Gammon Gold Announces Amended Credit Facility that Restores Full Access to Credit Facility



    TSX: GAM / NYSE:   GRS / BSX: GL7

    HALIFAX, June 29 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and
NYSE:  GRS): Gammon is pleased to announce that the Company and its current
lending syndicate comprised of the Bank of Montreal and the Bank of Nova
Scotia, have agreed to amend the Company's current credit facility that will
restore the Company's ability to access the undrawn portion of its current
US$50 million credit facility.
    Under the terms of the revised agreement the current loan covenant breach
has been waived and any restrictions that were imposed as result of that
breach have been removed. The amortization repayment schedule has been revised
and the facility remains subject to certain amended financial covenants, while
production and cash operating covenants have been removed.
    "While we remain confident that our improved cash position combined with
our strong cash flow profile is more than sufficient to fund our business
model, the credit facility provides assurance that the Company has access to
contingency funding if required." stated René Marion, Chief Executive Officer
of Gammon Gold. "We continue to move forward in executing our 2009 business
model that is underpinned by our strong cash flow profile."

    About Gammon Gold

    Gammon Gold Inc. is a Nova Scotia based mid-tier gold and silver producer
with properties in Mexico. The Company's flagship Ocampo Project in Chihuahua
State achieved commercial production in January 2007. Gammon Gold also
operates its El Cubo operation in Guanajuato State and has the promising
development Guadalupe y Calvo property in Chihuahua State.

    
                             Cautionary Statement
    

    Cautionary Note to US Investors - The United States Securities and
Exchange Commission permits US mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. This press release uses certain terms, such as
"measured," "indicated," and "inferred" "resources," that the SEC guidelines
strictly prohibit US registered companies from including in their filings with
the SEC. US Investors are urged to consider closely the disclosure in Gammon
Gold's Annual Report on Form 40-F (File No. 001-31739), which may be secured
from Gammon Gold, or from the SEC's website at http://www.sec.gov/edgar.shtml.

    No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This News
Release includes certain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian legislation. All
statements other than statements of historical fact, included in this release,
including, without limitation, statements regarding potential mineralization
and reserves, exploration results, and future plans and objectives of Gammon
Gold, are forward-looking statements (or forward-looking information) that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from Gammon
Gold's expectations include, among others, risks related to international
operations, the actual results of current exploration activities, conclusions
of economic evaluations and changes in project parameters as plans continue to
be refined as well as future prices of gold and silver, as well as those
factors discussed in the section entitled "Risk Factors" in Gammon Gold's Form
40-F and Annual Information Form as filed with the United States Securities
and Exchange Commission. Although Gammon Gold has attempted to identify
important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated, estimated or
intended.

    There can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Gammon Gold does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.




For further information:

For further information: please visit the Gammon Gold website at
www.gammongold.com or contact: Scott Perry, Chief Financial Officer, Gammon
Gold Inc., (902) 468-0614; Anne Day, Director of Investor Relations, Gammon
Gold Inc., (902) 468-0614

Organization Profile

GAMMON GOLD INC.

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