Darren Young's missed penalty for Alloa proved crucial as they lost 5-4 on penalties to Peterhead in the Ramsdens Challenge Cup first round after it finished 2-2 after extra-time.
Alloa struck first in the 16th minute when Ryan McCord unleashed a 20-yard drive that nestled into the top corner.
Peterhead responded quickly, when Rory McAllister rattled the post from 12 yards after 23 minutes and on the half-hour Bryan Beasley hit an unstoppable shot into the bottom corner from 18 yards to level.
The home went ahead on the hour mark when McAllister collected Roy McBain's cross and drilled his shot into the top corner from close range.
Alloa hit back 13 minutes later when substitute Maxwell Wright converted from six yards after good work from Ryan Harding.
The best chance in extra-time fell to McAllister, but his effort crashed back off the woodwork.
Young put his penalty over, which was the only one missed, and allowed Beasley to strike the winning kick into the top corner.