Top-of-the-table Stirling Albion had their lead cut to four points after being held to a 2-2 draw by Elgin City at Forthbank.
Darren Smith, inset, converted a Callumn Morrison cross to put Stirling in front after six minutes and Smith then added a second midway through the first half.
However, Chris McLeish’s header in the 68th minute gave Elgin hope and within six minutes the visitors were level as Jordan Allan headed home a Thomas Reilly cross to salvage a point for the Moray men.
Stenhousemuir climbed to second spot courtesy of a 3-0 victory over second-bottom Edinburgh City.
Colin McMenamin’s close range finish broke the deadlock in the 65th minute after which Mark McGuigan’s double, the first of which was a spot-kick, completed a straightforward afternoon for the Warriors. However, City manager Gary Jardine resigned immediately after the full-time whistle at Ochilview with City occupying ninth.
Montrose are up to third after an entertaining 3-2 success over Clyde at Links Park. Smart Osadolor’s third-minute opener was soon cancelled out by Iain Campbell’s penalty for Montrose. Chris Templeman and Graham Webster were on target before half-time before David Goodwillie pulled one back for Clyde.
Peterhead slid to fourth after suffering a 2-0 defeat at the hands of Berwick Rangers at Balmoor.
Oliver Fleming grabbed the crucial opening goal for Berwick from six yards in the 74th minute and the visitors made sure of the points with seven minutes remaining as Andrew Irving teed up Michael McKenna for a well-worked second.
Cowdenbeath remain bottom of the table after losing 1-0 at Annan Athletic who picked up their first home win of the campaign.
Aidan Smith dispatched an unstoppable free-kick in the 37th minute to net what proved to be the winner for Annan who could have won by more.