January 7, 2008 - TSX Symbol: ELT

PERLITE DEPOSIT ACQUIRED

Electra Gold is pleased to announce that the Blackwater Perlite Deposit on Graham
Island has been acquired as a result of the Company’s ongoing research and
development program for industrial minerals.

The Blackwater Perlite Deposit is exposed over a distance of 85 metres along a road cut
at Blackwater Creek located 6.5 km southwest of Justkatla, B.C. The deposit is near
tidewater on Massett Inlet at Justkatla or Port Clements.

Previous government work suggests good expandability and a market study for Perlite
in BC was completed in 1994 (Open File 1994-21, 100 pages). The industrial
applications of perlite are high performance fillers, filter media, cleaners, and other
uses utilizing the insulating and heat resistance properties.

In horticulture, perlite is used throughout the world as a component of soilless growing
mix for hydroponics systems.

Construction applications utilize perlites high insulating and lightweight
characteristics. Perlite is used as an insulation. Perlite is also used as a lightweight
aggregate in "lightweight concrete" such as roof decks, under-floor insulation, ceiling
tiles and boards.

Presently Western Canada imports 100% of its Perlite requirements from Greece and
the USA.

There is a reported strong demand for over 30,000 tonnes of raw perlite in the Pacific
Northwest with a 1994 value of $1.4 million (Canadian Funds). Expanded Perlite
markets are $1.5 million, coated microspheres is approximately $2.5 million.
Markets for expanded perlite in Western Canada and the Pacific Northwest States are
relatively stable and within industry sectors exhibiting better-than-average mid-term
growth.

The Company has had several discussions with a recognized expert on the successful
sampling, evaluation, expanding and marketing of Perlite in Western Canada and is
negotiating to have this individual join Electra’s advisory team.
Comprehensive sampling of the Perlite deposit is scheduled for the week of January 7,
2008 with expansion test to follow at a recognized and experienced laboratory.

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

J. T. Shearer, M.Sc., P.Geo, President, is the Qualified Person as defined by NI 43-101
who supervised the preparation of the technical material of this release.
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 or contact Jo
Shearer at (604) 647-2227 or (604) 970-6402.