Michael Daly's first goal for Annan Athletic was enough to condemn second-placed Peterhead to an away defeat.
Boosted by the point earned in a 0-0 draw against Rangers in their previous league game, Harry Cairney's side went ahead after just two minutes when Graeme Ramage latched on to David Murray's pass before sending a low driven effort past Mark McCallum.
Steven Sloan was inches away from doubling the Black and Golds' lead nine minutes into the second half, his close-range header cannoning against the post.
The home side's mounting pressure eventually told when Daly applied the finish to Ramage's right-wing cross two minutes later.
Daly was unlucky not to further extend the hosts' advantage in the 76th minute when he struck the post with a right-footed effort.
Veteran striker Martin Bavidge scored his first goal of the season five minutes from time to give Annan a nervy final few minutes, but the Blue Toon were unable to snatch a late equaliser.
Annan Athletic: Alex Mitchell, Blake, Peter Watson, Swinglehurst, McGowan, Sloan, Jardine, Ramage (McGachie 80), Murray, Chaplain, Daly. Subs Not Used: Summersgill, McKechnie, Love, Thorburn.
Goals: Ramage 2, Daly 56.
Peterhead: McCallum, Strachan, Ross Smith, Harding, McBain (Kelly 63), Winters (Maguire 58), Cowie, Redman, McLaughlin, McAllister, Bavidge. Subs Not Used: Jarvie, Fitzgerald, Tully.
Booked: Cowie, McBain.
Goals: Bavidge 85.
Ref: Paul Robertson