Garry Wood admits the late penalty that cost Montrose a first win since September was a sickener.
The Gable Endies looked on course to end a seven-game run without a victory when Leighton McIntosh fired them ahead for the second time in the match with 14 minutes left.
But defender Wood was judged to have handled in the box as his side defended a free-kick in the last minute and Annan forward Peter Weatherson stepped up to equalise from the spot.
Wood said: “It was frustrating because we played really well.
“We’ve had a few bad results lately but we showed real character and dominated for long periods. We defended well but unfortunately that decision at the end has cost us. It was a poor decision.
“It hit my arm but it wasn’t intentional. Nine times out of ten, that’s not given anywhere on the pitch.”
Stephen Day fired Montrose in front with a low angled shot from eight yards in the 11th minute but Weatherson headed Annan level in 28 minutes.
McIntosh put the Links Park side ahead again when he ran the ball into an empty net after a clanger from home keeper Alex Mitchell.
But the Montrose players were left devastated after ref Don Robertson pointed to the spot when Weatherson’s free-kick struck Wood’s arm.
Wood insists his side showed enough promise at Galabank to suggest they are ready to stop the rot and get their promotion push back on track.
He said: “We’ve let ourselves down in the last few weeks but we played a lot better at Annan. We were in control of the game and should have had the three points.
“We’re encouraged by the performance and hopefully we can take that on and get a few wins under our belt. I definitely still see us as a top-four team.”