ELECTRA APPLIES FOR REINSTATEMENT OF TRADING ON THE TSX-V

ELECTRA GOLD LTD. has completed and will be immediately filing with the TSX Venture Exchange (the "Exchange") an application for the reinstatement of trading in its shares on the Exchange. Electra is currently suspended from trading and has been suspended since July 28, 1999. Prior to the suspension Electra was a successful mining company for over a decade, having produced over $100 million worth of gold and silver from its mine near Hawthorne Nevada, known as the Aurora Gold Mine, with its partner Canada Tungsten Corp during the years 1987 to 1997.

The Rambler Tailings Project located near Baie Verte, Newfoundland which Electra acquired in 1995 lost over $5 million culminating in the closure of the operation during 1997. The losses suffered at the Rambler Tailings Project and the severe decline in the gold price during late 1996 and 1997 brought Electra near to bankruptcy.

During the 1997 all of the directors, officers and employees of the Company resigned except for Douglas Stelling and Marcia Stelling who remained on the Board of Directors and Deborah Brand who joined the Company as Corporate Secretary. Later in 1997, Caroline Stelling joined the Board of Directors.

Debt Settlement

Electra has agreed to settle debt in the amount of $1,474,535.97 by the issuance of 4,523,126 shares (no warrants will be issued) to numerous creditors.

Private Placement

Electra has agreed to sell, on a private placement basis, 1,000,000 flow-through units and 2,000,000 non flow-through units at the price of $0.10 per unit. The flow-through units are comprised of one flow-through common share and one non flow-through common share purchase warrant. The non flow-through units are comprised of one non flow-through common share and one none flow-through share purchase warrant. Each share purchase warrant is exercisable to acquire, a further non flow-through share at the price of $0.15 during the first year of the term and at the price of $0.25 during the second year of the term. The proceeds of the flow-through units will be used to fund the recommended work program on Electra's Apple Bay property (described below). The proceeds of the non flow-through units will be used to fund ongoing expenses of Electra.

Acquisition of the Apple Bay Property

Electra has entered into agreements to purchase all of the mineral rights to the Apple Bay property located near Port Hardy, which is located on the northwestern tip of Vancouver Island. Exploration work consisting of diamond drilling and the extraction of two bulk samples and laboratory test work has been conducted on this property.

This property is primarily an industrial mineral property containing cement feedstock and Kaolin, a clay mineral used in the pulp, paper, paint and ceramics industries. There is significant base and precious metal potential as it lies within the belt containing the well known producer, Island Copper Mine and the unmined Hushamu Deposit. In consideration for the property the Electra will issue 3,000,000 shares and pay two royalties, which combined total $1.00 per processed ton of sold industrial product on one portion of the property and $1.10 per processed ton of sold industrial product on another portion of the property. Electra will also pay a 3% net smelter return royalty for all base and precious metals.

Directors and Officers

As further term of the agreement, Johan Shearer, a principal of the corporate vendor, is to become a director and the Vice President of Operations of Electra on the closing. Mr. Shearer is a professional geologist who has practiced extensively in British Columbia and who has specialized in industrial minerals.

Upon the closing, the directors and officers of Electra will then be (a) Doug Stelling, President and director, (b) Jo Shearer, Director and Vice President of Operations, (c) Marcia Stelling, director, (d) Caroline McNeill, director and (e) Deborah Brand, Secretary.

The removal of the suspension from trading and reinstatement of trading, the settlement of debt, the private placement and the acquisition of the Apple Bay Property are subject to approval of the Exchange.

All shares to be issued under the settlement of debt, private placement, and the two property acquisitions will have a hold period.

For more information please call Douglas Stelling, President of Electra Gold Ltd. at (604) 647-2227.

ELECTRA GOLD LTD.

Per: "Douglas Stelling"

Douglas Stelling, President

The TSX Venture Exchange has not approved and does not accept responsibility for the adequacy or accuracy of this release.