A 1-0 win over Elgin City at Gayfield sent leaders Arbroath five points clear.
Allan Moore's side were largely dominant, particularly in the second period and they were rewarded with Simon Murray netting a 76th-minute winner.
Second-placed Albion Rovers lost ground as they fell to a 2-1 loss against East Stirling at Cliftonhill.
Alan Reid netted a spectacular opener for Rovers in the 11th minute, but his day ended with a straight red card for a crude foul on Billy Vilder in the second half. By then, the visitors had completed a fine comeback through David McKenna and a fortunate Vilder strike.
Montrose remain third, but endured a 4-0 thrashing at the hands of East Fife at Links Park. Fraser Mullen, Ross Brown and Jon McShane were all on target for the Fifers in a rampant opening period.
Montrose's day worsened after the interval when they had Leighton McIntosh sent off before Kevin Smith netted East Fife's fourth.
Queen's Park now sit in fifth spot courtesy of a 2-0 success against Berwick Rangers at the Excelsior Stadium. Defender Bryan Wharton set Queen's on their way with a thunderous opener in the 19th minute.
The hosts then secured the points when Sean Burns curled the ball home to double their advantage.
Barry Ferguson played for the first time in his reign as Clyde player-manager, but his side stay bottom after being held to a 1-1 draw by Annan Athletic. Euan Smith's 39th-minute opener for Clyde was cancelled out by a Peter Weatherston penalty seven minutes after the break.
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