The Red Devils led 6-5 heading to the third but were outscored 8-0 in the final period.
Ryan Mueller led the way for the Mohawks with 2 goals and 5 points.
Cory Lucier was the top point scorer for Wallaceburg with 2 goals and an assist.
Cory Burr has a pair of assists in the loss.
Elora dominated this one out shooting the Red Devils 55-36.
Game 3 in the series goes in Elora on Saturday with game 4 back at the Wallaceburg Memorial Arena on Sunday.