ELECTRA GOLD LTD. COMPLETES TRANSACTION TO ACQUIRE HANKIN POINT INDUSTRIAL MINERAL PROPERTY

Vancouver, B.C., June 26, 2003 - - Electra Gold Ltd. (TSXV-ELT) announced today it has completed its transaction to acquire the Hankin Point Industrial Mineral Property on Vancouver Island, British Columbia, Canada. The property contains limestone, which may be used to mitigate Acid Rock Drainage (ARD) for mining operations, Electra Gold Ltd. said.  This acquisition will enable Electra to conduct mining operations in a manner consistent with low impact on the environment, company officials said.

The Hankin Point Industrial Mineral Property is located 14 kilometers south of Port Hardy, B.C., on the north end of Vancouver Island on the west coast of Canada.  The property consists of the Coal Harbour #1 and #2 and Hankin Point #1 and #2 and totaling 30 units (750 hectares of land).

An initial drilling program completed in 1999 on the Lower Cretaceous sequence of shale, coal and arkosic sandstone fulfilled all chemical composition requirements for alumina and silica content necessary for the manufacture of Portland cement.  Electra Gold officials stressed that there is the potential of locating economic quantities of suitable material for the manufacture of Portland cement, given the strike length of approximately 1.5 kilometers observed on the property.

The limited sampling of the exposures of the Triassic Quatsino Limestone Formation on other parts of the claims has also yielded encouraging analytical results with respect to potential use in the manufacture of cement and as a neutralizing agent in the reduction and/or mitigation of ARD caused from sulfide bearing mine waste rock, tailings or ore stock piles. The strike length of the limestone is not precisely known, but earlier mapping has demonstrated a potential strike length of 2.5 kilometers, the company said.

The purchase of these claims provides Electra with an opportunity to reach toward one of its primary goals of conducting its mining practices in a manner consistent with a low impact on the environment.  The limestone material may prove to be a valuable source for ARD mitigation not only for our operations, but also for other companies, according to the company.

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”