Daly news: Michael opens account
Michael Daly's first goal for Annan was enough to condemn second-placed Peterhead to a 2-1 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, but his close-range header cannoned 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.