PROPERTY ACQUISITION: 398 UNITS (9950 HECTARES) NEXT TO APPLE BAY PROJECT

Vancouver, BC., August 7, 2003  --  Electra Gold Ltd. (TSX V-ELT) announced that it has increased its  mineral property holdings at Apple Bay near Port Hardy, B.C., with the acquisition of 27 new mineral claims. The claims purchased from company president, Johan T. Shearer, at his cost; will increase substantially the potential for producing cement feed stock, kaolin, base and precious metals, company officials said.

The purchase increases Electra Gold's holdings to 470 units (11,750 hectares). Earlier, the company purchased five claims consisting of 72 units (1,800 hectares). The 470 units Electra Gold now owns are located a few miles west of Port Hardy and the Island Copper Mine on the north end of Vancouver Island.

The Company is planning to develop its chalky geyserite and geyserite feed stock to the cement industry and plans to explore for precious and base metal deposits along this potential trend of which Electra now owns over 20 miles.

Production from the Island Copper Mine ( located eight miles south of Port  Hardy ) over a 25 year period amounted to 1.4 Mt of copper, 34 t of gold, 363 t of silver, 35 kt of molybdenum and 28 t of rhenium ( see Apple Bay Project Report  by Bryan Slim, MBA P Eng dated January, 2003 ). Currently Electra is seeking a permit in order to begin quarrying chalky geyserite and geyserite for the cement industry.

Electra Gold officials said they believe the Island Copper trend to be of great potential interest for development of new products.

Electra Gold Ltd. is a Vancouver, British Columbia industrial mineral mining company dedicated to preserving the environment.

On behalf of the board of Directors

“DOUGLAS STELLING”
Chief Executive Officer

“ The TSX Venture Exchange has in no way approved or disapproved the contents of this news release”