NEWS RELEASE

August 8, 2006

The Company is pleased to announce the shipment of Barge Load #62 on August 3, 2006.

Tonnage shipped to date in 2006 (Barges #42 to #62 sent Aug 3 totals 75,965.76 tonnes) is on target for the requirements of the Ash Grove Cement Plant in Seattle. This represents approximately CAD $1.3 million in revenues to date and the Company is on target for revenue and operating projections for 2006.

Negotiations continue with other possible customers for the Company's premium products.

For further information please contact:

A. Salman Jamal
Director, VP Finance and Corporate Communications
604-694-1994 Business
604-694-1995 Fax
888-410-1994 Toll Free

On behalf of the Board of Directors,

“J. T. Shearer”

President

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


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