Electra Gold Hires a New Mining Contractor to Lower Costs and Increase Efficiency

  Electra Gold Ltd. (TSX VENTURE: ELT) is pleased to announce the engagement of Jedway Enterprises as the prime mining contractor at its PEM100 Quarry, located on Northern Vancouver Island. The readily accessible alumina and silica resources that are mined form the raw materials component supplied to major cement companies in the making of cement. In this economic downturn we are projecting to supply over 100,000 metric tonnes to our customers for 2009. While the tonnage is representative of previous years' supply, lowering our costs and increasing efficiencies is paramount.

Jedway Enterprises has a wealth of mining experience having successfully mined at the Fireside Barite operation and the Cantung Tungsten Mine. Jedway is equipped with hydraulic down the hole hammer drills fitted with dust collectors, which will facilitate routine sampling for improved grade control. Blast holes will be significantly larger diameter to further reduce costs.

Drilling and blasting will be conducted on a larger scale than previous to break sufficient muck for the entire year over a contained time period rather than protracted over the entire year, thus reducing costs.

Trucking and crushing will continue to occur year round. Shipping out on the west side of Vancouver Island for some of the yearly production will continue to be investigated as it is anticipated to lower the costs of trucking.

On behalf of the Board of Directors,

J. T. Shearer, President, Director

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.

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties, as it relates to Electra Gold Ltd., please refer to the Company's 2008 Annual Financials filed with SEDAR on April 30, 2009.

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

Contacts: Electra Gold Ltd. Dwane Brosseau [phone] or [phone] 604-944-6102 (FAX) [e-mail] www.electragoldltd.com