Jordon Brown was frustrated after Peterhead slipped up to title rivals Montrose.
The Blue Toon were beaten 1-0 by the Gable Endies at Balmoor with Chris Templeman scoring.
The result leaves the Buchan outfit four points behind the Angus team at the top of League Two.
Peterhead do have two games in hand. Brown knows the importance of bouncing back and he believes his side will recover from the defeat.
He said: “It was disappointing, another poor goal to lose and another set-piece.
“It’s the second week in a row where we haven’t been at our best.
“It’s frustrating because we haven’t created as many chances as we normally do, so we’re disappointed.
“We were all aware we could have gone top of the league with a win.
“So that makes it more disappointing to lose, but we need to remember that we’ve still got the two games in hand and we can still go above them.
“It’s disappointing today, but we need to keep the heads up.
“We know the games in hand will be tough because we’ve got Clyde at home and they’ve beaten us already.
“And Annan away on a Tuesday night is a nightmare game for us boys from the North-east.
“It will be tough. But we need to get back to winning ways and playing as we were a couple of weeks ago.
“We’ve got a few injuries, but we’ve got a good squad here and a good team spirit so we’ll bounce back.”
It was a game of few chances and the first arrived just before the half hour when visiting keeper Allan Fleming made an excellent save. A long punt forward from Willie Gibson was superbly controlled by McAllister.
He held off Sean Dillon on the right-hand side of the box and fired a vicious low shot in from 16 yards which Fleming did well to hold on to.
Five minutes into the second period Gibson’s free-kick was headed across goal by Russell McLean for the lunging Jason Brown but the ball spun on to the roof of the net.
On the hour, Leitch fired into the hands of Allan Fleming from the edge of the box after a period of Blue Toon pressure.
But the Gable Endies struck with 16 minutes to play.
Graham Webster got space from a quickly taken free-kick and his angled 15-yard strike from the right of the box hit the post and broke for TEMPLEMAN eight yards out. Despite Jason Brown’s sliding block, the shot squirmed over the line.
Soon after Greg Fleming’s attempted clearance cannoned off Templeman and almost spun into the net.
Jason Brown headed a Gibson free-kick over with seven minutes left. McAllister controlled but blazed over from a tight angle late on as Peterhead desperately searched for a leveller.