ELECTRA GOLD LTD. IS PLEASED TO ANNOUNCE THE ACQUISITION OF AN EXTENSIVE SEDIMENTARY IRON DEPOSIT NORTHEAST OF GRANDE PRAIRIE, ALBERTA

Preliminary sampling indicates the material assays in excess of 40% Fe2O3. The area is characterized by outcrops of oolitic sandstone and shale rich in iron, and is part of the Cretaceous Badheart Formation.

In past, the property has been in limited production.

The property is located close to rail transportation. Preliminary discussions have been held with possible Edmonton based customers who would use the iron-bearing product as a raw material for cement manufacture. The current supply for the Edmonton Plant is presently trucked from Southeastern B.C.

Electra has acquired the 572 hectare property for staking costs of $5.00 per hectare as Metallic and Industrial Minerals Permit 9303110643.

“This acquisition further enhances our growing industrial mineral holdings in western Canada. We anticipate incremental revenue and stronger bottom line performance as a result of this transaction,” said Electra President J.T. Shearer.

For further information, please contact Salman Jamal:

Syndicated Capital Corporation
604-694-1994 Business
604-694-1995 Fax
888-410-1994 Toll Free
www.syndicatedcc.com

On behalf of the Board of Directors,

Doug B. Stelling
Chairman of the Board

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

To contact Electra, please see our website www.electragoldltd.com or call Jo