Crosshair Exploration & Mining Corp. (NYSE Alternext US: CXZ) (TSX: CXX) (Crosshair) is pleased to announce that it has entered into an agreement with Paragon Minerals Corporation (TSX-V: PGR) whereby Crosshair will acquire a 60% interest in the Golden Promise Gold Project in Central Newfoundland, Canada with an option to acquire up to a 70% interest; terminate the original property option earn-in agreement with Paragon; and abandon the previously approved Plan of Arrangement with Gemini Metals Corp. (Gemini) whereby Crosshair was to transfer its gold and volcanic-hosted massive sulphide projects located in Newfoundland to Gemini in exchange for shares for Gemini.

As a result of the current market conditions, the Board of Directors of Crosshair has determined that it is no longer in the best interest of Shareholders to spin-out the assets of Golden Promise, South Golden Promise and Victoria Lake into a separate publicly traded company to be known as Gemini. However, both Crosshair and Paragon remain committed to the Golden Promise Gold Project and believe that more value can be created from within Crosshair at this time.

We are excited to now control 60% of this great gold project, says Mark Morabito, CEO of Crosshair. Unfortunately, due to market conditions, transferring Golden Promise into a new company became impossible, but this agreement allows us to own 60% of the project outright, have operatorship and obtain the ability to increase our ownership to 70%.

Closing is expected to be completed no later than May 8, 2009. Closing is conditional upon both Paragon and Crosshair obtaining regulatory approval to the agreement.

Project Highlights

Five quartz vein zones characterized by coarse visible gold have been discovered on the Golden Promise Project. The Jaclyn Main Zone is the most advanced and has been intersected over a minimum strike length of 800 metres (m) and to a depth of 265 m. The zone remains open for expansion along strike and to depth. A preliminary independent National Instrument (NI) 43-101 compliant resource estimate has been completed at the Jaclyn Main Zone. The report estimates an inferred resource of 89,500 ounces of gold (921,000 tonnes averaging 3.02 grams per tonne gold) at a cut-off of 1 gram per tonne gold.

The next stage of exploration at Golden Promise will include additional diamond drilling to extend and further delineate the Jaclyn Main Zone with the objective of increasing the current NI 43-101 gold resource. Additional drilling will also be used to test the Jaclyn North and Jaclyn South Zones, both of which host locally abundant visible gold in quartz veins, but have seen limited drilling to date. The Jaclyn North and Jaclyn South Zones both remain open along strike.

Given the high-nugget gold effect at the Jaclyn Zones, Crosshair also plans to conduct a bulk sampling program on the Golden Promise Property in order to determine a more representative gold grade for the Jaclyn resource, since assay results from diamond drilling alone may not be an effective means of reliably determining grade in high-nugget effect gold systems. Studies of other high-nugget effect gold deposits, including deposits from the Bendigo Goldfield, indicate that assays from surface diamond drill holes may understate the actual in-situ gold grade in such deposits.