The three points were essentially gifted to Annan in the 28th minute when Queen's Park goalkeeper Lucas Birnstingl's error allowed Kenny MacKay to shoot into an empty net.
The home side were left feeling aggrieved when, in the final minute, Lee Davison appeared to be tripped in the penalty area only for referee Nick Walsh to wave away their spot-kick claims.
At Cliftonhill, Peterhead's four-game winning streak came to an end when they played out a 0-0 draw with Albion Rovers. Peterhead goalkeeper Graeme Smith produced a fine first-half save from Rovers' Michael Dunlop and the leaders might have snatched a late winner but for the hosts' Neil Parry bravely blocking Andy Rodgers' shot.
Stirling Albion scored three times in nine second-half minutes to earn a stunning 3-2 victory away to Elgin City. Sean Crighton headed Elgin in front after half an hour and Dennis Wyness soon added a fortuitous second.
However, Jordan White pulled one back for Stirling in the 77th minute with a clever back-heel and, after Kieran McAnespie's header restored parity, White prospered from a Raymond Jellema blunder.
Clyde could only muster a 1-1 draw at home to Montrose. Stefan McCluskey put the hosts ahead just after the half-hour but Scott Johnston equalised eight minutes from time.
East Stirling fell out of the play-off places despite rescuing a 1-1 draw at home to Berwick Rangers. Lee Currie's free-kick gave Berwick a first-half lead but Paul Quinn levelled with a 68th-minute penalty.