NEWS RELEASE

The Company is pleased to announce receipt of a preliminary report on its wholly owned Lang Bay Kaolin Project from Process Research Associates, by Senior Metallurgist, Dr. Gie Tan, Ph.D. Results demonstrate that a suitable kaolin concentrate can be produced by clay beneficiation size classification via hydro-cycloning and simple settling. The Lang Bay samples used by Process Research display excellent amenability to simple conventional classification circuit, with out undue concern over dispersion and settling characteristics, or supernatant clarity issues related to the free flowing nature of feed and milled products.

The next stage of work on the property will consist of follow-up diamond drilling which is scheduled to begin later in September. The Lang Bay Kaolin Deposit was acquired in 2003 and is located 15 km southeast of the barge loading facility in Powell River, B.C.

A comprehensive technical report on the Lang Bay Project written by B. Slim, P.Eng., date d June 2003 is available on Electra's website under “properties”. Since 1981 there has been extensive trenching, reverse circulation drilling, HQ core drilling, geophysical surveys, bulk samples and in-depth laboratory work completed on the property.

A successful bulk sample was sent to the Elk Falls Pulp & Paper Mill in 1992, which resulted in a kaolin-filled newspaper run by the Vancouver Sun. The markets targeted by the Company are fillers, refractories, ceramics, paint, fiberglass and cement feedstock products. The Company is presently negotiating with a local industrial user to conduct an industrial trial using a bulk ceramics product. If certain specifications of final product such as brightness, grittiness and burnability are achieved the Market potential could be significant. The Company is also in the final stages of commissioning an independent market study for Western North America and the Pacific Rim to update its present market study done in 1989.

The Company management will continue to b e in contact with the Sechelt First Nation and Sliammon First Nation with the current results and seek appropriate approvals to begin the diamond drill phase of the work. This ongoing communication is an important part of the company's mandate to honour and respect First Nations rights.

Any questions regarding this news release can be directed to A. Salman Jamal.

Mr. Jamal can be contacted at:

Electra Gold Ltd.
Director, VP Finance and Corporate Communications
604-694-1994 Business
604-694-1995 Fax
888-410-1994 Toll Free

J. T. Shearer, M.Sc., P.Geo. President, is the qualified person as defined by National Instrument 43-101 who supervised the preparation of the technical information of this release.410-1994 Toll Free

On behalf of the Board of Directors, 

ELECTRA GOLD LTD.

“J. T. Shearer” President

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