Sharks don't have lungs, but they do have to breathe oxygen to survive. Instead of breathing air, though, sharks get oxygen from the water that surrounds them. The concentration of oxygen in water is much lower than in air, so animals like sharks have developed ways to harvest as much oxygen as they can. The breathing process for sharks begins and ends with their gills, which they use to both extract oxygen from water and rid their bodies of carbon dioxide.

Most sharks get water to flow over their gills by swimming and moving through water, while some sharks will hold water in their cheeks and pump it over their gills - allowing them to breathe while resting on the ocean bottom.

More Info: www.lung.org