Mr. John Costigan reports

ELECTRA ANNOUNCES SHARES FOR DEBT SETTLEMENT

Electra Stone Ltd. has entered into a shares-for-debt agreement with certain creditors whereby Electra will issue common shares of the company at a deemed price of 9.5 cents per share in full-and-final settlement of the amounts owing. Pursuant to the settlement agreement, $79,293 in debt will be settled by issue of a total of 834,660 shares of Electra.

Issuance of the shares will not result in a change of control of the company.

The shares-for-debt settlement is subject to the approval of the TSX Venture Exchange, and all shares issued will be subject to a four-month hold period from the settlement date.

We seek Safe Harbor.