October 20, 2008 - TSX Symbol: ELT

Electra Gold arranges Flow-through Financing - Private Placement

Electra Gold Ltd. (TSX: V) has arranged a non-brokered private placement of 1,875,000 flow-through units at a price of $0.08 per flow-through unit for gross proceeds of $150,000. Each flow-through unit consists of one flow-through share and a full non-flow-through share purchase warrant at $0.10, exercisable for 24 months from the date of the closing of the transaction. The private placement units are subject to a four-month hold period.
Funds will be used to target zones of high alumina geyserite and other silica-alumina products. The foregoing is subject to regulatory acceptance.

Electra Gold Ltd. (TSX: V) is pleased to provide the following update:

Apple Bay Geyserite Project
The Chalky Geyserite also known as alumina silica is mined near Port Hardy, B.C. shipments of Geyserite to end-users in Canada and the United States started in 2001. To date Electra has defined a geological inferred resource of 2.9 million tons of Chalky Geyserite (see report by J. Nilsson, P.Eng, dated June, 2001). The average grade is 79.32% SiO2, 13.4 % Al2O3 and 1.78% Fe3O4. The strip ratio for this resource is 0.2:1. Included in the material to be stripped is 0.2 million tonnes with an average grade of 72.0% SiO2, 22.1% Al2O3 and 2.00% Fe3O4. Mining production since 2003 of over 600,000 tonnes shipped supports the accuracy of this estimate. There are at least nine additional zones within the system over a length of 40km with large potential resources.

The company has recently discovered a relatively high alumina source of chalky geyserite with assays of surface material averaging 24%. Trenching is planned immediately.

 Lang Bay Kaolin project
Historical data (non-43-101 compliant) indicate a potential resource of six million tons of product with varying grades and associated values (see news release dated Sept. 12, 2006, and March 19, 2006).

Drilling has been completed in the past by Electra on its 100-per-cent-owned Lang Bay project which adds to the large historical database. Further drilling is required to evaluate emerging opportunities (see report by B. Slim, P.Eng, dated June 29, 2003, on the company's website).

On April 10, 2008 (see news release of that date) a preliminary market study of Kaolin on the Lang Bay project was received. Identified multinational users of Kaolin are being contacted and representative samples have been received.
For further information please contact:

Randy Buhler
Phone: 778-389-7712 or 604-696-1022 Loc. 1
rbuhler@electragoldltd.com

 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,
On behalf of the Board of Directors,

“Johan Shearer”

President

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

Please see website at www.electragoldltd.com