Ballinamallard scored twice in just over a minute to defeat a Distillery side which is now four points adrift at the bottom of the Premiership.
Mallards striker Andy Crawford headed wide before Ryan Campbell squandered three chances for the Fermanagh side.
Whites forward Gary Liggett wasted a good opportunity before Jason McCartney poked in a 78th minute opener.
David Kee added the second when his header came off the bar and was adjudged to have crossed the line.
Distillery were first to threaten at New Grosvenor with the impressive Scott Davidson volleying wide from a Michael Halliday pass.
Crawford should have netted with his six-yard header while Campbell's efforts included a good save from Billy Brennan.
Liggett burst through just before the break but he failed to control the ball and the chance was gone.
McCartney's close-range finish was quickly followed by a controversial goal from Kee, with the assistant referee awarding the goal despite Distillery protests that the ball had not crossed the line.
The result leaves Tim McCann's team stranded at the bottom while the Mallards remain sixth.