PROGRESS REPORT APPLE BAY CHALKY GEYSERITE PROJECT

Electra Gold Ltd. is continuing to ship chalky geyserite to Ash Grove Cement Company in Seattle, Washington.                                                            

Since receiving our permit in April to extract up to 110,000 tonnes of chalky geyserite from the PEM 100 Quarry located near Apple Bay on the north end of Vancouver Island, the company has posted the required reclamation bond of $50,000.  Yesterday Electra was successful in obtaining a Lease to Purchase a new specialized Midland SL4200 Quad Wagon End Dump.  It is anticipated that this piece of equipment will be teamed up with a tri-drive Kenworth KWT800, which the company is currently arranging to finance.  This trucking re-configuration will reduce our costs by about $ 1.00 per ton and ensure a long term and sustainable operation.

Electra anticipates an order for a large bulk sample of chalky geyserite for our third customer, which is a very large cement producer in north western North America.

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