Mr. John Costigan reports

ELECTRA ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Electra Gold Ltd. has arranged a non-brokered private placement of up to 10 million units at a subscription price of five cents per unit to eligible subscribers for gross proceeds of up to $500,000.

Each unit will consist of one common share and one share purchase warrant. Each warrant will be exercisable into one additional common share of the company at 10 cents per warrant share for a period of two years from closing of the private placement.

The common shares issued or issuable pursuant to the private placement will be restricted from trading for a four-month hold period in accordance with applicable securities laws and policies of the TSX Venture Exchange. Completion of the private placement is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the exchange.

The net proceeds of the private placement will be used to advance the company's operations and for general corporate purposes.

We seek Safe Harbor.