It took Peterhead little more than a minute to level with a training ground set piece. Allan Youngson fizzed an inswinging ball towards the corner of the net and Robert Linn was on hand to help the ball on its way beyond Keiron Renton.
Peterhead were handed the perfect chance to take the lead when Paul Kaczan felled Scott Michie on the edge of the area, but the Blue Toon number nine slammed his spot-kick against the post ensuring that the sides went in level at the break.
A minute after the break Peterhead got their noses in front. Youngson was again the creator with an inswinging corner that was sliced into his own net by the unfortunate Adam Nelson, who had allegedly been protecting the back-post area.
Elgin were not going to make it easy for their rivals and they put the cat amongst the pigeons thanks to some quick thinking from Andy Roddie.
His swiftly taken free-kick caught the Peterhead defence napping and Paul Kaczan nipped into head home from six yards.
Peterhead thought they had clinched the win when Martin Bavidge volleyed the ball home after Keith Gibson's dipping 25-yarder came back off the bar, however an offside flag delayed the celebrations until referee John Rowbotham blew the final whistle.