ELECTRA GOLD LTD. IS PLEASED TO ANNOUNCE THAT IT HAS SIGNED AN AGREEMENT WITH ASH GROVE CEMENT COMPANY OF SEATTLE, WASHINGTON TO SELL CHALKY GEYSERITE FOR A FIVE YEAR PERIOD.

Electra Gold Ltd. is pleased to announce that is has entered into an agreement with Ash Grove Cement Company at its Seattle, Washington cement making plant to purchase high quality chalky geyserite over a period of five years for its cement making operation.  This is good news for Electra, as management views this as a first step toward the company becoming a successful and sustainable industrial mineral producer.  Under the terms of the contract, Electra will be paid on an adjustable cost plus modest profit basis. Costs will be reviewed quarterly and adjusted as needed.  Ash Grove has emphasized its intention to assure Electra make a fair return on investment, but maintaining costs at reasonable industry levels.

Electra Gold Ltd. is primarily an industrial mineral producing company and has been delivering mineral products for over one year to the cement industry.  The company controls a number of properties hosting numerous types of mineral products.  Electra plans to evaluate and if appropriate to develop its two properties containing kaolinite, which host the geyserite and chalky geyserite deposits.  The company holds a large claim position in the vicinity of the Island Copper Mine and intends to investigate the potential for copper and gold development on these claims.

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