Conrad Balatoni headed City in front shortly before the interval and Liam Henderson doubled their advantage in the 56th minute. Annan rallied though, with Scott Hooper pouncing to halve the hosts’ deficit in the 64th minute but a leveller proved elusive.
Second-placed Peterhead stay in keen pursuit of the leaders as they thrashed second-bottom Berwick Rangers 5-0 at Shielfield Park.
Jack Leitch opened the scoring after two minutes and their advantage was soon doubled by Rory McAllister, pictured. When Jason Brown’s header put Peterhead three ahead before half-time there was little doubt about the outcome, with Russell McLean’s close-range finish and Jamie Stevenson’s free-kick in the second half heaping further misery on Berwick.
Third-placed Clyde’s title challenge stalled as they were held to a 1-1 draw at sixth-placed Cowdenbeath.
John Rankin struck the opener for Clyde in the 17th minute following a flowing move but hesitant defending in the 52nd minute presented Jordan Allan with an easy equaliser for the Blue Brazil.
Elgin City climbed to fourth thanks to a 4-2 success against Albion Rovers who remain eight points adrift at the foot.
Brian Cameron opened the scoring for Elgin in the 28th minute, only for Graham Gracie to level for Rovers within two minutes. Shane Sutherland then struck twice, one either side of half-time, to steer Elgin to a two-goal lead which was added to by Cameron who netted his second on the hour mark. Gracie’s strike in the dying seconds represented scant consolation for Rovers.
At Hampden, Lewis Hawke’s back-heel gave Queen’s Park a 14th minute lead against Stirling Albion who rescued a 1-1 draw courtesy of Darren Smith’s 37th minute lob.
The hosts finished with ten men following the late dismissal of Gerry McLauchlan for an ill-judged foul.