FINANCING HAS CLOSED

December 29, 2005

The Company is pleased to announce the closing of the non-brokered private placement of 1,250,000 units at a price of .08 a unit, first announced November 8, 2005. Each unit consists of 1 share and 1share purchase warrant exercisable into a share  at .10 for a period of 1 year. A 10% finder's fee will be paid in cash. In addition, the company will issue to the finder, 10% warrants. Each warrant is exercisable to purchase a unit at a price of .08 for a period of 1 year. The proceeds of the private placement will be used for working capital.

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

On behalf of the Board of Directors,

“J. T. Shearer”

President

The private placement and the options are subject to regulatory approval.

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 A. Salman Jamal, Syndicated Capital Corp. 604-694-1994  info@syndicatedcc.com www.syndicatedcc.com