Electra Working with Lafarge and Ash Grove

Negotiations with upper management at Lafarge are continuing (refer to News Release November 10, 2008) regarding a long term, multi-year contract for delivery of in excess of 100,000 tonnes per year.

Negotiations with upper management at Lafarge are continuing (refer to News Release November 10, 2008) regarding a long term, multi-year contract for delivery of in excess of 100,000 tonnes per year of the Company’s premier chalky geyserite product. We anticipate the agreement will be signed in late January 2009. Electra has also negotiated a renewal of the five year contract initially signed in April 2004 with Ash Grove Cement for delivery to their plant in Seattle, Washington. Both contracts will include an increase in price from current 2008 levels. Our next deliveries are scheduled for Seattle and Richmond in February 2009. With this increase in through-put we expect that the unit cost of production will decrease in 2009. The delivery protocol for Lafarge will entail sampling the load for chemistry and screening for size distribution, the results of which will be sent to the Plant for approval prior to the barge being loaded to ensure quality control. Rob Paterson, on-site Quarry Superintendent and Jo Shearer, M.Sc., P.Geo., President will be completing a detailed production schedule for 2009 within the next two weeks. On the coal front, Electra has been invited to make a presentation to senior Lafarge management in Calgary regarding possible project participation and/or product deliveries from our exploration project at Suquash Coal. For further information please contact: Jo Shearer Phone: 604-970-6402 or 604 696 1022 Loc 1 E-mail: jo@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, 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) 696-1022 or (604) 970-6402. Unit 5 – 2330 Tyner Street, Port Coquitlam, B.C. V3C 2Z1 Phone: 604-696-1022 Fax: 604-944-6102 E-mail jo@electragoldltd.com

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Electra is a Industial Mineral Mining Company on Northern Vancouver Island. We have been in production since 2003 selling an alumina/silica product to major cement producers. Electra is also doing exploration work on several promising projects.