain of $501,961. Crosshair has accounted for its investment in marketable securities as “Financial assets at fair value through profit or loss”. These financial assets are measured at fair value and changes in fair value are recognized in net earnings. This loss was partially offset by the flow through premium in relation to the flow through shares issued in fiscal 2012. The Company also incurred a gain of $1,898 from the sale of capital assets in the current fiscal year compared with a loss of $110,291 from fiscal 2011.

Exploration and Evaluation Assets

During the current fiscal year, the Company acquired exploration and evaluation assets of $1,411,455 representing the acquisition costs related to the various mineral claims held by the Company.

Working Capital

Working capital was $5,466,961 as at April 30, 2012 compared with $10,815,170 as at April 30, 2011. The decrease of $5,348,209 was mainly due to cash used in operating activities of $9,649,032, which was then partially offset by financing activities of the Company during fiscal 2012.

Results of Operations for the fiscal year ended April 30, 2011 compared to the fiscal year ended April 30, 2010

For fiscal year ended April 30, 2011 the Company reported a net loss of $4,077,470 or $0.10 per common share, compared with a net loss of $2,321,078 or $0.02 per common share for the prior fiscal year. The weighted average number of common shares for fiscal 2011 increased to 41,193,459 from 29,528,511 for the previous year. The increase in the average number of shares outstanding was primarily due to share issuances related to the following:

Exercise of stock options (200,000 common shares) in the 3 rd and 4 th quarters of fiscal 2011

Various financings (13,749,875 common shares) completed in the 3 rd quarter of fiscal 2011

Exercise of warrants (657,903 common shares) in the 3 rd and 4 th quarters of fiscal 2011

Expenses

Expenses for the fiscal year ended April 30, 2011 were $4,656,516, approximately 51% higher than in fiscal 2010 due primarily to recognizing exploration and evaluation expense, an increase in share-based compensation expense and management and consulting fees which was offset by a reduction in office and administration, rent, and wages and salaries expenses as a result of the engagement of a Management Services Company in October 2010. As a result of the transition to IFRS, the Company had reclassified a portion of its previously capitalized exploration expenditures as exploration and evaluation expense. The reclassified amount was $873,228 representing approximately 19% of the expense for year 2011. No such expense was reclassified in 2010. Share based compensation, management and consulting fees caused a 35% increase in the overall loss, which was offset by a 13% decrease from office and administration, rent and wages and salaries attributed to the engagement of the Management Services Company.

Share-based compensation expense for 2011 was 65% higher than in 2010 due largely to IFRS adjustment of $527,085 and new stock options being granted to certain employees and management in the 3 rd and 4 th quarters of fiscal 2011, and a resulting increase in expense recognition.

Consulting and management fees increased by 279%, as a direct result of increased Company activities, reflecting favorable conditions in the markets.

In addition, investor relations expenditures increased by 113% from fiscal 2010 due to increasing investor and public relations activities.

Wages and salaries decreased in 2011 by 44% from 2010 due primarily to on-going expenditure reductions achieved by the engagement of a Management Services Company which provides administrative, geological, and corporate services at lower costs.

The engagement of a Management Services Company also led to a decrease in office and administration expenses of 46%, and a decrease in rent of 54%.

Audit and accounting expenditures decreased by 42% compared to fiscal 2010 when additional costs attributable to SOX compliance were incurred.

Other Income (Expenses)

Other income increased in fiscal 2011 by $631,301 to $579,046 compared with recorded expenses of $52,255 in 2010. The Company recorded an unrealized gain on Marketable securities of $501,961 compared to a last year’s unrealized gain of $66,667. Crosshair has accounted for its investment in marketable securities as “Financial assets at fair value through profit or loss”. These financial assets are measured at fair value and changes in fair value are recognized in net earnings. This gain was partially offset by a loss on sale of assets of $110,291. In fiscal 2010, the Company’s Sinbad project was written off and as a result $229,796 was recorded for this write-off. No write-offs of mineral properties occurred in fiscal 2011.

Exploration and Evaluation Assets

During the current fiscal year, the Company acquired exploration and evaluation assets of $474,183 representing the acquisition costs related to the various mineral claims held by the Company. Due to the transition to IFRS, the Company had reclassified its previously capitalized exploration and evaluation assets of $20,679,217 to deficit and $873,228 to exploration and evaluation expense.

Working Capital

Working capital was $10,815,170 as at April 30, 2011 compared with $3,403,009 as at April 30, 2010. The increase of $7,412,161 was mainly due to cash provided by financing activities of $9,995,812, which was then partially offset by operating and investing activities of the Company during fiscal 2011.

Results of Operations for the fiscal year ended April 30, 2010 compared to the fiscal year ended April 30, 2009

For fiscal year ended April 30, 2010 the Company reported a net loss of $2,321,078 or $0.02 per common share, compared with a net loss of $20,724,237 or $0.22 per common share for the prior fiscal year. The weighted average number of common shares for fiscal 2010 increased to 29,528,511 from 23,396,172 for the previous year. The increase in the average number of shares outstanding was primarily due to share issuances related to the following:

• Exercise of stock options (6,250 common shares) in the 3rd quarter of fiscal 2010

• Various financings (3,025,000 common shares) completed in the 3rd quarter of fiscal 2010

• Settlement of vendor debt (87,500 common shares) in the 3rd quarter of fiscal 2010

• Financing (1,704,545 common shares) competed in the 4th quarter of fiscal 2010

The net loss for the fiscal year ended April 30 2010 decreased 89% from the prior period. The decline resulted from a 105% decrease in losses on marketable securities, a 98% decrease in impairment of mineral properties, a 68% decrease in stock based compensation expense, and a 43% decrease in the general and administrative expenses of the Company.

During fiscal 2010 the Company took certain steps to continue its operations under unfavourable economic conditions. One of these steps was a reduction in general and administrative expenses, in particular office and administrative, audit and accounting, consulting, and investor relations. An additional measure undertaken by the Company was to reduce the number of staff on hand in order to reduce wages and salaries, and travel expenses. This corporate downsizing led also to the decrease in stock based compensation expense resulting in certain stock options being cancelled and fewer stock options being granted and vested during the fiscal year of 2010.

Reflecting the improving securities market, the decrease in losses on marketable securities was mainly due to the increase in carrying value of the Company’s investment recorded at fair market value.

The significant decline in the impairment of mineral properties was attributable to the $14,000,000 non-cash impairment charge on the Company’s uranium interest in the Central Mineral Belt of Labrador recorded in 2009 compared to the $229,796 charge on the Company’s Sinbad project recorded in 2010.

The changes in the following items have also had a material effect on reported net loss and the Company’s operations for the period:

Wages and salaries decreased in 2010 by 52% from 2009 due primarily to staff level reductions in an effort to reduce overall expenditures throughout the Company.

Audit and accounting expenses decreased by 23%, when compared to fiscal 2009 due to the fact that the Company’s auditors were not required to audit the Company’s internal controls under SOX 404(b), as was the case in fiscal 2009.

Investor relations expenditures decreased by 56% from fiscal 2009 due to reducing investor relations activities.

Legal expenditures increased by 29% over fiscal 2009 as a result of fees directly associated with the litigation with Expedition.

Office and administrative expenses decreased by 45% due to the overall reduction in office activities related to corporate downsizing.

Other Income (Expenses)

Other expenses decreased in fiscal 2010 by $15,058,379 to $52,255 compared with $15,110,634 in 2009. The Company’s Sinbad project was written off during the year as a result $229,796 was recorded for this write-off. Additionally, the company’s interest income was $126,303 lower than the prior year due to the lower average cash balances and the Company realized a gain on Marketable securities of $66,667 compared to last year’s loss of $1,290,195. Crosshair has accounted for its investment in marketable securities as “Held for Trading” in accordance with CICA Standard 3855 on Financial Instruments. Held-for-trading financial assets are measured at fair value and changes in fair value are recognized in net income.

Future Income Tax Recovery

The company recognized a recovery of future income tax of $818,750 related to the renouncing in fiscal 2010 of certain deductions for Canadian exploration expenditures incurred on the Company’s resource properties from the prior year’s flow through securities offering to shareholders. During fiscal 2010, the Company issued 3,479,545 common shares on a flow-through basis for gross proceeds of $3,275,000 which were renounced in fiscal 2010. The flow-through agreement requires the Company to renounce certain deductions for Canadian exploration expenditures incurred on the Company’s resource properties.

Mineral Property Expenditures

During fiscal 2010, the Company incurred total mineral property exploration expenditures of $1,048,856 due primarily to the exploration and drilling activities on the CMB Moran Lake property totaling $455,145; CMB-JV totals $74,411 (net of recoveries); Bootheel totaling $(97,210); and Golden Promise totaling $846,306.

Working Capital

Working capital was $3,403,009 as at April 30, 2010 compared with $2,641,169 as at April 30, 2009, up by $761,840. The increase was mainly due to cash provided by financing activities of $3,817,314, which was then partially offset by operating and investing activities of the Company during fiscal 2010.

5.B. Liquidity and Capital Resources

Liquidity – April 30, 2012, April 30, 2011 and April 30, 2010

As of April 30, 2012, the Company had cash and cash equivalents of $5,446,298 (April 30, 2011 - $9,931,585, April 30, 2010 - $3,427,511) and working capital of $5,466,961 (April 30, 2011 - $10,815,170, April 30, 2010 - $3,403,009. Cash used in operating activities during 2012 was $9,649,032 compared with $2,882,416 in 2011 and $2,259,493 in 2010. Cash utilized in investing activities was $1,378,856 when compared with $609,322 in 2011 and $957,584 in 2010. Cash provided by financing activities decreased to $6,542,601 compared with $9,995,812 in 2011 and $3,817,314 in 2010 as the result of financing completed during the year.

Capital Resources

The Company believes it has sufficient working capital to finance its intended operations, and maintain its priority mineral property licenses for the next 12 months. To date, the Company’s operations, exploration and development activities have been almost entirely financed from equity financings. The Company will continue to identify financing opportunities in order to provide additional financial flexibility and to continue the development of its property portfolio, meet land claim expenditure requirements and other commitments. While the Company has been successful raising the necessary funds in the past, there can be no assurance it can do so in the future. The Company currently does not have any material commitments for capital expenditures.

5.C. Research and Development, Patents and Licenses, etc.

We are a mineral exploration company and do not engage in conventional research and development. We have not incurred research and development expenses or adopted research on development policies within the last three fiscal years.

5.D. Trend Information

We are a mineral exploration company. Consequently, we have no production, sales, or inventory in the conventional sense. Our financial success will be dependent upon the extent to which we can discover mineralization and the economic viability of developing such properties. Such development, if initiated, may take years to complete and the amount of resulting income, if any, is difficult to determine with any certainty. We have no mineral reserves and to date have not produced any revenues. The sales value of any mineralization discovered by us is largely dependent upon factors beyond our control such as the market value of the metals produced.

Other than as disclosed herein, we are not aware of any trends, uncertainties, demands, commitments or events which are reasonably likely to have a material effect upon our net sales or revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

The major factors that caused significant variations in net loss were the recording of share-based compensation when stock options were granted and the write-down of properties based on a periodic review of such properties, both of which have no identifiable trend.

5.E. Off-Balance Sheet Arrangements

Not applicable

5.F. Tabular Disclosure of Contractual Obligations

	Payments due by period
Contractual Obligations	Total		Less than 1 year		1-3 years	3-5 years	more than 5 years
Operating Lease Obligation	$	13,480	$	13,480
Total	$	13,480	$	13,480

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

6.A. Directors and Senior Management

Name	Age	Position
Mark J. Morabito	45	Executive Chairman
C. Stewart Wallis 3	67	Chief Executive Officer, President and Director
Jay Sujir 2	54	Director
Ian B. Smith 4	66	Director
Chris Collingwood 1	65	Director
Derrick (Rick) Gill 1 2	64	Director
Joseph Miller 5	49	Director
Sonya Atwal 6	32	Chief Financial Officer
Sam Yik	47	Chief Financial Officer
Mark Ludwig	56	Chief Executive Officer and President
Horace Beaven	61	Vice President, Corporate Communications
Tom Bell	63	Vice President, Chief Geologist
Chris Healey 1	65	Director

1 Member of Audit Committee

2 Member of Compensation Committee

3 Mr. Wallis resigned as President & CEO on April 30, 2012.

4 Mr. Smith resigned as a director on April 25, 2012.

5 Mr. Miller resigned as a director on August 4, 2011.

6 Ms. Atwal resigned as Chief Financial Officer on December 1, 2011.

We are an exploration stage junior exploration company. Our needs will be dependent upon our level of exploration programs and financial condition. From 2006 to 2009, we entered into employment agreements with our senior officers and all of our full-time employees. In August 2009, we began entering into consulting agreements with our senior management and currently have no employment agreements in effect with senior management or full-time employees. See Item 6.B. Compensation – Compensation of Executive Officers and Directors – Employment and Consulting Agreements for a description of the current consulting agreements with senior management. On January 1, 2010, we entered into a management services agreement with Forbes West under which Forbes West provides shared office, administration and payroll services to the Company and as of January 1, 2010, we do not employ any staff full-time. On October 1, 2010, we entered into a revised management services agreement. See Item 7.B – Related Party Transactions and Exhibit 4.9 for a description of this agreement.

Set forth below are brief descriptions of recent employment and business experience of our directors and senior management.

Mark J. Morabito has been our Executive Chairman since March 1, 2010. Mr. Morabito served as our Non-Executive Chairman from December 18, 2009 until his appointment as Executive Chairman on March 1, 2010. He was also Chief Executive Officer from February 2003 until March 1, 2010 when Stewart Wallis was appointed to that position, and has been a Director since November of 1998. Mr. Morabito also served as our President from February 2003 until February 18, 2008, when Paul Hosford was appointed to that position. Mr. Morabito was re-appointed as President on October 21, 2008 following Mr. Hosford’s resignation from that position. On March 31, 2009, Mr. Morabito ceased to be our President, when Stewart Wallis was appointed to that position in addition to being appointed Chief Executive Officer in 2010. Mr. Morabito remains our Executive Chairman and a Director.

Mr. Morabito devotes approximately 30% of his time during a typical work week to our business. Mr. Morabito also serves on the board of directors of Excelsior Mining Corp., Alderon Iron Ore Corp., Ridgemont Iron Ore Corp. and Logan Resources Ltd.. He is also the Executive Chairman of Alderon Iron Ore Corp. and Ridgemont Iron Ore Corp. and the non-Executive Chairman of Excelsior Mining Corp. Mr. Morabito graduated from Simon Fraser University in Vancouver, British Columbia with a B.A. in 1990 and completed his J.D. at the University of Western Ontario in London, Ontario in 1993.

C. Stewart Wallis was a member of our Board of Directors from June 2003 until July 27, 2008. Mr. Wallis was appointed to our Board of Directors and was appointed President of the Company on March 31, 2009. On March 1, 2010 Mr. Wallis was appointed as our CEO. Mr. Wallis resigned as President and CEO of the Company on April 30, 2012. Up to the time of his resignation as President and CEO of Crosshair, Mr. Wallis devoted substantially all of his time during a typical work week to our business. Mr. Wallis is the Managing Director of Sundance Geological Ltd., a private entity owned and controlled by him, which provides geological services, including evaluations and prefeasibility studies, for individuals and mining companies based throughout the world. He received his Bachelor of Science Degree in Geology from McMaster University, located in Hamilton, Ontario. His professional affiliations include: Association of Professional Engineers and Geoscientists of Saskatchewan, the Association of Professional Engineers and Geoscientists of British Columbia, the Professional Engineers and Geoscientists of Newfoundland and Labrador, Wyoming Professional Geologists, Certified Professional Geologist under the American Institute of Professional Geologists, Fellow, Society of Economic Geologists and a Member of the Society of Mining Engineers.

Jay Sujir has been a member of our Board of Directors since February 2003. Mr. Sujir served as our Non-Executive Chairman from his appointment on September 10, 2007 until December 18, 2009 when Mark Morabito was appointed Non-Executive Chairman. Mr. Sujir is currently the Chairman of the Board of Directors of Sunward Resources Ltd. and is the Corporate Secretary and a Director of Santa Fe Metals Corp. Mr. Sujir also serves on the boards of directors of AMI Resources Inc., Cannon Point Resources Ltd., DePaul capital Corporation, Excelsior Mining Corp., Midasco Capital Corp., NEMI Northern Energy & Mining Inc., Red Eagle Mining Corporation, Rio Silver Inc., Slater Mining Corporation, Uracan Resources Ltd. and Westham Resources Corp. Mr. Sujir is a securities and natural resource lawyer who has experience with advising and assisting public companies. He obtained his B.A. from the University of Victoria, in Victoria, British Columbia, in 1981 and obtained his LL.B. from the University of Victoria in 1985. He has been a lawyer in the law firm of Anfield Sujir Kennedy & Durno LLP and its predecessor firm since August 1986 and has been a partner of that firm since 1991.

Ian B. Smith joined our Board of Directors in September 2006 and resigned from the Board on April 25, 2012. Mr. Smith has over 40 years’ experience in corporate, operations, project management and consulting within the international base, precious metals and coal industries. He has worked around the world including Africa, China, Southeast Asia and extensively in the Americas. Mr. Smith was President and Founding Partner of MRDI which became one of the largest and most successful mining consultancies in North America. Mr. Smith is President, CEO and a director of Santa Fe Metals Corporation and Yellowhead Mining Inc. Mr. Smith also serves on the board of directors of EURO Ressources S.A. Mr. Smith was granted his Chartered Professional Management Aus. IMM in October 2000 and has been a Fellow with the Aus. IMM since 1990. Mr. Smith obtained his BE (Mining) from the University of Queensland, Australia in 1966.

Chris Collingwood joined our Board of Directors in October 2007. Mr. Collingwood received his BComm. from Memorial University of Newfoundland in 1970. Mr. Collingwood is the Chairman and CEO of Baine Johnston Corp., a privately held Newfoundland firm active in commercial and industrial real estate, Retail operations and Marine Activities, also having investments in a number of other Newfoundland companies. Mr. Collingwood has previously served on the Audit Committee of Barclay's Bank of Canada, is a past Public Director of the Investment Dealers Association and serves on the Audit Committee of the Newfoundland & Labrador Center for Health Information.

Derrick (Rick) Gill joined our Board of Directors in May 2008. Mr. Gill has more than 30 years’ experience as an executive and director of public and private companies operating throughout North and South America. Mr. Gill is a principal consultant and director of Strategic Concepts Inc. (“SCI”), which provides strategic planning, financial

modeling and business development services to numerous resource companies. Mr. Gill co-founded SCI in 1990. He also serves on the board of directors of Brigus Gold Corp. Mr. Gill received his BComm. in Accounting from Memorial University of Newfoundland in 1969

Joseph Miller was a member of our Board of Directors from June 26, 2009 until his resignation on August 4, 2011. He served as our Chief Financial Officer from September 2, 2008 until June 30, 2009. Mr. Miller has over 20 years experience in financial management of public companies, including numerous energy and resource companies based in Alberta. Prior to joining Crosshair, Mr. Miller was the Chief Financial Officer of GPS Industries Inc. and was responsible for the overall financial management of the company, including internal and external public reporting and SEC reporting and filings, and initiating the Sarbanes Oxley compliance program identifying and focusing on the high risk processes and controls. From 1999 to 2007, Mr. Miller was employed by Transalta Corporation in Calgary, Alberta, first as the Manager of Financial Planning and Analysis and then as the Director of Financial Operations. Mr. Miller received his CMA designation in 1992 and is a member of the Certified Management Accountants of British Columbia. He received his diploma in Business Administration from Mount Royal College in 1989. Mr. Miller was the Chief Financial Officer of Powerex Corp., a wholly-owned subsidiary of BC Hydro until May 24, 2011.

Sonya Atwal was our Chief Financial Officer (“CFO”) from February 15, 2011 until her resignation on December 1, 2011. Ms. Atwal received her CGA designation in February 2008, and is a member of the Certified General Accountants of British Columbia. Ms. Atwal received her Bachelor of Business Administration from the Southern Alberta Institute of Technology (SAIT in 2008). Ms. Atwal served as our Controller from 2005 until her appointment as Chief Financial Officer.

Sam Yik has been our Chief Financial Officer (“CFO”) since December 1, 2011. Mr. Yik has over 20 years experience in financial management of public companies, including numerous energy and resource companies. Prior to joining Crosshair, Mr. Yik was the Chief Financial Officer of Kobex Minerals Inc. from November, 2007 to November 2011, the Vice President, Corporate Finance & Investor Relations of GBS Gold International Inc. from August 2006 to October 2007, the Vice President, Corporate Development and Commercial Operations of Pine Valley Mining Corp. from March 2005 to July 2006, and a Commercial Manager with Methanex Corp. from 1994 to March 2005. Mr. Yik received his Chartered Accountant (CA) designation in March 1992 and is a member of the Institute of Chartered Accountants of British Columbia. Mr. Yik received his Bachelor of Commerce from the University of British Columbia in May 1989. Mr. Yik is also the Chief Financial Officer of Excelsior Mining Corp.

Mark Ludwig was appointed Chief Executive Officer and President of Crosshair on April 30, 2012. Prior to his appointment as Chief Executive Officer and President, Mr. Ludwig served as our Vice President and Chief Operating Officer (U.S.) from August 8, 2011 to April 30, 2012. Mr. Ludwig devotes substantially all of his time during a typical work week to our business. Prior to joining Crosshair, Mr. Ludwig was the Vice President of Operations of Neutron Energy. From 2005 to 2008 Mr. Ludwig was employed by Hecla Mining Company as a Senior Mining Engineer/Project Manager and later as Manager of Corporate Development. From 1984 until 2005 he worked in various positions with BHP Billiton including as a Senior Project and Mining Engineer. Mr. Ludwig earned a Mining Engineering degree from the Colorado School of Mines and an MBA from Regis University.

Horace (Bevo) Beaven was appointed Vice President, Corporate Communications of Crosshair on July 5, 2011. Mr. Beaven devotes substantially all of his time during a typical work week to our business. Mr. Beaven has over 12 years experience as an investor relations executive working with public companies. From June 2009 to his joining Crosshair, Mr. Beaven, through Bevo Beaven Corporate Communications, was an independent public relations and corporate communication consultant. From July 2008 to June 2009, he was Vice President, Client Services of Metzger Associates Publications and from March 2000 to July 2009, held various positions, the latest being Senior Vice President and General Manager at CTA Integrated Communications. Mr. Beaven has a BA in Journalism,/Public Relations and Advertising from the University of Alabama.

Tom Bell was appointed Vice President, Chief Geologist of Crosshair on November 16, 2011. Dr. Bell has over 30 years experience as a geologist and devotes substantially all of his time during a typical work week to our business.

Since 1999 Dr. Bell has been President of Stratamodel, Inc., the firm he founded to explore for metallic commodities in Africa and North America, create state of the art geologic data collection systems, and design and implement resource based geographic information systems. Dr. Bell received his B.Sc in Geology from San Jose State University in California in 1978 followed by an M.A at the University of California at Berkeley in 1980 and a PhD at the University of California at Berkeley in 1983. His professional affiliations include: Professional Geologist in the State of Pennsylvania; Certified Professional Geologist (AIPG); Fellow, Society of Economic Geologists.

Chris Healey joined our Board of Directors on April 25, 2012. Mr. Healey is a licensed professional geologist in British Columbia, Saskatchewan and Wyoming with over 40 years experience in the natural resources industry, with particular emphasis on uranium exploration and extraction. He has held senior positions with Cameco Corporation, the world's largest uranium producer, where he served for over 20 years and managed its US operations. Mr. Healey has both broad and deep experience in all aspects of resource mining, especially in the uranium sector with hand-on experience at a producing in-situ operation. He has also worked on uranium projects around the world, including Canada, the United States, Paraguay, Kazakhstan, Mongolia, Australia and Malawi. Until February 29, 2012, he was President and CEO of Titan Uranium Corp. He was appointed President and CEO of Galaxy Graphite Corp. (formerly Galaxy Capital Corp.) on March 1, 2012. Mr. Healey graduated with a Bachelor of Science degree in Geology from the University of Wales, Swansea in 1968. He also served as the national president of the Geological Society of Canadian Institute of Mining, Metallurgy and Petroleum. Mr. Healey is also a Director of Galaxy Graphite Corp, Carmax Mining Corp and Ansell Capital Corp.

There are no family relationships between any of the Directors or senior management. There are no arrangements or understandings with major shareholders, customers, suppliers or others, pursuant to which any person referred to above was selected as a Director or member of senior management.

6.B. Compensation

Compensation of Executive Officers and Directors

The following table sets out the compensation information for the fiscal year ended April 30, 2012, for our directors and executive officers.

Compensation of Executive Officers/Directors in Fiscal 2012

		Annual Compensation
		Salary ($)		Bonus ($)		Other Annual Compensation ($)
Name and Principal Position	Fiscal Year	Salary ($)		Bonus ($)		Other Annual Compensation ($)		Securities Under Options Granted (#)		Option Exercise Price		Option Expiration Date
Mark J. Morabito 1 Executive Chairman and Director	2012		--		--	$	150,000		50,000	$	0.38	2017/04/24
Stewart Wallis 2 CEO, President and Director	2012		--	$	88,888	$	260,000		50,000	$	0.38	2017/04/24
Joseph Miller 3 Director	2012		--		--	$	6,732		--		--		--
Jay Sujir Director	2012		--		--	$	26,452		--		--		--
Ian Smith 4 Director	2012		--		--	$	26,934		--		--		--
Chris Collingwood Director	2012		--		--	$	20,711		--		--		--
Derrick Gill Director	2012		--		--	$	23,859		--		--		--
Sonya Atwal 5 Chief Financial Officer	2012		--				--		--		--		--
Samuel Yik 6 Chief Financial Officer	2012		--		--		--		100,000	$	0.38	2017/04/24
Mark Ludwig 7 Chief Executive Officer & President	2012		--	US$53,000		US$137,818			400,000 250,000	$	0.67 $0.38	2016/07/20 2017/04/24
Horace Beaven 8 Vice President, Corporate Communications	2012		--	US$25,000		US$143,135			250,000	$	0.67	2016/07/20
Tom Bell, Ph.D. 9 Vice President, Chief Geologist	2012		--	US$40,000		US$79,998			60,000	$	0.38	2017/04/24
Chris Healey 10 Director	2012		--		--		--		200,000	$	0.38	2017/04/24

1	Mr. Morabito was appointed President on October 21, 2008 and ceased to be President on March 31, 2009. Mr. Morabito ceased to be CEO and was appointed Executive Chairman on March 1, 2010.

2	Mr. Wallis ceased to be a director on July 27, 2008 and was appointed a director on March 31, 2009. Mr. Wallis was appointed President on March 31, 2009 and CEO on March 1, 2010. Mr. Wallis ceased to be President and CEO on April 30, 2012.

3	Mr. Miller resigned as a director on August 4, 2011.

4	Mr. Smith resigned as a director on April 25, 2012.

5	Ms. Atwal resigned as Chief Financial Officer on December 1, 2011.

6	Mr. Yik was appointed as Chief Financial Officer on December 1, 2011

7	Mr. Ludwig was appointed Chief Executive Officer and President on April 30, 2012. Prior to that, he was Vice President and Chief Operating Officer (U.S). from August 15, 2011 until April 30, 2012.

8	Mr. Beaven was appointed Vice President, Corporate Communications on July 5, 2011.

9	Dr. Bell was appointed Vice President, Chief Geologist on November 16, 2011.

10	Mr. Healey was appointed a Director on April 25, 2012.

Director Compensation

Effective May 1, 2011, Crosshair adopted a formal director compensation program. Under the formal director compensation program, non-executive directors of Crosshair receive an annual board retainer of $20,000 and a fee of $1,500 for each Board meeting attended, the Chair of the Audit Committee receives an annual fee of $6,000 and each of the Chairs of the Compensation and other Committees of the Board receive an annual fee of $2,500. Each of the aforementioned fees is paid quarterly. From December 31, 2008 to May 1, 2011, no such formal program was in place. Directors are also entitled to reimbursement for reasonable travel and other out-of-pocket expenses incurred in connection with attendance at meetings of the Board of Directors. The Board of Directors may award special remuneration to any director undertaking any special services on our behalf other than services ordinarily required of a director. Directors are also eligible to receive options to purchase Common Shares pursuant to the terms of Crosshair’s Stock Option Plan.

Employment and Consulting Agreements

On March 1, 2011, the Company entered into a consulting agreement with MJM Consulting (“MJM”) and Mark J. Morabito (“Morabito”) (the “2011 MJM Consulting Agreement”). Under the terms of the 2011 MJM Consulting Agreement, MJM provides the services of Morabito to act as Executive Chairman of the Company and to provide such general management consulting services as the Company may require from time to time under such time as the 2011 MJM Consulting Agreement is terminated. Under the terms of the 2011 MJM Consulting Agreement, MJM receives a monthly fee of $12,500 plus applicable taxes and is eligible to receive an annual cash bonus in an amount to be determined at the discretion of the Board of Directors. In the event of termination of the 2011MJM Consulting Agreement, MJM will receive a lump sum payment equivalent to 12 months’ fees. In the event of a change of control, MJM will receive the equivalent of 36 months’ fees On September 1, 2011, the Company entered into an Assignment Agreement with MJM as Assignor, MJM Consulting Corp. as Assignee and Morabito pursuant to which MJM assigned, transferred and set over to MJM Consulting Corp. all of the Assignor’s rights, interests, benefits, duties and obligations in and relating to the 2011 MJM Consulting Agreement.

On March 1, 2011, the Company entered into a consulting agreement with Sundance Geological Ltd. and C. Stewart Wallis (Wallis”) (the “2011 Sundance Consulting Agreement”). Under the terms of the 2011 Sundance Consulting Agreement, Sundance provided the services of Wallis to act as President and Chief Executive Officer of the Company and to provide such general management and geological consulting services as the Company may require from time to time. The term of the 2011 Sundance Consulting Agreement was three years, commencing on March 1, 2011. Under the terms of the 2011 Sundance Consulting Agreement, Sundance received a monthly fee of $20,000 plus applicable taxes and is eligible to receive an annual cash bonus of up to $66,666, payable within 30 days of the Company’s fiscal year end, with the final amount being determined by the Company’s Board of Directors. In the event of termination of the 2011Sundance Consulting Agreement, Sundance was to receive a lump sum payment equivalent to the lesser of 12 months’ fees or the fees payable for the duration of the term of the 2011 Sundance Consulting Agreement. In the event of a change of control, Sundance was to receive the equivalent of 36 months’ fees. Upon Mr. Wallis’ resignation as Chief Executive Officer and President of Crosshair on April 30, 2012, the 2011 Sundance Consulting Agreement was terminated.

On June 28, 2011, the Company entered into a consulting agreement with Horace H. Beaven (“Beaven”) (the ‘Beaven Consulting Agreement”) pursuant to which the Company appoints and engages Beaven to perform the functions of Vice President, Corporate Communications and of a general corporate communications consultant. Under the terms of the Beaven Consulting Agreement, Beaven receives a monthly fee of US$12,500 and is eligible to receive an annual cash bonus in the amount of US$50,000, payable at the discretion of the Board of Directors based on the performance of Beaven and the overall performance of the Company. In addition, Beaven receives a monthly lump sum cash payment of US$2,100 in lieu of medical benefits. In the event of termination of the Beaven Consulting Agreement, Beaven will receive a lump sum payment equivalent to three (3) months’ monthly fees and benefits.

On July 12, 2011, the Company entered into a consulting agreement with Ludwig and Associates LLC (“L&A”) and Mark Ludwig (“Ludwig”) (the ‘L&A Consulting Agreement”) pursuant to which the L&A provides the

personal services of Ludwig to act as Vice President and Chief Operating Officer (U.S.) and of a mining, engineering, business and management consultant of the Company. Under the terms of the L&A Consulting Agreement, L&A receives a monthly fee of US$16,666 and is eligible to receive an annual cash bonus in the amount of US$70,000, payable at the discretion of the Board of Directors based on the performance of L&A and the overall performance of the Company. In addition L&A receives a monthly lump sum cash payment of US$1,666 in lieu of medical benefits. In addition, as consideration for L&A and Ludwig entering into the L&A Consulting Agreement, L&A received a lump sum payment of US$25,000. In the event of termination of the L&A Consulting Agreement, L&A will receive a lump sum payment equivalent to three (3) months’ fees and benefits. On April 23, 2012, in anticipation of Ludwig being appointed as Chief Executive Officer and President of the Company, the parties to the L&A Consulting Agreement entered into an amendment to consulting agreement (the “Amending Agreement”) pursuant to which the fee was amended to US$20,833.33 per month. All other terms of the L&A Consulting Agreement remain in full force and effect.

On November 1, 2011, the Company entered into a consulting agreement with Stratamodel, Inc. (“Stratamodel”) and Thomas E. Bell (“Bell) (the “Stratamodel Consulting Agreement”) pursuant to which the Stratamodel provides the personal services of Bell to act as Vice President and Chief Geologist and of a geological consultant of the Company. Under the terms of the Stratamodel Consulting Agreement, Stratamodel receives a monthly fee of US$13,333 and is eligible to receive an annual cash bonus in the amount of US$50,000, payable at the discretion of the Board of Directors based on the performance of Stratamodel and the overall performance of the Company. In addition Stratamodel receives a monthly lump sum cash payment of US$1,666 in lieu of medical benefits. In addition, as consideration for Stratamodel and Bell entering into the Stratamodel Consulting Agreement, Stratamodel received a lump sum payment of US$10,000. In the event of termination of the Stratamodel Consulting Agreement, Stratamodel will receive a lump sum payment equivalent to three (3) months’ fees and benefits.

Post Employment Compensation

No funds were set aside or accrued by us during Fiscal 2012 to provide pension, retirement or similar benefits for Directors, Executive Officers or Senior Management.

Other than as described above, we do not have any plans or arrangements in respect of remuneration received or that may be received by our executive officers to compensate such officers in the event of termination of employment (as a result of resignation, retirement, change of control) or a change of responsibilities following a change of control, where the value of such compensation would exceed US$60,000 per person.

6.C. Board Practices

The Board of Directors presently consists of six directors five of whom were elected at our annual general meeting of shareholders held on October 28, 2011. Chris Healey was appointed a director on April 25, 2012. The directors have served in their respective capacities since their election and/or appointment and will serve until the next annual general meeting or until a successor is duly elected, unless the office is vacated in accordance with our Articles. The Board of Directors appoints senior management who serve at the discretion of the Board of Directors.

The following table indicates the date on which each of our directors was appointed a director of our company:

Name of Director	Director since
Mark Morabito	November 12, 1998
Stewart Wallis 1	March 31, 2009
Jay Sujir	February 19, 2003
Chris Collingwood	October 25, 2007
Derrick Gill	May 27, 2008
Chris Healey	April 25, 2012

Mr. Wallis served as a director from June 19, 2003 to July 29, 2008. He was re-appointed as a director on March 31, 2009.

There are no service contracts with the Directors providing for benefits upon termination of employment except as described under the heading “Employment and Consulting Agreements” above.

Board of Director Committees

Audit Committee

We have an Audit Committee, which recommends to the Board of Directors the engagement of our independent auditors and reviews with the independent auditors the scope and results of our audits, our internal accounting controls, and the professional services furnished to us by our independent auditors. The following disclosure is required pursuant to National Instrument 52-110 (“NI 52-110”) adopted by the Canadian Securities Administrators.

The Audit Committee's Charter

Following is a copy of the charter of our audit committee:

Purpose

The Audit Committee (the “ Committee ”) is a committee of and appointed by the Board of Directors (the “ Board ”) of Crosshair Exploration & Mining Corp. (the “ Corporation ”) to assist the Board in fulfilling its oversight responsibilities relating to financial accounting and reporting process and internal controls for the Corporation. The Committee’s primary duties and responsibilities are to:

conduct such reviews and discussions with management and the external auditors relating to the audit and financial reporting as are deemed appropriate by the Committee;

assess the integrity of internal controls and financial reporting procedures of the Corporation and ensure implementation of such controls and procedures;

ensure that there is an appropriate standard of corporate conduct including, if necessary, adopting a corporate code of ethics for senior financial personnel;

review the quarterly and annual financial statements and management’s discussion and analysis of the Corporation’s financial position and operating results and report thereon to the Board for approval of same;

select and monitor the independence and performance of the Corporation’s external auditors, including attending at private meetings with the external auditors and reviewing and approving all renewals or dismissals of the external auditors and their remuneration;

establish procedures for the receipt of complaints and submissions relating to accounting matters;

except as set forth below, pre-approve all audit and non-audit services provided by the Corporation’s external auditors; and

provide oversight to related party transactions entered into by the Corporation.

The Committee has the authority to conduct or authorize any investigation appropriate to its responsibilities, and it may request the external auditors, as well as any officer of the Corporation, or outside counsel for the Corporation, to attend a meeting of the Committee or to meet with any members of, or advisors to, the Committee to provide pertinent information as necessary. The Committee shall have unrestricted access to the books and records of the Corporation and has the authority to retain, at the expense of the Corporation, special legal, accounting, or other consultants or experts to assist in the performance of the Committee’s duties.

The Committee shall review and assess the adequacy of this Charter annually and submit any proposed revisions to the Board for approval.

In fulfilling its responsibilities, the Committee will carry out the specific duties set out in Part IV of this Charter.

Authority of the Audit Committee

The Committee shall have the authority to:

(a) engage independent counsel and other advisors as it determines necessary to carry out its duties;

(b) set and pay the compensation for advisors employed by the Committee;

Composition and Meetings

The Committee and its membership shall meet all applicable legal, regulatory and listing requirements, including, without limitation, those of the British Columbia Securities Commission, the Toronto Stock Exchange, the U.S. Securities and Exchange Commission, NYSE MKT, the Business Corporations Act (British Columbia) and all applicable securities regulatory authorities.

The Committee shall be composed of three or more directors as shall be designated by the Board from time to time. The members of the Committee shall appoint from among themselves a member who shall serve as Chair.

Each member of the Committee shall be “independent” and “financially literate”, for the purposes of Multilateral Instrument 52-110 (“MI 52-110”), as it may be amended from time to time. MI 52-110 currently provides that a member is independent if the member has no direct or independent material relationship with the Corporation. A “material” relationship is one which could, in the view of the Board, be reasonably expected to interfere with the exercise of a member’s judgment. There are certain relationships that are, however, deemed to be “material” under MI 52-110. In assessing a proposed nominee to the Committee, the Board shall refer to MI 52-110 and any other requirements or guidelines under applicable securities laws and any stock exchanges on which the Corporation’s securities are listed.

The Committee shall meet at least quarterly, at the discretion of the Chair or a majority of its members, as circumstances dictate or as may be required by applicable legal or listing requirements. A minimum of two and at least 50% of the members of the Committee present either in person or by telephone shall constitute a quorum.

If within one hour of the time appointed for a meeting of the Committee, a quorum is not present, the meeting shall stand adjourned to the same hour on the next business day following the date of such meeting at the same place. If at the adjourned meeting a quorum as hereinbefore specified is not present within one hour of the time appointed for such adjourned meeting, such meeting shall stand adjourned to the same hour on the second business day following the date of such meeting at the same place. If at the second adjourned meeting a quorum as hereinbefore specified is not present, the quorum for the adjourned meeting shall consist of the members then present.

If and whenever a vacancy shall exist, the remaining members of the Committee may exercise all of its powers and responsibilities so long as a quorum remains in office.

The time and place at which meetings of the Committee shall be held, and procedures at such meetings, shall be determined from time to time by, the Committee. A meeting of the Committee may be called by letter, telephone, facsimile, email or other communication equipment, by giving at least 48 hours notice, provided that no notice of a meeting shall be necessary if all of the members are present either in person or by means of conference telephone or if those absent have waived notice or otherwise signified their consent to the holding of such meeting.

Any member of the Committee may participate in the meeting of the Committee by means of conference telephone or other communication equipment, and the member participating in a meeting pursuant to this paragraph shall be deemed, for purposes hereof, to be present in person at the meeting.

The Committee shall keep minutes of its meetings which shall be submitted to the Board. The Committee may, from time to time, appoint any person who need not be a member, to act as a secretary at any meeting.

10.

The Committee may invite such officers, directors and employees of the Corporation and its subsidiaries as the Committee may see fit, from time to time, to attend at meetings of the Committee.

11.

Any matters to be determined by the Committee shall be decided by a majority of votes cast at a meeting of the Committee called for such purpose. Actions of the Committee may be taken by an instrument or instruments in writing signed by all of the members of the Committee, and such actions shall be effective as though they had been decided by a majority of votes cast at a meeting of the Committee called for such purpose. All decisions or recommendations of the Committee shall require the approval of the Board prior to implementation.

The Committee members will be elected annually at the first meeting of the Board following the annual general meeting of shareholders.

Responsibilities

Financial Accounting and Reporting Process and Internal Controls

The Committee shall review the annual audited financial statements and interim financial statements of the Corporation to satisfy itself that they are presented in accordance with applicable generally accepted accounting principles (“Canadian and US GAAP” as required) and report thereon to the Board and recommend to the Board whether or not same should be approved prior to their being filed with the appropriate regulatory authorities. The Committee shall also review the interim financial statements of the Corporation. With respect to the annual audited financial statements, the Committee shall discuss significant issues regarding accounting policies, principles, practices, estimates, reserves and judgments of management with management and the external auditors, as and when the Committee deems it appropriate to do so, and shall satisfy itself that the annual audited financial statements are accurate, complete and represent fairly the Corporation’s financial position and performance and that the audit function has been effectively carried out. If desirable, the Committee may engage the Corporation’s external auditors to carry out a review of the interim financial statements.

The Committee shall review management’s discussion and analysis relating to the Corporation’s annual and interim financial statements (“MD&A”) MD&A and any other public disclosure documents, including annual and interim earnings press releases, required to be reviewed by the Committee under any applicable laws before the Corporation publicly discloses this information or files this information with securities regulatory authorities.

The Committee shall be satisfied that adequate procedures are in place for the review of the Corporation’s public disclosure of financial information extracted or derived from the Corporation’s annual and interim financial statements, MD&A and annual and interim earnings press releases, and periodically assess the adequacy of these procedures.

The Committee shall review the annual budget.

The Committee shall review any internal control reports prepared by management and the evaluation of such reports by the external auditors, together with management’s response.

The Committee shall evaluate whether management is setting the appropriate “control culture” by communicating the importance of internal control and the management of risk and ensuring that all employees have an understanding of their roles and responsibilities.

The Committee shall consider how management is held to account for security of computer systems and applications, and the contingency plans for processing financial information in the event of a systems breakdown.

The Committee shall review, in consultation with the external auditors, the integrity of the Corporation’s financial reporting processes, both internal and external.

The Committee shall consider the external auditors’ judgments about the quality and appropriateness, not just the acceptability, of the Corporation’s accounting principles and financial disclosure practices, as applied in its financial reporting, particularly about the degree of aggressiveness or conservatism of its accounting principles and underlying estimates and whether those principles are common practices or are minority practices.

10.

The Committee shall meet no less frequently than annually with the external auditors and the Chief Financial Officer or, in the absence of a Chief Financial Officer, with the officer of the Corporation in charge of financial matters, to review accounting practices, internal controls and such other matters as the Committee, Chief Financial Officer or, in the absence of a Chief Financial Officer, the officer of the Corporation in charge of financial matters, deem appropriate.

11.

The Committee shall consider and approve, if appropriate, major changes to the Corporation’s accounting principles and practices as suggested by management with the concurrence of the external auditor and ensure that the management’s reasoning is described in determining the appropriateness of changes in accounting principles and disclosure.

12.

The Committee shall inquire of management and the external auditors about significant risks or exposures, both internal and external, to which the Corporation may be subject and assess the steps management has taken to minimize such risks, including by obtaining the external auditors’ opinion of how effectively such risks are being managed or controlled.

13.

The Committee shall review the post-audit or management letter containing the recommendations of the external auditors and management’s response and subsequent follow-up to any identified weaknesses.

14.

The Committee shall provide oversight to related party transactions entered into by the Corporation.

15.

The Committee shall review policies and procedures with respect to officers’ expense accounts and management perquisites and benefits, including their expenditures related to executive travel and entertainment, and review the results of the procedures performed in these areas by the external auditor, based on terms of reference agreed upon by the external auditor and the Committee.

Independent Auditors

The Committee shall recommend to the Board the external auditors to be nominated, for the purpose of preparing or issuing an auditor’s report or performing other audit, review or attest services for the Corporation, and the compensation of the external auditors.

The Committee shall instruct the external auditors to report directly to the Committee and ensure that significant findings and recommendations made by the external auditors are received and discussed by the Committee on a timely basis.

The Committee shall be directly responsible for overseeing the work of the external auditors, including the resolution of disagreements between management and the external auditors regarding financial reporting, and shall review the performance of the external auditors and approve any proposed discharge of the external auditors when circumstances warrant.

The Committee shall periodically consult the external auditors out of the presence of management about any matters that the Committee or the external auditors believes should be discussed privately, including, without limitation, significant risks or exposures, internal controls and other steps that management has taken to control such risks, and the fullness and accuracy of the Corporation’s financial statements. Particular emphasis should be given to the adequacy of internal controls to expose any payments, transactions or procedures that might be deemed illegal or otherwise improper.

Except as otherwise indicated in this Charter, the Committee shall pre-approve all audit and non-audit services not prohibited by Canadian securities laws and regulations to be provided by the external auditors and delegate, if desirable, to one or more of its members the authority to pre-approve any such audit or permitted non-audit services, provided that any such pre-approval is presented to the Committee at its next scheduled meeting following the pre-approval.

The Committee shall monitor and assess the relationship between management and the external auditors, including reviewing any management letters or other reports of the external auditors and discussing and resolving any material differences of opinion between management and the external auditors.

The Committee shall monitor, review, confirm and discuss with the external auditors, on an annual basis, all significant relationships the external auditors have with the Corporation and the range of services provided to determine the independence and objectivity of the external auditors.

Prior to the audit, the Committee shall review the external auditors’ audit plan, including the scope, procedures, timing and staffing of the audit, and the Committee may authorize the external auditors to perform supplemental reviews or audits as the Committee may deem desirable.

The Committee shall review with the external auditors the results of the annual audit and, if applicable, the results of the quarterly review, including matters related to the conduct of the audit and the review, as the case may be.

10.

The Committee shall obtain timely reports from the external auditors describing critical accounting policies and practices, alternative treatments of information within Canadian GAAP that were discussed with management, their ramifications, and the external auditors’ preferred treatment and material written communications between the Corporation and the external auditors.

11.

The Committee shall review fees paid by the Corporation to the external auditors and other professionals in respect of audit and non-audit services on an annual basis.

12.

The Committee shall review and approve the Corporation’s hiring policies regarding partners, employees and former partners and employees of the present and former external auditors of the Corporation.

Process Improvement

The Committee shall establish regular and separate systems of reporting to the Committee by each of management and the external auditors regarding any significant judgments made in management’s preparation of the financial statements and the view of each as to appropriateness of such judgments.

Following completion of the annual audit and quarterly reviews (if applicable), the Committee shall review separately with each of management and the external auditors any significant changes to planned procedures, any difficulties encountered during the course of the audit and reviews, including any restrictions on the scope of work or access to required information and the cooperation that the external auditors received during the course of the audit and reviews.

The Committee shall review and resolve any significant disagreements among management and the external auditors in connection with the preparation of the financial statements and, where there are significant unsettled issues, the Committee shall ensure that there is an agreed course of action for the resolution of such matters.

The Committee shall review with the external auditor and management significant findings during the year and the extent to which changes or improvements in financial or accounting practices, as approved by the Committee, have been implemented. This review should be conducted at an appropriate time subsequent to implementation of changes or improvements, as decided by the Committee.

Ethical and Legal Compliance

The Committee shall establish procedures for the receipt, retention and treatment of complaints received by the Corporation regarding accounting, internal accounting controls or auditing matters, and the confidential, anonymous submission by employees of the Corporation of concerns regarding questionable accounting or auditing matters.

The Committee shall review the effectiveness of the system for monitoring compliance with laws and regulations and the results of management’s investigation and follow-up of any non-compliance.

The Committee shall review management’s monitoring of the Corporation’s system that is in place to ensure that the Corporation’s financial statements, reports and other financial information disseminated to governmental organizations and the public satisfy legal requirements.

The Committee shall ensure that there is an appropriate standard of corporate conduct including, if necessary, adopting a corporate code of ethics for senior financial personnel.

The Committee shall obtain regular updates from management and others, including internal and external auditors and legal counsel, concerning the Corporation’s compliance with financial related laws and regulations such as tax and financial reporting laws and regulations, legal withholding requirements, occupational health and safety laws and personal information and protection of privacy laws.

The Committee shall be satisfied that all regulatory compliance matters have been considered in the preparation of financial statements.

The Committee shall review the findings of any examination by regulatory agencies.

Other Responsibilities

While the Committee has the responsibilities and duties set out in this Charter, it is not the duty of the Committee to plan or conduct audits, to prepare or audit financial statements or to design or implement an effective system of internal controls. Such matters are the responsibility of management and the internal and external auditors of the Corporation, as the case may be. In addition to the responsibilities and duties of the Committee set out in this Charter, the Committee shall perform any other activities consistent with this Charter and all applicable legal, regulatory and listing requirements (including those of the applicable securities regulatory authorities and the stock exchanges on which the Corporation’s securities are listed), as the Committee or the Board deems necessary or appropriate.

Procedures for Receipt of Complaints and Submission s

Relating to Accounting Matter s

The Corporation shall inform employees on the Corporation’s intranet, if there is one, or via a newsletter or e-mail that is disseminated to all employees at least annually, of the individual (the “Complaints Officer”) designated from time to time by the Committee to whom complaints and submissions can be made regarding accounting, internal accounting controls or auditing matters or issues of concern regarding questionable accounting or auditing matters.

The Complaints Officer shall be informed that any complaints or submissions so received must be kept confidential and that the identity of employee(s) making complaints or submissions shall be kept confidential and shall only be communicated to the Committee or the Chair of the Committee.

The Complaints Officer shall be informed that he or she must report to the Committee as frequently as such Complaints Officer deems appropriate, but in any event no less frequently than on a quarterly basis prior to the quarterly meeting of the Committee called to approve interim and annual financial statements of the Corporation.

Upon receipt of a report from the Complaints Officer, the Committee shall discuss the report and take such steps as the Committee may deem appropriate.

The Complaints Officer shall retain a record of a complaint or submission received for a period of six years following resolution of the complaint or submission.

Procedures for Approval of Non-Audit Service s

The Corporation’s external auditors shall be prohibited from performing for the Corporation the following categories of non-audit services:

(a)

bookkeeping or other services related to the Corporation’s accounting records or financial statements;

(b)

financial information systems design and implementation;

(c)

appraisal or valuation services, fairness opinion or contributions-in-kind reports;

(d)

actuarial services;

(e)

internal audit outsourcing services;

(f)

management functions;

(g)

human resources;

(h)

broker or dealer, investment advisor or investment banking services;

(i)

legal services;

(j)

expert services unrelated to the audit; and

(k)

any other service that the Canadian Public Accountability Board or any other applicable regulatory authority determines is impermissible.

In the event that the Corporation wishes to retain the services of the Corporation’s external auditors for tax compliance, tax advice or tax planning, the Chief Financial Officer of the Corporation shall consult with the Chair of the Committee, who shall have the authority to approve or disapprove on behalf of the Committee, such non-audit services in accordance. All other non-audit services shall be approved or disapproved by the Committee as a whole as set forth herein.

The Chief Financial Officer of the Corporation shall maintain a record of non-audit services approved by the Chair of the Committee or the Committee for each fiscal year and provide a report to the Committee no less frequently than on a quarterly basis.

Composition of the Audit Committee

The current members of our Audit Committee are Chris Healey, Christopher Collingwood and Derrick Gill, each of whom is an independent director and financially literate.

Relevant Education and Experience

Derrick Gill. Mr. Gill received his BComm. in Accounting from Memorial University of Newfoundland in 1969. Mr. Gill has over 30 years’ experience as an executive and director of public and private companies operating throughout North and South America and has served on the audit committees of public companies. Mr. Gill is a principal consultant and director of Strategic Concepts Inc. (“SCI”), which provides strategic planning, financial modeling and business development services to numerous resource companies. Mr. Gill co-founded SCI in 1990. He also serves on the board of directors of Linear Gold Corp. Inc.

Chris Collingwood. Mr. Collingwood received his BComm. from Memorial University of Newfoundland in 1970. Mr. Collingwood is the Chairman and CEO of Baine Johnston Corp., a privately held Newfoundland firm active in commercial and industrial real estate, Retail operations and Marine Activities, also having investments in a number

of other Newfoundland companies. Mr. Collingwood has previously served on the Audit Committee of Barclay's Bank of Canada, is a past Public Director of the Investment Dealers Association and serves on the Audit Committee of the Newfoundland & Labrador Center for Health Information.

Chris Healey. Mr. Healey graduated with a Bachelor of Science degree in Geology from the University of Wales, Swansea in 1968. He has held senior management and geological positions with several public companies, including Cameco Corporation, where he served for over 20 years and managed its US operations. Until February 29, 2012, he was President and CEO of Titan Uranium Corp. He was appointed President and CEO of Galaxy Graphite Corp. (formerly Galaxy Capital Corp.) on March 1, 2012. Mr. Healey is also a Director of Galaxy Graphite Corp, Carmax Mining Corp and Ansell Capital Corp. and serves as a member of the Audit Committee of Ansell Capital Corp.

Reliance on Certain Exemptions

At no time since the commencement of the Company’s most recently completed financial year, has the Company relied on any of the exemptions contained in the followings sections of NI 52-110: section 2.4 (De Minimis Non-audit Services), section 3.2 (Initial Public Offerings), section 3.4 (Events Outside Control of Member), section 3.5 (Death, Disability or Resignation of Audit Committee Member) or an exemption from NI 52-110, in whole or in part, granted under Part 8 (Exemptions) of NI 52-110.

Reliance on Exemption in Subsection 3.3(2) or Section 3.6

Reliance on Section 3.8

At no time since the commencement of the Company’s most recently completed financial year, has the Company relied on section 3.8 (Acquisition of Financial Literacy) of NI 52-110.

Audit Committee Oversight

At no time since the commencement of the Company’s most recently completed financial year, has the Company’s Board of Directors failed to adopt a recommendation of the Audit Committee to nominate or compensate an external auditor.

Pre-Approval Policies and Procedures

Pursuant to the terms of the Company’s Audit Committee Charter, the Audit Committee is required to review and pre-approve any non-audit services provided by the Company's external auditors. However, the Audit Committee has not adopted specific policies and procedures for the engagement of non-audit services. Subject to the requirements of NI 52-110, the engagement of non-audit services is considered by the Audit Committee, on a case-by-case basis.

External Auditor Service Fees

See Item 16.C. Principal Accountant Fees and Services.

Compensation Committee

We have established a Compensation Committee, which currently consists of Jay Sujir, Derrick Gill and Chris Healey. The Compensation Committee does not operate pursuant to a written charter.

The mandate established for the Compensation Committee is for the purposes of:

1.	considering appropriate levels of compensation for our directors and officers and making recommendations to the Board as to the remuneration and other compensation to be provided to our Directors, the President and our other officers; and

2.	carrying out periodic performance assessments of the President and CEO.

6.D. Employees

The following table sets out the number of full-time employees who worked for us at the end of the last three completed fiscal years as well as the maximum number of temporary workers who worked for us during each fiscal year:

Fiscal year ended	Number of Full Time Employees at the end of the fiscal year	Maximum number of Temporary Workers during the fiscal year
April 30, 2012	0 (1)	0 (1)
April 30, 2011	0 (1)	0 (2)
April 30, 2010	0	0 (2)

Pursuant to the Management Services Agreement with Forbes West dated October 1, 2010, Forbes West provides shared office, administration and payroll services to the Company. See Item 7.B – Related Party Transactions and Exhibit 4.9 for a description of this agreement. As such, the Company no longer employs any full-time staff or temporary staff.

2	Due to the global economic conditions during the fiscal years ended April 30, 2010 and April 30, 2011, and our cash conservation program, we did not employ any temporary workers during these fiscal years.

6.E. Share Ownership

The following table presents the beneficial ownership of the directors and those persons named in Item 6.B Compensation above as of July 19, 2012. As of July 19, 2012, we had 65,782,178 common shares issued and outstanding. The number of common shares beneficially owned by the persons listed below includes those securities exercisable into common shares within 60 days of July 19, 2012.

Name	Number of Common Shares	Percent of Outstanding Common Shares
Mark J. Morabito	3,258,834 1	4.95%
Stewart Wallis	1,092,400 2	1.66%
Joseph Miller 3	N/A	N/A
Jay Sujir	377,250 4	*
Ian Smith 5	N/A	N/A
Chris Collingwood	416,200 6	*
Derrick Gill	330,625 7	*
Sonya Atwal 8	N/A	N/A
Sam Yik	37,500 9	*
Mark Ludwig	200,000 10	*
Horace (Bevo) Beaven	136,250 11	*
Tom Bell	57,500 12	*
Chris Healey	0	*
Directors and Executive Officers as a group	5,905,859	8.97%

* Indicates less than one percent.

1	Includes options to purchase 725,454 common shares exercisable within 60 days of July 19, 2012, warrants to purchase 203,125 common shares expiring November 23, 2012 and warrants to purchase 250,000 common shares expiring February 27, 2014 .

2	Includes options to purchase 576,250 common shares exercisable within 60 days of July 19, 2012, warrants to purchase 75,000 common shares expiring November 23, 2012 and warrants to purchase 50,000 common shares expiring February 27, 2014.

3	Mr. Miller resigned as a Director of the Company of the Company on August 4, 2011.

4	Includes options to purchase 237,500 common shares exercisable within 60 days of July 19, 201 and warrants to purchase 31,250 common shares expiring November 23, 2012.

5	Mr. Smith resigned as a Director of the Company on April 25, 2012.

6	Includes options to purchase 210,000 common shares exercisable within 60 days of July 19, 2012, warrants to purchase 15,625 common shares expiring November 23, 2012 and warrants to purchase 31,250 common shares expiring February 27, 2014.

7	Includes options to purchase 260,000 common shares exercisable within 60 days of July 19, 2012, warrants to purchase 15,625 common shares expiring November 23, 2012. And warrants to purchase 6,250 common shares expiring February 27, 2014.

8	Ms. Atwal resigned as Chief Financial Officer of the Company on December 1, 2011.

9	Includes 12,500 warrants to purchase common shares expiring February 27, 2014.

10 Includes options to purchase 200,000 common shares exercisable within 60 days of July 19, 2012.

11	Includes options to purchase 125,000 common shares exercisable within 60 days of July 19, 2012 and warrants to purchase 3,750 common shares expiring February 27, 2014.

12	Includes options to purchase 20,000 common shares exercisable within 60 days of July 19, 2012 and warrants to purchase 12,500 common shares expiring February 27, 2014.

The following table presents the stock options granted to the aforementioned persons and unexercised as of July 19, 2012. The stock options are for common shares.

Name	Date of Grant	Number of Underlying Common Shares	Vested 1	Exercise Price	Expiration Date
Mark J. Morabito	Apr. 24, 2012 Dec. 21, 2010 Nov. 30, 2009 May 28, 2009 Mar. 31, 2009 2 Oct. 23, 2008 Sept. 15, 2008	50,000 375,000 118,382 75,000 42,489 83,333 125,000	0 281,250 118,382 75,000 42,489 83,333 125,000	$0.38 $1.44 $0.88 $1.08 $4.00 $0.60 $1.08	Apr. 24, 2017 Dec. 21, 2015 Nov. 30, 2014 May 28, 2014 Aug. 29, 2012 Oct. 23, 2013 Sept. 15, 2013
Stewart Wallis	Apr. 24, 2012 Dec. 21, 2010 Jan. 6, 2010 Nov. 30, 2009 May 28, 2009 Mar. 31, 2009 2 Sept. 15, 2008	50,000 375,000 50,000 25,000 75,000 120,000 25,000	0 281,250 50,000 25,000 75,000 120,000 25,000	$0.38 $1.44 $0.84 $0.88 $1.08 $4.00 $1.08	Apr. 24, 2017 Dec. 21, 2015 Jan. 6, 2015 Nov. 30, 2014 May 28, 2014 Aug. 29, 2012 Sept. 15, 2013
Joseph Miller	Dec. 21, 2010 May 28, 2009 Oct. 23, 2008 Aug. 1, 2008	100,000 31,250 41,666 37,500	75,000 31,250 41,666 37,500	$1.44 $1.08 $0.60 $2.00	Dec. 21, 2015 May 28, 2014 Oct. 23, 2013 Aug. 1, 2013
Jay Sujir	Dec. 21, 2010 May 28, 2009 Oct. 27, 2008 Sept. 15, 2008	100,000 50,000 87,500 25,000	75,000 50,000 87,500 25,000	$1.44 $1.08 $1.08 $1.08	Dec. 21, 2015 May 28, 2014 Oct. 27, 2013 Sept. 15, 2013
Ian Smith	Dec. 21, 2010 Jan. 6, 2010 Nov. 30, 2010 May 28, 2009 Sept. 15, 2008	100,000 25,000 12,500 37,500 37,500	75,000 25,000 12,500 37,500 37,500	$1.44 $0.84 $0.88 $1.08 $1.08	Dec. 21, 2015 Jan. 6, 2015 Nov. 30, 2014 May 28, 2014 Sept. 15, 2013
Chris Collingwood	Dec. 21, 2010 Nov. 30, 2009 May 28, 2009 Sept. 15, 2008	100,000 50,000 35,000 50,000	75,000 50,000 35,000 50,000	$1.44 $0.88 $1.08 $1.08	Dec. 21, 2015 Nov. 30, 2014 May 28, 2014 Sept. 15, 2013
Derrick Gill	Dec. 21, 2010 Nov. 30, 2009 May 28, 2009 May 23, 2008	100,000 62,500 60,000 62,500	75,000 62,500 60,000 62,500	$1.44 $0.88 $1.08 $3.52	Dec. 21, 2015 Nov. 30, 2014 May 28, 2014 May 23, 2013
Sonya Atwal	Dec. 21, 2010 May 28, 2009 Mar. 31, 2009 2 Oct. 23, 2008	100,000 37,500 9,000 12,500	75,000 37,500 9,000 12,500	$1.44 $1.08 $4.00 $0.60	Dec. 21, 2015 May 28, 2014 Aug. 29, 2012 Oct. 23, 2013
Sam Yik	Apr. 24, 2012	100,000	0	$0.38	Apr. 24, 2017
Mark Ludwig	Apr. 24, 2012 July 20, 2011	250,000 400,000	0 200,000	$0.38 $0.67	Apr. 24, 2017 July 20, 2016
Horace (Bevo) Beaven	July 20, 2011	250,000	125,000	$0.67	July 20, 2016
Tom Bell	Apr. 24, 2012 Apr. 1, 2011	60,000 40,000	0 20,000	$0.38 $1.12	Apr. 24, 2017 Apr. 1, 206
Chris Healey	Apr. 24, 2012	200,000	0	$0.38	Apr. 24, 2017

1	Includes those options that are exercisable within 60 days of July 19, 2012.

2	Options previously granted by Target which transferred to the Company on closing of the acquisition of Target by the Company on March 31, 2009.

We do not have any arrangements for involving our employees in our capital. We do not have a share purchase plan or dividend reinvestment plan for our directors, officers and employees. However, we will, from time to time, grant individual stock options to our directors, officers or employees as an incentive pursuant to our stock option plan.

Stock Option Plan

We may grant stock options to directors, senior management and employees pursuant to our stock option plan dated November 4, 2010 (the “Plan”). Under the Plan, we may grant stock options to purchase up to a maximum of 10% of the common shares issued and outstanding from time to time. If any stock option has been exercised, the number of common shares into which such stock option was exercised shall become available to be issued upon the exercise of stock options subsequently granted under the Plan As at May 1, 2011, the beginning of the fiscal year ended April 30, 2012, there were 584 common shares available for grant and 233,587 common shares available for grant under the Plan as at April 30, 2012. During the fiscal year ended April 30, 2012, we granted stock options to purchase an aggregate of 1,752,500 common shares. During the fiscal year ended April 30, 2012, no stock options to purchase common shares were exercised and stock options to purchase an aggregate of 155,000 common shares were cancelled or expired. There were no changes in the exercise price of outstanding options during the year ended April 30, 2011 other than the adjustment to all exercise prices to reflect the consolidation of the Company’s shares as described above.

Target Stock Options

As a term of the plan of arrangement between Crosshair and Target that was effective on March 31, 2009, all existing holders of options to purchase common shares in Target had their options exchanged for stock options of the Company that entitled the holder to exercise their Target options for common shares of the Company on the basis of 1.2 common shares of the Company for each Target option exercised (the “Target Exchanged Options”). As at April 30, 2012 there were 212,908 Target Exchanged Options outstanding, exercisable into a total of 255,490 common shares of the Company. During the fiscal year ended April 30, 2012, no Target Exchanged Options to purchase common shares were exercised and a total of 60,000 Target Exchanged Options (exercisable into 72,000 common shares) were cancelled. No additional Target Exchanged Options were to be issued as of March 31, 2009.

ITEM 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

7.A. Major Shareholders

To the knowledge of management, no person beneficially owns 5% or more of our issued and outstanding common shares.

All of our shares, both, issued and unissued, are common shares of the same class and rank equally as to dividends, voting powers and participation of powers. Accordingly, there are no special voting powers held by our major shareholders.

On July 19, 2012, we had 65,782,178 common shares issued and outstanding to approximately 444 shareholders of record. We believe that the number of beneficial owners is substantially greater than the number of record holders because a large portion of our outstanding common shares are held in broker “street names” for the benefit of individual investors or other nominees. Management believes that there are 116 shareholders of record located in the U.S., who own an aggregate of approximately 38% of our outstanding common shares. In addition to these record holders there may be more persons located in the U.S. holding our common shares in “street” name.

We are a publicly owned Canadian corporation, with shareholders in Canada, the United States and other foreign jurisdictions. We are not controlled by any foreign government or other person. We are not aware of any arrangements that would result in a change of control of our company.

7.B. Related Party Transactions

Other than as disclosed below, for the year ended April 30, 2012 and the period from May 1, 2011 to the date of this annual report, we have not entered into any transactions or loans between us and any: (a) enterprises that directly or indirectly through one or more intermediaries, control or are controlled by, or are under common control with, us; (b) associates; (c) individuals owning, directly or indirectly, an interest in the voting power of us that gives them significant influence over us, and close members of any such individuals' family; (d) key management personnel and close members of such individuals' families; or (e) enterprises in which a substantial interest in the voting power is owned, directly or indirectly, by any person described in (c) or (d) or over which such a person is able to exercise significant influence.

During the year ended April 30, 2012, the Company had the following transactions with related parties:

In January 2010, the Company entered into a contract with a management company (which was amended on October 1, 2010) with a director and officer (Mark Morabito) in common, whereby the management company will provide shared office and payroll services to the Company. The Company incurred administrative/office costs of $1,936,612 included in office and administration, wages and salaries, rent, travel, consulting, and investor relations to this management company for such services. At April 30, 2012 $106,487 was still owing to this company included in due to related parties, and deposits on hand with this company of $Nil were included in prepaid expenses.

·	Management fees include $410,000 of fees paid or accrued to two private companies owned by directors and officers (Mark Morabito and Stewart Wallis) of the Company, of which $22,400 was still owing at April 30, 2012.

·	Consulting fees include $137,490 of fees paid or accrued to a private company owned by an officer (Mark Ludwig) of the Company, of which $9,072 was still owing at April 30, 2012.

·	During the year ended April 30, 2012, the amount of $150,083 was paid to a private company owned by an officer (Horace (Bevo) Beaven) included in investor relations expenses, of which $7,236 was still owing at April 30, 2012.

·	During the year ended April 30, 2012, the amount of $79,998 was paid to a private company owned by an officer (Tom Bell) included in exploration and evaluation expenses, of which $13,982 was still owing at April 30, 2012.

·	During the year ended April 30, 2012, the Company paid bonus amounts of $206,404 included in management fees, consulting fees, investor relations and, exploration and evaluation to various officers/directors (Horace H. Beaven, Thomas Bell, Mark Ludwig, and Stewart Wallis) of the Company.

During the year ended April 30, 2012, the Company incurred independent directors’ (Chris Collingwood, Derrick Gill, Ian Smith and Jay Sujir) fees of $104,688, of which $20,502 was still owing at April 30, 2012).

The amounts due to the related parties are non-interest bearing, with no fixed terms of repayment. The fair values of the amounts due to the related parties cannot be determined as there are no specific terms of repayment.

7.C. Interests of Experts and Counsel

Not applicable

ITEM 8.

FINANCIAL INFORMATION

8.A. Consolidated Statements and Other Financial Information

Financial Statements

Our financial statements are stated in Canadian Dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the Company on May 1, 2011, the application of which conforms in all material respects for the fiscal years presented with United States GAAP,

See our audited financial statements for the fiscal years ended April 30, 2012, April 30, 2011 included under Item 18 of this annual report.

Dividend Policy

We have not declared or paid any cash dividends on our capital stock. We do not currently expect to pay cash dividends in the foreseeable future as we anticipate that all available funds will be invested to finance the growth of our business. The Board of Directors will determine if and when dividends should be declared and paid in the future based upon our financial position at the relevant time.

Legal/Arbitration Proceedings

Litigation with Expedition Mining Inc. (formally known as Universal Uranium Ltd.)

In April 2009, Crosshair commenced an action in British Columbia Supreme Court against Expedition alleging that Expedition had knowledge of trades that artificially inflated the market price of shares of Expedition at the time that Crosshair agreed to purchase property and securities of Expedition. The action relates to certain agreements Crosshair entered into with Expedition to acquire all of Expedition’s interest in its project in the Central Mineral Belt of Labrador and to purchase securities of Expedition by way of a private placement.

On April 29, 2010, the Company entered into a definitive agreement with Expedition to settle all outstanding litigation between Crosshair and Expedition.

The settlement agreement requires Crosshair and Expedition to file a consent dismissal order dismissing both the Crosshair claim and the Expedition counterclaim. Neither company paid any funds to the other pursuant to the terms of settlement.

Crosshair has also entered into a voting trust agreement (the “2010 Voting Trust Agreement”). Pursuant to the 2010 Voting Trust Agreement, Crosshair will either abstain from voting its shares in Expedition or vote those shares in favour of Expedition management’s proposals for a period of thirty-six months. As of April 30, 2011, Crosshair held 2,222,222 Expedition shares.

As per the original voting trust agreement between Crosshair and Expedition signed on July 30, 2008 (the “2008 Voting Trust Agreement”), Expedition was also required to either abstain from voting its shares in Crosshair or vote those shares in favour of Crosshair management’s proposals. As of April 30, 2011, Expedition held 1,875,000 Crosshair warrants.

Pursuant to the settlement, beginning April 2010 and for the following twelve months, both Crosshair and Expedition were required to report on a monthly basis to the other in writing advising of the number of shares in the other they have purchased or sold in the preceding month. In the case of a breach of these requirements the 2010 Voting Trust Agreement becomes null and void. Since Expedition complied with the terms of the settlement the Voting Trust Agreement remains in full force until July 30, 2013.

Litigation with Lewis Murphy

On October 10, 2004, the Company entered in an agreement (the “Agreement”) with Mr. Lewis Murphy pursuant to which the Company was granted an option to acquire an interest in certain mineral licenses in Newfoundland and Labrador. On April 28, 2010, Mr. Lewis Murphy commenced court proceedings against the Company in the Supreme Court of Newfoundland and Labrador in relation to the Agreement. As acknowledged by Mr. Murphy in the Statement of Claim, the mineral licenses were transferred to Crosshair. The Agreement provides that upon the Company completing its earn-in obligations under the Agreement and becoming vested as to its 90% interest therein, the Company will pay Mr. Murphy an annual advance royalty of $200,000 per year until the Commencement of Commercial Production. Mr. Murphy alleged he was owed an annual advance royalty payment in the amount of $200,000 in November 2009. Mr. Murphy was seeking contractual damages in the amount of $200,000, and various declaratory reliefs including, but not limited to, an order that the transfers of any and all mineral licenses from Murphy to the Company made pursuant to the Agreement are null and void and a declaration that the Agreement is terminated. The Company defended the court action and filed a Counterclaim alleging that Mr. Murphy had breached certain representations and warranties contained in the Agreement. The Company was seeking various reliefs including an order of damages and the return of shares.

On January 6, 2011, a judgment was issued by the Supreme Court of Newfoundland and Labrador in favour of Mr. Murphy in the amount of $200,000 (plus costs and interest) and the Company’s counterclaim was dismissed. The Company was granted leave to appeal this judgment on May 31, 2011.

On December 5, 2011, the Company settled the litigation by paying Mr. Murphy a cash payment in the amount of $600,000 and an additional payment of 1,193,614 in Company’s shares. All litigation has been discontinued and Mr. Murphy has acknowledged the Company’s 90% interest in the CMB Uranium /Vanadium Project has vested and any requirement for a bankable feasibility study has been irrevocably waived. The Company will be required to make advance royalty payments of $200,000 per year commencing in November 2012. Should the Company choose to bring the Moran Lake Property into production, the advance royalty payments made previously will be deducted against any Net Smelter Royalty owed to the original vendor of the property .

8.B. Significant Changes

Since April 30, 2012, the date of our most recent financial statements, no significant changes have occurred.

ITEM 9.

THE OFFER AND LISTING

9.A. Offer and Listing Details

The following table lists the high and low prices for our common shares on the Toronto Stock Exchange for the last six months, fiscal quarters for the last two completed fiscal years, and the last five fiscal year ends. Our common shares have traded on the Toronto Stock Exchange since May 12, 2008 and were traded on the TSX Venture Exchange before that date.

Period	High	Low
July 1-19, 2012	$0.23	$0.175
Month ended June 30, 2012	$0.38	$0.18
Month ended May 31, 2012	$0.45	$0.33
Month ended April 30, 2012	$0.48	$0.37
Month ended March 31, 2012	$0.64	$0.48
Month ended February 28, 2012	$0.69	$0.48
Month ended January 31, 2012	$0.54	$0.35

Fiscal quarter ended April 30, 2012	$0.69	$0.37
Fiscal quarter ended January 31, 2012	$0.55	$0.35
Fiscal quarter ended October 31, 2011	$0.79	$0.36
Fiscal quarter ended July 31, 2011	$0.99	$0.62
Fiscal quarter ended April 30, 2011	$2.68	$0.76
Fiscal quarter ended January 31, 2011	$2.80	$0.76
Fiscal quarter ended October 31, 2010	$1.00	$0.52
Fiscal quarter ended July 31, 2010	$0.78	$0.42

Fiscal year ended April 30, 2012	$0.99	$0.35
Fiscal year ended April 30, 2011	$2.80	$0.42
Fiscal year ended April 30, 2010	$1.44	$0.68
Fiscal year ended April 30, 2009	$3.96	$0.40
Fiscal year ended April 30, 2008	$12.72	$2.56

Our common shares began trading on the American Stock Exchange (now NYSE MKT) on May 7, 2007. The following table lists the high and low prices for our common shares on NYSE MKT for the last six months, fiscal quarters for the last two completed fiscal years, and the last three fiscal years.

Period	High	Low
July 1 - 19, 2012	$0.26	$0.175
Month ended June 30, 2012	$0.37	$0.173
Month ended May 31, 2012	$0.46	$0.322
Month ended April 30, 2012	$0.5099	$0.3801
Month ended March 31, 2012	$0.672	$0.48
Month ended February 28, 2012	$0.73	$0.49
Month ended January 31, 2012	$0.55	$0.3428

Fiscal quarter ended April 30, 2012	$0.69	$0.3811
Fiscal quarter ended January 31, 2012	$0.54	$0.341
Fiscal quarter ended October 31, 2011	$0.8203	$0.33
Fiscal quarter ended July 31, 2011	$1.01	$0.63
Fiscal quarter ended April 30, 2011	$2.71	$0.79
Fiscal quarter ended January 31, 2011	$2.81	$0.76
Fiscal quarter ended October 31, 2010	$1.00	$0.48
Fiscal quarter ended July 31, 2010	$0.76	$0.40

Fiscal Year ended April 30, 2012	$0.95	$0.33
Fiscal Year ended April 30, 2011	$2.81	$0.40
Fiscal Year ended April 30, 2010	$1.28	$0.56
Fiscal Year ended April 30, 2009	$3.52	$0.28
Fiscal Year ended April 30, 2008*	$12.60	$2.52

*from May 7, 2007 to April 30, 2008

9.B. Plan of Distribution

Not applicable

9.C. Markets

Our common shares are listed on NYSE MKT under the trading symbol “CXZ”. Our common shares are also listed on the Toronto Stock Exchange under the trading symbol “CXX”. There are currently no restrictions on the transferability of these shares under Canadian securities laws.

9.D. Selling Shareholders

Not applicable

9.E. Dilution

Not applicable

9.F. Expenses of the Issue

Not applicable

ITEM 10.

ADDITIONAL INFORMATION

10.A. Share Capital

Not applicable

10.B. Memorandum and Articles of Association

This information is incorporated by reference to our Form 20-F Registration Statement, “Item 10. Additional Information—Memorandum and Articles of Association” as filed on April 25, 2006.

10.C. Material Contracts

We have entered into the following material contracts during the two years immediately preceding the date of this annual report and which are currently in effect:

On April 27, 2010, we entered into a Settlement Agreement and Mutual Release with Expedition to settle all outstanding litigation between Crosshair and Expedition. See Item 8.A. Consolidated Statements and Other Financial Information – Legal/Arbitration Proceedings for more description of the Settlement Agreement and Mutual Release.

On April 27, 2010, we entered into a voting trust agreement with Expedition (the “2010 Voting Trust Agreement”). Pursuant to the 2010 Voting Trust Agreement, Crosshair will either abstain from voting its shares in Expedition or vote those shares in favor of Expedition management’s proposals for a period of thirty-six months. See Item 8.A. Consolidated Statements and Other Financial Information – Legal/Arbitration Proceedings for more description of the 2010 Voting Trust Agreement.

On October 1, 2010, we entered into a Management Services Agreement with Forbes West, a company controlled by Mark J. Morabito, whereby we engage Forbes West to provide shared office/administration and payroll services to the Company and the previous Management Services Agreement dated January 1, 2010 between the Company and Forbes West was terminated. See Item 7.B – Related Party Transactions and Exhibit 4.9 for a description of this agreement.

On March 1, 2011, we entered into a consulting agreement with MJM Consulting (“MJM”) and Mark J. Morabito whereby we engage MJM to provide the services of Mark J. Morabito to act as Executive Chairman of the Company and to provide such general management consulting services as the Company may require from time to time. See Item 6.B. Compensation – Compensation of Executive Officers and Directors – Employment and Consulting Agreements for a description of this agreement.

On March 1, 2011, we entered into a consulting agreement with Sundance Geological Ltd. (“Sundance”) and C. Stewart Wallis whereby we engage Sundance to provide the services of C. Stewart Wallis to act as President and Chief Executive Officer of the Company and to provide general management and geological consulting services to the Company. See Item 6.B. Compensation – Compensation of Executive Officers and Directors – Employment and Consulting Agreements for a description of this agreement. On April 30, 2012, Mr. Wallis resigned as President and Chief Executive Officer of the Company and the consulting agreement was terminated.

On October 29, 2010 we entered into the Juniper Ridge Agreement between Strathmore Resources (US) Ltd., Strathmore Minerals Corp., the Company and 448108 Exploration, Inc. a wholly-owned subsidiary of Crosshair’s subsidiary Target Exploration & Mining Corp., pursuant to which we may earn a 100% interest in the Juniper Ridge Property in the State of Wyoming. See Item 4.A. History and Development of the Company – Property Acquisitions.

On November 23, 2010, we entered into an Agency Agreement with BayFront Capital Partners Ltd. (“BayFront”) agreed to act as agent with respect to the private placement of 3,750,000 Flow-Through Units (“FT Units”) to accredited investors in Canada for gross proceeds of $3,000,000, and 10,000,000 Subscription Receipts (“Subscription Receipts”) to accredited investors in Canada and the United States for gross proceeds of $7,000,000. Each FT Unit was comprised of one “flow-through common share” as defined in the Income Tax Act (Canada) and one-half of one common share purchase warrant (“FT Warrant”). Each FT Warrant is exercisable to acquire one non-flow through common share at an exercise price of $1.25 for a period of 24 months following closing of the private placement. Each Subscription Receipt was convertible into one non flow-through unit (“HD Unit”) comprised of one common share and one common share purchase warrant (“HD Warrant”), with each HD Warrant exercisable to acquire one common share at an exercise price of $1.00 for a period of 24 months following closing of the private placement. The Agency Agreement is referenced as Exhibit 4.24 hereto.

On November 23, 2010, we entered into a Subscription Receipt Agreement with BayFront Capital Partners Ltd. and Computershare Trust Company of Canada (“Computershare”) pursuant to which Computershare agreed to act as Subscription Receipt Agent with respect to the Subscription Receipt private placement described in paragraph 7 above. Following shareholder approval for the Subscription Receipt private placement at our annual general meeting held on December 15, 2010, the Subscription Receipts were converted to HD Units. The Subscription Receipt Agreement referenced as Exhibit 4.25 hereto.

On November 23, 2010, we entered into a Warrant Indenture with Computershare pursuant to which Computershare agreed to act as Warrant Agent with respect to the FT Warrants, HD Warrants and 1,375,000 Agent’s Warrants issued to BayFront as agent pursuant to the Agency Agreement described in paragraph 7 above. The Warrant Indenture is referenced as Exhibit 4.26 hereto.

10.

On December 5, 2011, we entered into a co-ownership agreement (the “Moran Lake Co-Ownership Agreement”) with Lewis Murphy which agreement amends, clarifies, confirms and replaces the contractual relationship created between the parties further to the Original Moran Lake Agreement, the Amended and Restated Moran Lake and the Letter Agreement with respect to the CMB Property in Newfoundland and Labrador. See Item 4.D. Property, Plant and Equipment –Labrador – Central Mineral Belt. A copy of the Moran Lake Co-Ownership Agreement is attached as Exhibit 4.27 hereto.

11.

On February 27, 2012, we entered into a Subscription Receipt Agreement with Computershare pursuant to which Computershare agreed to act as Subscription Receipt Agent with respect to a private placement of 11,897,000 Subscription Receipts (“Subscription Receipts”) to accredited investors in Canada and the United States for gross proceeds of $4,758,800. Each Subscription Receipt was convertible into one unit (“HD Unit”) comprised of one common share and one-half of one common share purchase warrant (“HD Warrant”), with each whole HD Warrant exercisable to acquire one common share at an exercise price of $0.70 for a period of 24 months following closing of the private placement. Following shareholder approval for the Subscription Receipt private placement at our special meeting held on March 14, 2012, the Subscription Receipts were converted to HD Units. The Subscription Receipt Agreement is referenced as Exhibit 4.28 hereto.

12.

On February 27, 2012, we entered into a Warrant Indenture with Computershare pursuant to which Computershare agreed to act as Warrant Agent with respect to the HD Warrants described in paragraph 12 above, and 2,241,200 flow-through warrants (“FT Warrants”) issued to accredited investors in Canada pursuant to a private placement of flow-through units (“FT Units”) for gross proceeds of $2,241,200. Each FT Unit comprised one flow-through common share and one-half of one FT Warrant, with each FT Warrant exercisable to acquire one non flow-through common share at an exercise price of $0.70 for a period of 24 months following closing of the flow-through private placement. The Warrant Indenture is referenced as Exhibit 4.29 hereto.

10.D. Exchange Controls

Canada has no system of exchange controls. There are no Canadian restrictions on the repatriation of capital or earnings of a Canadian public company to non-resident investors. There are no laws in Canada or exchange restrictions affecting the remittance of dividends, profits, interest, royalties and other payments to non-resident holders of our securities, except as discussed in “10.E. Taxation” below.

There are no limitations under the laws of Canada or in our organizing documents on the right of foreigners to hold or vote our securities, except that the Investment Canada Act may require review and approval by the Minister of Industry (Canada) of certain acquisitions of " control " of us by a " non-Canadian ". The threshold for acquisitions of control is generally defined as being one-third or more of the voting shares of our company. " Non-Canadian "

generally means an individual who is not a Canadian citizen, or a corporation, partnership, trust or joint venture that is ultimately controlled by non-Canadians.

10.E. Taxation

Certain Canadian Federal Income Tax Consequences

The discussion under this heading summarizes the principal Canadian federal income tax consequences of acquiring, holding and disposing of shares of our common stock for a shareholder who at all relevant times, for the purposes of the Income Tax Act (Canada) (the “ Canadian Tax Act ”) and the Canada-United States Tax Convention (1980), as amended (the "Convention") (i) is not resident or deemed to be resident in Canada nor has not been or deemed to have been a resident in Canada, but is a resident of the U.S., (ii) is a "qualifying person" for the purposes of the Convention, (iii) deals at arm's length and is not affiliated with us, and (iv) will acquire and hold our common shares as capital property for the purposes of the Canadian Tax Act . Generally, our common shares will be considered to be capital property to the shareholder provided the shareholder does not hold the common shares in the course of carrying on a business of trading or dealing in securities and has not acquired them in one or more transactions considered to be an adventure or concern in the nature of trade.

This summary does not apply to a shareholder who uses or holds, or is deemed to use or hold, its shares in our Company in connection with carrying on a business in Canada, or to a shareholder that is either an insurer carrying on business in Canada and elsewhere or an “authorized foreign bank” as defined in the Canadian Tax Act . This summary is based on the current provisions of the Canadian Tax Act , the regulations thereunder in force as of the date hereof (the “Regulations”), all proposals to amend the Canadian Tax Act or the Regulations publicly announced by the federal Minister of Finance (Canada) prior to the date hereof (the “Tax Proposals”), and an understanding of the current published administrative practices of the Canada Revenue Agency.

This summary is not exhaustive of all Canadian federal income tax considerations applicable to a shareholder of our company and, except for the Tax Proposals, this summary does not take into account or anticipate any changes in the Canadian Tax Act , the Regulations or the administrative or assessing policies of the Canada Revenue Agency, whether by legislative, governmental or judicial decisions or action, nor does this summary take into account provincial, territorial or other foreign tax legislation or considerations, which may differ significantly from those discussed herein. There can be no assurance that the Tax Proposals will be enacted in the form proposed, or at all.

This summary is of a general nature only and is not intended to be, nor should it be considered to be, legal or tax advice to any particular shareholder. The tax consequences to any particular shareholder will depend on a variety of factors including the shareholder’s own particular circumstances. Therefore, all shareholders should consult their own tax advisors with respect to their own particular circumstances.

The provisions of the Canadian Tax Act are subject to income tax treaties to which Canada is a party, including the Convention.

Dividends on Common Shares

Under the Canadian Tax Act , a non-resident of Canada is generally subject to Canadian withholding tax at the rate of 25% on dividends paid (including dividends deemed to have been paid) or credited to him or her by a corporation resident in Canada. We are responsible for withholding this tax at the source. The Convention generally limits the rate of withholding tax on dividends to 15% of the gross amount of such dividends paid to shareholders or, if the shareholder is a company that beneficially owns at least 10% of the voting stock of the payor corporation, 5% of the gross amount of the dividends.

The Convention generally exempts from Canadian income tax dividends paid to a religious, scientific, literary, educational or charitable organization or to an organization constituted and operated exclusively to administer a pension, retirement or employee benefit fund or plan, if the organization is a resident of the U.S. and is exempt from income tax under the laws of the U.S.

Dispositions of Common Shares

Under the Canadian Tax Act , a taxpayer’s capital gain or capital loss from a disposition of a share of our common shares is the amount, if any, by which his or her proceeds of disposition exceed (or are exceeded by, respectively) the aggregate of his or her adjusted cost base of the share and reasonable expenses of disposition. The capital gain or loss must be computed in Canadian currency using a weighted average adjusted cost base for identical properties. One half of capital gains net of one half of any capital losses are included in income. The amount by which a shareholder’s capital loss exceeds the capital gain in a year may be deducted from a capital gain realized by the shareholder in the three previous years or any subsequent year, subject to certain restrictions in the case of a corporate shareholder.

Under the Canadian Tax Act , a non-resident of Canada is subject to Canadian tax on taxable capital gains, and may deduct allowable capital losses, realized on a disposition of “taxable Canadian property.” Shares of our common stock will constitute taxable Canadian property of a shareholder at a particular time the common shares listed on a “designated stock exchange” (which includes the TSX and NYSE MKT) and if at any time in the five years immediately preceding the disposition (i) 25% or more of the issued shares of any class or series in our capital stock were owned by a shareholder, persons with whom the shareholder did not deal at arm's length or the shareholder together with all such persons and (ii) more than 50% of the fair market value of the common shares was derived, directly or indirectly, from one or any combination of real or immovable property situated in Canada, Canadian resource properties, timber resource properties or options in respect of, or interests in, or for civil law rights in, such properties. Common shares used in carrying on business in Canada and acquired in certain circumstances will also constitute taxable Canadian property.

The Convention generally relieves U.S. residents who qualify for benefit thereunder from liability for Canadian tax on capital gains derived on a disposition of shares unless the value of the shares is derived principally from real property situated in Canada, including the right to explore for or exploit natural resources and rights to amounts computed by reference to production.

Shareholders should consult their own advisors with respect to the application of the Convention.

Material U.S. Federal Income Tax Consequences

U.S. Federal Income Tax Consequences

The following is a discussion of material U.S. federal income tax consequences generally applicable to a U.S. Holder (as hereinafter defined) of our common shares under current law. This discussion does not address all potentially relevant federal income tax matters and it does not address consequences peculiar to persons subject to special provisions of federal income tax law, such as those described below as excluded from the definition of a U.S. Holder. In addition, this discussion does not cover any state, local or foreign tax consequences. Accordingly, holders and prospective holders of our common shares are urged to consult their own tax advisors about the specific federal, state, local, and foreign tax consequences to them of purchasing, owning and disposing of our common shares, based upon their individual circumstances.

The following discussion is based upon the Code, Treasury Regulations, published Internal Revenue Service (“IRS”) rulings, published administrative positions of the IRS and court decisions that are currently applicable, any or all of which could be materially and adversely changed, possibly on a retroactive basis, at any time and which are subject to differing interpretations. This discussion does not consider the potential effects, both adverse and beneficial, of any proposed legislation which, if enacted, could be applied, possibly on a retroactive basis, at any time.

U.S. Holders

As used in this annual report, a “ U.S. Holder ” means a holder of our common shares who is a citizen or individual resident of the United States, a corporation created or organized in or under the laws of the United States or of any political subdivision thereof or an entity created or organized in or under the laws of the United States or of any

political subdivision thereof which has elected to be treated as a corporation for U.S. federal income tax purposes (under Treasury Regulation Section 301.7701-3), an estate whose income is taxable in the U.S. irrespective of source or a trust subject to the primary supervision of a court within the U.S. and control of a U.S. fiduciary as described in Section 7701(a)(30) of the Code. This summary does not address the tax consequences to, and the term U.S. Holder does not include, persons subject to specific provisions of federal income tax law, such as tax-exempt organizations, qualified retirement plans, individual retirement accounts and other tax-deferred accounts, financial institutions, insurance companies, real estate investment trusts, regulated investment companies, broker-dealers, non-resident alien individuals, persons or entities that have a “ functional currency ” other than the U.S. dollar, shareholders subject to the alternative minimum tax, shareholders who hold common shares as part of a straddle, hedging or conversion transaction, and shareholders who acquired their common shares through the exercise of employee stock options or otherwise as compensation for services. This summary is limited to U.S. Holders who own common shares as capital assets, within the meaning of Section 1221 of the Code, and who own (directly and indirectly, pursuant to applicable rules of constructive ownership) no more than 5% of the value of our total outstanding stock. This summary does not address the consequences to a person or entity holding an interest in a shareholder or the consequences to a person of the ownership, exercise or disposition of any options, warrants or other rights to acquire common shares. In addition, this summary does not address special rules applicable to U.S. persons (as defined in Section 7701(a)(30) of the Code) holding common shares through a foreign partnership or to foreign persons holding common shares through a domestic partnership.

Distributions on Our Common Shares

Subject to the PFIC and CFC rules discussed below, in general U.S. Holders receiving dividend distributions (including constructive dividends) with respect to our common shares are required to include in gross income for U.S. federal income tax purposes the gross amount of such distributions (without reduction of any Canadian income or other tax withheld from such distributions), equal to the U.S. dollar value of such distributions on the date of receipt (based on the exchange rate on such date), to the extent that we have current or accumulated earnings and profits. To the extent that distributions exceed our current or accumulated earnings and profits, they will be treated first as a return of capital up to the U.S. Holder’s adjusted tax basis in the common shares and thereafter as gain from the sale or exchange of property. Any Canadian or other non-U.S. tax withheld may be credited, subject to certain limitations, against the U.S. Holder’s federal income tax liability or, alternatively, may be deducted in computing the U.S. Holder’s federal taxable income by those who itemize deductions (See more detailed discussion at “ Foreign Tax Credit ” below). If we are not a PFIC, dividends received from us by a non-corporate U.S. Holder during taxable years beginning before January 1, 2013, generally will be taxed at a maximum rate of 15% provided that such U.S. Holder has held the shares for more than 60 days during the 120-day period beginning 60 days before the ex-dividend date and that certain other conditions are met (“qualified dividend income”). For this purpose, dividends will include any distribution paid by us with respect to our common shares but only to the extent such distribution is not in excess of our current and accumulated earnings and profits, as determined under U.S. Federal income tax principles. Qualified dividend income ” generally includes dividends paid on stock in U.S. corporations as well as dividends paid on stock in certain non-U.S. corporations that are not classified as PFICs if, among other things, (i) the shares of the non-U.S. corporation (including ADRs backed by such shares) are readily tradable on an established securities market in the U.S., or (ii) the non-U.S. corporation is eligible with respect to substantially all of its income for the benefits of a comprehensive income tax treaty with the U.S. which contains an exchange of information program. We currently anticipate that if we were to pay any dividends with respect to our shares when we have current or accumulated earnings and profits and if we are not a PFIC for such tax year, then to the extent of such earnings and profits the dividends should constitute “ qualified dividend income ” for U.S. federal income tax purposes and that non-corporate U.S. Holders should be entitled to the reduced rates of tax, as applicable.

In the case of foreign currency received as a dividend that is not converted by the recipient into U.S. dollars on the date of receipt, a U.S. Holder will have a tax basis in the foreign currency equal to its U.S. dollar value on the date of receipt. Generally any gain or loss recognized upon a subsequent sale or other disposition of the foreign currency, including the exchange for U.S. dollars, will be ordinary income or loss.

Dividends paid on our common shares will not generally be eligible for the dividends received deduction provided to corporations receiving dividends from certain United States corporations. The availability of this deduction is subject to several complex limitations that are beyond the scope of this discussion.

Disposition of Our Common Shares

Subject to the PFIC and CFC rules described below in general U.S. Holders will recognize gain or loss upon the sale of our common shares equal to the difference, if any, between (i) the amount of cash plus the fair market value of any property received, and (ii) the shareholder’s adjusted tax basis in our common shares. Subject to the PFIC and CFC rules described below, preferential tax rates apply to long-term capital gains of U.S. Holders that are individuals, estates or trusts. In general, gain or loss on the sale of our common shares will be long-term capital gain or loss if our common shares are a capital asset in the hands of the U.S. Holder and are held for more than one year. Deductions for net capital losses are subject to significant limitations.

Passive Foreign Investment Company

We have not determined whether we meet the definition of a PFIC, within the meaning of Sections 1291 through 1298 of the Code, for the current tax year or for any prior tax year. We may or may not be classified as a PFIC in subsequent years due to changes in our assets and business operations. A U.S. Holder who holds stock in a non-U.S. corporation during any year in which such corporation qualifies as a PFIC is subject to numerous special U.S. federal income taxation rules. The following is a general discussion of these special rules as they apply to U.S. Holders of our common shares.

Section 1297 of the Code defines a PFIC as a corporation that is not formed in the U.S. if, for any taxable year, either (i) 75% or more of its gross income is “ passive income ,” which includes interest, dividends and certain rents and royalties or (ii) the average percentage, of its assets that produce or are held for the production of passive income is 50% or more. The IRS has indicated in published positions that it considers working capital and cash held in reserve to be passive assets that produce passive income.

U.S. Holders owning shares of a PFIC are subject to a special tax and to an interest charge based on the value of deferral of U.S. tax attributable to undistributed earnings of a PFIC for the period during which the shares of the PFIC are owned. This special tax would apply to any gain realized on the disposition of shares of a PFIC. In addition, the gain is subject to U.S. federal income tax as ordinary income and taxed at top marginal rates, rather than as capital gain income. The special tax would also apply on receipt of “excess distributions” (any distributions received in the current year that are in excess of 125% of the average distributions received during the 3 preceding years or, if shorter, the shareholder’s holding period). However, if the U.S. Holder makes a timely election to treat a PFIC as a qualified electing fund (“QEF”) with respect to such shareholder’s interest therein, the above-described rules generally will not apply. Instead, the electing U.S. Holder would include annually in his gross income his pro rata share of the PFIC’s ordinary earnings and any net capital gain regardless of whether such income or gain was actually distributed. Special rules apply to U.S. Holders who own their interests in a PFIC through intermediate entities or persons. Generally, however, a QEF Election is not effective unless shareholders have sufficient information to determine their proportionate share of a corporation’s net capital gain and ordinary earnings and to comply with certain other requirements. We have not calculated these amounts for any shareholder, and do not anticipate making these calculations in the foreseeable future or providing information required under the QEF rules. Therefore, U.S. Holders of our common shares should consult their own financial advisor, legal counsel or accountant regarding the QEF election before making this election.

U.S. Holders who hold, actually or constructively, marketable stock of a foreign corporation that qualifies as a PFIC may elect to mark such stock to the market (a “mark-to-market election”). If such an election is made, such U.S. Holder will not be subject to the PFIC special taxation rules described above for the taxable years for which the mark-to-market election is made. A U.S. Holder who makes such an election will include in income for the taxable year an amount equal to the excess, if any, of the fair market value of our common shares as of the close of such tax year over such U.S. Holder’s adjusted tax basis in such shares. In addition, the U.S. Holder is allowed a deduction for the lesser of (i) the excess, if any, of such U.S. Holder’s adjusted tax basis in the shares over the fair market value of such shares as of the close of the tax year, or (ii) the excess, if any of (A) the mark-to-market gains

included by such U.S. Holder for prior tax years, including any amount which would have been included for any prior year but for the special PFIC rules discussed above with respect to a U.S. Holder who has not made a timely QEF election during the year in which he holds (or is deemed to have held) our common shares and the Company is a PFIC, over (B) the mark-to-market losses that were allowed as deductions for prior tax years. A U.S. Holder’s adjusted tax basis in our common shares will be increased or decreased to reflect the amount included or deducted as a result of the mark-to-market election. A mark-to-market election will apply to the tax year for which the election is made and to all later tax years, unless the PFIC stock ceases to be marketable or the IRS consents to the revocation of the election.

The IRS has issued proposed regulations that, subject to certain exceptions, would impose U.S. federal income tax on certain transfers of PFIC stock by a U.S. Holder that are generally not otherwise subject to income tax, such as gifts, exchanges pursuant to corporate reorganizations, and transfers at death. The transferee’s basis will depend on the manner of the transfer. The specific tax effect to the U.S. Holder and the transferee may vary based on the manner in which the common shares are transferred.

The PFIC rules are very complex and fact-specific. U.S. Holders should consult a tax advisor regarding the potential application of the PFIC rules to his, her or its specific situation.

Controlled Foreign Corporation

If more than 50% of the total combined voting power of all classes of shares entitled to vote or the total value of our common shares is owned, actually or constructively, by citizens or residents of the United States, U.S. domestic partnerships or corporations, or estates or trusts other than foreign estates or trusts (as defined by Code Section 7701(a)(31)), each of which owns, actually or constructively, 10% or more of our total combined voting power of all classes of shares entitled to vote (“U.S. Shareholder”), we would be treated as a controlled foreign corporation (“CFC”) under Subpart F of the Code. This classification would result in numerous complexities and potentially adverse U.S. tax consequences for a U.S. Holder, one of which is the inclusion by the U.S. shareholders of certain income of a CFC which is subject to current U.S. tax. Such U.S. Shareholders are generally treated as having received a current distribution out of the CFC’s Subpart F income (regardless of whether we make an actual distribution) and are also subject to current U.S. tax on their pro rata shares of increases in the CFC’s earnings invested in U.S. property. Because of the complexity of Subpart F, a more detailed review of these rules is outside of the scope of this discussion. We do not believe that we currently are classified as a CFC. However, there can be no assurance that we will not be considered a CFC for the current or any future taxable year.

Foreign Tax Credit.

A U.S. Holder who pays (or has withheld from distributions) Canadian or other foreign income tax with respect to the ownership of our common shares may be entitled, at the option of the U.S. Holder, to either receive a deduction or a tax credit for U.S. federal income tax purposes with respect to such foreign tax paid or withheld. There are significant and complex limitations that apply to the foreign tax credit, among which is the general limitation that the credit cannot exceed the proportionate share of the U.S. Holder’s U.S. income tax liability that the U.S. Holder’s "foreign source" income bears to his, her or its worldwide taxable income. In applying this limitation, the various items of income and deduction must be classified as either "foreign source" or "U.S. source." Complex rules govern this classification process.

In addition, U.S. Holders that are corporations and that own 10% or more of our voting stock may be entitled to an "indirect" foreign tax credit under Section 902 of the Code with respect to the payment of dividends by us under certain circumstances, subject to complex rules and limitations. The availability of the foreign tax credit and the application of the limitations with respect to the foreign tax credit are fact-specific, and each U.S. Holder of our common shares should consult his, her or its own financial advisor, legal counsel or accountant regarding the foreign tax credit rules.

Information Reporting; Backup Withholding.

Certain information reporting and backup withholding rules may apply with respect to certain payments related to our common shares. In particular, a payor or middleman within the U.S., or in certain cases outside the U.S., will be required to undertake backup withholding at a current rate of 28% (which rate is scheduled for periodic adjustment) of any payments to a U.S. Holder by the Company, if a U.S. Holder fails to furnish its correct taxpayer identification number (generally on Form W-9) or otherwise fails to comply with, or establish an exemption from, the backup withholding tax requirements. Any amounts withheld under the U.S. backup withholding tax rules will be allowed as a refund or a credit against the U.S. Holder’s U.S. federal income tax liability, provided the required information is furnished to the IRS. U.S. U.S. Holders should consult their own financial advisor, legal counsel or accountant regarding the information reporting and backup withholding rules applicable to our common shares.

Recent Legislative Developments

Recent U.S. legislation requires certain U.S. Holders that are individuals, estates or trusts to pay up to an additional 3.8% tax on, among other things, dividends and capital gains for taxable years beginning after December 31, 2012. In addition, the Company may require U.S. Holders to provide certain tax and reporting information necessary for the Company to comply with new IRS reporting obligations. If a U.S. Holder does not provide such information, the U.S. Holder will generally be subject to U.S. withholding tax on payments made by the Company after January 1, 2013 in accordance with this new legislation.

10.F. Dividends and Paying Agents

Not applicable

10.G. Statement by Experts

Not applicable

10.H. Documents on Display

Material contracts and publicly available corporate records may be viewed at our registered and records office located at Suite 1240, 1140 West Pender Street, Vancouver, British Columbia.

We are a reporting company under the Exchange Act and a “ foreign private issuer ” as defined in the Exchange Act. A foreign private issuer is exempt from the provisions of the Exchange Act which prescribe the furnishing and content of proxy statements to shareholders and relating to short swing profits reporting and liability. Readers may review a copy of our filings with the SEC, including exhibits and schedules filed with it, at the public reference facilities maintained by the Securities and Exchange Commission at 100 F Street N.E., Washington, D.C. 20549. Copies of such material may also be obtained from the Public Reference Section of the Securities and Exchange Commission at 100 F Street, NE, Washington, D.C. 20549, at prescribed rates. Information may be obtained regarding the Washington D.C. Public Reference Room by calling the Securities and Exchange Commission at 1-800-SEC-0330 or by contacting the Securities and Exchange Commission over the Internet at its website at http://www.sec.gov .

ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Currency Exchange Rate Sensitivity

The results of our operations are subject to currency translation risk and currency transaction risk. Regarding currency translation risk, our operating results and financial position are reported in Canadian dollars in our consolidated financial statements. We incur certain costs in US dollars. The fluctuation of the US dollar in relation to the Canadian dollar will therefore have an impact upon our profitability and may also affect the value of our assets and the amount of shareholders’ equity.

In regards to transaction risk, our functional currency is the Canadian dollar and our activities are predominantly executed using the Canadian dollar. We incur a relatively small portion of our expenses in U.S. dollars. To date, we have completed all of our equity financing in Canadian dollars. We have not entered into any agreements or purchased any instruments to hedge any possible currency risks at this time due to the small amount of exposure.

Interest Rate Sensitivity

We currently have no short term or long term debt requiring interest payments. As a result, we have not entered into any agreement or purchased any instrument to hedge against possible interest rate risks at this time.

Commodity Price Sensitivity

Our future revenue and profitability will be dependent, to a significant extent, upon prevailing spot market prices for metals. In the past metal prices have been volatile. Prices are subject to wide fluctuations in response to changes in supply of and demand for metals, market uncertainty and a variety of additional factors that are beyond our control. Our mineral properties are in the exploration phase and accordingly we are not generating any operating revenues and are therefore not subject to any short term volatility in the prices of metals. As we are in the exploration phase, the above factors have had no material impact on operations or income. We have not entered into any futures or forward contracts.

ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable

PART II

ITEM 13.

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable

ITEM 14.

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable

ITEM 15.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

At the end of the period covered by this report, an evaluation of the effectiveness of the design and operations of our “disclosure controls and procedures” (as such term is defined in Rule 13a-15(e) of the Exchange Act) was carried out by our principal executive officer and principal financial officer. Based upon that evaluation, our principal executive officer and principal financial officer have concluded as of the end of the period covered by this report that the design and operation of our disclosure controls and procedures are effective at the reasonable assurance level to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosures.

Notwithstanding the foregoing, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that our disclosure controls and procedures will detect or uncover every situation involving the failure of persons within our company and our subsidiaries to disclose material information otherwise required to be set forth in our periodic reports. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objective of ensuring that information required to be disclosed in the reports that we file or submit under the Exchange Act is communicated to management to allow timely decisions regarding required disclosure.

Management Report on Internal Control Over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Management conducted an evaluation of the effectiveness of company level internal controls over financial reporting on a risk based approach using elements of the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on management’s assessment and those criteria, management believes that the internal control over financial reporting as of April 30, 2012 was effective.

Management’s internal control report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management’s report.

Changes in Internal Control Over Financial Reporting

Other than those described elsewhere in this Form 20-F, there was no change in our internal control over financial reporting that occurred during our most recently completed fiscal year ended April 30, 2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Nor were there any significant deficiencies or material weaknesses in our internal controls requiring corrective actions.

ITEM 16A.

AUDIT COMMITTEE FINANCIAL EXPERT

Our Board of Directors has determined that Derrick Gill, a member of the Company’s Audit Committee, qualifies as an “ audit committee financial expert ” as defined in Item 16A(b) of Form 20-F.

Our Board of Directors has determined that Mr. Gill is an independent director in accordance with the definition set forth in Section 803 of the NYSE MKT Company Guide.

ITEM 16B.

CODE OF ETHICS

We have adopted a code of ethics that applies to our chief executive officer, the chief financial officer, and other members of senior management. As adopted, the Code of Ethics sets forth standards that are designed to prevent wrongdoing and to promote:

honesty and integrity, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

full, fair, accurate, timely and understandable disclosure in reports and documents that we file with, or submit to, the SEC and in other public communications made by us;

compliance with applicable governmental laws, rules and regulations;

protection of and respect for the confidentiality of information acquired in the course of work;

responsible use of and control over assets and resources;

the prompt internal reporting of violations of the Code of Ethics to an appropriate person or persons identified in the Code of Ethics; and

accountability for adherence to the Code of Ethics.

ITEM 16C.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Our Board of Directors appointed Davidson & Company as independent auditors to audit our financial statements for the fiscal year ended April 30, 2012. The aggregate fees billed for professional services rendered by the aforementioned independent auditor in their capacity as our principal accountant during the last fiscal year is set forth below. Our Audit Committee pre-approved all of the following amounts billed to us prior to incurring the expenses associated therewith.

Financial Year Ending	Audit Fees 1	Audit Related Fees 2	Tax Fees 3	All Other Fees 4
2012/04/30	$49,000	$31,590	$6,250	$Nil
2011/04/30	$48,000	$20,485	$1,650	$Nil

1 The aggregate fees billed for professional services rendered by our principal accountants for the audit of our annual financial statements and other fees that are normally provided by our principal accountant in connection with our audits.

2 The aggregate fees billed for assurance and related services by our principal accountant that are reasonably related to the performance of the audit or review of our financial statements.

3 The aggregate fees billed for professional services rendered by our principal accountant for tax compliance, tax advice and tax planning.

4 Other fees billed by our principal accountant included general review of certain company documentation, such as our Form 20-F registration filing.

Pre-Approval Policies and Procedures:

All services to be performed by our auditor must be approved in advance by the Audit Committee. The Audit Committee has considered whether the provision of services other than audit services is compatible with maintaining the auditors’ independence and has adopted a policy governing the provision of these services. This policy requires the pre-approval by the Audit Committee of all audit and non-audit services provided by the external auditor, other than any de minimis non-audit services allowed by applicable law or regulation.

Pre-approval from the Audit Committee can be sought for planned engagements based on budgeted or committed fees. No further approval is required to pay pre-approved fees. Additional pre-approval is required for any increase in scope or in final fees.

Of the total aggregate fees paid by the Company to its accountants during the fiscal year ended April 30, 2012, $nil, or 0% of the aggregate fees, were approved by the Audit Committee pursuant to the de minimis exception provided by Section (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

ITEM 16D.

EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

Not applicable

ITEM 16E.

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Not applicable

ITEM 16F.

CHANGES IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable

ITEM 16G.

CORPORATE GOVERNANCE

Our common shares are listed on NYSE MKT. Section 110 of the NYSE MKT Company Guide permits NYSE MKT to consider the laws, customs and practices of the foreign issuer’s country of domicile in relaxing certain NYSE MKT listing criteria, and to grant exemptions from NYSE MKT listing criteria based on these considerations. A corporation seeking relief under these provisions is required to provide written certification from independent local counsel that the non-complying practice is not prohibited by home country law. Significant ways in which our corporate governance practices differ from the NYSE MKT standards followed by domestic companies include a reduced quorum requirement for shareholder meetings (two shareholders holding at least 5% of the shares entitled to be voted versus one-third of the outstanding shares under NYSE MKT standards), no

requirement for shareholder approval of material amendments to outstanding stock options (required under NYSE MKT standards), and a higher threshold requirement for obtaining shareholder approval of large issuances of common shares (required when the issuance could result in a 25% increase in the number of outstanding common shares, as opposed to 20% under NYSE MKT standards).

PART III

ITEM 17.

FINANCIAL STATEMENTS

See “Item 18 – Financial Statements”.

ITEM 18. FINANCIAL STATEMENTS

Our financial statements are stated in Canadian Dollars and are prepared in accordance with International Financial Reporting Standards (“IFRS”), the application of which, in our case, conforms in all material respects for the periods presented with United States GAAP.

Auditors’ Report dated July 19, 2011

Consolidated Statements of Financial Position at April 30, 2012 and 2011

Consolidated Statements of Operations and Comprehensive Loss for the years ended

April 30, 2012 and 2011

Consolidated Statements of Cash Flows for the years ended

April 30, 2012 and 2011

Consolidated Statements of Changes in Equity for the years ended

April 30, 2012 and 2011

Notes to the Consolidated Financial Statements for the year ended

April 30, 2012

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration& Mining Corp.)

CONSOLIDATED FINANCIAL STATEMENTS

APRIL 30, 2012

(Expressed in Canadian Dollars)

INDEPENDENT AUDITORS' REPORT

To the Shareholders of

Crosshair Energy Corporation

(formerly Crosshair Exploration & Mining Corp.)

We have audited the accompanying consolidated financial statements of Crosshair Energy Corporation (formerly Crosshair Exploration & Mining Corp.), which comprise the consolidated statements of financial position as at April 30, 2012, April 30, 2011 and May 1, 2010 and the consolidated statements of operations and comprehensive loss, cash flows and changes in equity for the years ended April 30, 2012 and April 30, 2011, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and with standards of the Public Accounting Oversight Board (United States). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of Crosshair Energy Corporation (formerly Crosshair Exploration & Mining Corp.) as at April 30, 2012, April 30, 2011 and May 1, 2010 and its financial performance and its cash flows for the years ended April 30, 2012 and April 30, 2011 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Emphasis of Matter

Without qualifying our opinion, we draw attention to Note 1 in the consolidated financial statements which describes conditions and matters that indicate the existence of a material uncertainty that may cast significant doubt about Crosshair Energy Corporation’s ability to continue as a going concern.

“DAVIDSON & COMPANY LLP”

Vancouver, Canada	Chartered Accountants

July 19, 2012

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT

(Expressed in Canadian Dollars)

ASSETS	APRIL 30, 2012	APRIL 30, 2011	MAY 1, 2010
		(Note 17)	(Note 17)
Current assets
Cash and cash equivalents	$5,446,298	$9,931,585	$3,427,511
Marketable securities (Note 4)	258,742	860,784	358,823
Receivables	101,261	227,974	135,981
Prepaid expenses	99,260	145,584	283,611

	5,905,561	11,165,927	4,205,926

Reclamation bonds	356,959	17,563	26,477

Equipment (Note 5)	142,618	181,834	380,705

Exploration and evaluation assets (Note 6)	11,592,105	10,180,650	9,706,467

	$17,997,243	$21,545,974	$14,319,575

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Payables and accrued liabilities	258,951	$278,350	$798,623
Due to related parties (Note 11)	179,649	72,407	4,294
	438,600	350,757	802,917


Future reclamation provisions (Note 7)	130,030	282,162	290,458

Other liability (Note 8)	428,712	464,717	249,279

Provisions (Note 16)	-	400,000	200,000
	997,342	1,497,636	1,542,654
Shareholders' equity
Capital stock (Note 9)	87,457,513	81,021,668	71,137,748
Reserves	20,894,237	18,400,690	16,935,723
Deficit	(91,351,849)	(79,374,020)	(75,296,550)

	16,999,901	20,048,338	12,776,921

	$17,997,243	$21,545,974	$14,319,575

Nature of Operations and Going Concern (Note 1), Provisions (Note 16)

Approved on July 19, 2012 on behalf of the board.
	“M”Mark J. Morabito”	Director	“Chris Collingwood”	Director
	MarMark J. Morabito		Chris Collingwood

The accompanying notes are an integral part of these consolidated financial statements.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)


	2012		2011
EXPENSES	$		(Note 17)
Audit and accounting	93,554	$	76,548
Consulting	612,972		215,985
Depreciation	32,515		60,948
Director fees	78,756		-
Exploration and evaluation (Note 6)	6,630,464		883,152
Insurance	53,663		65,975
Interest (Note 7)	61,108		22,941
Investor relations	382,206		157,235
Legal	58,692		247,543
Management fees	498,890		461,664
Office and administration	293,315		99,089
Rent	120,897		54,065
Share-based compensation (Note 9)	1,974,611		1,728,075
Transfer agent and filing fees	178,735		166,036
Travel	125,089		58,157
Wages and salaries	556,467		359,103
	(11,751,934)		(4,656,516)

OTHER INCOME (EXPENSES)

Interest income	68,129			34,748
Gain (loss) on foreign exchange	(78,840)			(6,934)
Gain (loss) on asset disposition	1,898			(110,291)
Other income-flow through premium (Note 8)	484,245			159,562
Unrealized gain (loss) on marketable securities (Note 4)	(701,327)			501,961
	(225,895)			579,046
Net income (loss) and comprehensive loss	$	(11,977,829)	$	(4,077,470)

Basic and diluted net income (loss) per common share	$	(0.24)	$	(0.10)

Weighted average number of common shares outstanding		50,377,698		41,193,459

The accompanying notes are an integral part of these consolidated financial statements

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

		2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES				(Note 17)
Net income (loss) for the year	$	(11,977,829)	$	(4,077,470)
Items not affecting cash:
Interest (Note 7)		61,108		22,941
Change in future reclamation estimates		(213,240)		(31,237)
Depreciation		32,515		60,948
Other income – flow through premium		(484,245)		(159,562)
Share-based compensation		1,974,611		1,728,075
Unrealized loss–foreign exchange		78,840		2,089
Unrealized (gain) loss–marketable securities (Note 4)		701,327		(501,961)
(Gain)/loss on asset disposition		(1,898)		110,291
Non-cash working capital item changes
Receivables		126,713		(91,993)
Due to related parties		107,242		68,113
Prepaid expenses		46,324		138,027
Accounts payable and accrued liabilities		(100,500)		(150,677)


Net cash used in operating activities		(9,649,032)		(2,882,416)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of exploration and evaluation assets		(551,035)		(645,868)
Acquisition of equipment		-		(2,368)
Acquisition of marketable securities (Note 4)		(97,024)		-
Proceeds from sale of equipment		8,599		30,000
Refund (purchase) of reclamation bonds		(339,396)		8,914
Payment of provision (Note 8 and 16)		(400,000)		-

Net cash used in investing activities		(1,378,856)		(609,322)

CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of shares, net of costs		6,542,601		9,995,812

Net cash provided by financing activities		6,542,601		9,995,812

Net change in cash and cash equivalents during the year		(4,485,287)		6,504,074

Cash and cash equivalents, beginning of year		9,931,585		3,427,511
Cash and cash equivalents, end of year	$	5,446,298	$	9,931,585
Cash and cash equivalents
Cash		945,814		1,586,093
Liquid short term investments		4,500,484		8,345,492
	$	5,446,298	$	9,931,585

Supplemental disclosures with respect to cash flows (Note 10)

The accompanying notes are an integral part of these consolidated financial statements

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Expressed in Canadian Dollars)

	Capital Stock
	Number of Shares	Amount	Reserves		Deficit	Total
Balance, May 1, 2010	32,869,373	$71,137,748		$16,935,723	$(75,296,550)	$12,776,921
Fractional rounding from share consolidation	(124)	-		-	-	-
Flow-through private placement– Nov 2010	3,750,000	3,000,000		-	-	3,000,000
Flow-through share premium	-	(375,000)		-	-	(375,000)
Private placement – Nov 2010	9,999,999	7,000,000		-	-	7,000,000
Share issuance costs	-	(1,444,798)		519,101	-	(925,697)
Exercise of stock options	200,000	877,911		(711,911)	-	166,000
Exercise of warrants	657,903	825,807		(70,298)	-	755,509
Share-based compensation for the year	-	-		1,728,075	-	1,728,075
Loss for the year	-	-		-	(4,077,470)	(4,077,470)
Balance, April 30, 2011	47,477,151	81,021,668		18,400,690	(79,374,020)	20,048,338
Acquisition of exploration and evaluation assets	1,925,627	860,420		-	-	860,420
Flow-through private placement– Feb 2012	4,482,400	2,241,200		-	-	2,241,200
Flow-through share premium	-	(448,240)		-	-	(448,240)
Private placement – Mar 2012	11,897,000	4,758,800		-	-	4,758,800
Share issuance costs	-	(976,335)		518,936	-	(457,399)
Share-based compensation for the year	-	-		1,974,611	-	1,974,611
Loss for the year	-	-		-	(11,977,829)	(11,977,829)
Balance, April 30, 2012	65,782,178	$87,457,513		$20,894,237	$(91,351,849)	$16,999,901

The accompanying notes are an integral part of these consolidated financial statements.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

1. NATURE OF OPERATIONS AND GOING CONCERN

Crosshair Energy Corporation (formerly Crosshair Exploration & Mining Corp.) (the "Company" or “Crosshair”) is an exploration stage company whose common shares trade on the TSX and NYSE MKT and is in the business of acquiring, exploring and evaluating mineral resource properties, and either joint venturing or developing these properties further or disposing of them when the evaluation is completed. On November 1, 2011, the Company changed its name to Crosshair Energy Corporation to reflect its focus on the exploration and evaluation of its uranium projects in North America. The Company was incorporated under the laws of British Columbia. All of the Company’s resource properties are located in North America. The address of the Company’s registered office is #1240 – 1140 West Pender Street, Vancouver, British Columbia, Canada V6E 4G1.

The Company is in the process of exploring and evaluating its exploration and evaluation assets and has not yet determined whether the properties contain ore reserves that are economically recoverable. The recoverability of the amounts shown for exploration and evaluation assets are dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development of those reserves and upon future profitable production.

These consolidated financial statements have been prepared using International Financial Reporting Standards (“IFRS”) on a going concern basis which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future.

These consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and statement of financial position classifications that would be necessary were the going concern assumption deemed to be inappropriate. These adjustments could be material.

As at April 30, 2012, the Company had working capital of $5,466,961 (April 30,2011 - $10,815,170, May 1, 2010 - $3,304,009) and a deficit of $91,351,849 (April 30, 2011 - $79,374,020, May 1, 2010 - $75,296,550). At present the Company has no producing properties and consequently has no current operating income or cash flows. The Company intends to finance it future requirements through a combination of debt and/or equity issuance. There is no assurance that the Company will be able to obtain such financings or obtain them on favorable terms. These uncertainties may cause significant doubt on the entity’s ability to continue as a going concern.

During the year ended April 30, 2011 the Company consolidated its common shares on the basis of one post-consolidated share for every four pre-consolidated common shares held (Note 9). All references to share amounts have been retroactively restated to reflect the share consolidation.

2. BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

a) Statement of compliance and conversion to International Financial Reporting Standards

The consolidated financial statements have been prepared in accordance with IFRS as adopted by the Company on May 1, 2011. The Company’s transition date is May 1, 2010.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

2. BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION (continued)

a) Statement of compliance and conversion to International Financial Reporting Standards (continued)

A summary of the Company’s significant accounting policies under IFRS is presented in Note 3. These policies have been applied retrospectively and consistently except where specific exemptions permitted an alternative treatment upon transition to IFRS in accordance with IFRS 1. Previously, the Company prepared its annual consolidated financial statements in accordance with Canadian generally accepted accounting principles (“Canadian GAAP”). These consolidated financial statements should be read in conjunction with the Company’s annual financial statements for the year ended April 30, 2011, prepared in accordance with Canadian GAAP. The impact of the transition from Canadian GAAP to IFRS is explained in Note 17.

b) Approval of the financial statements

The financial statements of Crosshair Energy Corporation for the year ended April 30, 2012 were reviewed by the Audit Committee and approved and authorized for issue by the Board of Directors on July 11, 2012.

c) Basis of presentation

These consolidated financial statements are presented in Canadian dollars which is the Company’s functional currency and have been prepared on a historical cost basis, except for certain financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these financial statements have been prepared using the accrual basis of accounting, except for certain cash flow information.

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

d) Significant accounting judgements and estimates

Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

The carrying value and the recoverability of exploration and evaluation assets;

ii) The inputs used in accounting for share-based compensation expense included in profit and loss;

iii) The recognition of deferred tax assets;

iv) The provision for future reclamation costs;

v) The estimated useful lives of equipment and related depreciation.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

2. BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION (continued)

e) Basis of consolidation

These consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries, Target Exploration and Mining Corp (“Target”) and 448018 Exploration Inc.(“448018’) as well as Bootheel Project LLC (“BHP LLC”) in which the Company has 81% interest. This interest effectively represents the Company’s 81% interest in certain mineral property projects (Note 6). A wholly owned subsidiary is an entity in which the Company has control, directly or indirectly, where control is defined as the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. All intercompany transactions and balances have been eliminated on consolidation.

Details of the Company’s subsidiaries are as follows:

Name	Place of incorporation	Interest %	Principal activity
Target Exploration and Mining Corp	British Columbia, Canada	100%	Exploration and evaluation of mineral properties
448018 Exploration, Inc.	Nevada, United States	100%	Exploration and evaluation of mineral properties
Bootheel Project LLC	Colorado, United States	81%	Exploration and evaluation of mineral properties

3. SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

Cash and cash equivalents include cash, demand deposits and highly liquid interest bearing investments that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

Financial Instruments

All financial instruments are initially recognized at fair value on the statement of financial position. The Company has classified each financial instrument into one of the following categories: (1) financial assets or liabilities at fair value through profit or loss (“FVTPL”), (2) loans and receivables, (3) financial assets available-for-sale, (4) financial assets held-to maturity, and (5) other financial liabilities. Subsequent measurement of financial instruments is based on their classification.

Financial assets and liabilities at FVTPL are subsequently measured at fair value with changes in those fair values recognized in net earnings. Financial assets “available-for-sale” are subsequently measured at fair value with changes in fair value recognized in other comprehensive income (loss), net of tax.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

Financial Instruments (continued)

Financial assets “held-to-maturity”, “loans and receivables”, and “other financial liabilities” are subsequently measured at amortized cost using the effective interest method. The Company’s financial assets and liabilities are recorded and measured as follows:

Asset or Liability	Category	Measurement
Cash and cash equivalents	FVTPL	Fair value
Marketable securities	FVTPL	Fair value
Receivables	Loans and receivables	Amortized cost
Reclamation bonds	Held to maturity	Amortized cost
Accounts payables and accrued liabilities	Other liabilities	Amortized cost
Due to related parties	Other liabilities	Amortized cost
Provisions	Other liabilities	Amortized cost

The Company determines the fair value of financial instruments according to the following hierarchy based on the amount of observable inputs used to value the instrument.

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1. Prices in Level 2 are either directly or indirectly observable as of the reporting date. Level 2 valuations are based on inputs, including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace.

Level 3 – Valuations in this level are those with inputs for the asset or liability that are not based on observable market data.

Cash and cash equivalents and marketable securities have been measured at fair value using Level 1 inputs.

Exploration and Evaluation Assets

Costs incurred before the Company has obtained the legal rights to explore an area are expensed. Costs to acquire exploration and evaluation assets are capitalized as incurred. Costs related to the exploration and evaluation of exploration and evaluation assets are expensed as incurred. The Company considers mineral rights to be assets and accordingly, the Company capitalizes certain costs related to the acquisition of mineral rights. The Company considers each exploration and evaluation asset to be a separate cash generating unit.

Any option payments received by the Company from third parties or tax credits refunded to the Company are credited to the capitalized cost of the exploration and evaluation asset or shown as an expense recovery depending on the nature of the activity generating the refund. If payments received exceed the capitalized cost of the exploration and evaluation asset, the excess is recognized as income in the year received. The amounts shown for exploration and evaluation assets do not necessarily represent present or future values. Their recoverability is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development, and future profitable production or proceeds from the disposition thereof.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

Future Reclamation Provisions

The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of reclamation of mineral interests (exploration and evaluation assets). The net present value of future rehabilitation cost estimates is capitalized to the related assets along with a corresponding increase in the reclamation provision in the period incurred. Discount rates using a pre-tax rate that reflects the time value of money are used to calculate the net present value.

The Company’s estimates of reclamation costs could change as a result of changes in regulatory requirements, discount rates and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to the related assets with a corresponding entry to the reclamation provision. The Company’s estimates are reviewed annually for changes in regulatory requirements, discount rates, effects of inflation and changes in estimates.

Changes in the net present value, excluding changes in the Company’s estimates of reclamation costs, are charged to profit and loss for the period.

Equipment

Equipment is carried at cost, less accumulated depreciation and accumulated impairment losses.

The cost of an item of equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Depreciation is provided at rates calculated to write off the cost of equipment, less its estimated residual value, using the declining balance method at the following rates per annum:

Leasehold improvements	Remaining term of lease
Furniture and equipment	20%
Computer and office equipment	30%
Computer software	45%
Exploration equipment	20%

Impairment

At each financial position reporting date the carrying amounts of the Company’s long-lived assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use, which is the present value of future cash flows expected to be derived from the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for the period.

For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

Flow-Through Shares

Canadian income tax legislation permits an enterprise to issue securities referred to as flow-through shares, whereby the investor can claim the tax deductions arising from the renunciation of the related resource expenditures. The Company accounts for flow-through shares whereby the premium, if any, paid for the flow-through shares in excess of the market value of the shares without flow-through features at the time of issue is initially recorded to other liability and then included in income at the same time the qualifying expenditures are made.

Loss Per Share

Basic loss per share is computed by dividing the loss for the period by the weighted average number of common shares outstanding during the period.

For diluted per share computations, assumptions are made regarding potential common shares outstanding during the period. The weighted average number of common shares is increased to include the number of additional common shares that would be outstanding if, at the beginning of the period, or at time of issuance, if later, all options and warrants are exercised. Proceeds from exercise are used to purchase the Company’s common shares at their average market price during the period, thereby reducing the weighted average number of common shares outstanding. If these computations prove to be anti-dilutive, diluted loss per share is the same as basic loss per share.

Share-Based Payments

The Company grants stock options to buy common shares of the Company to directors, officers, employees and service providers. The Company recognizes share-based compensation expense based on the estimated fair value of the options. A fair value measurement is made for each vesting instalment within each option grant and is determined using the Black-Scholes option-pricing model. The fair value of the options is recognized over the vesting period of the options granted as both share-based compensation expense and reserves. This includes a forfeiture estimate, which is revised for actual forfeitures in subsequent periods. The reserves account is subsequently reduced if the options are exercised and the amount initially recorded is then credited to capital stock.

Income Taxes

Income tax on profit or loss for the year comprises of current and deferred tax. Current tax is the expected tax paid or payable on the taxable income for the year, using tax rates enacted or substantively enacted at the statement of financial position date, and any adjustment to tax paid or payable in respect of previous years.

Deferred tax is recorded using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the period that includes the date of the enactment or substantive enactment of the change. Deferred tax assets and liabilities are presented separately except where there is a right of set-off within fiscal jurisdictions.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency Translation

The functional currency of the Company and its subsidiaries is the Canadian dollar. The reporting currency of the Company is the Canadian dollar. Transactions denominated in foreign currency are translated into Canadian dollars at the rate of exchange in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies have been translated into Canadian dollars at the rate of exchange in effect at the statement of financial position date, while non-monetary assets and liabilities are translated at historical rates. Revenue and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Any gains or losses resulting from translation have been included in the statement of operations and comprehensive loss.

Future Accounting Standards

IFRS 10 Consolidated Financial Statements , IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities , and consequential revisions to IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures (all effective January 1, 2013) provide revised guidance on the accounting treatment and associated disclosure requirements for joint arrangements and associates, and a revised definition of ‘control’ for identifying entities which are to be consolidated.

IFRS 13 Fair Value Measurement (effective January 1, 2013) provides new guidance on fair value measurement and disclosure requirements.

The Company is currently evaluating the impact of these new and amended standards on its financial statements.

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

4. MARKETABLE SECURITIES

	Messina Minerals (MMI.V)			AusAmerican Mining Corp (AIW.A)			Expedition Mining Inc. (EXU.V)			Total

Cost
Balance at May 1, 2010	$	2,695,052		$	-		$	1,000,000		$	3,695,052
Additions		-			-			-			-
Balance at April 30, 2011		2,695,052			-			1,000,000			3,695,052
Additions		-			97,024			-			97,024
Balance at April 30, 2012	$	2,695,052		$	97,024		$	1,000,000		$	3,792,076


Adjustments to fair value
Balance at May 1, 2010	$	(2,536,229	)	$	-		$	(800,000	)	$	(3,336,229	)
Adjustment for the year		35,294			-			466,667			501,961
Balance at April 30, 2011		(2,500,935	)		-			(333,333	)		(2,834,268	)
Adjustment for the year		(132,353	)		(77,824	)		(488,889	)		(699,066	)
Balance at April 30, 2012	$	(2,633,288	)	$	(77,824	)	$	(822,222	)	$	(3,533,334	)

Fair value
At May 1, 2010	$	158,823		$	-		$	200,000		$	358,823
At April 30, 2011	$	194,117		$	-		$	666,667		$	860,784
At April 30, 2012	$	61,764		$	19,200		$	177,778		$	258,742

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

EQUIPMENT

	Leasehold			Furniture &			Computer & Office			Computer			Exploration
	Improvements			Equipment			Equipment			Software			Equipment			Total

Cost at May 1, 2010	$	69,986		$	203,254		$	159,002		$	71,007		$	396,293		$	899,542
Dispositions	$	(69,986	)	$	(203,254	)		(161,370	)	$	(71,007	)	$	-		$	(505,617	)
Additions		-			-			2,368			-			-			2,368
Cost at April 30, 2011	$	-		$	-		$	-		$	-		$	396,293		$	396,293
Dispositions		-			-			-			-			(17,000	)		(17,000	)
Cost at April 30, 2012	$	-		$	-		$	-		$	-		$	379,293		$	379,293

Accumulated depreciation at May 1, 2010	$	53,836		$	146,866		$	91,890		$	49,876		$	176,369		$	518,837
Dispositions		(60,415	)		(151,377	)		(100,055	)		(53,479	)		-			(365,326	)
Depreciation		6,579			4,511			8,165			3,603			38,090			60,948
Accumulated depreciation at April 30, 2011	$	-		$	-		$	-		$	-		$	214,459		$	214,459
Depreciation		-			-			-			-			32,515			32,515
Dispositions		-			-			-			-			(10,299	)		(10,299	)
Accumulated depreciation at April 30, 2012	$	-		$	-		$	-		$	-		$	236,675		$	236,675

Net book value at May 1, 2010	$	16,150		$	56,388		$	67,112		$	21,131		$	219,924		$	380,705
Net book value at April 30, 2011	$	-		$	-		$	-		$	-		$	181,834		$	181,834

Net book value at April 30, 2012	$	-		$	-		$	-		$	-		$	142,618		$	142,618

100

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

6. EXPLORATION AND EVALUATION ASSETS

	CMB	CMB JV	Bootheel Project	Golden Promise	Juniper Ridge	Total
Balance, May 1, 2010 and April 30, 2010	$ 2,156,774	$ 2,515,422	$ 3,646,949	$ 1,387,322	$ -	$ 9,706,467

Acquisition costs	200,000	-	40,903	335	232,945	474,183
Balance April 30, 2011	$ 2,356,774	$ 2,515,422	$ 3,687,852	$ 1,387,657	$ 232,945	$ 10,180,650

Acquisition costs	653,574	-	38,589	23,185	696,107	1,411,455
Balance April 30, 2012	$ 3,010,348	$ 2,515,422	$ 3,726,441	$ 1,410,842	$ 929,052	$ 11,592,105
The following tables illustrate the exploration and evaluation expenditures incurred during the years ended April 30, 2012 and 2011

	For the year ended April 30, 2012
	CMB			CMB JV			Bootheel Project			Golden Promise			Juniper Ridge		Other			Total
Drilling & trenching	$	1,033,429		$	1,860,522		$	710,552		$	45,295		$	929,475	$	-		$	4,579,273
Geology		441,464			514,365			466,545			98,445			427,398		-			1,948,217
Geophysics		896			896			47,398			2,500			289,556		-			341,246
Geochemical		8,905			3,305			-			-			-		-			12,210
Metallurgy		-			-			-			-			22,987		-			22,987
Administration		9,456			6,561			19,300			60			6,951		-			42,328
Technical analysis		-			-			-			-			-		-			-
Future reclamation costs		(162,239	)		(43,337	)		-			-			-		(7,664	)		(213,240	)
Pre-acquisition costs		-			-			-			-			-		153,170			153,170
JCEAP (1) refunds received		-			(150,000	)		-			-			-		-			(150,000	)
Recovery					(105,727	)													(105,727	)
	$	1,331,911		$	2,086,585		$	1,243,795		$	146,300		$	1,676,367	$	145,506		$	6,630,464

	For the year ended April 30, 2011
	CMB			CMB JV			Bootheel Project			Golden Promise			Juniper Ridge		Other			Total
Drilling & trenching	$	-		$	-		$	-		$	39,853		$	-	$	-		$	39,853
Geology		240,974			190,385			43,512			278,413			25,513		9,924			788,721
Geophysics		-			-			-			65,442			-		-			65,442
Geochemical		3,637			27,800			-			43,475			-		-			74,912
Metallurgy		22,235			-			-			54,586			-		-			76,821
Administration		4,485			14,088			21,241			15,649			-		-			55,463
Technical analysis		(652	)		(871	)		-			(3,850	)		-		-			(5,373	)
Future reclamation costs		(25,209	)		(5,445	)		-			(583	)		-		-			(31,237	)
JCEAP (1) refunds received		-			-			-			(155,439	)		-		-			(155,439	)
Recovery- JV Partner		-			-			(26,011	)		-			-		-			(26,011	)
	$	245,470		$	225,957		$	38,742		$	337,546		$	25,513	$	9,924		$	883,152

(1) Junior Company Exploration Assistance Program

101

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

6.	EXPLORATION AND EVALUATION ASSETS (continued)

Central Mineral Belt (“CMB”)

Moran Lake Property

Pursuant to an agreement dated October 14, 2004, the Company acquired an option to earn a 90% interest, subject to a 2% net smelter royalty (“NSR”) and a 10% carried interest to the vendor, in the Moran Lake Property, a uranium prospect located in Central Labrador, Newfoundland, Canada. The agreement was amended on March 1, 2005 to include additional claims adjacent to the Moran Lake Property, known as Moran Heights.

The Company has previously issued 400,000 common shares, made cash payments totaling $575,000 and spent more than the required minimum $3,000,000 on project expenditures. In connection with the option agreement to earn its 90% interest in the Moran Lake Property, the Company was involved in a dispute with the original vendor of the Moran Lake Property, Mr. Murphy, regarding the timing of advance royalty payments. On December 5, 2011, the Company settled the litigation. Under the terms of the settlement the Company made a cash payment of $600,000 and issued 1,193,614 shares. All litigation has been discontinued and Mr. Murphy has acknowledged the Company’s 90% interest in the CMB Uranium /Vanadium Project has vested and any requirement for a bankable feasibility study has been irrevocably waived. The Company will be required to make advance royalty payments of $200,000 per year commencing in November 2012 (Note 16). Should the Company choose to bring the Moran Lake Property into production, the advance royalty payments made previously will be deducted against any NSR owed to the original vendor of the property.

Otter/Portage Lake Property

Pursuant to an agreement dated December 2, 2005, the Company acquired a 100% interest, subject to a 1.5% NSR, in the Otter and Portage Lake Properties located in the Central Mineral Belt of Labrador.

CMB Joint Venture

Silver Spruce Central Mineral Belt (“CMB”) Joint Venture

In July 2008, the Company entered into an agreement with Expedition Mining Inc. ("Expedition"), formally known as Universal Uranium Ltd., and acquired all of Expedition's interest (60%) in its joint venture project with Silver Spruce Resources Inc. in Labrador.

Bootheel Project

On March 31, 2009, the Company acquired an interest in the Bootheel and Buckpoint Properties in Wyoming, USA through the acquisition of Target. Under a series of agreements between UR-Energy USA Inc. (“URE”), several of its subsidiaries, Target and 448018, a wholly owned subsidiary of Target, the Company may earn a 75% interest in BHP LLC, subject to certain royalties, by completing expenditures totalling US $3,000,000 on or before June 7, 2011. The Company, through Target, has earned its 75% interest in BHP LLC representing a 75% interest in the underlying Bootheel and Buckpoint Properties.

Under agreements dated February 5, 2008 between MJ Ranches Inc. and 448018 as manager, BHP LLC leased MJ Ranches Inc.’s 75% ownership of certain minerals on fee land that adjoins the Bootheel Property. The initial term of the agreement is for five years with provision for two renewals. Payment for the initial five year term is US $252,651 paid in advance, increased for inflation for the renewal periods. The acquired mineral rights are subject to a sliding scale royalty tied to the sales price of uranium. As at April 30, 2012 the Company has outstanding reclamation bonds for the Bootheel Property of US $251,000 registered with the Wyoming Department of Environmental Quality and State Office of Lands and Investment.

102

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

6.	EXPLORATION AND EVALUATION ASSETS (continued)

Golden Promise

Golden Promise Property

On April 29, 2009, Crosshair acquired a 60% interest in the Golden Promise Gold Project in Central Newfoundland, Canada with an option to acquire an additional interest from Paragon Minerals Corp. (“Paragon”).

Crosshair will provide Paragon with a $2,000,000 carried interest in initial exploration expenditures to be completed prior to May 2013. Crosshair can extend the timeframe to complete the initial exploration program by 12 months upon issuing 62,500 common shares to Paragon.

Upon the successful completion of the initial $2,000,000 exploration program, Crosshair can elect to earn an additional 10% interest (to 70%) in Golden Promise by providing Paragon with an additional $1,000,000 carried interest in additional exploration expenditures within 24 months. Crosshair can extend the timeframe to complete the additional exploration program by 12 months upon issuing 25,000 common shares to Paragon. In the event Crosshair does not complete the additional expenditure program within the required timeframe, Crosshair can purchase the remaining 10% interest by paying Paragon the difference between actually incurred exploration expenditures and $1,000,000 or just retain the 60% interest.

Southern Golden Promise (Victoria Lake)

The Company has earned a 60% interest in mineral claims located in the Botwood Basin area of Central Newfoundland known as Southern Golden Promise in consideration for issuing a total 100,000 common shares and incurring a minimum of $1,750,000 exploration expenditures within specified deadlines.

Juniper Ridge Uranium Property

On October 29, 2010, the Company signed a definitive agreement with Strathmore Resources Ltd., a wholly owned subsidiary of Strathmore Minerals Corp. (“Strathmore”) to acquire the Juniper Ridge Uranium Property . The aggregate total price for a 100% interest in the Juniper Ridge Property will be satisfied by Crosshair as follows:

	In Cash (USD)		In Shares (USD)		Total (USD)
Upon signing of the agreement (paid)	$	25,000	$	-	$	25,000
By November 15, 2010 (paid)		175,000		-		175,000
By October 29, 2011 (paid)		250,000		250,000		500,000
By October 29, 2012 (1)		1,250,000		1,250,000		2,500,000
By October 29, 2013 (1)		1,250,000		1,250,000		2,500,000
Upon obtaining production permit (2)		1,500,000		-		1,500,000

	$	4,450,000	$	2,750,000	$	7,200,000

1 These amounts are based on the estimated 5 million pounds uranium reserves at US $0.50 per pound. Actual payments will be based on the measured, indicated and inferred uranium resources as defined by the NI 43-101 technical report. The minimum commitment is US $2,500,000, with the Company paying an additional US $0.50 per pound in excess of 5 million pounds if the NI 43-101 technical report shows a resource in excess of 5 million pounds.

103

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

6. EXPLORATION AND EVALUATION ASSETS (continued)

Juniper Ridge Uranium Property (continued)

Title to the Juniper Ridge Property has been transferred to the Company by Strathmore upon making the initial payments of US$700,000 of which US$250,000 was paid by issuance of 552,513 common shares of the Company. The Company can terminate the acquisition agreement at any time upon written notice, without any further liabilities to the Company. Strathmore will retain a 2% Gross Revenue Royalty on the Property. The Company has the option to repurchase this royalty at any time during the first three years after commencement of commercial production for US $1,500,000 for each 1% of the Gross Revenue Royalty.

7.	FUTURE RECLAMATION PROVISIONS

	April 30, 2012			April 30, 2011			May 1, 2010
Beginning balance	$	282,162		$	290,458		$	676,484
Change in estimates 1		(213,240	)		(31,237	)		(440,934	)
Interest		61,108			22,941			54,908

Ending balance	$	130,030		$	282,162		$	290,458

1 The Company revised its prior estimates based on new information regarding potential future reclamation costs, and the estimated dates of abandonment of the interests in exploration and evaluation assets.

The Company has legal obligations associated with its Moran Lake, Silver Spruce CMB JV, Southern Golden Promise, Golden Promise, Juniper Ridge and Bootheel exploration assets for cleanup costs. These costs are anticipated to be incurred between 2012 and 2015.

The total undiscounted amount of estimated cash flows required to settle the obligations is approximately $132,000, which was adjusted for inflation at the rate of 2%, discounted at 8% and projected out to 2015.

8. OTHER LIABILITY

	April 30, 2012			April 30, 2011			May 1, 2010
Balance, beginning	$	464,717		$	249,279		$	30,685

Liability incurred on flow-through shares issued		448,240			375,000			369,364
Settlement of flow-through share liability on expenditure made		(484,245	)		(159,562	)		(150,770	)

Balance, ending	$	428,712		$	464,717		$	249,279

The Company periodically issues flow-through shares with any resulting flow-through premium recorded as other liability. The liability is subsequently reduced when the required exploration expenditures are made and accordingly a recovery of flow-through premium is recorded.

104

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

9. CAPITAL STOCK AND RESERVES

Share and warrant issuances

During the year ended April 30, 2012, common shares were issued as follows:

On October 31, 2011, 522,513 common shares with a value of $266,925 were issued pursuant to an agreement with Strathmore to acquire the Juniper Ridge Uranium Property. (Note 6)

On December 5, 2011, the Company settled the litigation involving its interest in the Moran Lake Property by issuing 1,193,614 common shares with a value of $453,573. (Note 6)

On February 27, 2012, the Company closed a non-brokered private placement of 11,897,000 subscription receipts at a price of $0.40 per subscription receipt for gross proceeds of $4,758,800. Upon satisfaction of the escrow release conditions, on March 30, 2012, the subscription receipts were automatically converted into units of the Company, with each whole unit being comprised of one common share and one-half common share purchase warrant. Each whole warrant is exercisable until February 27, 2014 at an exercise price of $0.70.

The Company concurrently closed a non-brokered private placement of 4,482,400 flow-through units at a price of $0.50 per flow-through unit for gross proceeds of $2,241,200. Each flow-through unit consists of one flow through common share, which qualifies as a "flow-through share" for purposes of the Income Tax Act (Canada), and one-half of one warrant. Each whole warrant is exercisable into one share until February 27, 2014 at an exercise price of $0.70. A flow-through premium of $448,240 was recorded as an other liability in connection with this private placement.

All securities issued are subject to a four month hold period. The Company paid cash finder's fees in connection with the offering equal to 5.0% of the gross proceeds and issued 982,764 (valued at $518,936) broker warrants equal to 6.0% of the number of subscription receipts and flow-through units sold in the offering. Each broker warrant is exercisable for one share of the Company at an exercise price of $0.50 until February 27, 2014. The Black-Scholes pricing model was used to value these compensatory warrants, using a risk-free interest rate of 1%, expected life of 2 years, annualized volatility of 163%, and dividend rate of 0%.

On February 27, 2012, the Company issued 209,500 common shares with a value of $140,365, and made cash payment of US$15,000, to satisfy an outstanding finder's fee obligation in connection with the Company's acquisition of the Juniper Ridge Property.

During the year ended April 30, 2011, common shares were issued as follows:

On December 15, 2010, the Company consolidated its common shares on the basis of one post-consolidated common share for every four pre-consolidated common shares. The 146,993,893 pre-consolidated common shares were reduced to 36,748,349 post consolidated common shares (after taking into account the cancellation of 124 shares due to fractional rounding). Stock options and warrants were similarly adjusted. All references to share and per share amounts have been retroactively restated to reflect the share consolidation.

105

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

9. CAPITAL STOCK AND RESERVES (continued)

On November 23, 2010, the Company closed a brokered private placement of 3,750,000 flow-through units at a price of $0.80 per flow-through unit for gross proceeds of $3,000,000. Each flow-through unit consisted of one flow-through common share and one half of one warrant;1,875,000 in total. Each whole warrant is exercisable for one non flow-through common share at an exercise price of $1.25 per common share until November 23, 2012. A flow-through premium of $375,000 was recorded as an other liability in connection with this private placement.

On November 23, 2010, the Company also closed a brokered private placement of subscription receipts for gross proceeds of $7,000,000. The subscription receipts were subject to certain escrow release conditions. The escrow release conditions were as follows: (i) shareholder approval of the offering of subscription receipts; and (ii) the completion of the consolidation of the Company’s common shares on the basis of one post-consolidation common share for every four pre-consolidation common shares outstanding. These conditions were met on December 16, 2010, and the subscription receipts were converted to 9,999,999 units at a price of $0.70 per unit. Each unit consisted of one common share and one common share purchase warrant with each warrant exercisable for one common share at an exercise price of $1.00 per common share for 24 months. The Company issued broker’s warrants exercisable to acquire 1,375,000 broker’s units at an exercise price of $0.70 per broker’s unit (valued at $519,101), for a period of 24 months, expiring on November 23, 2012. Each broker’s unit consists of one common share and one warrant exercisable for one common share at an exercise price of $1.00 per common share for 24 months, expiring on November 23, 2012. The Black-Scholes pricing model was used to value these warrants, using a risk-free interest rate of 1.7%, expected life of 2 years, annualized volatility of 104%, and dividend rate of 0%.

657,903 warrants with an exercise price ranging from $1.00 to $1.40 per warrant were exercised for gross proceeds of $755,509. An amount of $70,298, representing the fair value of the broker warrants on granting was reclassified from reserves to capital stock on exercise. In connection with the exercise of agent warrants 168 warrants with an exercise price of $1.20 and 63,920 warrants with an exercise price of $1.40 were issued. The 63,920 warrants issued were immediately exercised (and are included in the total warrants exercised of 657,903).

200,000 stock options with an exercise price ranging from $0.60 to $0.92 were exercised for gross proceeds of $166,000. An amount of $711,911, representing the fair value of the options on granting was reclassified from reserves to capital stock on exercise.

106

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

9. CAPITAL STOCK AND RESERVES (continued)

Warrants

The following is a summary of warrants outstanding at April 30, 2012 and April 30, 2011 and changes during the years then ended.

	April 30, 2012					April 30, 2011
	Number of Warrants			Weighted Average Exercise Price		Number of Warrants			Weighted Average Exercise Price
Outstanding, beginning of the		17,043,796		$	1.37		4,387,614		$	2.41
year
Issued		9,172,464			0.68		13,314,087			1.01
Exercised		-			-		(657,903	)		1.15
Expired		(3,793,797	)		2.66		-			-
Cancelled due to fractional		-			-		(2	)		-
rounding
Outstanding, end of the year		22,422,463		$	0.87		17,043,796		$	1.37

As at April 30, 2012 the following warrants were outstanding and exercisable:

April 30, 2012	Exercise Price ($)	Expiry Date
9,999,999	1.00	November 23, 2012
1,875,000	1.25	November 23, 2012
1,375,000 (1)	0.70	November 23, 2012
8,189,700	0.70	February 27, 2014
982,764 (2)	0.50	February 27, 2014
22,422,463

(1 ) Broker warrants exercisable into one common share and one warrant of the Company, which are exercisable for one common share of the Company at $1.00 until November 23, 2012.

(2) Broker warrants exercisable into one common share and one warrant of the Company, which are exercisable for one common share of the Company at $0.50 until February 27, 2014.

107

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

9. CAPITAL STOCK AND RESERVES (continued)

Stock options

The Company’s Stock Option Plan is a 10% rolling plan that allows a maximum 10% of the issued shares to be reserved for issuance under the plan. Options granted under the plan may not have a term exceeding 10 years and vesting provisions are at the discretion of the Board of Directors.

The following is a summary of stock options outstanding at April 30, 2012 and April 30, 2011 and changes during the years then ended.

	April 30, 2012			April 30, 2011
	Number of options	Weighted Average Exercise Price		Number of options		Weighted Average Exercise Price

Outstanding, beginning of period	5,074,621	$ 1.43	2,905,882		$ 1.52
Exercised	-	-	(200,000)		0.83
Cancelled	(92,500)	1.35	(271,261)		1.42
Expired	(134,500)	1.68	(175,000)		3.94
Granted	1,752,500	0.49	2,815,000		1.44
Outstanding, end of period	6,600,121	$ 1.13	5,074,621		$ 1.43

At April 30, 2012, the following stock options were outstanding to directors, officers and employees:

Outstanding	Exercisable	Exercise Price ($)	Expiry Date
27,000	27,000	3.44	May 1, 2012 (1)
198,490	198,490	4.00	August 29, 2012
25,000	25,000	0.92	October 15, 2012
62,500	62,500	3.52	May 23, 2013
30,000	30,000	1.88	June 5, 2013
37,500	37,500	2.00	August 1, 2013
387,500	387,500	1.08	September 15, 2013
162,500	162,500	0.60	October 23, 2013
87,500	87,500	1.08	October 27, 2013
638,750	638,750	1.08	May 28, 2014
293,381	293,381	0.88	November 30, 2014
25,000	25,000	0.80	December 21, 2014
137,500	137,500	0.84	January 6, 2015
2,200,000	1,100,000	1.44	December 21, 2015
300,000	150,000	0.38	December 21, 2015
100,000	100,000	1.95	January 7, 2016
135,000	67,500	1.12	April 1, 2016
650,000	162,500	0.67	July 20, 2016
1,102,500	-	0.38	April 24, 2017
6,600,121	3,692,621

(1) Subsequently expired

Including in the outstanding stock options are 255,490 options that are outside of the Company’s stock option plan.

108

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

9. CAPITAL STOCK AND RESERVES (continued)

Share-based compensation

The Company recognizes compensation expense for all stock options granted using the fair value based method of accounting. For the year ended April 30, 2012, the Company recognized share-based compensation expense of $1,974,611 (April 30, 2011 - $1,728,075) for options vesting during the year. The weighted average fair value of options granted in the year was $0.41 (2011 - $1.40 per option).

The following weighted average assumptions were used for the Black-Scholes method of valuation of stock options granted during the years ended April 30, 2012 and April 30, 2011:

	April 30, 2012	April 30, 2011
Risk-free interest rate	1.32%	1.70%
Expected life of options	3 years	3 years
Annualized volatility	156%	133%
Expected forfeiture	4.78%	4.78%
Dividend rate	0%	0%

10. SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS

The following were significant non-cash transactions during the year ended April 30, 2012:

In connection with the acquisition of the Juniper Ridge Uranium Property, 522,513 shares with a fair value of $266,482 were issued (Note 9).

The Company issued 1,193,614 common shares with a value of $453,573 to the original vendor of the Moran Lake Property as part of the settlement in connection with the litigation involving the Company’s interest in the Moran Lake Property (Note 6).

The Company issued 209,500 common shares with a value of $140,365 to satisfy an outstanding finder’s fee obligation in connection with the acquisition of the Juniper Ridge Property (Note 9).

In connection with two non-brokered private placements closed in February 2012, 982,784 broker warrants with a value of $518,936 were issued.

The following were significant non-cash transactions during the year ended April 30, 2011.

200,000 stock options were exercised with a fair value of $711,911.

657,903 warrants were exercised with a fair value of $70,298.

1,375,000 broker warrants were issued, and recorded as share issuance costs, with a fair value of $519,101.

Included in exploration and evaluation assets is $400,000 related to the provision (Note 16).

109

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

11. RELATED PARTY TRANSACTIONS

Related parties and related party transactions impacting the accompanying consolidated financial statements are summarized below and include transactions with the following individuals or entities:

Key management personnel

Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consists of members of the Company’s Board of Directors, corporate officers, including the Company’s Chief Executive Officer, Chief Financial Officer, and Vice Presidents.

Remuneration attributed to key management personnel can be summarized as follows:

	Years ended April 30,
	2012		2011
		$		$
Share-based compensation		1,157,129		973,332
Short-term benefits*		874,160		391,930
Incentive compensation other than share-based compensation		206,404		210,000
		2,237,693		1,575,262

*	include base salaries and directors’ fees, pursuant to contractual employment or consultancy arrangements, management and consulting fees

The Company has a consulting agreement with the Executive Chairman that provides for a lump sum payment of $150,000 on termination or $450,000 in the event of a change of control of the Company.

Other related parties

Forbes West Management Corp. (“Forbes West”) (formerly EGM Exploration Group Management Corp.) is an entity owned by the Executive Chairman of the Company and provides administrative, management, geological, regulatory, tax, corporate development and investor relations services to the Company.

Transactions entered into with related parties other than key management personnel include the following:

	Years ended April 30,
	2012		2011
		$		$
Forbes West		1,936,612		699,268
		1,936,612		699,268

During the year ended April 30, 2012, the Company sold some of its exploration equipment to a company with a director in common. Crosshair received $8,599 as considerations for the assets, which represents the estimated fair value of the assets in the effective date of the purchase agreement. The difference between the sales price and the carrying value of the sold assets was $1,898, which was recorded as gain on asset disposition.

110

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

11. RELATED PARTY TRANSACTIONS (continued)

During the year ended April 30, 2011, the Company sold all furniture, computer equipment and software to Forbes West for $30,000, which is the estimated fair value. The difference between the sales price and the carrying value of the assets sold was $110,291, which was recorded as a loss on sale of equipment.

Amounts due to related parties as at April 30, 2012 included the following:

Forbes West, controlled by the Executive Chairman - $106,487 (April 30, 2011 - $72,407, May 1, 2010 - $4,294)

Sundance Geological Ltd., controlled by the former CEO - $22,400 (April 30, 2011 - $Nil, May 1, 2010 - $Nil)

Bevo Beaven Corporate Communications., controlled by the VP of Corporate Communications - $7,235 (April 30, 2011 - $Nil, May 1, 2010 - $Nil)

Stratamodel Inc., controlled by the VP & Chief Geologist - $13,982 (April 30, 2011 - $Nil, May 1, 2010 - $Nil)

Ludwig and Associates, LLC., controlled by the CEO - $9,072 (April 30, 2011 - $Nil, May 1, 2010 - $Nil)

Directors fees - $20,473 (April 30, 2011 - $Nil, May 1, 2010 - $Nil)

The amounts due to related parties are non-interest bearing.

12. INCOME TAXES

Following is a reconciliation of income taxes attributable to operations computed at the statutory tax rates to income tax recovery.

	April 30, 2012			April 30, 2011

Loss for the year	$	(11,977,829	)	$	(4,077,470	)

Expected income tax recoverable at statutory rate		(3,114,000	)		(1,135,000	)
Permanent differences		537,000			81,000
Share issuance costs		(119,000	)		(258,000	)
Impact on change in statutory rates and different subsidiary tax rates		(271,000	)		551,000
Impact on flow-through shares		969,000			216,000
Change in unrecognized deductible temporary differences		1,998,000			545,000

Total income taxes	$	-		$	-

111

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

12. INCOME TAXES (continued)

The significant components of the Company’s unrecognized temporary differences and tax losses are as follows:

	2012	2011	Expiry Date Range

Temporary Differences
Exploration and evaluation assets	$34,956,000	$32,703,000	No expiry date
Investment tax credit	1,151,000	1,151,000	2028
Equipment	470,000	439,000	No expiry date
Canadian eligible capital (CEC)	1,000	1,000	No expiry date
Share issue costs	1,109,000	1,256,000	2013-2016
Future reclamation provision	130,000	282,000	No expiry date
Marketable securities	3,533,000	2,834,000	No expiry date
Non-capital losses available for future period	19,689,000	16,171,000	2014-2032

Tax attributes are subject to review, and potential adjustment by tax authorities.

112

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

13. SEGMENTED INFORMATION

The Company operates in one reportable operating segment, being the acquisition, exploration and evaluation of mineral properties in North America.

	April 30, 2012		April 30, 2011		May 1, 2010

Equipment:

United States	$	3,840	$	4,714	$	5,788
Canada		138,778		177,120		374,917
	$	142,618	$	181,834	$	380,705

Reclamation bonds:

United States	$	265,328	$	17,563	$	26,477
Canada		91,631		-		-
	$	356,959	$	17,563	$	26,477
Exploration and evaluation assets:

United States	$	3,787,207	$	3,920,797	$	3,646,949
Canada		7,804,898		6,259,853		6,059,518
	$	11,592,105	$	10,180,650	$	9,706,467

14. CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the exploration and evaluation of its exploration and evaluation assets, acquire additional mineral property interests and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. In the management of capital, the Company includes its components of shareholders’ equity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, issue debt, acquire or dispose of assets.

In order to facilitate the management of its capital requirements, the Company prepares annual expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. These budgets are approved by the Board of Directors.

At this stage of the Company’s development, in order to maximize ongoing development efforts, the Company does not pay out dividends.

The Company currently is not subject to externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the year.

113

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

15. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

The fair value of the Company’s receivables, account payable and accrued liabilities, and due to related parties approximate carrying value, due to their short-term nature. The Company’s cash and cash equivalents and marketable securities are measured at fair value, under the fair value hierarchy based on level one quoted prices in active markets for identical assets or liabilities. The Company’s other financial instrument, being reclamation bonds, is measured at amortized cost.

The Company’s financial instruments are exposed to certain financial risks, including currency risk, credit risk, liquidity risk, interest rate risk and price risk.

Credit risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations.

The Company is subject to credit risk on its cash and cash equivalents, and account receivables. The Company limits its exposure to credit loss by placing its cash and restricted deposits with major financial institutions. The Company has no investments in asset-backed commercial paper. The Company’s receivables consist mainly of HST receivable due from the Government of Canada. The Company does not believe it is exposed to significant credit risk.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due.

The Company manages liquidity risk through its capital management as outlined in Note 14. Management believes the Company has sufficient funds to pay its ongoing operating expenditures, meet its liabilities for the ensuing period as they fall due and to fund cash payments for planned exploration programs.

Market Risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, commodity and equity prices, and foreign exchange rates.

(a)

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The risk that the Company will realize a loss as a result of a decline in the fair value of any short-term investments included in cash and cash equivalents is minimal because these investments generally have a fixed yield rate.

(b)

Price risk

The Company is exposed to price risk with respect to commodity prices, particularly uranium, and equity prices, since the Company possesses investments in publicly traded securities. The Company closely monitors those prices to determine the appropriate course of action to be taken by the Company. However, there can be no assurance that the Company can exit these positions if required, resulting in proceeds approximating the carrying value of these securities.

(c)

Currency risk

The Company’s expenditures are predominantly in Canadian dollars, and any future equity raised is expected to be predominantly in Canadian dollars. As at April 30, 2012, the Company has accounts payable denominated in US dollars of $121,865 and cash of $4,996 US dollars. A 10% change in the Canadian dollar vs. the US dollar would give rise to a $11,545 gain/loss.

114

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

16. PROVISIONS

Litigation with Lewis Murphy

On October 10, 2004, the Company entered into an agreement (the “Agreement”) with Mr. Lewis Murphy pursuant to which the Company was granted an option to acquire an interest in certain mineral licenses in Newfoundland and Labrador. On April 28, 2010, Mr. Lewis Murphy commenced court proceedings against the Company in the Supreme Court of Newfoundland and Labrador in relation to the Agreement. As acknowledged by Mr. Murphy in the Statement of Claim, the mineral licenses were transferred to Crosshair. The Agreement provides that upon the Company completing its earn-in obligations under the Agreement and becoming vested as to its 90% interest therein, the Company will pay Mr. Murphy an annual advance royalty of $200,000 per year until the Commencement of Commercial Production. Mr. Murphy alleged he was owed an annual advance royalty payment in the amount of $200,000 in November 2009. Mr. Murphy was seeking contractual damages in the amount of $200,000, and various declaratory reliefs including, but not limited to, an order that the transfers of any and all mineral licenses from Murphy to the Company made pursuant to the Agreement are null and void and a declaration that the Agreement is terminated.

On January 6, 2011, a judgment was issued by the Supreme Court of Newfoundland and Labrador in favor of Mr. Murphy in the amount of $200,000 (plus costs and interest) and the Company’s counterclaim was dismissed. The Company was granted leave to appeal this judgment on May 31, 2011. As a result of the judgment, the Company made an accrual in the amount of $400,000 in the fiscal year ended April 30, 2011.

On December 5, 2011, the Company settled the litigation by paying Mr. Murphy a cash payment in the amount of $600,000 and an additional payment of 1,193,614 in the Company’s shares. All litigation has been discontinued and Mr. Murphy has acknowledged the Company’s 90% interest in the CMB Uranium /Vanadium Project has vested and any requirement for a bankable feasibility study has been irrevocably waived. The Company will be required to make advance royalty payments of $200,000 per year commencing in November 2012. Should the Company choose to bring the Moran Lake Property into production; the advance royalty payments made previously will be deducted against any Net Smelter Royalty owed to the original vendor of the property.

17.	FIRST-TIME ADOPTION OF IFRS

As stated in Note 2, these consolidated financial statements are the Company’s first financial statements prepared in accordance with IFRS. The accounting policies in Note 3 have been applied in preparing the consolidated financial statements for the years ended April 30, 2012 and 2011and the opening IFRS statement of financial position on May 1, 2010, the "Transition Date".

In preparing the opening IFRS statement of financial position and the financial statements for year ended April 30, 2012, the Company has adjusted amounts reported previously in financial statements that were prepared in accordance with Canadian GAAP. An explanation of how the transition from Canadian GAAP to IFRS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables. The guidance for the first time adoption of IFRS is set out in IFRS 1. IFRS 1 provides for certain mandatory exceptions and optional exemptions for first time adopters of IFRS. The Company elected to take the following IFRS 1 optional exemptions:

(a)

Share-based payments

IFRS 1 encourages, but does not require, first-time adopters to apply IFRS 2 Share-based Payment to equity instruments that were granted on or before November 7, 2002, or equity instruments that were granted subsequent to November 7, 2002 and vested before the later of the date of transition to IFRS and January 1, 2005. The Company has elected not to apply IFRS 2 to awards that vested prior to May 1, 2010.

115

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

17. FIRST-TIME ADOPTION OF IFRS (continued)

(b)

Decommissioning liabilities (Asset retirement obligations)

International Financial Reporting Interpretations Committee (“IFRIC’) 1, Changes in Existing Decommissioning, Restoration and Similar Liabilities, requires re-measurement of the asset retirement obligation at each period end to reflect changes due to changes in various assumptions. The Company has elected to utilize this exemption which allows the Company to not retrospectively adjust the environmental rehabilitation provision and related assets; the environmental rehabilitation provision has been accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets as at the transition date and thereafter.

(c)

Compound financial instruments

IAS 32 Financial Instruments: Presentation requires an entity to split a compound financial instrument at inception into separate liability and equity components. If the liability component is no longer outstanding, retrospective application of IAS 32 involves separating two portions of equity. However, in accordance with IFRS 1, a first-time adopter need not separate these two portions if the liability component is no longer outstanding at the date of transition to IFRS. The Company has elected to utilize this exemption, and therefore not separate the two components of prior flow-through share issuances for which the related expenditures had been fully renounced as of the date of transition to IFRS.

(d)

Business Combinations

IFRS 1 permits the application of IFRS 3 Business Combinations on a prospective basis from the Transition Date. The Company has applied this exemption and will apply IFRS 3 for business combinations after the Transition Date.

116

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

17.	FIRST-TIME ADOPTION OF IFRS (continued)

Reconciliations

The adoption of IFRS has resulted in changes to the Company’s reported financial position, results of operations, and operating and investing cash flows. In order to allow the users of the financial statements to better understand these changes, the financial statements previously presented under Canadian GAAP (“CGAAP”) have been reconciled to IFRS. For a description of the changes, see the discussion in Notes to the IFRS Reconciliations below.

The May 1, 2010 Canadian GAAP Consolidated Balance Sheet has been reconciled to IFRS as follows:

	CGAAP			IFRS Adjustments			IFRS			Notes

Current assets
Cash and cash equivalents	$	3,427,511		$	-		$	3,427,511
Marketable securities		358,823			-			358,823
Receivables		135,981			-			135,981
Prepaid expenses		283,611			-			283,611
		4,205,926			-			4,205,926
Non-current assets
Reclamation bonds		26,477			-			26,477
Equipment		380,705			-			380,705
Exploration and evaluation assets		30,385,684			(20,679,217	)		9,706,467		(iii)
		30,792,866			(20,679,217	)		10,113,649

	$	34,998,792		$	(20,679,217	)	$	14,319,575
Current liabilities
Accounts payable and accrued liabilities	$	798,623		$	-		$	798,623
Due to related parties		4,294			-			4,294
		802,917			-			802,917
Non-current liabilities
Future reclamation provisions		290,458			-			290,458
Other liability		-			249,297			249,297		(ii)
Provisions		200,000			-			200,000
		1,293,375			249,279			1,542,654

Capital stock		70,162,104			975,644			71,137,748		(ii) (iv)
Reserves		17,237,949			(302,226	)		16,935,723		(i) (iv)
Deficit		(53,694,636	)		(21,601,914	)		(75,296,550	)	(ii) (iii)
		33,705,417			(20,928,496	)		12,776,921

	$	34,998,792		$	(20,679,217	)	$	14,319,575

117

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

17. FIRST-TIME ADOPTION OF IFRS (continued)

The Canadian GAAP Consolidated Balance Sheet for the year ended April 30, 2011 has been reconciled to IFRS as follows:

	CGAAP			IFRS Adjustments			IFRS			Notes

Current assets
Cash and cash equivalents	$	9,931,585		$	-		$	9,931,585
Marketable securities		860,784			-			860,784
Receivables		227,974			-			227,974
Prepaid expenses		145,584			-			145,584
		11,165,927			-			11,165,927

Non-current assets
Reclamation bonds		17,563			-			17,563
Equipment		181,834			-			181,834
Exploration and evaluation assets		31,733,095			(21,552,445	)		10,180,650		(iii)
		31,932,492			(21,552,445	)		10,380,047

	$	43,098,419		$	(21,552,445	)	$	21,545,974
Current liabilities
Accounts payable and accrued liabilities	$	278,350		$	-		$	278,350
Due to related parties		72,407			-			72,407
		350,757			-			350,757
Non-current liabilities
Future reclamation provisions		282,162			-			282,162
Other liability		-			464,717			464,717		(ii)
Provisions		400,000			-			400,000
		1,032,919			464,717			1,497,636

Capital stock		77,151,646			3,870,022			81,021,668		(ii), (iv)
Reserves		20,695,209			(2,294,519	)		18,400,690		(i), (iv)
Deficit		(55,781,355	)		(23,592,665	)		(79,374,020	)	(i)(ii), (iii)
		42,065,500			(22,017,162	)		20,048,338

	$	43,098,419		$	(21,552,445	)	$	21,545,974

118

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

17.	FIRST-TIME ADOPTION OF IFRS (continued)

Reconciliations (continued)

The Canadian GAAP consolidated statement of comprehensive (loss) income for the year ended April 30, 2011 has been reconciled to IFRS as follows:

	CGAAP			IFRS Adjustments			IFRS			Notes
Audit and accounting	$	76,548		$	-		$	76,548
Consulting		215,985			-			215,985
Depreciation		60,948			-			60,948
Exploration and evaluation		9,924			873,228			883,152		(iii)
Insurance		65,975			-			65,975
Interest		22,941			-			22,941
Investor relations		157,235			-			157,235
Legal		247,543			-			247,543
Management fees		461,664			-			461,664
Office and administration		99,089			-			99,089
Rent		54,065			-			54,065
Share- based compensation		1,200,990			527,085			1,728,075		(i)
Transfer agent & filing		166,036			-			166,036
Travel		58,157			-			58,157
Wages and salaries		359,103			-			359,103

Income (loss) before other items		(3,256,203	)		(1,400,313	)		(4,656,516	)

Interest income		34,748			-			34,748
Gain (loss) on asset disposition		(110,291	)		-			(110,291	)
Gain (loss) on foreign exchange		(6,934	)		-			(6,934	)
Unrealized gain - marketable securities		501,961			-			501,961
Other income - flow-through share premium		-			159,562			159,562		(ii)

Income (loss) before income tax	$	(2,836,719	)	$	(1,240,751	)	$	(4,077,470	)

Deferred income tax recovery	$	750,000		$	(750,000	)	$	-		(ii)
Net income (loss) and comprehensive loss for the year	$	(2,086,719	)	$	(1,990,751	)	$	(4,077,470	)

119

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

17.	FIRST-TIME ADOPTION OF IFRS (continued)

Reconciliations (continued)

The Canadian GAAP consolidated statement of cash flow for the year ended April 30, 2011 has been reconciled to IFRS as follows:

	CGAAP			Adjustments			IFRS			Notes
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the period	$	(2,086,719	)	$	(1,990,751	)	$	(4,077,470	)	(i), (ii), (iii)
Item not affecting cash:
Interest		22,941			-			22,941
Change in future reclamation estimate		-			(31,237	)		(31,237	)	(iii)
Depreciation		60,948			-			60,948
Loss on sale of equipment		110,291			-			110,291
Deferred income tax recovery		(750,000	)		750,000			-		(ii)
Other income – flow-through premium		-			(159,562	)		(159,562	)	(ii)
Share- based compensation		1,200,990			527,085			1,728,075		(i)
Unrealized loss on foreign exchange		2,089			-			2,089
Unrealized gain on marketable securities		(501,961	)		-			(501,961	)
Changes in non-cash working capital items:
Receivables		(91,993	)		-			(91,993	)
Prepaid expenses		138,027			-			138,027
Accounts payable and accrued liabilities		(138,497	)		(12,180	)		(150,677	)	(iii)
Due to related parties		68,113			-			68,113
Net cash used in operating activities		(1,965,771	)		(916,645	)		(2,882,416	)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of equipment		(2,368	)		-			(2,368	)
Proceeds on sale of equipment		30,000			-			30,000
Reclamation bonds		8,914			-			8,914
Exploration and evaluation		(1,562,513	)		916,645			(645,868	)	(iii)
Net cash used in investing activities		(1,525,967	)		916,645			(609,322	)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of shares for cash, net of costs		9,995,812			-			9,995,812
Net cash provided by financing activities		9,995,812			-			9,995,812
Increase in cash and cash equivalent during the year		6,504,074			-			6,504,074
Cash and cash equivalent , beginning of the year		3,427,511			-			3,427,511
Cash and cash equivalent, end of the year	$	9,931,585		$	-		$	9,931,585

120

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

17.	FIRST-TIME ADOPTION OF IFRS (continued)

Notes to the IFRS reconciliations:

Share-based payments

Under Canadian GAAP, the fair value of share-based awards with graded vesting are calculated as one grant and the resulting fair value is recognized on a straight-line basis over the vesting period. Forfeitures of awards are recognized as they occur.

Under IFRS, a fair value measurement is required for each vesting installment within the option grant. Each installment must be valued separately, based on assumptions determined from historical data, and recognized as compensation expense over each installment’s individual tranche vesting period. Forfeiture estimates are recognized in the period they are estimated, and are revised for actual forfeitures in subsequent periods. As at April 30, 2011, this accounting policy change resulted in an increase in reserves of $751,117 (May 1, 2010 - $224,032). During the year ended April 31, 2011, share-based compensation expenses were increased by $527,085.

ii)

Flow through shares

The treatment of the tax effect of flow-through shares differs under Canadian GAAP and IFRS.

Under Canadian GAAP, capital stock is recorded at net proceeds less the deferred tax liability related to the renounced expenditures.

Under IFRS, the increase to capital stock when flow-through shares are issued is measured based on the current market price of common shares. The incremental proceeds, or "premium", are recorded as other liability. When expenditures are made, the other liability is reversed and included in income. As at April 30, 2011, this accounting policy change resulted in an increase in capital stock of $824,386 (May 1, 2010 - $449,386), an increase of $464,717 (May 1, 2010-$249,279) in the amount of other liability, an increase of $159,562 for year ended April 30, 2011 in other income flow-through premium, and a decrease of $750,000 of the deferred tax recovery for the year ended April 30, 2011.

iii)

Exploration and Evaluation Accounting

IFRS allows an entity to select an appropriate accounting policy for the treatment of resource properties (known as exploration and evaluation assets under IFRS). Under existing Canadian GAAP, the Company followed the policy of capitalizing all mineral property expenditures directly attributable to the exploration or evaluation of each property, including an appropriate allocation of overheads related to the activity. On transition to IFRS, the Company changed the policy to expensing all mineral property expenditures directly attributable to the exploration or evaluation of each property under IFRS. The decision to change this policy was made to streamline the financial reporting process and simplify the presentation of financial information for investors. As at April 30, 2011, this change of policy resulted in a decrease of $21,552,445 (May 1, 2010 - $20,679,217) in the carrying value of exploration and evaluation assets and a corresponding increase of $21,552,445 (May 1, 2010 - $20,679,217) in deficit. As a result, exploration and evaluation expenses increased by $873,228 during the year ended April 30, 2011. As at April 30, 2011, under Canadian GAAP, $12,180 of capitalized mineral property expenditures were included in accounts payable and accrued liabilities and exploration and evaluation assets were reducing by $31,237 due to a change in assumption with future reclamation provisions. After the change in accounting policy, there were no capitalized mineral property expenditures included in accounts payable and accrued liabilities as at April 30, 2011 and changes to future reclamation provisions were expensed.

121

CROSSHAIR ENERGY CORPORATION (Formerly Crosshair Exploration & Mining Corp.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED APRIL 30,

(Expressed in Canadian Dollars)

17.	FIRST-TIME ADOPTION OF IFRS (continued)

Notes to the IFRS reconciliations (continued):

iv)

Warrants

Under Canadian GAAP, the Company applied the relative fair value method to allocate proceeds received in connection with financing transactions to any share purchase warrants granted to investors.

Under IFRS, the Company has changed its accounting policy for the treatment of unit offerings to the residual method, whereby any proceeds exceeding the fair value of the common shares at the time of issuance are allocated to the share purchase warrants.

At the date of transition, this change resulted in a re-allocation of $526,258 to share capital from reserves, representing the fair value of the warrants under Canadian GAAP granted to the investors who participated in the November 2009 non-flow through private placement and the April 2010 flow-through private placement, as well as the portion of cash and non-cash share issuance costs allocated to reserves.

During the year ended April 30, 2011, this change in accounting policy resulted in re-allocation of $2,519,378 to share capital, representing the fair value of the warrants under Canadian GAAP granted to the investors who participated in the November 2010 flow-through private placement, and the November 2010 non-flow-through private placement, as well as the fair value of warrants exercised during the year.

Given that the adjustment was applied to two components within equity, there was no impact to total shareholders’ equity.

122

ITEM 19. EXHIBITS

1.1 (1)

Certificate of Incorporation dated September 2, 1966

1.2 (1)

Memorandum dated August 31, 1966

1.3 (1)

Certificate of Conversion to Public Company dated February 20, 1967

1.4 (1)

Certificate of Name Change from Shasta Mines & Oil Ltd. (NPL) to International Shasta Resources Ltd dated February 4, 1975

1.5 (1)

Certificate of Name Change from International Shasta Resources Ltd. to Consolidated Shasta Resources Inc dated May 20, 1994

1.6 (1)

Certificate of Name Change from Consolidated Shasta Resources Inc. to Lima Gold Corporation dated November 23, 1994

1.7 (1)

Certificate of Name Change from Lima Gold Corporation to International Lima Resources Corp. dated September 21, 1999

1.8 (1)

Certificate of Name Change from International Lima Resources Corp. to Crosshair Exploration & Mining Corp. dated March 1, 2004

1.9 (1)

Transition Application and Notice of Articles transitioning from the former Company Act (British Columbia) to the Business Corporations Act (British Columbia) dated June 1, 2004

1.10 (1)

Notice of Alteration removing the Pre-Existing Company Provisions filed September 30, 2004

1.11 (1)

Notice of Alteration increasing the authorized share capital from 100,000,000 common shares to an unlimited number of common shares filed March 11, 2005

1.12 (1)

New Articles – 2004

1.13	Certificate of Name Change from Crosshair Exploration & Mining Corp. to Crosshair Energy Corporation dated October 28, 2011.

2.1	Specimen Common Share certificate

2.2 (1)

Sample of Warrant Terms and Conditions

3.1 (8)

Voting Trust Agreement between Crosshair and Expedition dated April 27, 2010

4.1 (1)

Victoria Lake Property Agreement between Rubicon Minerals Corp. and Crosshair dated February 14, 2003. (This agreement is in relation to the South Golden Promise Property)

4.2 (1)

1 st Amended Agreement with Rubicon Minerals Corp. regarding Victoria Lake Property dated April 29, 2004. (This agreement relates to the South Golden Promise Property)

4.3 (1)

2 nd Amended Agreement with Rubicon Minerals Corp. regarding Victoria Lake Property dated November 16, 2004. (This agreement relates to the South Golden Promise Property)

4.4 (2)

Golden Promise Agreement between Rubicon Minerals Corp. and Crosshair Exploration dated May 1, 2006

4.5 (1)

Amended and Restated Moran Lake Agreement between Lewis Murphy and Crosshair dated March 1, 2005

123

4.6 (9)

Stock Option Plan dated as of November 4, 2010

4.7 (9)

Sample Stock Option Grant Certificate

4.8 (9)

Management Services Agreement with Forbes West dated October 1, 2010

4.9 (5)

Amended and Restated Shareholder Rights Plan Agreement with Computershare Investor Services Inc. dated as of November 19, 2007, as amended and restated March 31, 2008

4.10 (9)

Consulting Agreement with MJM Consulting and Mark J. Morabito dated March 1, 2011

4.11 (9)

Consulting Agreement with Sundance Geological Ltd. and C. Stewart Wallis dated March 1, 2011

4.12 (7)

Purchase and Sale Agreement between Crosshair and Expedition dated July 29, 2008

4.13 (7)

Settlement and Release Agreement made among Expedition, Silver Spruce and Crosshair dated July 29, 2008

4.14 (6)

Combination Agreement made among Crosshair, 0843540 B.C. Ltd. and Target dated January 28, 2009

4.15 7)

Golden Promise Option and Joint Venture Agreement between Crosshair and Paragon dated April 8, 2009

4.16 (7)

List of Crosshair Subsidiaries

4.17 (7)

The Bootheel Project, LLC Exploration, Development & Mine Operating Agreement among 448018 Exploration, Inc., NFUR Bootheel, LLC, Target Exploration and Mining Corp., Ur-Energy USA Inc. and NFU Wyoming LLC dated June 7, 2007

4.18 (7)

Amendment No. 1 to The Bootheel Project, LLC Exploration, Development & Mine Operating Agreement dated December 21, 2007

4.19 (7)

Uranium Lease and Surface and Damage Agreement between 448018 Exploration, Inc. and M J Ranches dated February 5, 2008

4.20 (7)

Assignment of Uranium Lease and Surface and Damage Agreement between 448018 Exploration, Inc. and The Bootheel Project, LLC dated April 11, 2008

4.21 (7)

Surface Impact Agreement between 448018 Exploration, Inc. and M J Ranches dated February 5, 2008

4.22 (7)

Assignment of Surface Impact Agreement between 448018 Exploration, Inc. and The Bootheel Project, LLC dated April 11, 2008

4.23 (9)

Juniper Ridge Agreement between Strathmore Resources (US) Ltd., Strathmore Minerals Corp., the Company and 448018 Exploration, Inc. dated October 29, 2010

4.24 (9)

Agency Agreement between the Company and BayFront Capital Partners Ltd. dated November 23, 2010

4.25 (9)

Subscription Receipt Agreement between the Company, BayFront Capital Partners Ltd. and Computershare Trust Company of Canada dated November 23, 2010

4.26 (9)

Warrant Indenture between the Company and Computershare Trust Company of Canada dated November 23, 2010

4.27	Moran Lake Co-Ownership Agreement between the Company and Lewis Murphy dated December 5, 2011

124

4.28 (10)

Subscription Receipt Agreement between the Company, BayFront Capital Partners Ltd. and Computershare Trust Company of Canada dated February 27, 2012

4.29 (10)

Warrant Indenture between the Company and Computershare Trust Company of Canada dated February 27, 2012

11.1 (4)

Code of Ethics

12.1	Section 302 CEO Certification

12.2	Section 302 CFO Certification

13.1	Section 906 CEO Certification

13.2	Section 906 CFO Certification

_________________

(1)

Filed as an exhibit to our Registration Statement on Form 20-F filed April 25, 2006.

(2)

Filed as an exhibit to our Registration Statement on Form 20-F filed July 21, 2006.

(3)

Filed as an exhibit to our Annual Report on Form 20-F filed October 31, 2006.

(4)

Filed as an exhibit to our Form 6-K filed April 8, 2009.

(5)

Filed as an exhibit to our Form 6-K filed April 16, 2008.

(6)

Filed as an exhibit to our Form 6-K filed January 29, 2009.

(7)

Filed as an exhibit to our Annual Report on Form 20-F filed June 25, 2009.

(8)

Filed as an exhibit to our Annual Report on Form 20-F filed July 29, 2010.

(9)

Filed as an exhibit to our Annual Report on Form 20-F filed July 29, 2011.

(10)	Filed as an exhibit to our Form 6-K filed March 5, 2012.

125

GLOSSARY OF GEOLOGICAL TERMS

The following is a glossary of certain geological terms used in this Form 20-F Annual Report:

Anomalous means having a geochemical or geophysical character which deviates from regularity.

Anticline means a fold with strata sloping downward on both sides from a common crest.

Archean means of or relating to the oldest known rocks, those of the Precambrian Eon, Basalt means a hard, dense, dark volcanic rock composed chiefly of plagioclase, pyroxene, and olivine, and often having a glassy appearance.

Breccia means fragmental rock whose components are angular and, therefore, as distinguished from conglomerates, are not water worn. May be sedimentary or formed by crushing or grinding along faults.

Chert means variety of silica containing microcrystalline quartz.

Claim means the area that confers mineral exploration/exploitation rights to the registered (mineral/mining) holder under the laws of the governing jurisdiction.

Clastic means a sedimentary rock composed of fragments from pre-existing rock.

Conglomerate means a composite rock made up of particles of varying size.

Contiguous means adjacent.

Diamond Drill means a type of rotary drill in which the cutting is done by abrasion rather than percussion. The cutting bit is set with diamonds and is attached to the end of long hollow rods through which water is pumped to the cutting face. The drill cuts a core of rock which is recovered in long cylindrical sections, an inch or more in diameter.

Dolostone means a sedimentary rock composed primarily of dolomite, a mineral made up of calcium, magnesium, carbon, and oxygen.

eU 3 O 8 means equivalent uranium as determined from a gamma log measured by a downhole probe. Expressing the uranium content in this manner is standard industry practice for uranium exploration in the USA.

Fault means a fracture in a rock along which there has been relative movement between the two sides either vertically or horizontally.

Foliation means the layered structure common to metamorphic rocks.

Fracture means breaks in rocks due to intensive folding or faulting.

Galena means a soft blue-gray mineral; a major source of lead.

Geological means pertaining to geology, the study of the planet earth – the materials of which it is made, the processes that act on these materials, the products formed, and the history of the planet and its life forms since its origin.

Geochemical means the chemistry of the composition and alterations of the solid matter of the earth or a celestial body.

126

Geophysics means the study of the earth by quantitative physical methods.

Gneisses means a banded or foliated metamorphic rock, usually of the same composition as granite.

Granite means plutonic igneous rock having visibly crystalline texture; generally composed of feldspar and mica and quartz .

Graphitic means pertaining to, containing, derived from, or resembling, graphite.

Greywacke means a variety of sandstone generally characterized by its hardness, dark color, and poorly-sorted, angular grains of quartz, feldspar, and small rock fragments set in a compact, clay-fine matrix.

Hematite means an iron ore that is a natural iron oxide that is reddish or brown in colour.

Host means a rock or mineral that is older than rocks or minerals introduced into it.

Indicated Mineral Resource - is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. This definition is from the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves adopted on December 11, 2005.

Inferred Mineral Resource - is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. This definition is from the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves adopted on December 11, 2005.

Intrusion means a rock formed by having moved while in a molten state into pre-existing rocks.

Limestone means a sedimentary rock consisting mainly of calcium that was deposited by the remains of marine animals.

Mafic means relating to or being a dark-coloured igneous group of minerals that have high magnesium and iron content.

Mineral Resource means a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge.

Mineralization means the concentration of metals and their chemical compounds within a body of rock.

Mudstone means a detrital sedimentary rock composed of clay-sized particles .

Net Smelter Return and NSR means the amount of the excess, if any, of Revenue, less Costs. All or any exploration, development and mine construction costs and interest thereon are not to be charged or deducted from the NSR.

NI 43-101 means National Instrument 43-101 Standards of Disclosure for Mineral Projects , as adopted by the Canadian Securities Administrators effective December 30, 2005.

127

Paleoproterozoic means adjective implying conditions between 1.6 billon years ago and 2.5 billion years ago.

Pyrite means a cubic iron sulfide mineral with a brassy metallic luster that is used as an iron ore, as a source of sulfur, and in the production of sulfuric acid.

Quartz means a mineral composed of silicon dioxide.

Sandstone means a type of sedimentary rock made up of particles of sand, mostly quartz, bound together with a mineral cement, along with some feldspar, mica and rock debris.

Shale means a fine-grained detrital sedimentary rock, formed by the compaction of clay, silt, or mud

Siltstone means a form of fine-grained sandstone consisting of compressed silt.

Soil sampling means the systematic collection of soil samples at a series of different locations in order to study the distribution of soil geochemical values.

Stratigraphy means Cultural remains and natural sediments become buried over time, forming strata.

Striae means grooves on a rock surface caused by the movement of a glacier over the rock. Provides a direction for tracing boulders to their source.

Strike means the direction or trend of a geologic structure.

Syncline means a fold in rocks in which the rock layers dip inward from both sides toward the axis.

Tuff means hard volcanic rock composed of compacted volcanic ash.

UTM grid means Universal Transverse Mercator grid.

Vein means a thin sheet-like intrusion into a fissure or crack, commonly quartz-bearing.

Volcanic means a description of rocks originating from volcanic activity.

128

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

CROSSHAIR ENERGY CORPORATION

/s/ Mark Ludwig

By: Mark Ludwig

Chief Executive Officer

Date: July 24, 2012

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

EXHIBIT 12.1

CERTIFICATION

I, Mark Ludwig, Chief Executive Officer, certify that:

1.	I have reviewed this annual report on Form 20-F of Crosshair Energy Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)	Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.	The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design and operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: July 24, 2012

/s/ Mark Ludwig

Mark Ludwig

Chief Executive Officer

148

EXHIBIT 12.2

CERTIFICATION

I, Sam Yik, Chief Financial Officer, certify that:

1.	I have reviewed this annual report on Form 20-F of Crosshair Energy Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

(a)

(b)

(c)	Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)	Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.	The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design and operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: July 24, 2012

[s] Sam Yik

Sam Yik

Chief Financial Officer

149

EXHIBIT 13.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Mark Ludwig, Chief Executive Officer of Crosshair Energy Corporation (the “Company”), hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	the annual report on Form 20-F of the Company for the year ended April 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 24, 2012

/s/ Mark Ludwig

Mark Ludwig

Chief Executive Officer

150

EXHIBIT 13.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Sam Yik, Chief Financial Officer of Crosshair Energy Corporation (the “Company”), hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	the annual report on Form 20-F of the Company for the year ended April 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 24, 2012

/s/ Sam Yik

Sam Yik

Chief Financial Officer

151

CF Texas Inst Sequin (AMEX:CXZ)
Historical Stock Chart
Von Apr 2024 bis Mai 2024

Click Here for more CF Texas Inst Sequin Charts.

CF Texas Inst Sequin (AMEX:CXZ)
Historical Stock Chart
Von Mai 2023 bis Mai 2024

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Hot Features

Follow Feed

Optionen-Flow

Watchlist

CXZ Crosshair Energy Corp.

News

Kürzlich von Ihnen besucht

Unternehmen

Geschäft

Popular

App herunterladen

Trends

Toplisten

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Hot Features

Follow Feed

Optionen-Flow

Watchlist

CXZ Crosshair Energy Corp.

News

Kürzlich von Ihnen besucht

Unternehmen

Geschäft

Popular

App herunterladen