---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

FORM 20-F/A(AMENDMENT NO. 1)

(Mark One)

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

OR

[ x ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 
For the fiscal year endedApril
30, 2008

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________
to __________

OR

[ ] 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 EXPLORATION & MINING
CORP.(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, mark@crosshairexploration.comSuite 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 each exchange on which registered
|-------------------------------- | -----------------------------------------
|Common Shares, without par value | American Stock Exchange                  

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: 84,595,825

Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities Act. [ ]
Yes [ x ] 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 [ x
] 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. [ x ] 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 [ x ] | Non-accelerated filer [ ]
|--------------------------- | ----------------------- | -------------------------

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

|U.S. GAAP [ ] | International Financial Reporting Standards
      as issued by the International Accounting Standards Board [ ] | Other [ x ]
|------------- | --------------------------------------------------------------------------------------------------------------- | -----------

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. [ x ] Item 17 [ ] 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 [ x ] No

Index to Exhibits on Page 4

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EXPLANATORY NOTE

Crosshair Exploration & Mining Corp. (Crosshair or the
Company) is a Canadian issuer eligible to file its annual report pursuant to
Section 13 of the Securities Exchange Act of 1934, as amended (the Exchange
Act), on Form 20-F. This Amendment No. 1 on Form 20-F (the Amendment) hereby
amends Crosshairs annual report on Form 20-F for the fiscal year ended April
30, 2008, as originally filed with the Securities and Exchange Commission (the
SEC) on July 29, 2008 (the Original Filing). At the time of the Original
Filing, management had been unable to complete its assessment of the
effectiveness of the Companys internal control over financial reporting as of
April 30, 2008 as required by Section 404 of the United States Sarbanes-Oxley
Act of 2002. As a result, the Companys independent registered public accounting
firm was unable to complete its audit of managements assessment of the
effectiveness of the Companys internal control over financial reporting as of
April 30, 2008, and was unable to attest to managements assessment of the
effectiveness of the Companys internal control over financial reporting as of
April 30, 2008. This Amendment is being filed to address these two items, which
have now been completed, and correct the previously deficient filing. Because
the Company must re-file the reports of its auditors, it must refile its
financial statements for the fiscal year ended Apri 30, 2008, and also update
the subsequent event note to the Companys financial statements to reflect
changes that have occurred since the Original Filing. Otherwise, this Amendment
does not reflect events occurring after the filing of the Original Filing and
should not be viewed as updating any other information contained therein. Except
as described above, no other changes have been made to the Original Filing.

|       
|-------
|PART II

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 operation of the Companys disclosure
controls and procedures (as such term is defined in Rule 13a-15(e) of the
Exchange Act) was carried out by the Companys Chief Executive Officer and Chief
Financial Officer. Based upon the evaluation, and notwithstanding the fact that
management determined that there were material weaknesses with respect to the
Companys internal control over financial reporting, the Companys Chief
Executive Officer and Chief Financial Officer have concluded as of the end of
the period covered by this report that the design and operation of the Companys
disclosure controls and procedures are effective at the reasonable assurance
level to ensure that information required to be disclosed by the Company in
reports that it files or submits 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 the
Companys Chief Executive Officer and Chief Financial Officer, to allow timely
decisions regarding required disclosures. Management determined that the
material weaknesses in internal control over financial reporting regarding
controls at the entity level, information technology systems, stock-based
compensation calculations, and income tax accounting did not arise from
ineffectiveness of the Companys disclosure controls and procedures.

Notwithstanding the foregoing, because of the inherent
limitations in all control systems, no evaluation of controls can provide
absolute assurance that the Companys disclosure controls and procedures will
detect or uncover every situation involving the failure of persons within the
Company to disclose material information otherwise required to be set forth in
the Companys periodic reports. The Companys 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 the
Company files or submits under the Exchange Act is communicated to management to
allow timely decisions regarding required disclosure.

Managements Report on Internal Control over Financial
Reporting

The Company's management is responsible for establishing and
maintaining adequate internal control over financial reporting as defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Companys management
has employed a framework consistent with Exchange Act Rule 13a-15(c), to
evaluate the Companys internal control

1

---

over financial reporting described below. The Companys
internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation and fair presentation of financial statements for external purposes
in accordance with Canadian generally accepted accounting principles.

Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements. 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.

The Companys management, with the participation of its Chief
Executive Officer and Chief Financial Officer, has assessed the effectiveness of
the Companys internal control over financial reporting as of April 30, 2008,
based on the control criteria established in a report entitled Internal Control
- Integrated Framework, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). That framework defines a material weakness as
a control deficiency, or combination of control deficiencies, that results in
more than a remote likelihood that a material misstatement of the annual or
interim financial statements will not be prevented or detected.

Control Environment.In addition to managements
inability to complete its assessment of internal control over financial
reporting in a timely manner the Company did not maintain an effective control
environment based on the criteria established in the COSO framework. Controls
were not effective primarily due to a lack of formalized policies and
procedures, lack of controls over the expenditure cycle, lack of controls to
monitor operating results, lack of formalized accounting approval and review
procedures and a lack of a compliance and internal control function. Based on
such evaluation, the Company has concluded that its internal control over
financial reporting was not effective and contained material weaknesses as of
April 30, 2008. Management has identified the following control deficiencies,
each of which represents a material weakness in the Companys internal control
over financial reporting as of April 2008:

- Inadequate and ineffective information technology controls are noted along
  with a lack of information technology policies and procedures that relate to
  program changes, computer and application operations, access, security, and
  disaster recovery plans may not ensure the proper operation of information
  systems surrounding financial reporting;
- Inadequate controls were noted related to the stock-based compensation
  calculations that could lead to stock-based compensation not being
  appropriately valued or the inaccuracy in compensation expenses or
  compensation expenses being recorded in the incorrect period; and
- Inadequate controls were noted related to the accounting for income tax as
  a result of aggregate deficiencies including but not limited to no formalized
  process, review procedures and documentation.

Managements assessment of the effectiveness of the Companys
internal control over financial reporting as of April 30, 2008 has been audited
by Davidson & Company LLP, an independent registered public accounting firm
that has issued an opinion on the effectiveness of the Companys internal
control over financial reporting as of April 30, 2008. The Auditors Report is
included in the Companys financial statements attached hereto.

Remediation of the Material Weaknesses in Internal Control
over Financial Reporting

Management has reported to the Audit Committee the
identification of the material weaknesses and significant deficiencies
identified in its assessment. Key elements of the remediation effort include,
but are not limited to the following initiatives:

- Adopting and implementing common policies, procedures and controls, and
  communicating roles and responsibilities to all personnel involved in and
  having an impact on the financial reporting function;

2

---

- Providing the necessary training to personnel; building internal control
  knowledge; defining user-access rights to the Companys accounting systems;
  developing and formalizing policies and procedures; formalizing approval,
  review and reporting protocols; and enhancing the Companys information
  systems and lines of communications;
- Management effecting changes in its stock administration process to improve
  controls relating to the accuracy and completeness of stock-based compensation
  calculations, estimates and judgment exercised. Sufficient safeguards being
  implemented to enhance coordination and communication among legal, finance and
  human resource functions along with appropriate review procedures of
  stock-related transactions and calculations;
- Management formalizing effective information technology policies and
  procedures, which will address financial reporting risks associated with the
  information technology function including but not limited to: taking immediate
  steps to increase the security of the Companys network and initiating a
  disaster recovery plan; and establishing a strong and effective control
  environment by implementing sound information technology security practices
  throughout the Company; and
- Management taking steps to improve those controls related to accounting for
  income tax including the formalization of processes, procedures and
  documentation standards including adequate levels of review relating to income
  tax provisions.

Mark J. Morabito, Chief Executive Officer Joseph Miller,
Chief Financial Officer

Changes in Internal Control over Financial Reporting

Other than the issues and remediation discussed above, there
were no changes in the Companys internal control over financial reporting that
occurred during the period covered by this report that have materially affected,
or are reasonably likely to materially affect, the Companys internal control
over financial reporting.

|        
|--------
|PART III

ITEM 17. FINANCIAL STATEMENTS

The Companys financial statements are stated in Canadian
Dollars and are prepared in accordance with Canadian Generally Accepted
Accounting Principles (GAAP), the application of which, in the Companys case,
conforms in all material respects for the periods presented with United States
GAAP, except as discussed in footnotes to the financial statements.

Auditors Reports dated October 1, 2008

Balance Sheet at April 30, 2008 and 2007

Statement of Operations for the years ended April 30, 2008,
2007 and 2006

Statement of Cash Flows for the years ended April 30, 2008,
2007 and 2006

Notes to the Financial Statements for the year ended April 30,
2008

ITEM 18. FINANCIAL STATEMENTS

See Item 17  Financial Statements.

3

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ITEM 19. EXHIBITS

|12.1 | Section 302
        CEO Certification
|---- | -------------------------------------
|     |                                      
|12.2 | Section 302
        CFO Certification
|     |                                      
|13.1 | Section 906
        CEO Certification
|     |                                      
|13.2 | Section 906
        CFO Certification

4

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CROSSHAIR EXPLORATION & MINING CORP.

FINANCIAL STATEMENTS

APRIL 30, 2008

(Expressed in Canadian Dollars)



|www.crosshairexploration.com                 | Head Office                       | Phone: 604-681-8030      
|-------------------------------------------- | --------------------------------- | -------------------------
|General Email: info@crosshairexploration.com | 1140 W. Pender Street, Suite 1240 | Toll Free: 1-866-683-8030
|Investors: investor@crosshairexploration.com | Vancouver, BC, Canada V6E 4G1     | Facsimile: 604-681-8039  

CXX: TSX   CXZ: AMEX

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INDEPENDENT AUDITORS REPORT

To the Shareholders of Crosshair Exploration & Mining
Corp.

We have audited the balance sheets of Crosshair Exploration
& Mining Corp. as at April 30, 2008 and 2007 and the statements of
operations, shareholders' equity and cash flows for the years ended April 30,
2008, 2007 and 2006. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with Canadian generally
accepted auditing standards and with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform an audit to obtain reasonable assurance whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation.

In our opinion, these financial statements present fairly, in
all material respects, the financial position of the Company as at April 30,
2008 and 2007 and the results of its operations and cash flows for the years
ended April 30, 2008, 2007 and 2006 in accordance with Canadian generally
accepted accounting principles.

We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the effectiveness of
the Companys internal control over financial reporting as of April 30, 2008,
based on criteria established in Internal Control  Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), and our report dated October 1, 2008 expressed an adverse
opinion of the Companys internal control over financial reporting because of
material weaknesses.

|                  | **"DAVIDSON &
      COMPANY LLP"**
|----------------- | ----------------------------------
|                  |                                   
|Vancouver, Canada | Chartered
      Accountants       
|                  |                                   
|October 1, 2008   |                                   



1200 - 609 Granville Street, P.O. Box 10372, Pacific Centre,
Vancouver, BC, Canada, V7Y 1G6 Telephone (604) 687-0947 Fax (604) 687-6172

---



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Crosshair
Exploration & Mining Corp.

We have audited Crosshair Exploration & Mining Corp.s (the
Company) internal control over financial reporting as of April 30, 2008, based
on criteria established in Internal Control  Integrated Frameworkissued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
The Companys management is responsible for maintaining effective internal
control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting included in the accompanying
Managements Report on Internal Control Over Financial Reporting. Our
responsibility is to express an opinion on the Companys internal control over
financial reporting based on our audit.

We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was maintained in
all material respects. Our audit included obtaining an understanding of internal
control over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. Our audit also included performing
such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.

A companys internal control over financial reporting is a
process 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. A
companys internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the companys assets that could have a
material effect on the financial statements.

Because of the inherent limitations, internal control over
financial reporting may not prevent or detect misstatements. 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.

A material weakness is a deficiency, or combination of
deficiencies, in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the Companys annual or
interim financial statements will not be prevented or detected on a timely
basis. The following material weaknesses have been identified and included in
managements assessment: Management determined the controls around information
technology systems and processes relating to security, unauthorized access and
disaster recovery were not effective. Management determined that controls over
accounting for income taxes, including review procedures and documentation, were
not effective. Management also determined that controls over accounting for
stock-based compensation, including the calculation and timing of stock-based
compensation expense, were not effective. These material weaknesses were
considered in determining the nature, timing, and extent of audit tests applied
in our audit of the financial statements as of and for the year ended April 30,
2008 of the Company, and this report does not affect our report on those
financial statements.



1200 - 609 Granville Street, P.O. Box 10372, Pacific Centre,
Vancouver, BC, Canada, V7Y 1G6 Telephone (604) 687-0947 Fax (604) 687-6172

---

In our opinion, because of the effect of the material
weaknesses identified above on the achievement of the objectives of the control
criteria, the Company has not maintained effective internal control over
financial reporting as of April 30, 2008, based on the criteria established in
Internal ControlIntegrated Frameworkissued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).

We have also audited, in accordance with Canadian generally
accepted auditing standards and with the standards of the Public Company
Accounting Oversight Board (United States), the balance sheets of the Company as
of April 30, 2008 and 2007and the related statements of operations and
shareholders equity and cash flows for the years ended April 30, 2008, 2007 and
2006 and our report dated October 1, 2008 expressed an unqualified opinion on
those financial statements.

|                  | **"DAVIDSON & COMPANY
      LLP"**
|----------------- | ----------------------------------
|                  |                                   
|Vancouver, Canada | Chartered Accountants             
|                  |                                   
|October 1, 2008   |                                   

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|CROSSHAIR EXPLORATION & MINING CORP.                                                    |   |             |   |   |             |  
|--------------------------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|BALANCE SHEETS                                                                          |   |             |   |   |             |  
|AS AT APRIL 30                                                                          |   |             |   |   |             |  
|(Expressed in
      Canadian Dollars)                                                   |   |             |   |   |             |  
|                                                                                        |   |             |   |   |             |  
|                                                                                        |   | 2008        |   |   | 2007        |  
|                                                                                        |   |             |   |   |             |  
|ASSETS                                                                                  |   |             |   |   |             |  
|                                                                                        |   |             |   |   |             |  
|Current assets                                                                          |   |             |   |   |             |  
|Cash and cash equivalents                                                               | $ | 13,275,874  |   | $ | 14,311,417  |  
|Marketable securities at fair value (cost: $2,695,052 &
      $1,822,976, respectively) |   | 582,351     |   |   | 1,787,387   |  
|Receivables                                                                             |   | 558,345     |   |   | 444,929     |  
|Prepaid
      expenses                                                                  |   | 273,828     |   |   | 203,438     |  
|                                                                                        |   |             |   |   |             |  
|                                                                                        |   | 14,690,398  |   |   | 16,747,171  |  
|                                                                                        |   |             |   |   |             |  
|Equipment(Note 3)                                                                       |   | 507,883     |   |   | 366,080     |  
|                                                                                        |   |             |   |   |             |  
|Mineral properties(Note 4)                                                              |   | 27,071,981  |   |   | 14,551,292  |  
|                                                                                        |   |             |   |   |             |  
|                                                                                        | $ | 42,270,262  |   | $ | 31,664,543  |  
|                                                                                        |   |             |   |   |             |  
|LIABILITIES AND
      SHAREHOLDERS' EQUITY                                              |   |             |   |   |             |  
|                                                                                        |   |             |   |   |             |  
|Current liabilities                                                                     |   |             |   |   |             |  
|Payables and accrued
      liabilities                                                  | $ | 1,192,271   |   | $ | 1,337,226   |  
|Due to
      related parties                                                            |   | 110,295     |   |   | 19,241      |  
|                                                                                        |   |             |   |   |             |  
|                                                                                        |   | 1,302,566   |   |   | 1,356,467   |  
|                                                                                        |   |             |   |   |             |  
|Future reclamation costs(Note 5)                                                        |   | 172,238     |   |   | -           |  
|                                                                                        |   |             |   |   |             |  
|Shareholders' equity                                                                    |   |             |   |   |             |  
|Capital stock (Note 6)                                                                  |   |             |   |   |             |  
|Authorized                                                                              |   |             |   |   |             |  
|Unlimited number of common shares
      without par value                               |   |             |   |   |             |  
|Issued: 84,595,825 (April 30, 2007  70,912,072)
      common shares                    |   | 60,948,053  |   |   | 44,135,660  |  
|Contributed surplus (Note
      6)                                                      |   | 10,496,726  |   |   | 3,888,533   |  
|Deficit                                                                                 |   | (30,649,321 | ) |   | (17,716,117 | )
|                                                                                        |   |             |   |   |             |  
|                                                                                        |   | 40,795,458  |   |   | 30,308,076  |  
|                                                                                        |   |             |   |   |             |  
|                                                                                        | $ | 42,270,262  |   | $ | 31,664,543  |  

Nature and continuance of operations (Note 1) Basis of
presentation (Note 2) Subsequent events (Note 10) Commitments and
contingencies (Note 12)

On behalf of the Board:

|Mark J.
      Morabito | Director | Ian B. Smith | Director
|------------------------ | -------- | -------------- | --------
|Mark J. Morabito         |          | Ian B. Smith   |         

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

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|CROSSHAIR EXPLORATION & MINING CORP.                  |   |             |   |   |            |   |   |            |  
|----------------------------------------------------- | - | ----------- | - | - | ---------- | - | - | ---------- | -
|STATEMENTS OF OPERATIONS                              |   |             |   |   |            |   |   |            |  
|YEARS ENDED APRIL 30                                  |   |             |   |   |            |   |   |            |  
|(Expressed in Canadian Dollars)                       |   |             |   |   |            |   |   |            |  
|                                                      |   | 2008        |   |   | 2007       |   |   | 2006       |  
|                                                      |   |             |   |   |            |   |   |            |  
|EXPENSES                                              |   |             |   |   |            |   |   |            |  
|                                                      |   |             |   |   |            |   |   |            |  
|Accretion                                             | $ | 5,502       |   | $ | -          |   | $ | -          |  
|Amortization                                          |   | 148,138     |   |   | 43,882     |   |   | 7,477      |  
|Audit and
      accounting                            |   | 102,944     |   |   | 38,604     |   |   | 143,212    |  
|Consulting                                            |   | 192,359     |   |   | 171,724    |   |   | 244,534    |  
|Directors fees
      (Note 8)                         |   | 108,500     |   |   | 60,500     |   |   | 63,000     |  
|Insurance                                             |   | 68,426      |   |   | 35,897     |   |   | -          |  
|Investor
      relations                              |   | 452,988     |   |   | 308,548    |   |   | 130,364    |  
|Legal (Note 8)                                        |   | 128,045     |   |   | 212,486    |   |   | 100,700    |  
|Management fees
      (Note 8)                        |   | 71,250      |   |   | 50,000     |   |   | 225,000    |  
|Office and administration                             |   | 623,154     |   |   | 562,642    |   |   | 339,703    |  
|Property
      Investigations                         |   | -           |   |   | 1,602      |   |   | 93,467     |  
|Rent                                                  |   | 156,358     |   |   | 83,979     |   |   | 67,132     |  
|Stock-based
      compensation (Note 6)               |   | 7,097,948   |   |   | 3,696,601  |   |   | 682,213    |  
|Transfer agent and filing fees                        |   | 330,777     |   |   | 87,017     |   |   | 106,448    |  
|Travel                                                |   | 273,115     |   |   | 306,978    |   |   | 165,538    |  
|Wages and salaries                                    |   | 1,292,464   |   |   | 923,743    |   |   | 41,441     |  
|                                                      |   | (11,051,968 | ) |   | (6,584,203 | ) |   | (2,410,229 | )
|                                                      |   |             |   |   |            |   |   |            |  
|                                                      |   |             |   |   |            |   |   |            |  
|OTHER ITEMS                                           |   |             |   |   |            |   |   |            |  
|Interest income                                       |   | 407,731     |   |   | 345,287    |   |   | 233,065    |  
|Management income (Note 8)                            |   | 20,000      |   |   | 40,000     |   |   | 12,000     |  
|Gain on
      disposition of Sinbad Claims            |   | 15,849      |   |   | -          |   |   | -          |  
|Realized gains  marketable
      securities          |   | -           |   |   | 701,494    |   |   | -          |  
|Unrealized gains
      (losses)marketable securities |   | (2,077,112  | ) |   | (35,589    | ) |   | -          |  
|Write-off of mineral properties
      (Note 4)        |   | (247,704    | ) |   | -          |   |   | (1,518,429 | )
|                                                      |   | (1,881,236  | ) |   | 1,051,192  |   |   | (1,273,364 | )
|                                                      |   |             |   |   |            |   |   |            |  
|                                                      |   |             |   |   |            |   |   |            |  
|Loss before income tax                                |   | (12,933,204 | ) |   | (5,533,011 | ) |   | (3,683,593 | )
|                                                      |   |             |   |   |            |   |   |            |  
|Future income tax recovery (Note 9)                   |   | -           |   |   | -          |   |   | 1,508,120  |  
|                                                      |   |             |   |   |            |   |   |            |  
|Loss for the
      year                               |   | (12,933,204 | ) |   | (5,533,011 | ) |   | (2,175,473 | )
|                                                      |   |             |   |   |            |   |   |            |  
|                                                      |   |             |   |   |            |   |   |            |  
|Basic and diluted loss per common share               | $ | (0.18       | ) | $ | (0.09      | ) | $ | (0.05      | )
|                                                      |   |             |   |   |            |   |   |            |  
|Weighted average number of common
      shares        |   |             |   |   |            |   |   |            |  
|outstanding                                           |   | 72,997,081  |   |   | 62,434,069 |   |   | 47,264,482 |  

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

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|STATEMENTS OF CASH FLOWS            
|YEARS ENDED APRIL 30                
|(Expressed in Canadian Dollars)     

|                                                   |   | 2008        |   |   | 2007       |   |   | 2006       |  
|-------------------------------------------------- | - | ----------- | - | - | ---------- | - | - | ---------- | -
|                                                   |   |             |   |   |            |   |   |            |  
|CASH FLOWS FROM OPERATING ACTIVITIES               |   |             |   |   |            |   |   |            |  
|Loss for the year                                  | $ | (12,933,204 | ) | $ | (5,533,011 | ) | $ | (2,175,743 | )
|Items not affecting
      cash:                    |   |             |   |   |            |   |   |            |  
|Amortization                                       |   | 148,138     |   |   | 43,882     |   |   | 7,477      |  
|Stock-based compensation                           |   | 7,097,948   |   |   | 3,696,601  |   |   | 682,213    |  
|Write-off
      of mineral properties              |   | 247,704     |   |   | -          |   |   | 1,518,429  |  
|Future Income taxes                                |   | -           |   |   | -          |   |   | (1,508,120 | )
|Unrealized
      lossmarketable securities        |   | 2,077,112   |   |   | 35,589     |   |   | -          |  
|Realized gain-marketable securities                |   | -           |   |   | (701,494   | ) |   | -          |  
|Gain on
      Disposition of Sinbad Claims         |   | (15,849     | ) |   | -          |   |   | -          |  
|Accretion                                          |   | 5,502       |   |   | -          |   |   | -          |  
|                                                   |   |             |   |   |            |   |   |            |  
|Purchase of marketable
      securities            |   | -           |   |   | (3,026,015 | ) |   | -          |  
|Proceeds from sales of marketable
      securities |   | (872,076    | ) |   | 1,904,533  |   |   | -          |  
|                                                   |   |             |   |   |            |   |   |            |  
|Non-cash working capital item changes              |   |             |   |   |            |   |   |            |  
|Receivables                                        |   | (113,416    | ) |   | (215,602   | ) |   | (167,761   | )
|Prepaid
      expenses                             |   | (70,390     | ) |   | (64,646    | ) |   | (137,592   | )
|Payables and accrued liabilities                   |   | (1,163,602  | ) |   | 52,531     |   |   | (163,312   | )
|Due from
      related parties                     |   | -           |   |   | 4,167      |   |   | 3,210      |  
|Due to related parties                             |   | 91,054      |   |   | 5,020      |   |   | (9,334     | )
|                                                   |   |             |   |   |            |   |   |            |  
|Net cash used in
      operating activities        |   | (5,501,079  | ) |   | (3,798,445 | ) |   | (1,950,263 | )
|                                                   |   |             |   |   |            |   |   |            |  
|CASH FLOWS FROM INVESTING ACTIVITIES               |   |             |   |   |            |   |   |            |  
|Proceeds on sale on mineral property               |   | 31,698      |   |   | -          |   |   | -          |  
|Mineral properties                                 |   | (10,587,059 | ) |   | (8,480,906 | ) |   | (2,551,070 | )
|Acquisition of equipment                           |   | (289,941    | ) |   | (283,593   | ) |   | (132,108   | )
|                                                   |   |             |   |   |            |   |   |            |  
|Net cash used in investing activities              |   | (10,845,302 | ) |   | (8,764,499 | ) |   | (2,683,178 | )
|                                                   |   |             |   |   |            |   |   |            |  
|CASH FLOWS FROM FINANCING ACTIVITIES               |   |             |   |   |            |   |   |            |  
|Issuance of shares for
      cash, net of costs    |   | 15,310,838  |   |   | 12,926,385 |   |   | 13,834,710 |  
|                                                   |   |             |   |   |            |   |   |            |  
|Net cash provided by
      financing activities    |   | 15,310,838  |   |   | 12,926,385 |   |   | 13,834,710 |  
|                                                   |   |             |   |   |            |   |   |            |  
|Net change in cash during the period               |   | (1,035,543  | ) |   | 363,411    |   |   | 9,201,269  |  
|                                                   |   |             |   |   |            |   |   |            |  
|Cash and cash equivalents,                         |   |             |   |   |            |   |   |            |  
|beginning of period                                |   | 14,311,417  |   |   | 13,947,976 |   |   | 4,746,707  |  
|                                                   |   |             |   |   |            |   |   |            |  
|Cash and cash
      equivalents, closing           | $ | 13,275,874  |   | $ | 14,311,417 |   | $ | 13,947,976 |  
|                                                   |   |             |   |   |            |   |   |            |  
|Cash and cash equivalents                          |   |             |   |   |            |   |   |            |  
|Cash                                               | $ | 4,927,439   |   | $ | 28,402     |   | $ | 3,947,976  |  
|Liquid short term investments                      |   | 8,348,435   |   |   | 14,283,015 |   |   | 10,000,000 |  
|                                                   |   |             |   |   |            |   |   |            |  
|                                                   | $ | 13,275,874  |   | $ | 14,311,417 |   | $ | 13,947,976 |  

Supplemental disclosures with respect to cash flows (Note 7)

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

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|STATEMENT OF SHAREHOLDERS EQUITY   
|(Expressed in Canadian Dollars)     

|                                                    |  | Share Capital |   |   |            |   |   |             |   |   |             |  
|--------------------------------------------------- |  | ------------- | - | - | ---------- | - | - | ----------- | - | - | ----------- | -
|                                                    |  | Number of     |   |   |            |   |   | Contributed |   |   |             |  
|                                                    |  | Shares        |   |   | Amount     |   |   | Surplus     |   |   | Deficit     |  
|Balance at April 30, 2005                           |  | 37,610,540    |   | $ | 16,399,309 |   | $ | 606,495     |   | $ | (10,007,633 | )
|                                                    |  |               |   |   |            |   |   |             |   |   |             |  
|Issued for (Note 6):                                |  |               |   |   |            |   |   |             |   |   |             |  
|Private placement                                   |  | 12,977,500    |   |   | 11,182,000 |   |   | -           |   |   | -           |  
|Finders fee                                        |  | 402,741       |   |   | 322,193    |   |   | -           |   |   | -           |  
|Less: Share issue costs                             |  | -             |   |   | (1,536,806 | ) |   | -           |   |   | -           |  
|Property acquisition                                |  | 400,000       |   |   | 317,000    |   |   | -           |   |   | -           |  
|Exercise of agents options and stock
      options |  | 2,363,874     |   |   | 1,886,491  |   |   | -           |   |   | -           |  
|Exercise of agents
      warrants                  |  | 438,418       |   |   | 280,688    |   |   | -           |   |   | -           |  
|Exercise of warrants                                |  | 4,162,972     |   |   | 1,792,299  |   |   | -           |   |   | -           |  
|Stock-based compensation for the year               |  | -             |   |   | -          |   |   | 1,335,620   |   |   | -           |  
|Less: fair market value of options and warrants     |  |               |   |   |            |   |   |             |   |   |             |  
|exercised                                           |  | -             |   |   | -          |   |   | (754,112    | ) |   | -           |  
|Tax benefit renounced on flow-through shares        |  | -             |   |   | (1,508,120 | ) |   | -           |   |   | -           |  
|Loss for the year                                   |  | -             |   |   | -          |   |   | -           |   |   | (2,175,473  | )
|Balance at April 30, 2006                           |  | 58,356,045    |   | $ | 29,135,054 |   | $ | 1,188,003   |   | $ | (12,183,106 | )
|                                                    |  |               |   |   |            |   |   |             |   |   |             |  
|Issued for (Note 6):                                |  |               |   |   |            |   |   |             |   |   |             |  
|Property acquisition                                |  | 445,000       |   |   | 1,078,150  |   |   | -           |   |   | -           |  
|Exercise of stock options                           |  | 2,672,764     |   |   | 2,400,146  |   |   | -           |   |   | -           |  
|Exercise of agent
      warrants                    |  | 273,863       |   |   | 277,571    |   |   | -           |   |   | -           |  
|Exercise of warrants                                |  | 8,674,025     |   |   | 10,537,396 |   |   | -           |   |   | -           |  
|Incentive program
      participation               |  | 490,375       |   |   | 707,343    |   |   | -           |   |   | -           |  
|Stock-based compensation for the year               |  | -             |   |   | -          |   |   | 3,696,601   |   |   | -           |  
|Less: Fair market value of options                  |  | -             |   |   | -          |   |   | (996,071    | ) |   | -           |  
|Loss for the year                                   |  | -             |   |   | -          |   |   | -           |   |   | (5,533,011  | )
|Balance at April 30, 2007                           |  | 70,912,072    |   |   | 44,135,660 |   |   | 3,888,533   |   |   | (17,716,117 | )
|                                                    |  |               |   |   |            |   |   |             |   |   |             |  
|Issued for (Note 6):                                |  |               |   |   |            |   |   |             |   |   |             |  
|Private placement                                   |  | 11,575,000    |   |   | 15,005,000 |   |   | -           |   |   | -           |  
|Share issuance costs                                |  | -             |   |   | (1,399,794 | ) |   | 238,392     |   |   | -           |  
|Property acquisition                                |  | 420,000       |   |   | 1,011,800  |   |   | -           |   |   | -           |  
|Return to treasury                                  |  | (114          | ) |   | -          |   |   | -           |   |   | -           |  
|Exercise of stock options                           |  | 1,288,984     |   |   | 1,694,828  |   |   |             |   |   | -           |  
|Exercise of agent
      warrants                    |  | 37,383        |   |   | 47,434     |   |   | -           |   |   | -           |  
|Exercise of warrants                                |  | 362,500       |   |   | 453,125    |   |   | -           |   |   | -           |  
|Stock-based compensation for the period             |  | -             |   |   | -          |   |   | 7,097,948   |   |   | -           |  
|Less: fair market value of options and warrants     |  | -             |   |   | -          |   |   | (728,147    | ) |   | -           |  
|Loss for the year                                   |  | -             |   |   | -          |   |   | -           |   |   | (12,933,204 | )
|Balance at April 30, 2008                           |  | 84,595,825    |   | $ | 60,948,053 |   | $ | 10,496,726  |   | $ | (30,649,321 | )

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

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|1. | NATURE AND CONTINUANCE OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Crosshair Exploration & Mining Corp. (the "Company")
      was incorporated under the laws of British Columbia on September 2, 1966.
      Its principal business activities are the acquisition, exploration and
      development of mineral properties. All of the Companys resource
      properties are located in North America.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The Company is in the process of exploring and developing
      its resource properties and has not yet determined whether the properties
      contain ore reserves that are economically recoverable. The recoverability
      of the amounts shown for resource properties and related deferred
      exploration costs 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 financial statements have been prepared using
      Canadian generally accepted accounting principles (GAAP) 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|2. | BASIS OF PRESENTATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | New Canadian Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Goodwill and Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The CICA has issued the new Handbook Section 3064,
      Goodwill and Intangible Assets, which will replace Section 3062,
      Goodwill and Intangible Assets. The new standard establishes revised
      standards for the recognition, measurement, presentation and disclosure of
      goodwill and intangible assets. The new standard also provides guidance
      for the treatment of preproduction and start-up costs and requires that
      these costs be expensed as incurred. The new standard applies to annual
      and interim financial statements relating to fiscal years beginning on or
      after October 1, 2008. Management is currently assessing the impact of
      these new accounting standards on its financial statements. Adoption of
      this standard will result in the withdrawal of Emerging Issues Committee
      (EIC) 27.                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | International Financial Reporting Standards
      ("IFRS")                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | In 2006, the Canadian Accounting Standards Board ("AcSB")
      published a new strategic plan that will significantly affect financial
      reporting requirements for Canadian companies. The AcSB strategic plan
      outlines the convergence of Canadian GAAP with IFRS over an expected five
      year transitional period. In February 2008, the AcSB announced that 2011
      is the changeover date for publicly-listed companies to use IFRS,
      replacing Canada's own GAAP. The date is for interim and annual financial
      statements relating to fiscal years beginning on or after January 1, 2011.
      The transition date of January 1, 2011 will require the restatement for
      comparative purposes of amounts reported by the Company for the year ended
      April 30, 2011. While the Company has begun assessing the adoption of IFRS
      for 2011, the financial reporting impact of the transition to IFRS cannot
      be reasonably estimated at this time.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Capital Disclosures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | In December 2006, the CICA issued Handbook Section 1535,
      Capital Disclosures, which establishes standards for disclosing
      information about an entitys capital and how it is managed. The entitys
      disclosure should include information about its objectives, policies and
      processes for managing capital and disclosure whether or not it has
      complied and the consequences of non-compliance with any capital
      requirements to which it is subject. This new standard will become
      effective for the Company beginning on May 1, 2008. The Company is
      reviewing this standard and has not yet determined the impact, if any, on
      its financial statements.                                                                                                                                                                                                                                                                                        

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|2. | BASIS OF PRESENTATION (contd) Significant
      accounting policies (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Financial Instruments  Disclosures and Financial
      Instruments - Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | In December 2006, the CICA issued Handbook Sections 3862,
      Financial Instruments  Disclosures, and 3863, Financial Instruments 
      Presentation. Section 3862 modifies the disclosure requirements of Section
      3861, Financial Instruments  Disclosure and Presentation, including
      required disclosure for the assessment of the significance of financial
      instruments for an entitys financial position and performance and of the
      extent of risks arising from financial instruments to which the Company is
      exposed and how the Company manages those risks, whereas Section 3863
      carries forward the presentation related requirements of Section 3861.
      These new standards will become effective for the Company beginning on May
      1, 2008. The Company is currently evaluating the impact of this
      standard.                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | In April 2007, the CICA approved amendments to Handbook
      Section 1400, General Standards of Financial Statement Presentation. These
      amendments require management to assess an entitys ability to continue as
      a going concern. When management is aware of material uncertainties
      related to events or conditions that may cast doubt on an entitys ability
      to continue as a going concern, those uncertainties must be disclosed. In
      assessing the appropriateness of the going concern assumption, the
      standard requires management to consider all available information about
      the future, which is at least, but not limited to, twelve months from the
      balance sheet date. The new requirements of the standard are applicable
      for interim and annual financial statements relating to fiscal years
      beginning on or after January 1, 2008. They will become effective for the
      company beginning May 1, 2008. The Company is currently evaluating the
      impact of this standard.                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Significant accounting policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Use of estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The preparation of financial statements in conformity
      with Canadian generally accepted accounting principles requires management
      to make estimates and assumptions that affect the reported amount of
      assets and liabilities and the disclosure of contingent assets and
      liabilities at the date of the financial statements and the reported
      amount of revenues and expenses during the period. Actual results could
      differ from these estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company follows the new recommendations of the
      Canadian Institute of Chartered Accountants (CICA) under CICA Handbook
      Section 1530 Comprehensive Income (Section 1530), Section 3251
      Equity, Section 3855 Financial Instruments  Recognition and
      Measurement (Section 3855), Section 3861 Financial Instruments 
      Disclosure and Presentation and Section 3865 Hedges. These new
      sections, which apply to fiscal years beginning on or after October 1,
      2006, provide requirements for the recognition and measurement of
      financial instruments and on the use of hedge accounting. Section 1530
      establishes standards for reporting and presenting comprehensive income
      which is defined as the change in equity from transactions and other
      events from non-owner sources. Other comprehensive income refers to items
      recognized in comprehensive income but that are excluded from net income
      calculated in accordance with Canadian generally accepted accounting
      principles.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   | Under Section 3855, all financial instruments are
      classified into five categories: held-for-trading, held-to-maturity
      investments, loans and receivables, available-for-sale financial assets or
      other financial liabilities. All financial instruments and derivatives are
      measured in the balance sheet at fair value except for loans and
      receivables, held-to- maturity investments and other financial liabilities
      which are measures at amortized cost. Subsequent measurement and changes
      in fair value will depend on their initial classification as follows: (1)
      held-for-trading financial assets are measured at fair value and changes
      in fair value are recognized in net income; (2) available-for-sale
      financial                                                                                                                                                                                                                                                                                              

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|2. | BASIS OF PRESENTATION (contd) Significant
      accounting policies (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | Financial Instruments (contd...)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | instruments are measured at fair value with changes in
      fair value recorded in other comprehensive income until the instrument is
      derecognized or impaired; and (3) all derivative instruments, including
      embedded derivatives, are recorded in the balance sheet at fair value
      unless they qualify for normal sale normal purchase exemption and changes
      in fair value are recorded in other comprehensive income.                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | As s result of the adoption of these new standards, the
      Company has classified its cash and cash equivalents and marketable
      securities as held-for-trading. Receivables are classified as loans and
      receivables. Accounts payable and accrued liabilities and due to related
      parties are classified as other financial liabilities, all of which are
      measured at amortized cost. The Company has elected to measure all
      derivatives and embedded derivatives at fair value and the Company
      maintained its policy not to use hedge accounting.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Section 3855 also provides guidance on accounting for
      transaction costs incurred upon issuance of debt instruments or
      modification of a financial liability. Transaction costs are not deducted
      from the financial liability and are amortized using the effective
      interest method over the life of the related liability.                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The Company considers cash and cash equivalents to
      include cash on deposit and highly liquid short-term interest bearing
      variable rate investments. Interest earned is recognized immediately in
      operations.                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The Company accounts for its marketable securities at
      fair market value with gains and losses included in the statement of
      operations.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Equipment is recorded at cost. The equipment noted below
      is amortized over its useful lives using the following annual rates and
      methods:                                                                                                                                                                                                                                                                                                                                                                                                                                  

Computer and office equipment
    30%
    Declining balanceComputer software
    45%
    Declining balanceExploration equipment
    20%
    Declining balanceFurniture and fixtures
    20%
    Declining balanceLeasehold improvements
    3 years
    Straight-line


Mineral properties

Costs related to the acquisition,
exploration and development of mineral properties are capitalized by property
until the commencement of commercial production. If commercially profitable ore
reserves are developed, capitalized costs of the related property are
reclassified as mining assets and amortized using the unit of production method.
If, after management review, it is determined that capitalized acquisition,
exploration and development costs are not recoverable over the estimated
economic life of the property, or the property is abandoned, or management deems
there to be an impairment in value, the property is written down to its net
realizable value.

Any option payments received by the
Company from third parties or tax credits refundable by the Government of
Newfoundland are credited to the capitalized cost of the mineral property. If
payments received exceed the capitalized cost of the mineral property, the
excess is recognized as income in the year received.

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|2. | BASIS OF PRESENTATION (contd) Significant
      accounting policies (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Mineral properties (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The amounts shown for mineral properties 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Asset retirement obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Company follows the recommendations of CICA Handbook
      Section 3110, Asset Retirement Obligations. This section requires
      recognition of a legal liability for obligations relating to retirement of
      property, plant, and equipment, and arising from the acquisition,
      construction, development, or normal operation of those assets. Such asset
      retirement cost must be recognized at fair value, when a reasonable
      estimate of fair value can be estimated, in the period in which it is
      incurred, added to the carrying value of the asset, and amortized into
      income on a systematic basis over its useful life. If the fair value of
      the liability decreases due to changes in future cash flow estimates, a
      corresponding decrease in the related asset is recorded. If the reduction
      exceeds the value of the related asset, the remaining amount is reduced
      through earnings.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | 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. When resource expenditures are renounced to the
      investors and the Company has reasonable assurance that the expenditures
      will be completed, future income tax liabilities are recognized with a
      corresponding reduction to share capital.                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | If a company has sufficient unused tax losses and
      deductions to offset all or part of the future income tax liabilities and
      no future income tax assets have been previously recognized on such
      losses, a portion of such unrecognized losses (losses multiplied by the
      effective corporate tax rate) is recorded as income up to the amount of
      the future income tax liability that was previously recognized on the
      renounced expenditures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | 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.                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The Company has an employee stock option plan. The
      Company recognizes an expense arising from stock options granted to both
      employees and non-employees using the fair value method. The fair value of
      option grants is generally established at the date of grant using the
      Black Scholes option pricing model and the compensation amount, equal to
      the options fair value, is then recognized over the options vesting
      periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|2. | BASIS OF PRESENTATION (contd) Significant
      accounting policies (contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Income taxes are accounted for using the asset and
      liability method. Under this method of tax allocation, future tax assets
      and liabilities are determined based on differences between the financial
      statement carrying amounts of existing assets and liabilities and their
      respective tax bases (temporary differences) and losses carried forward.
      Future income tax assets and liabilities are measured using the enacted
      tax rates expected to be in effect when the temporary differences are
      likely to reverse. The effect on future tax assets and liabilities of a
      change in tax rates is recognized in income in the period that includes
      the date of enactment or substantive enactment. The amount of future
      income tax assets recognized is limited to the amount that is more likely
      than not to be realized.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Reclassifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Certain of the comparative figures for the prior year
      have been reclassified to conform with the presentation adopted in the
      current year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|3. | EQUIPMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

| |                             |   | 2008    |  |   | 2007         | 
| | --------------------------- | - | ------- |  | - | ------------ | 
| |                             |   |         |  |   |              | 
| |                             |   |         |  |   | Accumulated  | 
| | Description                 |   | Cost    |  |   | Amortization | 
| |                             |   |         |  |   |              | 
| | Furniture & fixtures        | $ | 190,014 |  | $ | 49,702       | 
| | Computer & office equipment |   | 109,065 |  |   | 42,410       | 
| | Computer software           |   | 48,147  |  |   | 24,736       | 
| | Exploration equipment       |   | 294,953 |  |   | 76,667       | 
| | Leasehold improvements      |   | 69,986  |  |   | 10,767       | 
| |                             |   |         |  |   |              | 
| |                             | $ | 712,165 |  | $ | 204,282      | 

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|4. | MINERAL PROPERTIES
|-- | ------------------

| |                                         |   | Uranium    |   |   |         |  |   | Gold & VHMS |   |   |           |  |   |           |  
| | --------------------------------------- | - | ---------- | - | - | ------- |  | - | ----------- | - | - | --------- |  | - | --------- | -
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   | Southern  |  
| |                                         |   |            |   |   |         |  |   | Stormy      |   |   |           |  |   | Golden    |  
| |                                         |   |            |   |   | Otter & |  |   | Lake &      |   |   |           |  |   | Promise   |  
| |                                         |   | Moran      |   |   | Portage |  |   | Partridge   |   |   | Golden    |  |   | (Victoria |  
| |                                         |   | Lake       |   |   | Lake    |  |   | River       |   |   | Promise   |  |   | Lake)     |  
| | Balance April 30, 2006                  | $ | 2,812,617  |   | $ | 70,400  |  | $ | -           |   | $ | -         |  | $ | 1,024,022 |  
| | Drilling and trenching                  |   | 2,474,435  |   |   | 94,698  |  |   | -           |   |   | 640,629   |  |   | 514,059   |  
| | Geology                                 |   | 2,070,123  |   |   | 34,741  |  |   | -           |   |   | 32,738    |  |   | 78,338    |  
| | Geophysics                              |   | 2,278,608  |   |   | 62,900  |  |   | -           |   |   | -         |  |   | 79,961    |  
| | Administration                          |   | 343,171    |   |   | 7,765   |  |   | -           |   |   | 54,301    |  |   | 42,743    |  
| | Technical analysis                      |   | 432,758    |   |   | 8,261   |  |   | -           |   |   | 17,336    |  |   | 40,189    |  
| | Acquisition costs                       |   | 710,000    |   |   | 276,750 |  |   | -           |   |   | 110,400   |  |   | 223,500   |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Total for the year                      |   | 8,309,095  |   |   | 485,115 |  |   | -           |   |   | 855,404   |  |   | 978,790   |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Balance April 30, 2007                  |   | 11,121,712 |   |   | 555,515 |  |   | -           |   |   | 855,404   |  |   | 2,002,812 |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Drilling and trenching                  |   | 3,868,218  |   |   | -       |  |   | -           |   |   | 489,962   |  |   | 5,922     |  
| | Geology                                 |   | 5,121,264  |   |   | 22,278  |  |   | 25,542      |   |   | 71,756    |  |   | 50,537    |  
| | Geophysics                              |   | 352,133    |   |   | 68,885  |  |   | 56,346      |   |   | -         |  |   | 112,145   |  
| | Administration                          |   | 585,538    |   |   | 22,592  |  |   | 19,548      |   |   | 33,885    |  |   | 614       |  
| | Technical analysis                      |   | 649,455    |   |   | 2,362   |  |   | 1,268       |   |   | -         |  |   | 5,575     |  
| | Future reclamation                      |   | 163,884    |   |   | -       |  |   | -           |   |   | -         |  |   | 2,852     |  
| | Acquisition costs                       |   | 695,000    |   |   | 279,000 |  |   | 145,000     |   |   | 87,800    |  |   | 67,500    |  
| | Credits received                        |   | (150,000   | ) |   | -       |  |   | -           |   |   | -         |  |   | (72,619   | )
| | Write offs/sales                        |   | -          |   |   | -       |  |   | (247,704    | ) |   | -         |  |   | -         |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Total for the
      year                |   | 11,285,492 |   |   | 395,117 |  |   | -           |   |   | 683,403   |  |   | 172,526   |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Balance
      April 30, 2008            | $ | 22,407,204 |   | $ | 950,632 |  | $ | -           |   | $ | 1,538,807 |  | $ | 2,175,338 |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Cumulative totals as at April 30, 2008: |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Drilling and trenching                  | $ | 6,665,659  |   | $ | 94,698  |  | $ | -           |   | $ | 1,130,591 |  | $ | 570,987   |  
| | Geology                                 |   | 9,863,113  |   |   | 57,419  |  |   | 25,542      |   |   | 104,494   |  |   | 499,120   |  
| | Geophysics                              |   | 1,626,768  |   |   | 131,785 |  |   | 56,346      |   |   | -         |  |   | 437,513   |  
| | Administration                          |   | 1,337,223  |   |   | 30,357  |  |   | 19,548      |   |   | 88,186    |  |   | 105,014   |  
| | Technical analysis                      |   | 1,211,858  |   |   | 10,623  |  |   | 1,268       |   |   | 17,336    |  |   | 231,620   |  
| | Future reclamation                      |   | 163,884    |   |   | -       |  |   | -           |   |   | -         |  |   | 2,852     |  
| | Acquisition costs                       |   | 1,955,000  |   |   | 625,750 |  |   | 145,000     |   |   | 198,200   |  |   | 423,000   |  
| | Credits received                        |   | (416,300   | ) |   | -       |  |   | -           |   |   | -         |  |   | (94,769   | )
| | Write offs/sales                        |   | -          |   |   | -       |  |   | (247,704    | ) |   | -         |  |   | -         |  
| |                                         |   |            |   |   |         |  |   |             |   |   |           |  |   |           |  
| | Balance
      April 30, 2008            | $ | 22,407,204 |   | $ | 950,632 |  | $ | -           |   | $ | 1,538,807 |  | $ | 2,175,338 |  

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|4. | MINERAL PROPERTIES(contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | 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% 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.                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | To date, the Company has issued 1,350,000 common shares,
      made cash payments totaling $425,000 and spent more than the required
      minimum $3,000,000 on project expenditures. The Company must issue another
      250,000 common shares and make a cash payment of $150,000, both on or
      before November 10, 2008, and complete a bankable feasibility study within
      24 months of meeting these obligations in order to fully exercise the
      option.                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Otter/Portage Lake Property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Pursuant to an agreement dated December 2, 2005, the
      Company acquired an option to earn a 100% interest, subject to a 1.5% NSR,
      in the Otter and Portage Lake Properties located in the Central mineral
      Belt of Labrador.                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | To date, the Company has issued 1,600,000 common shares,
      made cash payments totaling $90,000 and spent more than the required
      minimum $600,000 on project expenditures. To complete the exercise of the
      option, the Company must make a cash payment of $50,000 by December 2,
      2008.                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Stormy Lake/Partridge River Property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The Company entered into an agreement on May 1, 2007, to
      earn a 75% interest in certain claims located in the Central Mineral Belt
      of Labrador. In April 2008, the Company elected to terminate this option
      and as a result, the Company has no further obligations and the related
      mineral property costs of $247,704 were written-off in the last quarter of
      2008.                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Golden Promise Property                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Pursuant to an agreement dated May 2, 2006, as amended
      April 18, 2008, the Company acquired an option to earn a 60% interest in
      the Golden Promise Property, a gold project located in Newfoundland,
      Canada. To date, the Company has issued 40,000 common shares, made cash
      payments totalling $100,000 and spent $1,334,000 on project expenditures.
      To complete the exercise of the option, the Company must issue 20,000
      shares by May 1, 2008 (issued subsequent to April 30, 2008), issue another
      20,000 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.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | 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 400,000
      common shares and incurring a minimum of $1,750,000 exploration
      expenditures within specified deadlines.                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Sinbad Claims                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The Sinbad claims are located in Emery, Nevada, U.S.A.
      and were acquired in January 2006 at a cost of $4,125. Subsequently, the
      Company incurred geology costs totalling $11,724. During the year ended
      April 30, 2008, the Sinbad claims were sold to Target Exploration &
      Mining Corp., a company with at least one director in common, in
      consideration for cash of $31,698 and a 2% net smelter return
    royalty.                                                                                                                                                                                                                                           

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|5. | FUTURE RECLAMATION COSTS
|-- | ------------------------

| |                                                       |   | 2008    |  |   | 2007 |  |   | 2006 | 
| | ----------------------------------------------------- | - | ------- |  | - | ---- |  | - | ---- | 
| |                                                       |   |         |  |   |      |  |   |      | 
| | Asset retirement obligation  beginning
      balance | $ | -       |  | $ | -    |  | $ | -    | 
| | Liability incurred                                    |   | 166,736 |  |   | -    |  |   | -    | 
| | Accretion expense                                     |   | 5,502   |  |   | -    |  |   | -    | 
| |                                                       |   |         |  |   |      |  |   |      | 
| | Asset retirement obligation  ending balance          | $ | 172,238 |  | $ | -    |  | $ | -    | 

The Company has a legal obligation
associated with its Moran Lake mineral property for cleanup costs when work
programs are completed.

The total undiscounted amount of
estimated cash flows required to settle the obligations is $175,400, which was
adjusted for inflation at the rate of 2% and then discounted at 8%. Certain
minimum amounts of asset retirement obligations will occur each year with the
significant amounts to be paid on abandonment of the mineral property
interests.

|6. | CAPITAL STOCK AND CONTRIBUTED SURPLUS                                     
|-- | --------------------------------------------------------------------------
|   |                                                                           
|   | Share issuances                                                           
|   |                                                                           
|   | During the year ended April 30, 2008, shares were issued
      as follows:
|   |                                                                           
|   |                                                                           
|   |                                                                           
|   |                                                                           
|   |                                                                           
|   |                                                                           
|   |                                                                           
|   |                                                                           
|   |                                                                           
|   |                                                                           

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|6. | CAPITAL STOCK AND CONTRIBUTED SURPLUS(contd)
      Share issuances(contd)
|-- | -----------------------------------------------------------------------------
|   |                                                                              
|   | During the year ended April 30, 2007, shares were issued
      as follows:   
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   | During the year ended April 30, 2006, shares were issued
      as follows:   
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              
|   |                                                                              



---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|6. | CAPITAL STOCK AND CONTRIBUTED SURPLUS(contd)
      Share issuances(contd)                                                                                                                                                                
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                              
|   | Escrow shares                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                              
|   | During the year ended April 30, 2008, 140,625 shares were
      released from escrow; leaving nil shares held in escrow. No expense was
      recognized for the release of these shares as the release is not
      considered compensatory.
|   |                                                                                                                                                                                                                                              
|   | Warrants                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                              
|   | The following is a summary of warrants outstanding at
      April 30, 2008, 2007 and 2006 and changes during the years then
    ended.                                                                                                       

| |                                    |  |                   |   |   |                |  |  |                   |  
| | ---------------------------------- |  | ----------------- | - | - | -------------- |  |  | ----------------- | -
| |                                    |  | April 30, 2008    |   |   | April 30, 2007 |  |  | April 30, 2006    |  
| |                                    |  |                   |   |   |                |  |  |                   |  
| |                                    |  |                   |   |   |                |  |  |                   |  
| |                                    |  |                   |   |   | Weighted       |  |  |                   |  
| |                                    |  | Number            |   |   | Average        |  |  | Number            |  
| |                                    |  | of
      Warrants |   |   | Exercise Price |  |  | of
      Warrants |  
| |                                    |  |                   |   |   |                |  |  |                   |  
| | Outstanding, beginning of the year |  | 399,883           |   | $ | 1.25           |  |  | 9,240,951         |  
| | Private placement/Issuance         |  | 8,694,500         |   |   | 1.76           |  |  | 106,820           |  
| | Exercised                          |  | (399,883          | ) |   | 1.25           |  |  | (8,947,888        | )
| | Outstanding, end
      of the year |  | 8,694,500         |   |   | 1.76           |  |  | 399,883           |  

Stock options

The Company has a stock option plan
whereby it may grant options to directors, employees, consultants and certain
other service providers. Options are subject to the minimum vesting requirement,
with 25% of the total number of the options granted to be released every 6
months from the date of grant. The options can be granted for a maximum term of
5 years.

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|6. | CAPITAL STOCK AND CONTRIBUTED SURPLUS(contd)Stock options(contd)                                                                         
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                              
|   | The following is a summary of stock options outstanding
      at April 30, 2008, 2007 and 2006 and changes during the years then
      ended.

| |                                |  | April 30, 2008   |   |   | April 30, 2007 |  |  | April 30, 2006   |  
| | ------------------------------ |  | ---------------- | - | - | -------------- |  |  | ---------------- | -
| |                                |  |                  |   |   |                |  |  |                  |  
| |                                |  |                  |   |   | Weighted       |  |  |                  |  
| |                                |  |                  |   |   | Average        |  |  |                  |  
| |                                |  | Number           |   |   | Exercise       |  |  | Number           |  
| |                                |  | of
      options |   |   | Price          |  |  | of
      options |  
| |                                |  |                  |   |   |                |  |  |                  |  
| | Outstanding, beginning of year |  | 8,981,984        |   | $ | 1.62           |  |  | 6,364,748        |  
| | Exercised                      |  | (1,288,984       | ) |   | 0.59           |  |  | (2,672,764       | )
| | Cancelled or expired           |  | (1,100,000       | ) |   | 2.23           |  |  | (700,000         | )
| | Granted                        |  | 3,000,000        |   |   | 1.76           |  |  | 5,990,000        |  
| |                                |  |                  |   |   |                |  |  |                  |  
| | Outstanding, end
      of year |  | 9,593,000        |   | $ | 1.71           |  |  | 8,981,984        |  
| |                                |  |                  |   |   |                |  |  |                  |  
| | Currently
      exercisable    |  | 5,579,250        |   | $ | 1.53           |  |  |                  |  

Stock-based compensation

The Company recognizes compensation
expense for all stock options granted using the fair value based method of
accounting. The fair value of the options vested in the year ended April 30,
2008 totaled $7,097,948. The weighted average fair value of options granted in
the year was $1.76 (April 30, 2007 - $2.04), (April 30, 2006 - $0.91)

The following weighted average
assumptions were used for the Black-Scholes method of valuation of stock options
granted during the year:

| |                          |  | April 30, 2008 |  |  | April 30, 2007 |  |  | April 30,2006 | 
| | ------------------------ |  | -------------- |  |  | -------------- |  |  | ------------- | 
| |                          |  |                |  |  |                |  |  |               | 
| |                          |  |                |  |  |                |  |  |               | 
| | Risk-free interest rate  |  | 3.06%          |  |  | 3.79%          |  |  | 3.70%         | 
| | Expected life of options |  | 5 years        |  |  | 5 years        |  |  | 5 years       | 
| | Annualized volatility    |  | 154%           |  |  | 239%           |  |  | 140%          | 
| | Dividend rate            |  | 0%             |  |  | 0%             |  |  | 0%            | 

|7. | SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH
      FLOWS                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                         
|   | The following were significant non-cash investing and
      financing transactions during the year ended April 30, 2008:
|   |                                                                                                                         
|   | (a)                                                                                                                     
|   |                                                                                                                         
|   | (b)                                                                                                                     
|   |                                                                                                                         
|   | (c)                                                                                                                     
|   |                                                                                                                         
|   | (d)                                                                                                                     

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|7. | SUPPLEMENTAL DISCLOSURES WITH RESPECT TO CASH FLOWS(contd...)                                                          
|-- | ------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                         
|   | The following were significant non-cash investing and
      financing transactions during the year ended April 30, 2007:
|   |                                                                                                                         
|   | (a)                                                                                                                     
|   |                                                                                                                         
|   | (b)                                                                                                                     
|   |                                                                                                                         
|   | (c)                                                                                                                     
|   |                                                                                                                         
|   | The following were significant non-cash investing and
      financing transactions during the year ended April 30, 2006:
|   |                                                                                                                         
|   | (a)                                                                                                                     
|   |                                                                                                                         
|   | (b)                                                                                                                     
|   |                                                                                                                         
|   | (c)                                                                                                                     
|   |                                                                                                                         
|   | (d)                                                                                                                     
|   |                                                                                                                         
|8. | RELATED PARTY TRANSACTIONS                                                                                              
|   |                                                                                                                         
|   | The Company entered into transactions with related
      parties as follows:                                            
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         
|   |                                                                                                                         

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|8. | RELATED PARTY TRANSACTIONS(contd...)                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                               
|   |                                                                                                                                                                               
|   |                                                                                                                                                                               
|   |                                                                                                                                                                               
|   |                                                                                                                                                                               
|   | These transactions were incurred in the normal course of
      operations and were undertaken with the same terms and conditions as
      transactions with unrelated parties.
|   |                                                                                                                                                                               
|9. | INCOME TAXES                                                                                                                                                                  
|   |                                                                                                                                                                               
|   | A reconciliation of income taxes at statutory rates with
      the reported taxes is as follows:                                                                              

| |                                                          |   | 2008        |   |   | 2007       |   |   | 2006       |  
| | -------------------------------------------------------- | - | ----------- | - | - | ---------- | - | - | ---------- | -
| |                                                          |   |             |   |   |            |   |   |            |  
| | Loss before income tax recovery                          |   | (12,933,204 | ) | $ | (5,533,011 | ) | $ | (3,683,593 | )
| |                                                          |   |             |   |   |            |   |   |            |  
| | Expected income tax recovery at statutory
      rates    | $ | (4,299,902  | ) | $ | (1,961,735 | ) | $ | (1,388,715 | )
| | Non-taxable items                                        |   | 3,942,847   |   |   | 1,965,026  |   |   | 1,095,317  |  
| | Non-capital loss and resource expenditure
      benefits |   | 357,055     |   |   | (3,291     | ) |   | (1,214,722 | )
| | unrecognized (recognized)                                |   |             |   |   |            |   |   |            |  
| |                                                          |   |             |   |   |            |   |   |            |  
| | Total income
      taxes (recovery)                      | $ | -           |   | $ | -          |   | $ | (1,508,120 | )

The significant components of the
Company's future tax assets are as follows:

| |                                                             |   |            |   |   |            |   |   |            |  
| | ----------------------------------------------------------- | - | ---------- | - | - | ---------- | - | - | ---------- | -
| |                                                             |   | 2008       |   |   | 2007       |   |   | 2006       |  
| |                                                             |   |            |   |   |            |   |   |            |  
| | Future tax assets:                                          |   |            |   |   |            |   |   |            |  
| | Loss carry forwards                                         | $ | 822,869    |   | $ | 606,851    |   | $ | 1,049,668  |  
| | Marketable Securities                                       |   | 334,969    |   |   | 11,033     |   |   | -          |  
| | Equipment                                                   |   | 55,156     |   |   | 17,405     |   |   | 4,622      |  
| | Share Issuance Costs                                        |   | 373,537    |   |   | 243,054    |   |   | 419,880    |  
| | Mineral property and related
      exploration expenditures |   | 1,425,338  |   |   | 917,927    |   |   | (197,576   | )
| |                                                             |   |            |   |   |            |   |   |            |  
| |                                                             |   | 3,011,869  |   |   | 1,796,270  |   |   | 1,276,594  |  
| |                                                             |   |            |   |   |            |   |   |            |  
| | Less: valuation allowances                                  |   | (3,011,869 | ) |   | (1,796,270 | ) |   | (1,276,594 | )
| |                                                             |   |            |   |   |            |   |   |            |  
| | Net future tax
      assets                                 | $ | -          |   | $ | -          |   | $ | -          |  

During the year ended April 30, 2006,
the Company issued 4,000,000 common shares on a flow-through basis for gross
proceeds of $4,000,000. The flow-through agreement requires the Company to
renounce certain deductions for Canadian exploration expenditures incurred on
the Companys resource properties. Future income taxes of $1,508,120 on the
exploration expenditures to be renounced to shareholders were applied against
capital stock.

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|10. | SUBSEQUENT EVENTS                         
|--- | ------------------------------------------
|    |                                           
|    | Subsequent to April 30, 2008, the Company:
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           
|    |                                           

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|11. | FINANCIAL INSTRUMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The Companys financial instruments consist of cash and
      cash equivalents, marketable securities, receivables, and payables,
      accrued liabilities and related parties. Unless otherwise noted, it is
      managements opinion that the Company is not exposed to significant
      interest, currency or credit risks arising from these financial
      instruments. The fair value of these financial instruments approximates
      their carrying values, unless otherwise noted.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|12. | COMMITMENTS AND CONTINGENCIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The Company has entered into operating lease agreements
      for its office premises in Vancouver and St. Johns. The annual
      commitments under these leases are: fiscal 2009 - $284,280; 2010 -
      $284,280 and 2011- $194,946.                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|13. | SEGMENTED INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The Company operates in one reportable operating segment,
      being the acquisition, exploration and development of mineral properties
      in North America. All of the Companys mineral properties and equipment
      are in Canada.                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|14. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES
      GENERALLY ACCEPTED ACCOUNTING PRINCIPLES                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | These financial statements have been prepared in
      accordance with Canadian GAAP. Material variations in the accounting
      principles, practices and methods used in preparing these financial
      statements from principles, practices and methods accepted in the United
      States ("US GAAP") are described and quantified below.                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | Balance sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The impact of the differences between Canadian GAAP and
      United States GAAP on the balance sheets would be as
  follows:                                                                                                                                                                                                                                                                                                                                                                    

| |                           |   | 2008        |   |   | 2007        |  
| | ------------------------- | - | ----------- | - | - | ----------- | -
| |                           |   | Balance,    |   |   | Adjustments |  
| |                           |   | Canadian    |   |   |             |  
| |                           |   | GAAP        |   |   |             |  
| | Assets:                   |   |             |   |   |             |  
| | Current assets            | $ | 14,690,398  |   | $ | -           |  
| | Equipment                 |   | 507,883     |   |   | -           |  
| | Mineral properties        |   | 27,071,981  |   |   | 23,870,031  |  
| |                           |   |             |   |   |             |  
| | Total assets              | $ | 42,270,262  |   | $ | 23,870,031  |  
| |                           |   |             |   |   |             |  
| | Liabilities               |   |             |   |   |             |  
| | Current
      liabilities | $ | 1,302,566   |   | $ | -           |  
| | Future reclamation costs  |   | 172,238     |   |   | -           |  
| | Flow-through share        |   |             |   |   |             |  
| | liability                 |   | -           |   |   | 536,250     |  
| | Shareholders equity      |   |             |   |   |             |  
| | Capital stock             |   | 60,948,053  |   |   | (536,250    | )
| | Contributed surplus       |   | 10,496,726  |   |   | -           |  
| | Deficit                   |   | (30,649,321 | ) |   | (23,870,031 | )
| |                           |   |             |   |   |             |  
| | Total liabilities and     |   |             |   |   |             |  
| | shareholders equity      | $ | 42,270,262  |   | $ | (23,870,031 | )

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|14. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES
      GENERALLY ACCEPTED ACCOUNTING PRINCIPLES(contd...)                                 
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                          
|    | Statements of operations                                                                                                                 
|    |                                                                                                                                          
|    | The impact of the differences between Canadian GAAP and
      United States GAAP on the statements of operations would be as
    follows:

| |                                                         |   | 2008        |   |   | 2007        |   |   | 2006       |  
| | ------------------------------------------------------- | - | ----------- | - | - | ----------- | - | - | ---------- | -
| |                                                         |   |             |   |   |             |   |   |            |  
| | Loss for the year under Canadian GAAP                   | $ | (12,933,204 | ) | $ | (5,533,011  | ) | $ | (2,175,473 | )
| | Adjustments:                                            |   |             |   |   |             |   |   |            |  
| | Mineral property
      expenditures incurred during the |   |             |   |   | (9,310,881  | ) |   | (2,508,260 | )
| | year                                                    |   | (11,262,238 | ) |   |             |   |   |            |  
| | Mineral
      properties written off during the year    |   | -           |   |   | -           |   |   | 1,325,707  |  
| | Flow-through share premium
      (discount) paid in     |   |             |   |   |             |   |   |            |  
| | excess of
      (below) market value                    |   | -           |   |   | -           |   |   | 491,714    |  
| | Future income tax recovery                              |   | -           |   |   | -           |   |   | (1,508,120 | )
| | Loss under US GAAP                                      | $ | (24,195,442 | ) | $ | (14,843,892 | ) | $ | (4,374,432 | )
| |                                                         |   |             |   |   |             |   |   |            |  
| | Weighted average number of common shares                |   |             |   |   |             |   |   |            |  
| | outstanding under US GAAP                               |   | 72,997,081  |   |   | 62,293,444  |   |   | 46,983,232 |  
| |                                                         |   |             |   |   |             |   |   |            |  
| | Loss per share
      under US GAAP                      | $ | (0.33       | ) | $ | (0.24       | ) | $ | (0.09      | )

Statements of cash flows

The impact of the differences between
Canadian GAAP and United States GAAP on the statements of cash flows would be as
follows:

| |                                                                 |   | 2007        |   |   | 2007        |   |   | 2006       |  
| | --------------------------------------------------------------- | - | ----------- | - | - | ----------- | - | - | ---------- | -
| |                                                                 |   |             |   |   |             |   |   |            |  
| | Net cash flows from operating activities                        |   |             |   |   |             |   |   |            |  
| | Under Canadian GAAP                                             | $ | (5,501,079  | ) | $ | (3,798,445  | ) | $ | (1,950,263 | )
| | Mineral
      properties                                        |   | (10,076,855 | ) |   | (8,238,406  | ) |   | (2,421,945 | )
| | Net cash used in
      operating activities under US GAAP       |   | (15,577,934 | ) |   | (12,036,851 | ) |   | (4,372,208 | )
| |                                                                 |   |             |   |   |             |   |   |            |  
| | Net cash flows from financing activities                        |   |             |   |   |             |   |   |            |  
| | Under
      Canadian GAAP and US GAAP                           |   | 15,310,838  |   |   | 12,926,385  |   |   | 13,834,710 |  
| | Net cash flows used in investing activities                     |   |             |   |   |             |   |   |            |  
| | Under
      Canadian GAAP                                       |   | (10,845,302 | ) |   | (8,764,499  | ) |   | (2,683,178 | )
| | Mineral properties                                              |   | 10,076,855  |   |   | 8,238,406   |   |   | 2,421,945  |  
| | Net cash used in
      investing activities under US GAAP       |   | (768,447    | ) |   | (526,093    | ) |   | (261,233   | )
| |                                                                 |   |             |   |   |             |   |   |            |  
| | Net increase in cash and cash equivalents
      during the year |   | (1,035,543  | ) |   | 363,441     |   |   | 9,201,269  |  
| | Cash and cash equivalents, beginning the year                   |   | 14,311,417  |   |   | 13,947,976  |   |   | 4,746,707  |  
| | Cash and cash equivalents, end of year                          | $ | 13,275,874  |   | $ | 14,311,417  |   | $ | 13,947,976 |  

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|14. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES
      GENERALLY ACCEPTED ACCOUNTING PRINCIPLES(contd...)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Mineral property interests and deferred exploration
      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | In accordance with EITF 04-02, the Company classifies the
      costs of acquiring its mineral interests as tangible assets resulting in
      no difference between Canadian and US GAAP. Under US GAAP exploration
      costs on mineral properties, other than acquisition costs, prior to the
      establishment of proven or probable reserves are expensed as incurred.
      Under Canadian GAAP these costs may be deferred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Under US GAAP, the Company performs evaluations of its
      investment in mineral properties to assess the recoverability and the
      residual value of its investments in these assets. All mineral properties
      are reviewed for impairment whenever events or circumstances change which
      indicates the carrying amount of an asset may not be recoverable,
      utilizing established guidelines based on undiscounted future net cash
      flows from the asset or upon the determination that certain exploration
      properties do not have sufficient potential for economic
      mineralization.                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Flow-through shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Under Canadian income tax legislation, the Company is
      permitted to issue shares whereby the Company agrees to incur qualifying
      expenditures (as defined under the Income Tax Act of Canada) 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 USGAAP, any difference between the market price of the
      Company's stock 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.                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | During the year ended April 30, 2008, the Company issued
      3,575,000 flow-through shares for total proceeds of $5,005,000. As the
      market price of the Companys stock was less than the fair value of the
      flow-through shares issued, a premium of $536,250 has been recorded for
      the expended cash on qualifying expenditures and a flow- through share
      liability of $536,250 was recorded for the unexpended amount as of April
      30, 2008. During the year ended April 30, 2006, the Company issued
      4,000,000 flow-through shares for total proceeds of $4,000,000. As the
      market price of the Companys stock was less than the fair value of the
      flow-through shares issued, a premium of $398,454 has been recorded for
      the expended cash on qualifying expenditures and a flow-through share
      liability of $401,546 was recorded for the unexpended amount as of April
      30, 2006.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Under both Canadian and United States generally accepted
      accounting principles basic loss per share is calculated using the
      weighted average number of common shares outstanding during the
    year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    | Under United States generally accepted accounting
      principles, the weighted average number of common shares outstanding
      excludes any shares held in escrow for which the release is subject to
      certain performance conditions. The weighted average number of shares
      outstanding under United States generally accepted accounting principles
      for the years ended April 30, 2008, 2007 and 2006 were 72,997,081,
      62,293,444, and 46,983,232, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|14. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES
      GENERALLY ACCEPTED ACCOUNTING PRINCIPLES(contd...)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | New Accounting Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Effective May 1, 2007, the Company adopted the provisions
      of FASB Interpretation 48, Accounting for Uncertainty in Income Taxes("FIN No. 48"). FIN No. 48 prescribes a recognition threshold that a
      tax position is required to meet before being recognized in the financial
      statements. Additionally, FIN No. 48 provides guidance on de- recognition,
      measurement, classification, interest and penalties, accounting in interim
      periods, disclosure and transition. Under FIN No. 48, an entity may only
      recognize or continue to recognize tax positions that meet a "more likely
      than not" threshold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | The adoption of FIN No. 48 did not have a cumulative
      effect on the Companys financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In September 2006, the FASB issued SFAS No. 157, Fair
      Value Measurements("SFAS No. 157"), which defines fair value,
      establishes a framework for measuring fair value in generally accepted
      accounting principles, and expands disclosures about fair value
      measurements. SFAS No. 157 applies to other existing accounting
      pronouncements that require or permit fair value measurements. SFAS No.
      157 does not require any new fair value measurements. However, the
      application of this statement may change the current practice for fair
      value measurements. SFAS No. 157 is effective for fiscal years beginning
      after November 15, 2007, and interim periods within those fiscal years.
      However, in February 2008, the FASB issued a final Staff Position to allow
      filers to defer the effective date of SFAS No. 157 for one year for
      nonfinancial assets and nonfinancial liabilities that are recognized or
      disclosed at fair value in the financial statements on a nonrecurring
      basis. The FASB Staff Position ("FSP") does not defer recognition and
      disclosure requirements for financial assets and financial liabilities or
      for nonfinancial assets and nonfinancial liabilities that are remeasured
      at least annually. The Company is currently evaluating the impact this
      statement will have on its financial position and results of operations
      and does not expect this statement to have a material impact on its
      financial position and results of operations.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In February 2007, the FASB issued SFAS No. 159, The
      Fair Value Option for Financial Assets and Financial LiabilitiesIncluding
      an amendment of FASB Statement No. 155('SFAS No. 159"). SFAS No. 159
      provides companies with an option to report selected financial assets and
      liabilities at fair value. SFAS 159 is effective as of the beginning of an
      entity's first fiscal year that begins after November 15, 2007. The
      Company is currently evaluating the impact this statement will have on its
      financial position and results of operations and does not expect this
      statement to have a material impact on its financial position and results
      of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In December 2007, the FASB issued SFAS No. 141(R),
      Business Combinations (revised2007)("SFAS No. 141(R)"). SFAS No.
      141(R) is a revision to previously existing guidance on accounting for
      business combinations. The statement retains the fundamental concept of
      the purchase method of accounting, and introduces new requirements for the
      recognition and measurement of assets acquired, liabilities assumed and
      noncontrolling interests. SFAS No. 141(R) also requires
      acquisition-related transaction and restructuring costs to be expensed
      rather than treated as part of the cost of the acquisition. SFAS No.
      141(R) applies prospectively to business combinations for which the
      acquisition date is on or after the beginning of the first annual
      reporting period beginning on or after December 15, 2008. The Company is
      currently evaluating the impact this statement will have on its financial
      position and results of operations and does not expect this statement to
      have a material impact on its financial position and results of
      operations.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In December 2007, the FASB issued SFAS No. 160,
      Noncontrolling Interests in Consolidated Financial Statements("SFAS No. 160"). The Statement requires that noncontrolling interests
      be reported as stockholders equity, a change that will affect the
      Company's financial statement presentation of minority interests in its
      consolidated subsidiaries. The Statement also establishes a single method
      of accounting for changes in a parent's ownership interest in a subsidiary
      as long as that ownership change does not result in deconsolidation. The
      statement is effective for fiscal years beginning after December 15, 2008.
      The Company is currently evaluating the impact of SFAS No. 160 and does
      not expect this statement to have a material impact on its financial
      position and results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

---

|CROSSHAIR EXPLORATION & MINING CORP.
|------------------------------------
|NOTES TO THE FINANCIAL STATEMENTS   
|April 30, 2008                      
|(Expressed in Canadian Dollars)     
|                                    

|14. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES
      GENERALLY ACCEPTED ACCOUNTING PRINCIPLES(contd...)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | New Accounting Standards(contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | In March 2008, the FASB issued SFAS No. 161,
      Disclosures about Derivative Instruments and Hedging Activities("SFAS No. 161"). SFAS No. 161 amends and expands the disclosure
      requirements of SFAS No. 133, Accounting for Derivative Instruments and
      Hedging Activities, and requires entities to provide enhanced
      qualitative disclosures about objectives and strategies for using
      derivatives, quantitative disclosures about fair values and amounts of
      gains and losses on derivative contracts, and disclosures about
      credit-risk-related contingent features in derivative agreements. This
      statement applies to all entities and all derivative instruments. SFAS 161
      is effective for financial statements issued for fiscal years and interim
      periods beginning after November 15, 2008. The Company is currently
      evaluating the impact of SFAS No. 161 and does not expect this statement
      to have a material impact on its financial position and results of
      operations.

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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 EXPLORATION & MINING
      CORP.
| | ------------------------------------------
| |                                           
| | /s/ Mark J. Morabito                      
| |                                           
| | By:                                       
| |                                           

Date: October 14, 2008

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