After a run of nine games unbeaten, Peterhead’s defeat at the hands of a dogged East Stirling side sees them back pulled back into the chasing pack.
The most important result on Saturday away from Ochilview was across the border as a resurgent Annan thrased Berwick Rangers 4-1.
Two goals from Josh Todd and one apiece from Matthew Flynn and Steven Swinglehurst sealed the victory and ultimately cost Berwick boss Ian Little his job.
Stirling Albion rose up to third place with a tight 1-0 win at basement boys Queen’s Park.
Mark Ferry nicked the only goal in the opening moments.
In the mid-table tie between Albion Rovers and Montrose, Scott Chaplain’s early goal was enough to secure the three points for the Wee Rovers.
One piece of good news for Jim McInally, checking the scores from the stands as he served the first of his two match ban, goals from Shane Sutherland and Craig Gunn saw Elgin City triumph 3-1 over a now faltering Clyde.
Scott Ferguson, who has shone at Broadwood so far this season, pulled back a consolation goal for the Bully Wee.
Montrose are the next challenge for Peterhead and McInally is hopefuly his charges can overcome the Gable Endies at Links Park.
There are no fresh injury worries for Peterhead and Rory McAllister’s tight hamstring was not exacerbated by playing 90 minutes against East Stirling.
Fraser McLaren, also suffering from hamstring trouble, may be back in contention to bolster the Blue Toon’s striking options.
The two teams have met twice so far in League 2.
Peterhead were sunk 2-1 at Links Park back in September but stormed to a 3-0 victory at Balmoor in a week that saw them also score five against Queen’s Park in November.
McAllister and McLaren were both on the score sheet that day.
McInally has also hinted there may be a new signing on show against Montrose.