ELECTRA GOLD LTD. HAS RECEIVED AN INTERIM MINING PERMIT

Electra Gold has received permit Q220 to extract up to 110,000 tonnes of chalky geyserite from its PEM 100 Quarry located near Apple Bay and approximately 20 kilometers southwest of Port Hardy, BC. The permit has been issued on the basis of a Notice of Work application submitted on December 7, 2003 to the Chief Inspector of Mines. The Notice of Work lays out the location of the mining operations and is accompanied by two reports detailing the large scale and pilot scale mitigation system plan, design and recent performance.

This permit is part of an over-all strategy articulated in a letter to Mr. J. T. Shearer, President of Electra Gold, from The Honourable Pat Bell, Minister of State for Mining on March 31, 2004. Analysis of the effectiveness of the proposed acid rock drainage mitigation system during the extraction of the 110,000 tonnes will form part of the decision making process for a Mines Act permit to extract 240,000 tonne per year on a long term basis. Such a Mines Act permit will be issued within 45 days of demonstrating the effectiveness of the scaled up system.

One of the permit conditions calls for a licensed qualified professional to act as Environmental Site Manager. Electra Gold has engaged Bruce Wright P.Bio. of Nova Pacific Environmental to continue to act as Site Manager. Other conditions of the permit include water management, metal leaching and acid rock drainage treatment, engineered waste rock dump, stockpile management and an on site water quality monitoring system. Provisions for ultimate reclamation of the land and watercourses are included. There will be an annual report of reclamation activities and on-going environmental monitoring required. The permit requires Electra Gold to deposit with the Minister of Finance a refundable security in the amount of $50,000 and $1.00 per tonne during the extraction of the 110,000 tonnes.

Electra Gold is confident that the mitigation system will work as designed and as the pilot system demonstrated. Electra Gold intends to provide the Ministry of Energy and Mines the documentation that will prove the effectiveness of the mitigation system within 6 months of installation and continue to supply our satisfied customers for many years in the future.

Electra Gold Ltd. is a mining company, specializing in industrial minerals and dedicated to preserving the environment.

On behalf of the Board of Directors,

“Douglas Stelling”
Chairman and Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of the contents herein.

For further information, please see website at www.electragoldltd.com or contact Douglas
Stelling at (604) 647-2227 or Sunita Prasad at (604) 601-8277 or info@pivotal-group.com