Arbroath boss Allan Moore felt individual errors undermined a “magnificent” display as his stuttering title-chasers suffered a seventh game in a row without a win.
The Red Lichties bossed the first half but wasted a host of good chances.
And they were made to pay after the break when untracked Annan defender Steven Swinglehurst turned in the opener from close range on the hour before Peter Weatherson the veteran former Queen of the South and Morton striker sealed another defeat in stoppage-time.
It meant Queen’s Park took over at the top of League 2 and Moore is growing increasingly exasperated at his team’s inability to make their superiority count.
“I thought we were about to turn the corner because we played some magnificent stuff for 75 minutes but it’s just not going in for us at the moment,” he said.
“At no point in the game did I feel we were under any pressure whatsoever.
“The first half was the best we’ve played in a long while but when you get opportunities like that, you’ve got to put them away.”
Moore was annoyed at the way his side allowed Annan to get a foothold in the game.
He added: “I told them not to give away any silly free-kicks or corners because set-pieces looked like the only way Annan could hurt us, and that’s what happened.
“They got a free-kick through a foul we shouldn’t have made and then other boys in the team decide not to follow instructions and don’t go with their runners and then we’re 1-0 down and chasing the game.
“The second goal came because we had to send our centre-halves up.
“The fact we had to do that tells you everything about our centre- forwards at the moment.”
Dundee United-bound hitman Simon Murray was dropped to the bench as Moore mixed things up again in an effort to spark a return to winning ways.
The boss said: “We’ve tried numerous different formations and different players, but it doesn’t seem to be working.
“At the moment, every team outside the top three is chasing fourth spot, but if we lose our next 13 games we’ll be in trouble. We’re on a bad run.”