Crosshair Exploration & Mining Corp. (NYSE Amex: CXZ) (TSX: CXX) ("Crosshair") is pleased to announce an update of its National Instrument (NI) 43-101 Mineral Resource estimate on the Bootheel Project, in southern Wyoming. The updated estimate includes an Indicated Resource of 1.48 million pounds of uranium oxide and an additional Inferred Resource of 3.13 million pounds of uranium oxide (see Table 1 for tonnage and grade details). This represents a 36% increase in the Indicated Resources from the initial 2009 report (see news release dated August 13, 2009).

"We are very pleased to be able to update Bootheel's Mineral Resource Estimate, as a result of our successful 2011 drill program." says Stewart Wallis, President of Crosshair. "These strong numbers, in combination with the hydrological data being acquired from the property, will provide a solid foundation upon which to complete our Preliminary Economic Assessment later this year."

TABLE 1 Bootheel Mineral Resource Estimate as of January 16, 2012
Classification Formation Short tons % eU3O8 Pounds eU3O8
Indicated Sundance 2,068,000 0.036 1,482,000
Inferred Sundance 3,039,000 0.032 1,942,000
Inferred Wind River 955,000 0.062 1,184,000
Inferred Total 3,994,000 0.039 3,126,000

Notes:
1. Mineral Resources are classified according to CIM Definition Standards, which are incorporated by reference in National Instrument 43-101.

2. High U3O8 grades have not been cut for the Mineral Resource estimate.

3. Tonnage, average grade, and contained uranium are rounded.



Uranium mineralization occurs within several different sandstone beds within the Sundance Formation at the Bootheel Property. This formation has the potential to be recovered using in-situ recovery (ISR) techniques (see news release dated February 5, 2009). ISR techniques are more environmentally friendly and less capital intensive than conventional mining methods.

Resource Estimate Details

This updated resource estimate for the Bootheel Project is based on results from 169 Crosshair drill holes totaling 85,923 feet (26,189 metres) and approximately 1,450 historic drill holes for which detailed information is available.

Crosshair used cut-off grades based on a US$70 per pound long term price of U3O8 and the estimated mining costs of a typical ISR project. The cut-off grade used for the resource contained within the Sundance Formation is 0.015% eU3O8. The cut-off for the resource contained within the Wind River Formation was increased to 0.020% eU3O8 to allow for the possibility of lower recoveries in the formation and increased drill density required for the development of the well fields.

A stratigraphic analysis based on mineralized and barren drill holes was performed in preparation for the resource estimation. The individual mineralized lenses were drawn on cross sections and interpreted on a section by section basis. The complex morphology of roll front mineralization within the Sundance Formation was divided into three categories then each category was contoured. The geological interpretation of mineralization in the Wind River Formation was strongly influenced by the lithological logs and only mineralization hosted by sandstones and/or the basal conglomerate with a minimum thickness of four feet, were included in the composite database used for the resource estimate.

Composites within the selected formation were determined using the grade cut-off combined with a minimum grade thickness (GT, product of %eU3O8 x interval thickness) of 0.15 %-ft. Generally no more than three feet of intermediate material below cut-off between adjacent mineralized intervals was included in the composites but in several cases interpretation suggested that the interval should be extended. The majority of the Inferred Resource was drilled off on a spacing of 200 ft. lines with drill holes 100 ft. apart. The Indicated Resource that lies within the Sundance Formation (Zone 6) was drilled off with hole spacing in the order of 100 ft. by 100 ft. to 150 ft.

The Sundance Formation resource was estimated using the GT contour method. The drill hole composites were plotted on horizontal plans depicting vertical thickness and GT values for each midpoint of the mineralized intersection of the drill hole. The thickness and GT values were contoured on a horizontal plan and the area enclosed within each contour was measured. The mineralized volume was calculated by multiplying each contoured area by its average thickness then all individual volumes were summed. Tonnage was estimated by dividing the total volume by the tonnage factor of the appropriate formation. The tonnage factor for the Sundance Formation is 16 cubic feet per short ton and 15 cubic feet per short ton for the Wind River Formation. The average grade was estimated by dividing the total tonnage grade (