ELECTRA GOLD LTD. ANNOUNCES THE APPLE BAY CHALKY GEYSERITE PRODUCTION EXCEEDED 26,500 TONS AND GENERATED OVER $500,000 IN REVENUE DURING THE FOURTH QUARTER OF 2003.

January 5, 2004

Vancouver, Electra Gold Ltd. announces the Apple Bay Chalky Geyserite production exceeded 26,500 tons and generated over $500,000 in revenue during the fourth quarter of 2003.

A total of nearly 30,000 tonnes of chalky geyserite was shipped to Ash Grove Cement Company of Seattle, Washington and Lehigh Northwest Cement Limited of Delta, BC during the year 2003. Four of the five barge loads shipped during the year were sent during the fourth quarter of 2003 and contained approximately 26,500 tonnes generating just over $500,000 worth of revenue.

The Company has made substantial progress toward obtaining a mining permit. During 2003 the Company was working under a bulk sampling permit. A pilot mitigation system was built during the fourth quarter of 2003 and studies conducted by Keystone Environmental Ltd. and our other consultants have produced results that indicate we will be able to operate well within acceptable guidelines for protection of the environment. A final report is expected from Keystone by January 9, 2004 on the results of the pilot mitigation system. Final design of the long term mitigation system will include engineered wetlands.

The Company hopes to complete the permitting progress and begin full scale production early in 2004.

ELECTRA GOLD LTD.

DOUGLAS STELLING

Chief Executive Officer

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For further information, please contact:

Douglas Stelling

doug@electragoldltd.com

Or view our website at www.electragoldltd.com