Vanadium - Agoracom: Small Cap Investmentsmallcapepicenter.com/documents/cxxVanadiumBooklet.pdf · Uranium Star Corp. October 14, 2009. The National Post. Taylor, Fabrice. Vanadium

Vanadium: Making Clean Energy a Reality

Crosshair Exploration & Mining Corp.Suite 1240 - 1140 West Pender Street Vancouver, BC, V6E 4G1 Canada Tel: 604-681-8030Fax: 604-681-8039Toll Free: 1-866-683-8030 [email protected]

TSX : CXXNYSE Amex : CXZ

Bull, Alister. Obama awards $2.3 billion clean energy tax credits. January 8, 2009. Yahoo News. http://news.yahoo.com/s/nm/20100108/bs_nm/us_obama_taxcredit

CPM Group. Vanadium Industry, 2008 Outlook. 2008. Research and Markets.

CRU Strategies: The Independent Authority. 2010. http://crugroup.com

Gluck, Robert. Little Known Element Vanadium Making Headway on Energy Scene. December 11, 2009. Energy Boom: Emerging Energy. http://www.energyboom.com/emerging/little-known-element-vanadium-making-headway-energy-scene

Hykawy, Jon; Thomas, Arun. Vanadium: The Supercharger. 2009. Byron Capital Markets Industry Report.

Johnstone, Bob. The Element That Could Change the World. 2008. Discover Magazine. http://discovermagazine.com/2008/oct/29-the-element-that-could-change-the-world

Mayer, Chris. How to Play the Quest for Fuel Efficiency: Invest in Vanadium. July 16, 2008. Contrarian Profits. http://www.contrarianprofits.com/articles/how-to-play-the-quest-for-fuel-efficiency-invest-in-vanadium/3816

Metal - Pages. Vanadium metal prices, news and information. 2009. http://www.metal-pages.com/metals/vanadium/

News Release: Apella Resources Inc. Apella drills 35.7m of 26.29% Fe2O3 at Iron-T. December 15, 2008. Stockwatch.

Special to the Financial Post. Vanadium: It could change the world. August 12, 2009. The National Post.

Special to the Financial Post. Uranium Star Corp. October 14, 2009. The National Post.

Taylor, Fabrice. Vanadium may prove to be an element of surprise. 2009. The Globe and Mail: Report on Business. http://v1.theglobeandmail.com/servlet/story/LAC.20091116.RVOX16ART1841/TPStory/TPBusiness

Page 15

The Element That Could Change The World - Discover Magazine

References

Page 3Page 14

Conclusion

wind, solar and geothermal power sources which will feed our global power grids in the 21st century.

The unstoppable shift toward clean and re-newable energy will require the rise of new vanadium suppliers in order to maintain a stable balance between supply, demand and prices. Crosshair is strategically positioned to benefit from the potentially explosive vanadium market by continuing to develop our current project.

We invite you to participate in our growth.

Based on the current demand for vanadium as a strengthening additive in the steel and titanium industries, plus the growing need for alternative energies and clean technolo-gy, vanadium is positioned to explode from increasing demand in the face of limited supply.

With the era of the electric car now firmly upon us and the dawn of renewable energy now rising due to powerful political and economic pressures, we have every reason to believe that vanadium powered lithium ion-batteries will power our cars and thatvanadium-redox batteries will power the

Why Vanadium and Crosshair Exploration?

Crosshair’s Central Mineral Belt Project is located in Labrador, Canada and is currently host to an NI 43-101 compliant resource of 11.75 million pounds of indicated V2O5 (6.92 million tonnes at 0.077%) as well as an additional 15.81 million pounds of inferred V2O5 (8.17 million tonnes at 0.088%).

Crosshair recently began a Vanadium Resource Expansion Program with the goal of adding significant pounds of vanadium to the existing vana-dium resource.

“More steel will be consumed in the next 20 years than was consumed during the entire 20th century.”- BHP Billiton

The Subaru G4e and its vanadium-lithium-ion battery will be the next-generation of electric cars.

“All the great ways we have to generate electricity - solar, wind, geothermal - they’re nothing without an efficient way to store it...This is the biggest, most significant thing we’re facing this century.”- Ian Clifford, CEO of Zenn Motor Co.

Overall, the consumption of vanadium is anticipated to increase as demand rises worldwide. The only way to meet this demand will be for new suppliers to enter the market.

Page 4

Table of Contents

5 Introduction5 What is Vanadium? 5 What is Vanadium Used For? 5 How is Vanadium Traded?

6 Crosshair’s Vanadium Project

7 Potential Expansion 8 Various Uses of Vanadium8 A steel strengthener8 Irreplaceable in aerospace9 Entering the electric car era 11 Renewable energy storage 12 The Future of Vanadium12 Rapidly rising demand13 Limited supply 14 Conclusion

15 References


Page 13

Limited supply

Global vanadium supply is experiencing pressure due to two factors.

- First, power shortages in South Africa, one of the top three producers of vanadium, have disrupted current production and threatened future production due to the cancellation of some growth projects.

- Second, China has threatened to declare their vanadium supply as strategic and ban any further exports. If additional projects are delayed or dis-rupted, not enough new suppliers enter the market, or demand grows even more quickly than expected, the supply side could experience serious shortages.


Figure 8. Annual Conventional V Demand (1000’s of tonnes)

Source: Byron Capital Markets Industry Report, USGS

Figure 9. Production of Contained V by Country (tonnes)

Source: Byron Capital Markets Industry Report , USGS

- There have also been several economic stimulus packages announced around the world being used to fund infrastructure projects, resulting in an increased demand for steel, and therefore, vanadium;

- High-strength low-alloy steel production has outpaced crude steel production by 21.6% year over year since 2006;

- The U.S. announcing $2.3 billion in clean energy tax credits focused on renewable energy production and storage; and

- With the U.S. pledging to double its renewable energy production within the next three years and other governments close to similar commitments, there will be in increase in demand for advanced battery technology.

In early 2008, vanadium prices increased significantly to $15.00 per pound, fuelled by continuing strong world demand and tight-ening of global supply. With several new demand channels for vanadium, including alternative energy and clean technology, demand pressures will remain strong for decades to come, leading to continued up-ward pressure on the price of vanadium.

Rapidly rising demand

Demand for vanadium is expected to grow at a compound annual rate of 7.8% through to 2015, fuelled by continuing strong world demand and tightening global supply. There are several factors that will continue to influence the demand for vanadium including:

- China, which currently consumes almost 40% of world steel production, is increasing its demand for steel that contains vana-dium;

- India’s steel production will almost double from 65 million tonnes to 124 million tonnes a year by 2011;

- World markets estimate total global infra-structure spending over the next 20 years will reach $35-trillion – with many of those projects requiring vanadium;

The Future of Vanadium


Page 5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Tonnes Vanadium (000’s)

Million Tonnes Crude Steel

vanadium consumption crude steel production

85

80

75

70

65

60

55

50

45

40

1,800

1,600

1,400

1,200

1,000

800

Source: CRU Stretegies

CAGR 7.8%

CAGR 7.8%

Figure 7. Vanadium Consumption and Crude Steel Production

Vanadium has also become very useful in the advancement of battery technol-ogy. Lithium ion batteries (to be used in the automotive industry) as well as redox batteries (for large-scale power grid usage) both benefit greatly from the use of vana-dium. As an anti-corrosion agent, vanadium can also be used to help enable the use of a new set of materials for strong rare-earth magnets.

These relatively newer developments in alternative energy and clean technology are expected to have a huge impact on the demand of vanadium over the next several decades.

How is vanadium traded?

Unlike many other commodities, vanadium does not trade on the open market, instead buyers and sellers negotiate privately. Prices are then published by independent market consultants.

What is Vanadium?

Vanadium (chemical symbol V) is a rela-tively rare metal that occurs naturally in about 65 different minerals and fossil fuel deposits. Vanadium is typically produced in limited quantity either from steel smelter slag, from the flue dust of heavy oil or as a byproduct of uranium mining.

Roughly 59,100 tonnes of contained vana-dium was produced globally in 2007. Ap-proximately 98% of that production came from vanadium-bearing magnetite found in ultramafic gabbro bodies in South Africa, north-western China, and eastern Russia.

What is Vanadium Used For?

Vanadium is predominantly used as a strengthening additive in steel and some forms of iron. Roughly 85% of vanadium is used in the high performance steel industry. Another 10% is used as an essential alloying element for titanium. Vanadium has be-come indispensable for many industrial and domestic products and processes. Other uses of vanadium include as a catalyst in the manufacturing of sulfuric acid as well as in ceramics and glass manufacturing.

Introduction

Figure 1. Price Chart

Source: Metal-Pages

Page 12

Renewable energy storage

Vanadium also has a role in the advance-ment of large-scale rechargeable batteries, called vanadium reduction-oxidation batter-ies, also known as redox batteries.

Wind, solar and geothermal powers provide useful ways to generate electricity, however due to the unpredictability of nature, there needs to be an efficient way to store that energy.

Typical rechargeable batteries are unsuit-able when it comes to large-scale energy storage because they are unable to release large amounts of energy at a moment’s notice. The answer – the vanadium-redox battery.

“Without storage, renew-ables will find it hard to make it big.” - Imre Gyuk, US Department of Energy.

“All the great ways we have to generate electricity – solar, wind, geothermal – they’re nothing without an efficient way to store it…This is the biggest, most sig-nificant thing we’re facing this century.” -Ian Clifford, CEO of Zenn Motor Co.

Figure 6. A Representative vanadium-redox battery

The vanadium-redox battery can be designed to produce exactly the desired power for exactly the desired time, no more than required.

Source: Discover Magazine, 2008

Page 11

Crosshair’s Central Mineral Belt Project (“CMB”) is located in Labrador, Canada. The project is currently host to an NI 43-101 compliant resource of 11.75 million pounds of indicated V2O5 (6.92 million tonnes at 0.077%) as well as an additional 15.81 mil-lion pounds of inferred V2O5 (8.17 million tonnes at 0.088%). The CMB is also host to a compliant uranium resource of 5.19 mil-lion pounds of indicated U3O8 (6.92 million tonnes at 0.034%) and 5.82 million pounds of inferred U3O8 (8.17 million tonnes at 0.032%).

In December 2009, Crosshair began its Va-nadium Resource Expansion Program with the goal of adding significant pounds of va-nadium to the existing vanadium resource.



Crosshair’s Vanadium Project

Page 6

Extent of July 2008 Resource Estimate

155.0m of 0.184% V2O5 including

33.0m of 0.216% V2O5

Results Pending for ML-182

5.5m of 0.331% V2O5

7.5m of 0.184% V2O5

3.5m of 0.186% V2O5

Fault Zone

Figure 2. Central Mineral Belt ProjectFigure 3. Hole ML-181

The vanadium-redox battery is very dif-ferent from typical batteries in that they have a much longer lifespan, are non-toxic, can charge and discharge simultaneously, and can release energy instantly. Due to these unique characteristics, the vanadium-redox battery proves to be the only battery capable of connecting to power grids, effectively removing the unpredictability of renewable energy and smoothing out the flow of energy stored from wind turbines and solar cells.

Large-scale vanadium redox batteries are al-ready being used in several markets around the world including the US, the EU, China, Japan, Korea and Australia.

Page 7

U.S. President Obama recently announced a $2.3 billion clean energy tax credit focused on renewable energy production and storage.

Vanadium has also been intersected as far as 165 meters away from the previously existing resource envelope, which demon-strates the project’s expansion potential.

Crosshair has significant evidence of a 4.5 km long uranium/vanadium mineralized corridor in the CMB. With additional

drilling to connect the three zones within the corridor, there is potential for it to host a resource of 120 – 150 million pounds of vanadium.

In addition, the uranium resource sits within a much larger vanadium envelope, the limits of which have never been tested.

Results from Crosshair’s CMB Project that were not included in the initial resource estimate:

- 0.24% V2O5 over 22.7m including 0.30% V2O5 over 9.9m in hole C-04, and


- 0.23% V2O5 over 40.0m including 0.33% V2O5 over 5.5m in hole ML-57.

Recent drill results from Apella’s Lac Dore Vanadium Deposit:

- 0.33% V2O5 over 20.1m including 0.43% V2O5 over 6.3m in hole MA-09-05, and


- 0.25% V2O5 over 32.5m including 0.41% V2O5 over 14.8m in hole MA-09-07.

A comparison:Although Apella Resource’s Lac Dore Vanadium Deposit in Quebec, Canada is more ad-vanced than Crosshair’s CMB Project, their recent drill results are still comparable:

Figure 4. CMB 4.5 km long mineralized corridor

Potential Expansion

Page 8 Page 9

Subaru G4E Concept Car

(Vanadium-Lithium-Ion Battery)

Entering the electric car era

On Friday, January 8th, 2010 the U.S. President, Barack Obama, announced a $2.3 billion clean energy tax credit which has been granted to 183 projects across the U.S. that are involved in technologies including solar, wind and other initiatives to improve energy efficiency. This news comes as a follow up to the $2.4 billion that was announced last year as grants for battery development and electric vehicle technology.

As even more proof that the electric car era is upon us, General Motors an-nounced on Thursday, January 7th, 2010 that it has begun mass production of the lithium ion battery pack to be used in the Chevrolet Volt. This announce-ment comes only 3 years after the initial unveiling of the Chevrolet Volt concept car and marks the beginning of electric car production.

Although the lithium-ion battery is a huge advancement in battery technology, it has been proven that adding vanadium significantly improves its performance.

The Subaru G4e Concept car, unveiled in 2007, uses vanadium in its lithium-ion battery, which makes it possible to significantly increase the range of the car by increasing the battery’s energy density. The travel distance of the car can be extended from 40km to 200km on a single charge.

The Subaru G4e and its vanadium-lithium ion battery will be the next-generation of electric cars.

Figure 5. Advantages of Vanadium over Lithium

Lithium Vanadium

Lifespan of tens of thousands of cycles x a

Non-toxic x a

Can be charged and discharged over and over

x a

Low self-discharge x a

Can absorb or release large amounts of energy at a moment’s notice

x a

Generates low levels of heat x a

Highly expandable x a

Suitable for connection to power grid x a

GM Chevrolet Volt

(Lithium-Ion Battery)

Irreplaceable in aerospace

Vanadium is also used as an alloying el-ement in other industries such as aero-space, where, unlike the steel industry, there is no other metallic substitute.

Vanadium-titanium alloys have the best strength-to-weight ratio of any engineered material on earth. These al-loys generally contain between 4% - 6% of high purity pentoxide (V2O5) which allow titanium to perform better and at higher temperatures.

Although this particular use of vana-dium is not a high volume driver of va-nadium demand, the titanium content of aircrafts has continued to increase with each generation and as it contin-ues to do so, so too will the demand for vanadium.

Over the years vanadium has become essential to the aviation industry, ma-rine transportation, complex engineer-ing, the aerospace industry, as well as others. Ultra high-strength and super-light steels are often called the plastics of the 21st century.

A steel strengthener

For decades, vanadium has been used in everyday applications, primarily in metals. It has remarkable characteristics which give it the ability to make things stronger, lighter, more efficient and more powerful.

Vanadium is an essential alloying ele-ment used in high performance steels to create things such as gas and oil pipe-lines and pressure vessels, structures such as bridges and buildings, shipbuild-ing and heavy machinery manufacturing as well as automotive manufacturing. Vanadium bearing steels, which typically contain 0.05% - 0.15% vanadium, are significantly enhanced compared to crude steels with no added vanadium. The product created is lightweight, wear resistant and extremely high in tensile strength, which means less steel can be used to meet even higher performance standards.

Various Uses of Vanadium

Vanadium has the ability to make both steel and titanium alloys stron-ger and lighter, making it irreplace-able in aerospace, aviation, automo-tive, shipping and construction.

Page 8 Page 9

Subaru G4E Concept Car

(Vanadium-Lithium-Ion Battery)

Entering the electric car era

On Friday, January 8th, 2010 the U.S. President, Barack Obama, announced a $2.3 billion clean energy tax credit which has been granted to 183 projects across the U.S. that are involved in technologies including solar, wind and other initiatives to improve energy efficiency. This news comes as a follow up to the $2.4 billion that was announced last year as grants for battery development and electric vehicle technology.

As even more proof that the electric car era is upon us, General Motors an-nounced on Thursday, January 7th, 2010 that it has begun mass production of the lithium ion battery pack to be used in the Chevrolet Volt. This announce-ment comes only 3 years after the initial unveiling of the Chevrolet Volt concept car and marks the beginning of electric car production.

Although the lithium-ion battery is a huge advancement in battery technology, it has been proven that adding vanadium significantly improves its performance.

The Subaru G4e Concept car, unveiled in 2007, uses vanadium in its lithium-ion battery, which makes it possible to significantly increase the range of the car by increasing the battery’s energy density. The travel distance of the car can be extended from 40km to 200km on a single charge.

The Subaru G4e and its vanadium-lithium ion battery will be the next-generation of electric cars.

Figure 5. Advantages of Vanadium over Lithium

Lithium Vanadium

Lifespan of tens of thousands of cycles x a

Non-toxic x a

Can be charged and discharged over and over

x a

Low self-discharge x a

Can absorb or release large amounts of energy at a moment’s notice

x a

Generates low levels of heat x a

Highly expandable x a

Suitable for connection to power grid x a

GM Chevrolet Volt

(Lithium-Ion Battery)

Irreplaceable in aerospace

Vanadium is also used as an alloying el-ement in other industries such as aero-space, where, unlike the steel industry, there is no other metallic substitute.

Vanadium-titanium alloys have the best strength-to-weight ratio of any engineered material on earth. These al-loys generally contain between 4% - 6% of high purity pentoxide (V2O5) which allow titanium to perform better and at higher temperatures.

Although this particular use of vana-dium is not a high volume driver of va-nadium demand, the titanium content of aircrafts has continued to increase with each generation and as it contin-ues to do so, so too will the demand for vanadium.

Over the years vanadium has become essential to the aviation industry, ma-rine transportation, complex engineer-ing, the aerospace industry, as well as others. Ultra high-strength and super-light steels are often called the plastics of the 21st century.

A steel strengthener

For decades, vanadium has been used in everyday applications, primarily in metals. It has remarkable characteristics which give it the ability to make things stronger, lighter, more efficient and more powerful.

Vanadium is an essential alloying ele-ment used in high performance steels to create things such as gas and oil pipe-lines and pressure vessels, structures such as bridges and buildings, shipbuild-ing and heavy machinery manufacturing as well as automotive manufacturing. Vanadium bearing steels, which typically contain 0.05% - 0.15% vanadium, are significantly enhanced compared to crude steels with no added vanadium. The product created is lightweight, wear resistant and extremely high in tensile strength, which means less steel can be used to meet even higher performance standards.

Various Uses of Vanadium

Vanadium has the ability to make both steel and titanium alloys stron-ger and lighter, making it irreplace-able in aerospace, aviation, automo-tive, shipping and construction.

Page 7

U.S. President Obama recently announced a $2.3 billion clean energy tax credit focused on renewable energy production and storage.

Vanadium has also been intersected as far as 165 meters away from the previously existing resource envelope, which demon-strates the project’s expansion potential.

Crosshair has significant evidence of a 4.5 km long uranium/vanadium mineralized corridor in the CMB. With additional

drilling to connect the three zones within the corridor, there is potential for it to host a resource of 120 – 150 million pounds of vanadium.

In addition, the uranium resource sits within a much larger vanadium envelope, the limits of which have never been tested.

Results from Crosshair’s CMB Project that were not included in the initial resource estimate:



- 0.23% V2O5 over 40.0m including 0.33% V2O5 over 5.5m in hole ML-57.

Recent drill results from Apella’s Lac Dore Vanadium Deposit:



- 0.25% V2O5 over 32.5m including 0.41% V2O5 over 14.8m in hole MA-09-07.

A comparison:Although Apella Resource’s Lac Dore Vanadium Deposit in Quebec, Canada is more ad-vanced than Crosshair’s CMB Project, their recent drill results are still comparable:

Figure 4. CMB 4.5 km long mineralized corridor

Potential Expansion

Renewable energy storage

Vanadium also has a role in the advance-ment of large-scale rechargeable batteries, called vanadium reduction-oxidation batter-ies, also known as redox batteries.

Wind, solar and geothermal powers provide useful ways to generate electricity, however due to the unpredictability of nature, there needs to be an efficient way to store that energy.

Typical rechargeable batteries are unsuit-able when it comes to large-scale energy storage because they are unable to release large amounts of energy at a moment’s notice. The answer – the vanadium-redox battery.

“Without storage, renew-ables will find it hard to make it big.” - Imre Gyuk, US Department of Energy.

“All the great ways we have to generate electricity – solar, wind, geothermal – they’re nothing without an efficient way to store it…This is the biggest, most sig-nificant thing we’re facing this century.” -Ian Clifford, CEO of Zenn Motor Co.

Figure 6. A Representative vanadium-redox battery

The vanadium-redox battery can be designed to produce exactly the desired power for exactly the desired time, no more than required.

Source: Discover Magazine, 2008

Page 11





Crosshair’s Vanadium Project

Page 6

Extent of July 2008 Resource Estimate

155.0m of 0.184% V2O5 including

33.0m of 0.216% V2O5

Results Pending for ML-182

5.5m of 0.331% V2O5

7.5m of 0.184% V2O5

3.5m of 0.186% V2O5

Fault Zone

Figure 2. Central Mineral Belt ProjectFigure 3. Hole ML-181

The vanadium-redox battery is very dif-ferent from typical batteries in that they have a much longer lifespan, are non-toxic, can charge and discharge simultaneously, and can release energy instantly. Due to these unique characteristics, the vanadium-redox battery proves to be the only battery capable of connecting to power grids, effectively removing the unpredictability of renewable energy and smoothing out the flow of energy stored from wind turbines and solar cells.

Large-scale vanadium redox batteries are al-ready being used in several markets around the world including the US, the EU, China, Japan, Korea and Australia.

- There have also been several economic stimulus packages announced around the world being used to fund infrastructure projects, resulting in an increased demand for steel, and therefore, vanadium;

- High-strength low-alloy steel production has outpaced crude steel production by 21.6% year over year since 2006;

- The U.S. announcing $2.3 billion in clean energy tax credits focused on renewable energy production and storage; and

- With the U.S. pledging to double its renewable energy production within the next three years and other governments close to similar commitments, there will be in increase in demand for advanced battery technology.

In early 2008, vanadium prices increased significantly to $15.00 per pound, fuelled by continuing strong world demand and tight-ening of global supply. With several new demand channels for vanadium, including alternative energy and clean technology, demand pressures will remain strong for decades to come, leading to continued up-ward pressure on the price of vanadium.

Rapidly rising demand

Demand for vanadium is expected to grow at a compound annual rate of 7.8% through to 2015, fuelled by continuing strong world demand and tightening global supply. There are several factors that will continue to influence the demand for vanadium including:

- China, which currently consumes almost 40% of world steel production, is increasing its demand for steel that contains vana-dium;

- India’s steel production will almost double from 65 million tonnes to 124 million tonnes a year by 2011;

- World markets estimate total global infra-structure spending over the next 20 years will reach $35-trillion – with many of those projects requiring vanadium;

The Future of Vanadium


Page 5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Tonnes Vanadium (000’s)

Million Tonnes Crude Steel

vanadium consumption crude steel production

85

80

75

70

65

60

55

50

45

40

1,800

1,600

1,400

1,200

1,000

800

Source: CRU Stretegies

CAGR 7.8%

CAGR 7.8%

Figure 7. Vanadium Consumption and Crude Steel Production

Vanadium has also become very useful in the advancement of battery technol-ogy. Lithium ion batteries (to be used in the automotive industry) as well as redox batteries (for large-scale power grid usage) both benefit greatly from the use of vana-dium. As an anti-corrosion agent, vanadium can also be used to help enable the use of a new set of materials for strong rare-earth magnets.

These relatively newer developments in alternative energy and clean technology are expected to have a huge impact on the demand of vanadium over the next several decades.

How is vanadium traded?

Unlike many other commodities, vanadium does not trade on the open market, instead buyers and sellers negotiate privately. Prices are then published by independent market consultants.

What is Vanadium?

Vanadium (chemical symbol V) is a rela-tively rare metal that occurs naturally in about 65 different minerals and fossil fuel deposits. Vanadium is typically produced in limited quantity either from steel smelter slag, from the flue dust of heavy oil or as a byproduct of uranium mining.

Roughly 59,100 tonnes of contained vana-dium was produced globally in 2007. Ap-proximately 98% of that production came from vanadium-bearing magnetite found in ultramafic gabbro bodies in South Africa, north-western China, and eastern Russia.

What is Vanadium Used For?

Vanadium is predominantly used as a strengthening additive in steel and some forms of iron. Roughly 85% of vanadium is used in the high performance steel industry. Another 10% is used as an essential alloying element for titanium. Vanadium has be-come indispensable for many industrial and domestic products and processes. Other uses of vanadium include as a catalyst in the manufacturing of sulfuric acid as well as in ceramics and glass manufacturing.

Introduction

Figure 1. Price Chart

Source: Metal-Pages

Page 12

Page 4

Table of Contents

5 Introduction5 What is Vanadium? 5 What is Vanadium Used For? 5 How is Vanadium Traded?

6 Crosshair’s Vanadium Project

7 Potential Expansion 8 Various Uses of Vanadium8 A steel strengthener8 Irreplaceable in aerospace9 Entering the electric car era 11 Renewable energy storage 12 The Future of Vanadium12 Rapidly rising demand13 Limited supply 14 Conclusion

15 References


Page 13

Limited supply

Global vanadium supply is experiencing pressure due to two factors.

- First, power shortages in South Africa, one of the top three producers of vanadium, have disrupted current production and threatened future production due to the cancellation of some growth projects.

- Second, China has threatened to declare their vanadium supply as strategic and ban any further exports. If additional projects are delayed or dis-rupted, not enough new suppliers enter the market, or demand grows even more quickly than expected, the supply side could experience serious shortages.


Figure 8. Annual Conventional V Demand (1000’s of tonnes)

Source: Byron Capital Markets Industry Report, USGS

Figure 9. Production of Contained V by Country (tonnes)

Source: Byron Capital Markets Industry Report , USGS

Page 3Page 14

Conclusion

wind, solar and geothermal power sources which will feed our global power grids in the 21st century.

The unstoppable shift toward clean and re-newable energy will require the rise of new vanadium suppliers in order to maintain a stable balance between supply, demand and prices. Crosshair is strategically positioned to benefit from the potentially explosive vanadium market by continuing to develop our current project.

We invite you to participate in our growth.

Based on the current demand for vanadium as a strengthening additive in the steel and titanium industries, plus the growing need for alternative energies and clean technolo-gy, vanadium is positioned to explode from increasing demand in the face of limited supply.

With the era of the electric car now firmly upon us and the dawn of renewable energy now rising due to powerful political and economic pressures, we have every reason to believe that vanadium powered lithium ion-batteries will power our cars and thatvanadium-redox batteries will power the

Why Vanadium and Crosshair Exploration?

Crosshair’s Central Mineral Belt Project is located in Labrador, Canada and is currently host to an NI 43-101 compliant resource of 11.75 million pounds of indicated V2O5 (6.92 million tonnes at 0.077%) as well as an additional 15.81 million pounds of inferred V2O5 (8.17 million tonnes at 0.088%).

Crosshair recently began a Vanadium Resource Expansion Program with the goal of adding significant pounds of vanadium to the existing vana-dium resource.


The Subaru G4e and its vanadium-lithium-ion battery will be the next-generation of electric cars.

“All the great ways we have to generate electricity - solar, wind, geothermal - they’re nothing without an efficient way to store it...This is the biggest, most significant thing we’re facing this century.”- Ian Clifford, CEO of Zenn Motor Co.


Bull, Alister. Obama awards $2.3 billion clean energy tax credits. January 8, 2009. Yahoo News. http://news.yahoo.com/s/nm/20100108/bs_nm/us_obama_taxcredit

CPM Group. Vanadium Industry, 2008 Outlook. 2008. Research and Markets.

CRU Strategies: The Independent Authority. 2010. http://crugroup.com

Gluck, Robert. Little Known Element Vanadium Making Headway on Energy Scene. December 11, 2009. Energy Boom: Emerging Energy. http://www.energyboom.com/emerging/little-known-element-vanadium-making-headway-energy-scene

Hykawy, Jon; Thomas, Arun. Vanadium: The Supercharger. 2009. Byron Capital Markets Industry Report.

Johnstone, Bob. The Element That Could Change the World. 2008. Discover Magazine. http://discovermagazine.com/2008/oct/29-the-element-that-could-change-the-world

Mayer, Chris. How to Play the Quest for Fuel Efficiency: Invest in Vanadium. July 16, 2008. Contrarian Profits. http://www.contrarianprofits.com/articles/how-to-play-the-quest-for-fuel-efficiency-invest-in-vanadium/3816

Metal - Pages. Vanadium metal prices, news and information. 2009. http://www.metal-pages.com/metals/vanadium/

News Release: Apella Resources Inc. Apella drills 35.7m of 26.29% Fe2O3 at Iron-T. December 15, 2008. Stockwatch.

Special to the Financial Post. Vanadium: It could change the world. August 12, 2009. The National Post.

Special to the Financial Post. Uranium Star Corp. October 14, 2009. The National Post.

Taylor, Fabrice. Vanadium may prove to be an element of surprise. 2009. The Globe and Mail: Report on Business. http://v1.theglobeandmail.com/servlet/story/LAC.20091116.RVOX16ART1841/TPStory/TPBusiness

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The Element That Could Change The World - Discover Magazine

References


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Documents

Vanadium - Agoracom: Small Cap Investmentsmallcapepicenter.com/documents/cxxVanadiumBooklet.pdf · Uranium Star Corp. October 14, 2009. The National Post. Taylor, Fabrice. Vanadium