MANAGEMENT AT ELECTRA GOLD LTD. HAS ISSUED SHARES FOR DEBT IN THE AMOUNT OF 975,334 SHARES TO FIVE CREDITORS ON FRIDAY, JANUARY 27, 2005; WHICH HAS EXTINGUISHED $252,047 (CAD) OF DEBT.

Debt has been cut by more than half and reduced by $252,047 by issuing shares to five creditors, which include Doug Stelling, CEO and Jo Shearer, President (through his wholly owned private company, Homegold Resources).  Mr. Stelling, a co-founder and long time financial supporter of the company has made the decision to accept shares at a price of 50 cents per share.  This decision by the company's  CEO, to accept shares for debt at the price of 50 cents per share, demonstrates the confidence management has for the future of Electra.

Electra Gold Ltd. continues to supply raw material, known as chalky geyserite and geyserite to the cement making industry internationally.  Electra has been shipping product to major producers in the US Northwest and Western Canada and has been working toward expanding its market toward the south on the west coast of the United States and other Pacific Rim locations.  The company is also working on a number of other projects and products for various consumers of industrial minerals.    

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