ELECTRA GOLD LTD. ACQUIRES NEW COPPER- GOLD PROPERTY

Electra gold announced today that it has acquired a copper-gold property known as the Northwest Expo zone totaling 15 two post claims.  These new claims are adjacent to Electra Gold's Apple Bay property and is located northwest of the Island Copper Mine on the north end of Vancouver Island, British Columbia.  This property currently stretches for 45 km west of the Island Copper Mine and now forms a property holding of more than 50 square miles.  These claims have had preliminary exploration programs conducted on them by BHP-Billiton and Moraga Resources Ltd.,

Johann T. Shearer President, M.Sc., P.Geo. states; 

“Earlier exploration by BHP-Billiton identified a zone which is characterized by intensely silicified and pyrophyllitized alteration, which resembles the alteration found and associated with Cu-Au-Mo mineralization, such as Island Copper, Red Dog and Hushamu deposits.  This alteration zone forms prominent gossanous cliffs of Bonanza Volcanics pyroclastics intruded by large hypabyssal-type quartz-feldspar-porphyry (Q.F.P.), quartz and feldspar-porphyritic flows and wide areas of hydrothermal breccia.  The alteration, as exposed, is about +/- 900m east/west and ~300m north/south. 

An earlier soil geochemical survey revealed 3 large (~1,000' in length) and strong (+100 ppm) copper anomalies, located 3,000' south of the gossanous cliff.  A cluster of small copper anomalies flank the immediate south-facing gossanous cliff and portions of the leach-altered volcanic.  These latter display low order copper anomalies, have a coincident IP high rank chargeability anomaly, and are flanked to the northwest by a high order ground magnetic anomaly.

A 2.2 km exploration access road was built in 1994 to support the drilling of seven diamond drillholes completed by BHP.  The drillholes show extensive argillic-silica (low pH/high sulphidation) and, to some extent, phyllic alteration (quartz-sericite-pyrite), quartz-stockwork and minor, but widespread, supergene copper mineralization (e.g. chalcocite, covellite, bornite) coating pyrite.  This alteration and copper mineralization is hosted by slaggy/vuggy siliceous brecciated rock, presumably of rhyolite or rhyodacite composition.  The host and mineralization/alteration style resemble that on pyrophyllite/alunite/kaolinite-bearing, silica-rich rocks which cap Pemberton Hills that have been recognized as an advanced argillic zone.  Several highly anomalous copper (up to 1,100+ ppm) and gold (77' or 0.02 opt) values were encountered at DDH NWE #2.  Traces of supergene copper mineralization (chalcopyrite, covellite, bornite and enargite?) were encountered also at DDH's NWE 1, 2, 5 and 6, which are hosted by strongly leach/vuggy silica-clay rock.

The Northwest Expo Zone has been recently accessed by an extensive all-weather logging road system, which is being logged at the present time.  A program of geological mapping and sampling of the numerous new road cuts and road rock quarries is scheduled to start in October.”

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”

Chairman  & Chief Executive Officer

The agreement is subject to regulatory approval.

For further information, please see our website at www.electragoldltd.com or Douglas Stelling at 604.647.2227.

The TSX Venture exchange does not accept responsibility for the adequacy or accuracy of this release.